We are currently exploring an opportunity on the other side of the river.
The property consists of both residential and empty commercial.
It has all the elements we like in a deal: money coming in from day one, certainty in terms of planning via PD, and once all this has been done and executed we can then focus on further planning. With money having already been made.
When a deal has properties like this, you are insulated from risk; not immune, but insulated. Inevitably, there will be speed bumps along the way, however, there is a stronger chance of navigating them if the property is producing an income and there is certainty on the horizon.
We are currently sitting on a deal which is still on a bridging loan, at least 6 months longer than it should have been. This was due to the complacency of the solicitor, we had to switch firms halfway through the remortgage. This is not ideal, but in this situation it was required. This delayed matters, and, therefore, required a revaluation. Luckily, the property is producing a good income relative to its purchase price. And the construction cost was very competitive. We have learnt through hard experience that several angles are required on a deal, and it needs to be cash flowing.
The issue we are having with this deal is how do we close it? Do we press the trigger now and make an offer hoping this will be enough to get the contract, or do we bide our time, sniff at what other offers come in and then try to top them?
The issue with coming in too early is the offer can be used as leverage for others to increase their offers, above ours.
There is no black and white answer, either methods could work. The way to approach this is guided by gut feel rather than a procedure.
I think it is best to wait on this deal, and try and see what comes in first. It’s getting tough to find deals which tick all the boxes above; so, when one appears it needs to be grabbed with both hands.
An offer is essentially a piece of paper with a number on it, it shows no ability to firstly execute the deal and secondly in a timely manner.
Therefore, to strengthen our position it is important to evidence the ability to do both and work with a commercially minded conveyancer, one who can commercially quantify any anomalies which may come out of the woodwork during the transaction.