One of my sourcers has contacts within the banks and I heard something that is really making me salivate.

He has a portfolio of 195 properties which a BANK is trying to off load.  It must be off an investor who has either given up, remortgaged too heavily or simply gone bust.  I reckon it's a Mortgage Express portfolio but who knows.

But here is the interesting bit.  They are not asking any cash for it!  They are asking you to take on the debt.  If you can prove that you have the 30% deposit they will simply switch the paperwork in your name and you'll just take on the debt.

The price is £12m, a bit over priced in my opinion with a rent roll of around £800,000.  The figures work at £8m, preferably at £7m.  So if you can prove you have £2.1m in the bank you can have the portfolio.

I do not have £2.1m in the bank.  Nor should you as it should be invested!  Now I was quite cheeky and said what about if you can prove you have £2.1m in equity.  This I have and I am sure some of you have much more than that.  He is going to get back to me.

Could we see portfolios being HANDED to professional investors?  It could get really exciting, especially because banks are now having to offload and take properties off the amateur investors and GIVE them to professional investors like you and me.

I think we have all been shocked by what is happening and the funny thing is it could never have been predicted to be this bad.  Anyway, its real good for us investors.  Lets make 2008 the year for landlords.

Ajay

Posted on: 10th Oct 2008