Get Rich Quick Not

[pred]

A scheme to make money, a few times i've thought about this but never taken it further, so here goes.

There are a few other landlords on this site so i shouldn't need to convince you on the merits of my idea, i have in total four properties, if i had more free cash i would buy more, i have about £1mil of mortgage, so the banks are the main winners agreed?

Now what if say 300 of us put money in a pot in multiples of £1k bought a property or two rented it out for say 5yrs or so before cashing it in.

In Bristol i'm getting nearly £1k rent per cm, they are building a super hospital down the road from me, estate agents i've spoken to all agree when its finished there will be a further demand for housing for surgeons etc.

My tenants to date include; pilots, Air Bus workers, aneathetist and teachers etc.

Although it would need fine tuning the way i see it is with loads of people involved we got plenty of trades to cover all the various aspects of buying and selling properties, we would have to nominate who would sign and countersign cheques so over to you, lets have your comments please.

 

[Space cat]

Try this. Three thousand people put an average of £100 each into some sort of non-profit organization which then lends you the money in the form of a mortgage.

You buy the property and use the rent to make the mortgage repayments to that non-profit organization and it, in turn, divvies out the money as interest to its 3000 investors.

It works. Since you're a landlord already, all you have to do now is open your own building society.

 

[pred]

Thanks Mr Cat but that sounds a bit complicated to me, it just seems easier to buy a house for £250k say, put the rent money into the kitty (no relation to your good self Mr Cat) so in about 5yrs there should be about £50k rent monies plus the house sale of for lets say £300k = £100k profit, so if there were 250 paid in each would get about £400 on top of their £1000 investment, or £4000 per £10,000, are my sums correct? is this better than banks or not?

 

[joe-90]

House prices MUST fall. That is why benefits are so high. You are taking a big risk. When the Euro collapses then so will our housing market.

 

[skyboy]

What you are suggesting there is not a new idea it's exactly what developers have been doing for years . All you are trying to save really is the 7% interest the banks charge.
That system you have suggested doesn't involve 300 people usually just a smaller syndicate of people willing to rollover their profits and take risks.

The system involving 300 or so was usually a scam operation where investors are asked to put in.

 

[pred]

What you are suggesting there is not a new idea it's exactly what developers have been doing for years . All you are trying to save really is the 7% interest the banks charge.
That system you have suggested doesn't involve 300 people usually just a smaller syndicate of people willing to rollover their profits and take risks.

The system involving 300 or so was usually a scam operation where investors are asked to put in.

I am not trying to save 7% i am trying to invest in more proprty, if i had 50 grand lying around then i would get another mortgage, a syndicate, i like that word, i was thinking of a co-operative society .

As for a scam, i dont think so, the money would not be coming to me, as i said it needs fine tuning, a chairperson, a finance person similar things as when you're in a club.

 

[joe-90]

You are taking a big risk - many have been caught in the past by fluctuating house prices, Monty Don for example went bankrupt doing what you are doing.

 

[pred]

House prices MUST fall. That is why benefits are so high. You are taking a big risk. When the Euro collapses then so will our housing market.

On the contrary, the pound i think will devalue, if you got money in the banks earning vast amounts of cash LOL i would expect that to take a nose dive, property prices WILL escalate in value, if history is anything to go by, however i'm not asking for anyone to invest mega bucks, but i reckon there are people similar to my circumstances that realize now is a good time to buy, in a rescession when the market is deflated, the banks are not lending money, i would like to cut out the middleman, however i do not want to do a hard sell, if you're not interested dont invest, by all means stand on the perimeter and shout abuse.

 

[joe-90]

We are in a slowly deflating bubble - house prices must fall - or the UK goes bust. It's as simple as that.

 

[HERTS P&D]

or the UK goes bust.

I thought we went bust months ago and are just hanging on with our finger nails.

Andy

 

[pred]

You are taking a big risk - many have been caught in the past by fluctuating house prices, Monty Don for example went bankrupt doing what you are doing.

What has Monty Don costume jewellery got to do with bricks and mortar?

I'm sort of banking on fluctuating house prices, they have gone down, or hadn't you noticed, eventually they will go up, you do not want to buy when they are going up! That is when you gotta start selling.

 

[joe-90]

it was his property portfolio that sent him bust.

 

[pred]

We are in a slowly deflating bubble - house prices must fall - or the UK goes bust. It's as simple as that.

So you reckon house prices will fall, i think the pound will devalue, one of us might be wrong.

 

[joe-90]

If the pound devalues - then the cost of everything rises - and you get hyper inflation. Your repayments would go through the roof. Your rents wouldn't keep up - you still go bust.

 

[pred]

it was his property portfolio that sent him bust.

I think if you dig a bit you will probably find he was mortgaged to the hilt, that is not what i'm trying to achive here, i am saying only put in what you are comfortable with, hence starting at £1000. i hope it would escalate and the syndicate end up with Old Kent Rd round to Mayfair.