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Hello Jonathan. I actually looked at going on to your mentoring program when I was looking around your name had poped up a few times.
Jonathan runs a Mentoring programme?????
Yes he does indeed, check his website out. He seems very genuine though as he has stopped taking on new clients as he wants to provide a high level service to his current clients. That's good indicator someone is legit.
In the past mentoring on a rather ad hoc one to one basis yes -
but a sophisticated structured mentoring programme no
Jonathan Clarke. http://www.buytoletmk.com
Thank you for considering my mentoring programme. Alas our paths did not cross
One has to be careful though with the true meaning of the revered and often elusive `discount`
A discount has to be measured really against a verifiable price of a control sample or a comparable
Very difficult the more the unique a property is . Very easy if there is a row of similar 50 terraces
Some will be happy to pay asking price and get a better deal than someone who gets 20% off an asking price
The asking price is just for show . It means very little in reality
It could be undervalued or over valued . The reasons for this are multifold
eg overvalued because of vendor expectation, or maybe undervalued to generate interest
There is a house near me with 13 offers in - all over asking price
If I got it for asking price it would be a brilliant deal probably a discount of 25% BMV
In a depressed market 5 -10% yes may be easy to achieve at an agent
but in a strong rising market next to impossible
So the test for your 98K property is - was it really worth 98K in the first place. Maybe - maybe not
So you need to compare it with something
If bought for 72K and then re sold the next day for 98K then yes it would true you obtained a very good discount
If though you can sell it for only say 80K the next day then the discount is not a true 26% BMV
So to test your case study you would need to share with others the actual property in question
Then DD can be done by experienced people familiar with that area
I understand of course if you may not want to share the address but without that the discount cannot be tested
Not sure why it was 98K one minute but then 90K ?
The lower the value property the more distorted a discount looks of course
so 28K for a 35K property is 20% below but condition becomes everything then .
7K is easily eaten up in a possible refurb rendering the discount relatively meaningless
A 400K property though obtained for 320K is also 20% below and 7K spent is a drop in the ocean
That 20% discount has much more true value than the previous one
In the new year you see tons of discounts - half price sales in clothes shops are common place .
T shirt. Was £10 now £5
I`ve yet though to see an estate agent have a half price sale
4 bed detached . Was 400K - now 200K
Test the true discount is the moral of the story
I hear JC had to give up the training and mentoring so he could concentrate more time on his takeaways!
Fish n' chips requiring the most time, apparently ;->
That was a beautiful read. Expected nothing less. It shows you are a true expert in your field!
The address is 32 Brighton terrace, Darwen. The deal has gone so I don't mind sharing the address.
The property for 35k actually sold for 33k in the end. The house was recently refurbished and all ready tenanted at 300 pcm with a long term tenat in there. Which was actually lower than the market price. Depending on the AST that can be increased by the new owner
Thank you for the response and added detail. In the first instance, I would be interested to learn what you were taught about setting up and operating a compliant business? Are you aware that, by introducing a buyer to a seller, you are acting as an estate agent, and that is a highly regulated activity?
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
Yes you have to be compliant under anti money laundering and ombudsman. For now I am doing it through my mentors licenses to be compliant. He is registered with the ombudsman, GDPR compliant and registered with anti money laundering scheme
Who is your mentor?
And can you explain the details of their mentorship program?
It would be interesting to compare with others on the market.