A truly no money down property strategy?
I viewed this off market bungalow where the vendor found another house she had an offer accepted on as she was down sizing. She wanted a quick sale, houses on the same street were selling for £145k done up. We agreed a £90k purchase price and to split anything above this 50/50 by us underwriting it at auction for her.
What's auction under writing? A guarantee or security that if you dont achieve the price agreed I.e £90k then we would buy the property from her at that price, anything achieved on top of this is split 50/50. This means if it sells at £110k then there is circa £10k profit in it minus fees for not putting any money into the deal at all.
P.S You have to be prepared to buy the property should it not achieve the stated price negotiated but if you've negotiated a reasonable enough price you would never need to actually purchase it.
Following my Facebook post above which generated a lot of interest on Auction underwriting, I interviewed Jay Howard- Auction Manager at Auction House London, Professional Speaker and Author to Discuss this topic further- watch the full interview with Jay below.
To buy Jay's book which he mentioned in the interview:
"Before the Hammer Falls: The Insider's Guide to Property Auction Success" click on the link.
Happy to have a chat about auctions, we've purchased 9 of our properties in the last 18 months from auction and sold 4.
Let me know if you found this blogpost and interview useful, subscribe to my Youtube channel for more updates.
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