General (main property discussion here) - Starting up a New Property Club - Anyone interested??

I'm interested in anything overseas do you have any areas in mind? Also what makes you feel that you will be obtain a 'genuine discount' from developers? I am employed by a national housebuilder and have previously worked for most of the the countries leading high volume developers, i'd be interested in what you have to say as my experience is from the other side of the fence.

juanjuice4@aol.com

No disrespect James, but having read all your threads on this site, you know very little about property investing. You only have a couple of properties yourself and have only started recently, so how the heck are you intending to advise people.

Alot of what you have written over time is absolute rubbish.

I find it very frightening that people who are starting out and know no different will be guided by you!!

That is why property investment is full of sharks.

Ed

James, your doing it again, this is the second thread ive seen you in that you have insulted someone, have some respect and allow others to have an opinion and to be honest mate if you were older and more mature you would perhaps of said Ed, i take your points on board, however im young motivated and can deliver, to be honest your just imature and rude. And i dont think anyone on here would do business with you after they read your insulting remarks to Ed.

Grow up! and learn to have a little respect, ive been brought up to respect all people and would never react in the way you do, i value other peoples input and opinion and this is how i learn.

p.s. Ed i value your opinion so please keep applying to the threads, this is an open forum and you are not affraid to voice an opinion, when i origanally saw this thread i thought,"oh no whats he doing? he knows nothing about property, he's been in the game 5 minutes" however, i keep my opinion to myself.

and James my credentials are very good mate. Excuse my spelling as James crudley puts it im as "thickas" but am not a friend of Ed's.

James, please dont take this the wrong way, but it seems to me you have little understanding on firstly how to negotiate a genuine discounted deal, secondly the solicitors and brokers needed to perform a simultaneous bridge and re - mortgage or a sub sell and an assignable contract. I deal directly with persimmon and regulary obtain 17 to 18% discounts and perform within 28 days. This took me over 2 years to get tis stage. This is something you could not possibly do with a group of investors. You would not be able to track the mortgage progression and what happens if someone changes their mind? Effectively you can not perform. You dont understand valuations and the effects these have with certain lenders, you do not have the brokers in order to package with certain lenders, and probably the brokers and defiantely yourself are unaware of eposure limits with the lenders on certain sites. A lot of developers work on all or nothing. You need to educate yourself quickly my friend if your going to be the next inside track, challenor or fast track.

James - keep going though, dont want to knock you down, your ambitious and you will get there.

Come on children,play nice please!!

yeah, keep going James. Alan Sugar started somewhere so did richard Branson. Keep going mate, dont let the buggers put u down.

Please correct me if I'm wrong, but are you the same James who has posted asking about how a cash back works? No offence, but how can you hope to set up a property company and offer other investors deals when you haven't done some of the basics yourself? I do wish you all the best, you seem ambitious, but perhaps you could benefit from more experience before you launch your company properly?

James,

Wise advice from all, but James go for it. Assuming you are assailing the same learning curve as me (also ambitious) forgive the following questions

a) What do you mean by the 'sub sell' method b) Would you not be more interested in people becoming active participants in a property club than charge £1000. Seems to me the more experience you have onboard (legal, financial), coupled with additional buying power such partners would bring would be far more valuable than £1000. c) what would be your view on commercial opportunities, i think these deliver better positive cash flow and have considerable tax breaks from the chanceller to boot, i.e. Max Taper relief after 2 years (you only pay 10%)

Hi James - it's an interesting business and if you can make a living from it good luck to you.

I have recently set up a property investment company and this shortened story is how it came about:

Have been involved in Buy to Let since 1996 when attended the launch by ARLA in London - I was a letting agent until 2005 and head of that companies Buy to Let dept involved in sourcing, recommending and advising investors where and what to buy.

Sold the business in 2004 and in 2005 set up by myself as a professional property investment sourcer (North West based). Having seen the gap between yield and borrowing tighten as the years go by and clients stating that there "had to be something more in order for them to buy in" I was looking for an opportunity to offer clients genuine BMV.

Last year a friend in the village put me in touch with 3 very experienced property developers (each with 20 yrs in the business) and they needed both corporate and private finance in order to go it alone. I brought in a clever bespoke financer to cover the commercial lending and with the private investors found they have now set up business some 10 months later.

The key here is that because they are borrowing such high LTV's on the development funding the lender requires them to sell off plan as part of the deal. This is what interested me and I have exclusive rights to as they have agreed to discount off current RICS valuations. I wanted to avoid large city centre blocks which create saturated markets and the "runt end" of the developments ie the ones that have been on the market for 6 months or so and other buyers do not want. This also has the advantage of potential growth during the 12 months or more build.

So (a little plug here) Redesmere Property Investments Ltd has recently started trading and are offering it's first discounted off plan property in Stockport - only 20 units slap bang in the middle of the town centre's regeneration area (£500 million).

There is a lot of negativity out there about property clubs and I wanted to avoid the pitfalls that many have gone into such as: joining/membership fees, large city centre developments or unsubstantiated pricing. As a cautious investor myself and ex-agent I have seen too many so called good investments go wrong.

Don't take any shortcuts and make sure that what you offer is genuine otherwise it may be a shortlived venture. Best of luck.