Residential - Bulk Selling Off Plan
Discussion
Have a development due to start later in the year which is forecast to return very good profits & as such would be interested in tying up a deal with something where they purchase the whole development at an agreed % discount.
I know there are such companies out there but have never dealt with them before.
The development is in yorkshire & is expected to complete July 2009.
Has anyone on here done this previously & if so what were your experiences.
I know there are such companies out there but have never dealt with them before.
The development is in yorkshire & is expected to complete July 2009.
Has anyone on here done this previously & if so what were your experiences.
Hobo said:
Have a development due to start later in the year which is forecast to return very good profits & as such would be interested in tying up a deal with something where they purchase the whole development at an agreed % discount.
I know there are such companies out there but have never dealt with them before.
The development is in yorkshire & is expected to complete July 2009.
Has anyone on here done this previously & if so what were your experiences.
Yes.I know there are such companies out there but have never dealt with them before.
The development is in yorkshire & is expected to complete July 2009.
Has anyone on here done this previously & if so what were your experiences.
I used to be a buyer of deals like this. Are you reliant on a % sale to release staged funds?
Send me details please.
No, we are not reliant on a % sale to release any monies.
One question I have is whether the purchaser would released any monies to us on agreement to purchase the whole development (or part), ie say a 5% deposit ? Whilst not entirely necessary it would obviously be useful as it would obviously mean more monies available for other developments, etc.
One question I have is whether the purchaser would released any monies to us on agreement to purchase the whole development (or part), ie say a 5% deposit ? Whilst not entirely necessary it would obviously be useful as it would obviously mean more monies available for other developments, etc.
Hobo said:
No, we are not reliant on a % sale to release any monies.
One question I have is whether the purchaser would released any monies to us on agreement to purchase the whole development (or part), ie say a 5% deposit ? Whilst not entirely necessary it would obviously be useful as it would obviously mean more monies available for other developments, etc.
Depends on the deal.One question I have is whether the purchaser would released any monies to us on agreement to purchase the whole development (or part), ie say a 5% deposit ? Whilst not entirely necessary it would obviously be useful as it would obviously mean more monies available for other developments, etc.
Its a big ask on an unsteady market to fix a price for bulk purchases.
I'm sorry but at 25-35% it just isn't worth the while. I'd rather stick BTL's on them &/or have them sat empty & cover the mortgage myself. Maybe if it was the last couple to get shot, but not the whole lot.
I was thinking more along the lines of 15% I must admit, at which kind of figure I would be interested.
I was thinking more along the lines of 15% I must admit, at which kind of figure I would be interested.
rich1231 said:
Hobo said:
No, we are not reliant on a % sale to release any monies.
One question I have is whether the purchaser would released any monies to us on agreement to purchase the whole development (or part), ie say a 5% deposit ? Whilst not entirely necessary it would obviously be useful as it would obviously mean more monies available for other developments, etc.
Depends on the deal.One question I have is whether the purchaser would released any monies to us on agreement to purchase the whole development (or part), ie say a 5% deposit ? Whilst not entirely necessary it would obviously be useful as it would obviously mean more monies available for other developments, etc.
Its a big ask on an unsteady market to fix a price for bulk purchases.
JustinP1 said:
rich1231 said:
Hobo said:
No, we are not reliant on a % sale to release any monies.
One question I have is whether the purchaser would released any monies to us on agreement to purchase the whole development (or part), ie say a 5% deposit ? Whilst not entirely necessary it would obviously be useful as it would obviously mean more monies available for other developments, etc.
Depends on the deal.One question I have is whether the purchaser would released any monies to us on agreement to purchase the whole development (or part), ie say a 5% deposit ? Whilst not entirely necessary it would obviously be useful as it would obviously mean more monies available for other developments, etc.
Its a big ask on an unsteady market to fix a price for bulk purchases.
Hobo said:
Ditto. Them were the days, circa 2k every 6000 miles (for 4 months for me) 
Fun, fun.
But, back to the %'s, is 22-35% reality & if so why would anyone sell ?
Money was harder to get in the mid 90's, banks would only lend in stages and some were dependent on a % of properties presold. Fun, fun.But, back to the %'s, is 22-35% reality & if so why would anyone sell ?
Want to continue your build and need funds released then sell 20% of the development quickly for a good discount. Not you of course, but it worked in the past.
Hobo said:
Right, ok, I know whats viable. Would offering 15% discount get people interested in the purchase of either all or part of the development ?
No, not at all. Im sure 15% could be available to an off the street purchaser.As mentioned before the market is unsteady. You are asking a buyer to take on all your risk for a cut in profit.
Hobo said:
ok. so basically the easier option is to continue to fund the deal as intended & then just undercut everyone around by a decent chunk to shift them quickly.
It depends on your market. If you believe the doommasters then if you are looking at flats around the £100k to £120k mark for first time buyers, then the plug might have been pulled on accessibility to mortgages. Similarly, getting rid on BTLs might not be that attractive.
That said, I do believe the doommasters to be actually perpetuating their own doom, which makes me think the horror stories are being told by those who believe them - that doesnt mean it might be true, just justifying their own financial decisions to others.
JustinP1 said:
If you believe the doommasters then if you are looking at flats around the £100k to £120k mark for first time buyers, then the plug might have been pulled on accessibility to mortgages. Similarly, getting rid on BTLs might not be that attractive.
Seeing as these flats are new build, which includes conversions, alot of lenders will not go beyond 75% LTV, some are sticking even lower at the mom. There arent that many FTB's with 25-35% deposits around, and those that do have them would rather buy say a house (second hand if you will) and have a larger mortgage, on a perceived better property. Sorry if I'm pissing on your chips hobo. Not at all. I welcome all feedback.
I do not have worries about selling them & making good returns, I am just enquiring about the other options available to me.
My main issue with the development in question is its location from where I am based. I have/will have 2 or 3 other developments on the go when this is due to finish & as such would be happy to sell in bulk at a discount circa 15% as time could be better spent elsewhere.
Just exploring all the options.
I do not have worries about selling them & making good returns, I am just enquiring about the other options available to me.
My main issue with the development in question is its location from where I am based. I have/will have 2 or 3 other developments on the go when this is due to finish & as such would be happy to sell in bulk at a discount circa 15% as time could be better spent elsewhere.
Just exploring all the options.
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