Any chance we could get the breakdown on costs? It’s clearly cost more than £6k. Even if you did do the actual refurb for £6k, what about auction/agent/solicitor fees and interest on this cash he has (which I’m assuming is someone else’s money)? I’d love to see that breakdown. £6k just can’t be right given how good the property looks. I’d love to be wrong….but come on, we weren’t born yesterday.
Usually “cash buyer” means no mortgage. This could mean bridging finance or cash in the bank is being used. It means the buyer can move at a much faster pace and the sale can complete sooner.
So you buy the house cash 80k. Add value to the property referb now worth 120k. Take your original 80k back using the 40k equity to mortgage the property. Then the tenant pays the house off in theory. Is this right …… 👍
Buy at 80k, then refurb might cost £10k-15k. New value is 120k. Then get a new mortgage (remortgage) based on the new value at 75% ltv (pull out 75% of new value 120k) 120k x 75% = 90k. He gets his original 80k back + 10k profit that isnt taxable bc it is a loan. Tenants pay rent and property cashflows
It’ll almost certainly be an interest only mortgage - which is perfectly fine as you’ll be build equity as house prices rise. In theory, so lone as the property makes money every month (even £1) it’s a solid model. You’re not losing any money and your investment value increases. Used to be easy to do this pre 2008 but now, you have to find something exceptional for it to stack up.
Would you consider investing in Swansea?
Yes.
Well done mate 👏
Well done corey
Any chance we could get the breakdown on costs? It’s clearly cost more than £6k. Even if you did do the actual refurb for £6k, what about auction/agent/solicitor fees and interest on this cash he has (which I’m assuming is someone else’s money)? I’d love to see that breakdown. £6k just can’t be right given how good the property looks. I’d love to be wrong….but come on, we weren’t born yesterday.
Yes Corey! 🔥
What’s does he mean when he says bought it with cash?
Liquid. So no loan or mortgage just what money he had in the bank :)
Usually “cash buyer” means no mortgage. This could mean bridging finance or cash in the bank is being used. It means the buyer can move at a much faster pace and the sale can complete sooner.
So you buy the house cash 80k. Add value to the property referb now worth 120k. Take your original 80k back using the 40k equity to mortgage the property. Then the tenant pays the house off in theory.
Is this right …… 👍
Buy at 80k, then refurb might cost £10k-15k. New value is 120k. Then get a new mortgage (remortgage) based on the new value at 75% ltv (pull out 75% of new value 120k) 120k x 75% = 90k.
He gets his original 80k back + 10k profit that isnt taxable bc it is a loan. Tenants pay rent and property cashflows
Thank you
It’ll almost certainly be an interest only mortgage - which is perfectly fine as you’ll be build equity as house prices rise. In theory, so lone as the property makes money every month (even £1) it’s a solid model. You’re not losing any money and your investment value increases. Used to be easy to do this pre 2008 but now, you have to find something exceptional for it to stack up.
Corey looks like he’d bench 130kg 😂