Why I’m Not Writing Any More Problem Property Blogs
These blogs have been great in getting publicity and exposure to investors and to people with problem deals they don’t know what to do with. I’ve paid a few finders fees as a result, typically 3k per single-unit property, the highest was 7k for a multi-unit property. So far so good.
The downside has been that I’ve freely educating lots of people to compete with me by using my own MO. I know this because they’ve told me. For instance it’s got much harder to buy subsidance properties in Bristol, people will pay over the odds for something that would have gone begging previously to 2013. Of course I can’t take credit for that, it’s largely to do with the rising market. But I have added to it because people have told me they’ve bought these after reading/ seeing what I’ve done and how I’ve done it. Even if they can’t match my specialist knowledge about the fabric of buildings, that knowledge can be bought in. So this strategy has become unviable for me to put much energy into. It’s not impossible but much more competitive now, meaning there is lower-lying fruit elsewhere.
So I’m keeping quiet about the latest deals I’ve done and how I’ve done them. There are lots of other types of problem properties and other ways to deal with them and it isn’t usually what you might think. It’s often very lateral. I’m a problem-solver, it’s what I do. Unless it’s tight I’ll usually work off a back-of-an-envelope type calculation, and as long as there’s plenty of fat on the deal, well over my minimum criteria, I’ll go for it anyway. This works fine so long as you know ALL the costs you need to put into a flip deal, particularly transaction costs – you know, all those costs omitted from Homes Under The Hammer. These include SDLT, solicitor’s costs x 2 to buy and sell, estate agent / auctioneer costs to sell, auctioneer buyer’s premium, cost of finance if used, council tax, utility bills, insurance… People forget these and I’m always reminding them on UK Property Traders https://www.facebook.com/groups/UKProperryTraders/
I don’t rule out writing further blogs, and if anyone suggests something I’ll certainly consider it. But I’m not going to continue to feed my competition. In any case, the market is ever-changing, strategies that once worked no longer work, whilst newer strategies now work, and in different locations.
So that’s me for now.