Ops to secure property whilst pursuing claim w/bad-credit
Discussion
Curious as to potential options,
Imagine a party left with bad credit/CCJ's and loss due to fraud/injury where defendant is known, of sufficient means and claimant high chance of success, in due course.
It leaves them unable to secure properties (such as full HMO's that would still turn a small profit with an interest only mortgage, and empty property ready to house wanting tenants with deposit in hand); properties to also be increased in size, value and rental space through development asap.
I keenly await any ideas how this scenario could be overcome to secure property, dev, and also possible retail & food space creation & revenue opportunity from being lost.
Properties are numerous, priced from 300k to over a million in areas with high value per square meter. leaving significant value after costs of increasing space; some are joint and development space out of view of locals enabling maximum development of space w/o fuss; some in areas of very high footfall from locals/park/schools/college/events and enable good retail & food opportunity being most convenient, closer location (and on main route) than competition hundreds of foot away.. one particular set is of three, which enable maximal 4 story and basement car park to be done without neighbors to disturb, have party wall issues, sunlight concerns or construction/excavation objections securing all three .etc,
Imagine a party left with bad credit/CCJ's and loss due to fraud/injury where defendant is known, of sufficient means and claimant high chance of success, in due course.
It leaves them unable to secure properties (such as full HMO's that would still turn a small profit with an interest only mortgage, and empty property ready to house wanting tenants with deposit in hand); properties to also be increased in size, value and rental space through development asap.
I keenly await any ideas how this scenario could be overcome to secure property, dev, and also possible retail & food space creation & revenue opportunity from being lost.
Properties are numerous, priced from 300k to over a million in areas with high value per square meter. leaving significant value after costs of increasing space; some are joint and development space out of view of locals enabling maximum development of space w/o fuss; some in areas of very high footfall from locals/park/schools/college/events and enable good retail & food opportunity being most convenient, closer location (and on main route) than competition hundreds of foot away.. one particular set is of three, which enable maximal 4 story and basement car park to be done without neighbors to disturb, have party wall issues, sunlight concerns or construction/excavation objections securing all three .etc,
Thanks guys,
Had email asking for help, was very tired & a little confused; They are certainly beyond a few HMO houses...
As I understand it, someone wishing to claim damages should be making reasonable efforts to minimize those damages. This appears why they have asked..
But if their solicitor is taking case on as No-win No-fee as I was told, they must be confident in the success and ability to collect; if they are confident in the claims viability, and the property is viable, surely they would find a way to secure the most viable at the best rates they can acquire for a fee on claim success or investment agreement.. Seems a little odd I was asked tbh.
Had email asking for help, was very tired & a little confused; They are certainly beyond a few HMO houses...
As I understand it, someone wishing to claim damages should be making reasonable efforts to minimize those damages. This appears why they have asked..
But if their solicitor is taking case on as No-win No-fee as I was told, they must be confident in the success and ability to collect; if they are confident in the claims viability, and the property is viable, surely they would find a way to secure the most viable at the best rates they can acquire for a fee on claim success or investment agreement.. Seems a little odd I was asked tbh.
Edited by NFT on Tuesday 26th March 12:10
StevieBee said:
Many No-Win No-Fee solicitors work on critical mass; take whatever case you can on the basis that some of them will be won.
Perhaps I gave too much weight to the No-Win No-Fee then..StevieBee said:
Either way, the two issues are entirely separate. An investor or lender couldn't care less about whatever legal claim is going on. The claim must run its course and be successful before finance is sought for the endeavour. Nobody is going to hand over money on the basis that the claim 'might' be successful.
Yes, this appears to be the problem, I think if lenders are happy with all but present circumstance of credit score, the viability and faith in the opportunity (appearing well spread across areas, markets and lending product types required) surely remains the same; The overall risk should be lower than a single project/area/market/product, and present circumstances should be further mitigatable somehow.
I think it should be a further good indicator that they are trying to overcome difficulties and push on with projects (highly likely to generate significant sums spread over multiple areas/markets/products) to right the situation aside proceedings, instead of taking a seat and watching how the claim goes with a wish and a prayer.
I wonder if there is a reasonably priced insurance product (to mitigate lending risk, get finance, and at better rates) for such situations? (where all is satisfactory but the present credit status nose diving during events outside control, esp. if good history prior, strong total viability and success of claim is somewhat measurable and unrelated to success of the opportunity)?
CaiosH said:
I think the OP is using a translate app or ChatGPT....
No but I take that very well indeed.CaiosH said:
Nevertheless, I think what you’re trying to sum up is if the investment is good why cant you find a lender that'll do it. What you missing is that while the investment might be good, its good for the person with the credit issues. For the lender they are investing in the person with the credit issues. So, it’s going to be a hard no from most lenders.
There is also a smell of some guru property courses in the post. Which always come across that they think they discovered fire or the equivalent after learning some very basic investment concepts, with little idea of the true nuts & bolts of how it works. The lenders know fully how it works. They’ll pass on you if you’ve bad credit and no experience. Despite how much of a good investment it might be.
For the lender they are investing in the person..There is also a smell of some guru property courses in the post. Which always come across that they think they discovered fire or the equivalent after learning some very basic investment concepts, with little idea of the true nuts & bolts of how it works. The lenders know fully how it works. They’ll pass on you if you’ve bad credit and no experience. Despite how much of a good investment it might be.
Never thought of it like that, project viability and risk mitigation would be the top of my list, the person having been a victim or incapacitated for a period would be of little concern over someone who couldn't manage a starter card to save their life..
Perhaps I should start looking at establishing a business that sets viable opportunities up for the credit disadvantaged with terms that see them simply become an opportunity procurer that gets a percent of profits..
StevieBee said:
A good friend runs a business doing just that. They provide car loans to subprime borrowers. It's a good model. They work with select dealers who provide PX cars and my friend's business provides loans to buy the car. The cars are tracked with remote immobilisation so that should the borrower default, the car (asset) can be quickly recovered and placed back into the market. Their default rate is less than prime lending. There's a significant amount more manual inputs as each and every application is properly assessed with detailed affordability checks done. This is reflected in the higher interest rate but also in the profit per transaction - around a third higher than prime lending.
Sounds good, yeah?
Incredibly, Sounds good, yeah?
I've a comprehensive diversification strategy for beneficent group growth and expansion, so might have some ideas.
Any idea of volume, new custom and if they are compacted into geographical area/s?
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