Ops to secure property whilst pursuing claim w/bad-credit
Discussion
Curious as to potential options,
Imagine a party left with bad credit/CCJ's and loss due to fraud/injury where defendant is known, of sufficient means and claimant high chance of success, in due course.
It leaves them unable to secure properties (such as full HMO's that would still turn a small profit with an interest only mortgage, and empty property ready to house wanting tenants with deposit in hand); properties to also be increased in size, value and rental space through development asap.
I keenly await any ideas how this scenario could be overcome to secure property, dev, and also possible retail & food space creation & revenue opportunity from being lost.
Properties are numerous, priced from 300k to over a million in areas with high value per square meter. leaving significant value after costs of increasing space; some are joint and development space out of view of locals enabling maximum development of space w/o fuss; some in areas of very high footfall from locals/park/schools/college/events and enable good retail & food opportunity being most convenient, closer location (and on main route) than competition hundreds of foot away.. one particular set is of three, which enable maximal 4 story and basement car park to be done without neighbors to disturb, have party wall issues, sunlight concerns or construction/excavation objections securing all three .etc,
Imagine a party left with bad credit/CCJ's and loss due to fraud/injury where defendant is known, of sufficient means and claimant high chance of success, in due course.
It leaves them unable to secure properties (such as full HMO's that would still turn a small profit with an interest only mortgage, and empty property ready to house wanting tenants with deposit in hand); properties to also be increased in size, value and rental space through development asap.
I keenly await any ideas how this scenario could be overcome to secure property, dev, and also possible retail & food space creation & revenue opportunity from being lost.
Properties are numerous, priced from 300k to over a million in areas with high value per square meter. leaving significant value after costs of increasing space; some are joint and development space out of view of locals enabling maximum development of space w/o fuss; some in areas of very high footfall from locals/park/schools/college/events and enable good retail & food opportunity being most convenient, closer location (and on main route) than competition hundreds of foot away.. one particular set is of three, which enable maximal 4 story and basement car park to be done without neighbors to disturb, have party wall issues, sunlight concerns or construction/excavation objections securing all three .etc,
NFT said:
Curious as to potential options,
Imagine a party left with bad credit/CCJ's and loss due to fraud/injury where defendant is known, of sufficient means and claimant high chance of success, in due course.
It leaves them unable to secure properties (such as full HMO's that would still turn a small profit with an interest only mortgage, and empty property ready to house wanting tenants with deposit in hand); properties to also be increased in size, value and rental space through development asap.
I keenly await any ideas how this scenario could be overcome to secure property, dev, and also possible retail & food space creation & revenue opportunity from being lost.
Properties are numerous, priced from 300k to over a million in areas with high value per square meter. leaving significant value after costs of increasing space; some are joint and development space out of view of locals enabling maximum development of space w/o fuss; some in areas of very high footfall from locals/park/schools/college/events and enable good retail & food opportunity being most convenient, closer location (and on main route) than competition hundreds of foot away.. one particular set is of three, which enable maximal 4 story and basement car park to be done without neighbors to disturb, have party wall issues, sunlight concerns or construction/excavation objections securing all three .etc,
That’s just gobbledegook Imagine a party left with bad credit/CCJ's and loss due to fraud/injury where defendant is known, of sufficient means and claimant high chance of success, in due course.
It leaves them unable to secure properties (such as full HMO's that would still turn a small profit with an interest only mortgage, and empty property ready to house wanting tenants with deposit in hand); properties to also be increased in size, value and rental space through development asap.
I keenly await any ideas how this scenario could be overcome to secure property, dev, and also possible retail & food space creation & revenue opportunity from being lost.
Properties are numerous, priced from 300k to over a million in areas with high value per square meter. leaving significant value after costs of increasing space; some are joint and development space out of view of locals enabling maximum development of space w/o fuss; some in areas of very high footfall from locals/park/schools/college/events and enable good retail & food opportunity being most convenient, closer location (and on main route) than competition hundreds of foot away.. one particular set is of three, which enable maximal 4 story and basement car park to be done without neighbors to disturb, have party wall issues, sunlight concerns or construction/excavation objections securing all three .etc,
NFT said:
Imagine a party left with bad credit/CCJ's and loss due to fraud/injury where defendant is known, of sufficient means and claimant high chance of success, in due course.
Until such time as this is fully resolved in your favour, there is no chance of you securing the funding to the level that the opportunity you describe will require - or at terms that would make the arrangement commercially viable to you.You might find some private investors interested but this would carry significant risk and unlikely you'd be able to retain a meaningful share in the endeavour.
Yet over in Finance: https://www.pistonheads.com/gassing/topic.asp?h=0&...
NFT said:
Are you saving money living in the HMO OP?
Once you work it all-out, utilities (with standing charges) gas/elec, water rates, heating bill, TV, council tax, internet, any boiler inspection, boiler or property repairs that may arise, any gardener/window washer services, house insurance etc.. And any commute (social & work) you may have if living further away. It could be a saving, esp if you would have to commute. (Overlooking commute and full spread of bills is why some people can't understand some high end HMO pricing, its high but saves the people who pay it time & money.)
If your happy in there and it works then I wouldn't rule out getting somewhere and starting up your own HMO by structuring debt so that it makes you money whilst being serviced by tenants who also put money in your pocket as property likely goes up in value.
This way your accommodation needs/a normal mortgage can be (or mostly) met outside of your wages, and you could make thousands years down the line if you come to sell the HMO property to cash in on any significant property price rise.
Also, if you haven't, start building your credit score, lender relationships and limits up.
Unusual combination of posts... Once you work it all-out, utilities (with standing charges) gas/elec, water rates, heating bill, TV, council tax, internet, any boiler inspection, boiler or property repairs that may arise, any gardener/window washer services, house insurance etc.. And any commute (social & work) you may have if living further away. It could be a saving, esp if you would have to commute. (Overlooking commute and full spread of bills is why some people can't understand some high end HMO pricing, its high but saves the people who pay it time & money.)
If your happy in there and it works then I wouldn't rule out getting somewhere and starting up your own HMO by structuring debt so that it makes you money whilst being serviced by tenants who also put money in your pocket as property likely goes up in value.
This way your accommodation needs/a normal mortgage can be (or mostly) met outside of your wages, and you could make thousands years down the line if you come to sell the HMO property to cash in on any significant property price rise.
Also, if you haven't, start building your credit score, lender relationships and limits up.
Hmmm not so sure it’s unusual to be honest, once I understood what was being said on both posts, it’s clear the OP has been following too many property gurus online, maybe even add a course or two into the mix as well as he certainly has all the lingo and a passion for the incredible returns on HMO’s.
Except he has no money and a bad credit rating. So best try and sue someone instead (or stick to NFT’s).
Except he has no money and a bad credit rating. So best try and sue someone instead (or stick to NFT’s).
Thanks guys,
Had email asking for help, was very tired & a little confused; They are certainly beyond a few HMO houses...
As I understand it, someone wishing to claim damages should be making reasonable efforts to minimize those damages. This appears why they have asked..
But if their solicitor is taking case on as No-win No-fee as I was told, they must be confident in the success and ability to collect; if they are confident in the claims viability, and the property is viable, surely they would find a way to secure the most viable at the best rates they can acquire for a fee on claim success or investment agreement.. Seems a little odd I was asked tbh.
Had email asking for help, was very tired & a little confused; They are certainly beyond a few HMO houses...
As I understand it, someone wishing to claim damages should be making reasonable efforts to minimize those damages. This appears why they have asked..
But if their solicitor is taking case on as No-win No-fee as I was told, they must be confident in the success and ability to collect; if they are confident in the claims viability, and the property is viable, surely they would find a way to secure the most viable at the best rates they can acquire for a fee on claim success or investment agreement.. Seems a little odd I was asked tbh.
Edited by NFT on Tuesday 26th March 12:10
NFT said:
But if their solicitor is taking case on as no-win-no fee as I was told, they must be confident in the success and ability to collect; if they are confident in the claims viability, and the property is viable, surely they would find a way to secure the most viable at the best rates they can acquire for a fee on claim success or investment agreement.. Seems a little odd I was asked tbh.
Many No-Win No-Fee solicitors work on critical mass; take whatever case you can on the basis that some of them will be won. Either way, the two issues are entirely separate. An investor or lender couldn't care less about whatever legal claim is going on. The claim must run its course and be successful before finance is sought for the endeavour. Nobody is going to hand over money on the basis that the claim 'might' be successful.
StevieBee said:
Many No-Win No-Fee solicitors work on critical mass; take whatever case you can on the basis that some of them will be won.
Perhaps I gave too much weight to the No-Win No-Fee then..StevieBee said:
Either way, the two issues are entirely separate. An investor or lender couldn't care less about whatever legal claim is going on. The claim must run its course and be successful before finance is sought for the endeavour. Nobody is going to hand over money on the basis that the claim 'might' be successful.
Yes, this appears to be the problem, I think if lenders are happy with all but present circumstance of credit score, the viability and faith in the opportunity (appearing well spread across areas, markets and lending product types required) surely remains the same; The overall risk should be lower than a single project/area/market/product, and present circumstances should be further mitigatable somehow.
I think it should be a further good indicator that they are trying to overcome difficulties and push on with projects (highly likely to generate significant sums spread over multiple areas/markets/products) to right the situation aside proceedings, instead of taking a seat and watching how the claim goes with a wish and a prayer.
I wonder if there is a reasonably priced insurance product (to mitigate lending risk, get finance, and at better rates) for such situations? (where all is satisfactory but the present credit status nose diving during events outside control, esp. if good history prior, strong total viability and success of claim is somewhat measurable and unrelated to success of the opportunity)?
NFT said:
I think if lenders are happy with all but present circumstance of credit score, the viability and faith in the opportunity (appearing well spread across areas, markets and lending product types required) surely remains the same; The overall risk should be lower than a single project/area/market/product, and present circumstances should be further mitigatable somehow.
I think it should be a further good indicator that they are trying to overcome difficulties and push on with projects (highly likely to generate significant sums spread over multiple areas/markets/products) to right the situation aside proceedings, instead of taking a seat and watching how the claim goes with a wish and a prayer.
I wonder if there is a reasonably priced insurance product (to mitigate lending risk, get finance, and at better rates) for such situations? (where all is satisfactory but the present credit status nose diving during events outside control, esp. if good history prior, strong total viability and success of claim is somewhat measurable and unrelated to success of the opportunity)?
Whether lending or investing, the people with the money are only interested in the level risk they are exposing themselves to.I think it should be a further good indicator that they are trying to overcome difficulties and push on with projects (highly likely to generate significant sums spread over multiple areas/markets/products) to right the situation aside proceedings, instead of taking a seat and watching how the claim goes with a wish and a prayer.
I wonder if there is a reasonably priced insurance product (to mitigate lending risk, get finance, and at better rates) for such situations? (where all is satisfactory but the present credit status nose diving during events outside control, esp. if good history prior, strong total viability and success of claim is somewhat measurable and unrelated to success of the opportunity)?
A lender needs to be confident that the borrower will be able to repay the loan.
An investor needs to be confident that they will get their capital back plus sufficient more to make it worth their while.
Nothing is risk free but the need to minimise risk is omni-present. Lending what I assume is sizeable sums to an individual with bad credit rating, outstanding CCJs and a looming court case is too high a risk regardless of the opportunity the money is needed for.
Good credit history in the past is of no relevance to the present.
There are insurance and similar mechanisms that can be used to reduce risk but insurers will only insure those scenarios where they themselves see the risk as manageable - or charge a premium to a level that renders the whole idea as uneconomic.
The only viable option is a private investor where investment is made outside of the normal FSC regulations and - importantly - protections. This exposes the borrower to the risk that they may end up owning a much smaller share of the idea or be excluded totally.
I think the OP is using a translate app or ChatGPT....
Nevertheless, I think what you’re trying to sum up is if the investment is good why cant you find a lender that'll do it. What you missing is that while the investment might be good, its good for the person with the credit issues. For the lender they are investing in the person with the credit issues. So, it’s going to be a hard no from most lenders.
There is also a smell of some guru property courses in the post. Which always come across that they think they discovered fire or the equivalent after learning some very basic investment concepts, with little idea of the true nuts & bolts of how it works. The lenders know fully how it works. They’ll pass on you if you’ve bad credit and no experience. Despite how much of a good investment it might be.
Nevertheless, I think what you’re trying to sum up is if the investment is good why cant you find a lender that'll do it. What you missing is that while the investment might be good, its good for the person with the credit issues. For the lender they are investing in the person with the credit issues. So, it’s going to be a hard no from most lenders.
There is also a smell of some guru property courses in the post. Which always come across that they think they discovered fire or the equivalent after learning some very basic investment concepts, with little idea of the true nuts & bolts of how it works. The lenders know fully how it works. They’ll pass on you if you’ve bad credit and no experience. Despite how much of a good investment it might be.
CaiosH said:
I think the OP is using a translate app or ChatGPT....
No but I take that very well indeed.CaiosH said:
Nevertheless, I think what you’re trying to sum up is if the investment is good why cant you find a lender that'll do it. What you missing is that while the investment might be good, its good for the person with the credit issues. For the lender they are investing in the person with the credit issues. So, it’s going to be a hard no from most lenders.
There is also a smell of some guru property courses in the post. Which always come across that they think they discovered fire or the equivalent after learning some very basic investment concepts, with little idea of the true nuts & bolts of how it works. The lenders know fully how it works. They’ll pass on you if you’ve bad credit and no experience. Despite how much of a good investment it might be.
For the lender they are investing in the person..There is also a smell of some guru property courses in the post. Which always come across that they think they discovered fire or the equivalent after learning some very basic investment concepts, with little idea of the true nuts & bolts of how it works. The lenders know fully how it works. They’ll pass on you if you’ve bad credit and no experience. Despite how much of a good investment it might be.
Never thought of it like that, project viability and risk mitigation would be the top of my list, the person having been a victim or incapacitated for a period would be of little concern over someone who couldn't manage a starter card to save their life..
Perhaps I should start looking at establishing a business that sets viable opportunities up for the credit disadvantaged with terms that see them simply become an opportunity procurer that gets a percent of profits..
NFT said:
Perhaps I should start looking at establishing a business that sets viable opportunities up for the credit disadvantaged with terms that see them simply become an opportunity procurer that gets a percent of profits..
They already exist, they are called agents. JLL, CBRE, Savills, etc, all have teams of people introducing opportunities to credit worthy investors for a fee, normally 1%.NFT said:
For the lender they are investing in the person..
Never thought of it like that, project viability and risk mitigation would be the top of my list, the person having been a victim or incapacitated for a period would be of little concern over someone who couldn't manage a starter card to save their life..
You are perhaps getting a bit mixed up between someone lending money and someone investing in a business.Never thought of it like that, project viability and risk mitigation would be the top of my list, the person having been a victim or incapacitated for a period would be of little concern over someone who couldn't manage a starter card to save their life..
A lender cares about recovery. Poor credit history is a major red flag.
The main issue is that a court having made a CCJ requires evidence and process. That isn't to say isn't to say they always make good decisions but making an unproven claim of, for example, fraud is exactly that (an unproven claim). Irrespective of whether or not those claims are subsequently proven, right now you will have a tough time getting a lender (or investor) comfortable.
Some equity investors will take a more holistic view, but they would still want to gain confidence that the poor credit history wasn't the result of poor decision making. If you can find someone who will do that, expect them to take security (of which there is probably little if any available) and the vast majority of the economics.
Of course the situation would be a bit different if you already had, say, built a successful company/portfolio and then been hit with something obviously vexatious and/or clearly outside your control, but the impression your posts give is that you're looking to get into the property game for the first time?
NFT said:
Perhaps I should start looking at establishing a business that sets viable opportunities up for the credit disadvantaged with terms that see them simply become an opportunity procurer that gets a percent of profits..
A good friend runs a business doing just that. They provide car loans to subprime borrowers. It's a good model. They work with select dealers who provide PX cars and my friend's business provides loans to buy the car. The cars are tracked with remote immobilisation so that should the borrower default, the car (asset) can be quickly recovered and placed back into the market. Their default rate is less than prime lending. There's a significant amount more manual inputs as each and every application is properly assessed with detailed affordability checks done. This is reflected in the higher interest rate but also in the profit per transaction - around a third higher than prime lending.Sounds good, yeah?
They've been running it for over 10 years and cannot grow the business. The reason is not demand but because they cannot get the money to lend to people. None of the main banks are interested. Despite their track record and robustness of the business model, it's classified as high-risk and the returns the banks can expect, whilst very good, fall below their risk/reward thresholds. They are thus reliant upon private investors to provide the loan capital but this falls outside of FSA regulation and control and not many investors are willing to take that risk.
StevieBee said:
A good friend runs a business doing just that. They provide car loans to subprime borrowers. It's a good model. They work with select dealers who provide PX cars and my friend's business provides loans to buy the car. The cars are tracked with remote immobilisation so that should the borrower default, the car (asset) can be quickly recovered and placed back into the market. Their default rate is less than prime lending. There's a significant amount more manual inputs as each and every application is properly assessed with detailed affordability checks done. This is reflected in the higher interest rate but also in the profit per transaction - around a third higher than prime lending.
Sounds good, yeah?
Incredibly, Sounds good, yeah?
I've a comprehensive diversification strategy for beneficent group growth and expansion, so might have some ideas.
Any idea of volume, new custom and if they are compacted into geographical area/s?
NFT said:
StevieBee said:
A good friend runs a business doing just that. They provide car loans to subprime borrowers. It's a good model. They work with select dealers who provide PX cars and my friend's business provides loans to buy the car. The cars are tracked with remote immobilisation so that should the borrower default, the car (asset) can be quickly recovered and placed back into the market. Their default rate is less than prime lending. There's a significant amount more manual inputs as each and every application is properly assessed with detailed affordability checks done. This is reflected in the higher interest rate but also in the profit per transaction - around a third higher than prime lending.
Sounds good, yeah?
Incredibly, Sounds good, yeah?
I've a comprehensive diversification strategy for beneficent group growth and expansion, so might have some ideas.
Any idea of volume, new custom and if they are compacted into geographical area/s?
Drop me an email and I'll introduce you.
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