Blyth Archives - Iain Wallis

Homes Under The Hammer comes to Newcastle part 2

April 23, 2012 By Iain

A few days after I returned home the researcher from Homes Under The Hammer was on the phone, sorting out dates for filming, and wanting to know a bit about me, why I had bought the property and my property experience. I guess the best car crash telly is where someone, not necessarily but more than likely a first time auction attendee buys a lemon. This was no lemon!

They had a date set for filming which unfortunately was some three weeks after completion. Normally we like to get in fast, do the refurb and get the tenant in as soon as possible. Our best is two weeks from completion to tenant but on this occasion I was prepared to wait for a bit of free publicity. More importantly however I booked in the second filming so that we could flip or let as soon as the work was completed.

They wanted four hours of my valuable time. On the day I was ahead of schedule so I nipped to the beach to enjoy my lunch. I was confused to see people filming the North Sea in January. I thought they were from the local college doing media studies until the same car and crew turned up outside the property.

A quick tour of the property, I retired to my car to do some work and then if it moved or even didn’t move they filmed it. Up the street, down the street, across the street, the mould in the bathroom, the holes in the ceiling, the appalling décor etc etc. I’d turned up in a T shirt to do a bit of self promotion though that was given short shrift “this is the BBC don’t you know!”

After a while the presenter Martin arrived, though to be honest I was hoping it would have been Lucy Alexander. He did his various bits to camera and then it was my time. One take Wallis nailed it as I walked up to the property, walked into various rooms for a studious appraisal and then the interview. Usual stuff from Martin though much to his annoyance I kept calling him Richard: a senior moment.

Soon after the agent turned up to look around and value the property and give her valuable opinions. The estate agent, let’s call her Gill, as that’s her real name had brought her manager for some moral support, though she like me just giggled as Gill walked up to the property, around it etc and then did her interview.

Now this is where the fun starts as we’d been working with this firm for a long time and have a good working relationship with them, so while Gill gave her best performance and suggested values when complete and likely rental income let’s just say that they were fair but the right side of fair. Cheers Mrs Bouquet, though Gill did confess to hating doing the whole thing.

The luvvies packed up and it was time to unleash the builder. Steve, as that’s his real name had already viewed the property and given me a quote for the work. Again I’d been working with him for a while so he knew what to do to get it habitable and ready for letting or a flip. I gave him the keys and let him get on with the work.

Fast forward four weeks and we are all finished and ready for the post refurb filming. A slightly smaller film crew and no Martin or was it Richard, so I had to pretend to be replying to his questions. Usual stuff, walk up to the property, walk around property and look suitably enthused.

The two agents arrived, filmed and gave values and likely rental income. One agent was from out the area which was slightly left field but Gill was there having taken time off in the morning to visit the hairdressers! Again Gill was brilliant. Never again she vowed!

Then it was more interviews as they hit me with the valuations and rental. Both said that we’d done a good job, and though there was a £10k difference in values the mid price would see a 122% uplift on the purchase price. Not a bad return over eight weeks I thought. Yes there were refurb costs but if it sold at that value, that would still be a very healthy return.

The luvvies left and promised to let us know when the editing was done and when it would be aired. No news yet peoples.

The view had always been to buy and flip and if it didn’t sell then refinance in six months. So we struck a deal with my fave agents, thanks Clare and all the girls @ The RMS Dream Team, and for once she was selling a property for me not getting me to buy one with one of those cheeky offers.

Within two weeks we had a buyer keen to move into the area though they couldn’t afford the full price. Note to self: it feels very odd when your price is being dropped when you are used to encouraging the vendor to accept less than the asking price though she seemed genuine, had a Decision In Principle in place so all system go.

All was going swimmingly until the survey! It was down valued “expensive for the area” and had a very long conditions list. Suffice to say the issues were easily resolved, the buyer found some extra cash to contribute and on reflection, the surveyor had probably had a row with his wife that morning, so was looking for all the negatives. Still the quick sale became a medium term sale.

Contracts have just been exchanged and soon the funds will be released to go shopping again.

I’ll keep you posted as to when I make my debut on BBC1

As a postscript, we’d just napped another at auction and just finished the paperwork and yes you guessed it I heard those words “Would you be interested in filming for Homes Under the Hammer?” To be continued…………………

Homes Under the Hammer comes to Newcastle part 1

February 27, 2012 By Iain

When I was at university, there were only three channels to watch on TV and none aired during the day. I then found myself a job and when that finished I found stuff to do so it’s fair to say that unless there’s some sport involved you won’t find me watching much television during the daytime.

Around this time last year we attempted to buy our first house at auction. We’d done all the preparatory work, a lot of which I will share with you in a later blog but we weren’t prepared for the announcement that “Homes Under the Hammer” were in attendance. As assorted people moved to corners of the room where no camera could film, I made a mental note to enquire further about this programme and vowed if I was successful or indeed if I returned, I would tick the no publicity box!

We did not land the house that night as it went for more than we wanted to spend. Property is a business so avoid getting carried away in the chase for a bargain for if it is more than you planned to spend it no longer is a bargain. Simples! Trust me there will be plenty more along the following month.

We did eventually land three at auction last year and at the last auction in Newcastle, spookily HUTH, as the Luvvies at the BBC call it were once again in attendance. By now I’d done a spot of research and even managed to catch a programme as I waited for the engineers to complete the routine car service. After reading The Journal from cover to cover, a local paper for Newcastle and the North East, wrestling with the sports section of The Times, studying the next auction catalogue, I found myself left watching daytime telly and caught a glimpse of Homes Under the Hammer on the BBC. Very interesting Mr Bond!

The aforementioned auction catalogue contained what I thought was a little gem. It was on the outskirts of the area we mainly invest in, but there were good comparables, good rentals with the potential to easily surpass our target yield of 8%. A viewing was duly arranged along with several others that day. It was the last on our schedule that day and the agent pre framed the visit with “It stinks. I’ll just open the door and let you in!”

She was not wrong: it did and then some! The previous owner clearly liked his pop but found it easier to pee in situ rather than move to the bathroom. It was dark, dingy and generally pretty unpleasant, with filthy carpets, a pretty foul kitchen and a bathroom that frankly was not fit for human occupancy. I surveyed the ground floor on one breath and retreated for some cold sea air (it was on the coast after all). A second gulp and I had the top floor checked out though chose to complete my viewing schedule outside.

James Caan in his book The Real Deal, prefaces it with a comment “observe the masses and do the opposite”. It’s a path that has served him and his father before him well and a philosophy that has made Warren Buffet a vast fortune. It’s also one that I’ve carried into our investing, after some due diligence, naturally, and here was a classic case in point.

Most could smell the appalling house but not the profit. The property had a low guide price and it was worth an educated punt. Now don’t get me wrong, two years ago I’d have joined the masses and walked away but I now had a much better idea on refurb costs, could see through the muck and how it could be restored to a perfect home.

Due diligence completed it was time to attend the auction. Usual preamble, how on the fall of the hammer it was yours, exchange within so many days blah blah blah about the TV Cameras and soon Lot 8 was ready to be auctioned..

Initially very little interest as the auctioneer searched for a value to start the bidding. Eventually it kicked off and edged towards the guide price. Still 5K short of the guide price the auctioneer prepared to sell. At “selling it twice” I indicated an interest. Good tactic that by the way, never declare an interest too early. After a quick spat it was ours still £2.5K below the guide price. It’s a truism on property but you make your money when you buy and we had just made some money.

Contracts exchanged and deposit paid I felt very pleased when I was asked if I fancied being on Homes Under the Hammer.

The answer had to be yes!

In the next part I will share with you the before filming, the joy of the refurb and the follow up filming and yes the final valuation.