Property Magic – book update
For those of you who have read my book “Property Magic” and put the strategies into practise, you will have realised that chapter 2, which talks about same day re-mortgages, is already out of date due to changes in the mortgage market over the last few months. This is rather frustrating but as a short term solution
last night I gave a presentation at the Northern Property Meet (which this month was in Leeds) at which I shared the shared 4 strategies which could be utilised right now to purchase properties below market value with out the use of same day re- mortgaging. Three of these strategies potentially allow you to legitimately remove your original deposit form the property at some time after purchase, and one strategy where you leave money in the property (but not necessarily your money).
I believe the presentation was very well received such that I have decide to make a short video which will be available to all pin members on line providing a full update as to how BMV properties can now be purchased with out same day re-mortgages.
There are a number of people charring investors to join their club to gain access to their “special” way to finance BMV deals, but in my opinion most of these methods are too creative and will only be available for a short period of time so it is best to keep you money and I will give all property investors network members the information for free. Watch this space for details of this on line video which will be released soon.
If you would like to see this presentation live I am speaking at a number of events over the next few weeks at which I will be sharing the information.
Kind regards
Simon
7 comments
Hi Simon
The withdrawal of MEx sameday remortgages has thrown a rather large spanner in the works but it is amazing how creative we property investors can be to find new ways to do no or little money down financing.
Unfortunately I missed your presentation but I am keen to see the video.
From what I can tell a lot of these new methods seem to involve keeping someone or other out of the loop for part of the transaction or showing false figures on various documents.
What I loved about same day remortgaging was that everyone knew all the information. The lender was aware that the property was just being bought and at a discount, the valuer generally knew this to as did the vendor. At no time was anyone prevented from knowing all the information.
Until someone comes up with an equally transparent way of working, I think we will have to be putting money in for a few months (ideally not our own!).
My ethics test is always ‘Would I be happy if my mum was the lender/vendor/solicitor/valuer?’ If I can’t comfortably answer Yes then I know I am doing something wrong.
And of course, many of these schemes seem to generate a sizeable tax liability for one or other party involved. While some may choose to run the gauntlet and hope they don’t get investigatged and claim ignorance if they do, I would prefer to sleep at night without worrying about a sudden visit from the tax man.
Hi Michelle,
You are quite right many of the schemes are slightly risky especially if not everyone knows the full extent of what is happening if you know what I mean. Investors neeed to take care that they do not get themsleves in an awkward position or a tax liabilty as you quite rightly pointed out.
My on line presnetation will be ready very soon. I hope is will shed some light on the situation. I think you are right, the best thing is to expect to put some money in at least in the short term but not necessarily your money.
Kind regards
Simon
Hi Michelle & Simon
I’d go further than Simon’s caution of slightly risky, I’d say that some of the schemes being punted around at the moment are highly risky, both from tax and fraud perspectives. Before jumping into one of these schemes my advice is to ask LOTS of questions, consider the background of the people offering the service (probably better that they have a financial services or legal background) and seek professional 3rd party advice.
Regards
Andy
I would like to get hold of the first edition of Simon Zutshi’s book, Property Magic (chapter 2 of which discusses the old MX same day remortgage facility). Could someone tell me how I can do that?
Regards
Hi Adrian.
I think you can still buy the first edition on Amazon.co.uk Teh reason I put out the second edition is because the MX route is no longer avilable but it might well be in the future with other lenders.
Kind regards
Simon
Hello again Simon
I’m involved in some claims that MX are making against solicitors in the context of which those acting for MX are denying that MX ever did same day remortgages. Do you know any brokers or former BDMs of MX that I could discuss this with?
Regards
Adrian
Hi Adrian,
I remember when we first approached my solicitor about this they were very sceptical until they held a conference call with a BDM from MX who explained everything and said they were very happy with it. Shame we did nto record that conversation! Everyboby in MX knew about it apart from the MD it appears who, when he found out put a stop to it.
You may want to speek to Gary Smith at Centuary 2000 who did a number of mortgages for me and set up the call with the BDM. His number is 01905 799956 Gary is very staright and would not do anything remotely suspect.
Kind regards
Simon
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