Another Big Win for One of Our Distressed Assets Investors Club Members
Monday 16th June 2025
Another Big Win for One of Our Distressed Assets Investors Club Members
Yesterday was a fantastic day for one of our Distressed Assets Investors Club members. He was on the verge of exchanging on a property in Liverpool for £110,000 (EPC D), which had been sent to him by a sourcing agent. In my view, the property was significantly overpriced, and I told him as much. At that point, he’d already committed funds and pulling out would cost him a few thousand pounds.
On my advice, he walked away, and joined my mentorship programme instead.
Fast forward to this week: he’s now successfully purchased a much better property at auction. He and his wife carried out proper due diligence, set a maximum bid, registered with the auction house, and he did the bidding live himself.
There’s a property directly opposite the auction one that’s on the market for £100,000, already cheaper than the originally sourced deal. We agreed on a £71,000 maximum bid, though we suspected it might sell for £85,000 or more in the current market.
He secured it for just £68,000!
Not only is this property EPC C rated, but it commands the same market rent as the £110,000 deal he almost bought. Better still, it requires minimal work before letting, with the previous tenant only having vacated in March 2025.
The Numbers Speak for Themselves
EPC C Auction Property: Purchased for £68,000, Yield = 13%
EPC D Sourced Property: £110,000, Yield = 8%
With minor works to complete, we’ll also be handling the lettings and property management in-house.
The Pattern is Clear
If you’ve been following my newsletters or posts, you’ll notice a recurring theme: with a bit of due diligence, and the right guidance, investors often discover they can achieve far better outcomes than the ones being handed to them by sourcing agents signposting Rightmove.
In this case, we conducted the due diligence together, and I even did the viewing myself. The team approach works.
More Success Stories
In another recent auction, a mentee picked up a property for £70,000 while another just a few doors away is on the market for £120,000. Another brilliant acquisition. And once again, the herd completely missed it. Yesterday, a grant survey team visited the property. We’re expecting the report next week, free grant funding is one of the best ways to add value before refinancing at market levels.
Upcoming Completions & Lessons Learned
Next week, we have two completions, one for me, one for a mentee. The key takeaway: patience pays off.
This mentee had lost out three times previously as bids went over our maximum, either pre or during the auction. Naturally, there was some frustration, and I reminded them that the right deal will come. And it has: a two-bedroom freehold house with a quality tenant, for just £60,000.
A Week That Reinforces the Strategy
This week has confirmed yet again that investors should avoid the retail property market and buy wholesale. And I’d seriously ask, why pay someone to send you overpriced Rightmove listings?
Enjoy your forthcoming weekend. Onwards and upwards.
Nec Aspera Terrent
