• Delayed Completion Case Study | Part 2 [Audio]

    In this second part of a case study using a delayed completion strategy one of my mentees, Vidas Balciunas, acquired a property in the prime location of Muswell Hill, London. The property concerned was facing imminent repossession. It was in a very desirable area – close to all amenities, the station and shops – making it very rentable. The icing on the cake was that the property was one of four flats in a house and had a share of the freehold.

    Because time was against us due to the repossession issue, there was no time to complete the usual standard Letter of Authority. I duly arranged a 3 way conference call with myself, the seller and the Lender, who was a High Street Lender who are usually tough to negotiate with.

    The Lender’s main issue was with the outstanding £8k arrears and like most Lenders did not want to go through the repossession route if at all possible as this is very costly to them.

    Listen To The Case Study Detail Part 2

    By skilful negotiation and managing the relationship between the Lender and the seller I was able to offer a solution, which was a win-win situation for all.

    The end result was that my mentee acquired the property at the market price of £250k on a delayed completion with the seller. The mortgage interest rate was kept at 4% and the new mortgage term was 29 years.

    Instead of having to put down a 25% deposit, which in this case would have been £62,500, the Lender agreed to my mentee simply clearing the arrears of £8k and maintaining the mortgage payments.

    Just think about this for a second ….. my mentee only had to put £8k into the deal instead of the usual £62,500.

    This is a massive difference !!!!

    This was a great deal for both Vidas and the seller, who would able to walk away from the property with some cash when Vidas completed and would not have to have the property repossessed leaving him with nothing.

    Vidas also was able to have cash flow of £435 per month, the mortgage was not in his name, he did not have to part with a big deposit and did not have to go through any credit checks.

    Would you like to do deals like this?

    I can teach you a variety of creative property strategies besides delayed completions such as instalment contracts and property lease options.

    My mentorship programmes can be tailored to your needs and time frame. Take your first step to success and call me on 0203 397 7030 or arrange a call back to find out more.

     See Part 1 of this Delayed Completion Case Study

    About Reena Malra

    Connect with me: Google+ Reena Malra is one of the UKs most successful property investors and mentors. The strategies Reena has discovered and developed over the past few years take the focus off the price and put it on the flexible and convenient payment terms. This is how Reena can structure transactions to really benefit both the buyer and the seller. Reena specialises in property lease options, instalment contracts, rent torent, below market value (BMV), stopping repossessions, joint venture, delayed completion and tenant buyer strategies. She also runsworkshops and webinars, and offers property consultancy services and one-to-one mentoring.

    View all posts by Reena Malra

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    1. Delayed Completion Case Study | Part 1 {Audio} | Reena Malra - April 8, 2013

      [...] See Part 2 of this Delayed Completion Case Study where I reveal how I successfully managed to negotiate with the Lender and create a win-win situation for all through the use of a delayed completion strategy. [...]

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