Distressed Assets Auction Investors Group Hugely Successful Week
- Distressed Assets Team
- Apr 6
- 2 min read
It's the end of a hectic week where my mentorship group secured five lots at yesterday’s auction:
Two sold prior to auction.
One during the live auction.
Two sold after auction.
That’s not a bad ratio overall. Some incredible purchases were made, and in my view, they were the best of the 113 lots:
One property has been completely refurbished, and its gross yield is over 11%, which we can manage.
Another is significantly below market value and yards from an area with huge investment. It also requires very little refurbishment work, if any, other than a lick of paint.
Another has some minor issues that we can resolve. It was purchased for £70,000, while an identical property four doors away is on the market for £120,000. We can also secure a grant for various works on the property.
And so on……………………...
The greatest pleasure was seeing my mentees ‘go it alone’ with the analysis and bidding, studying the legal packs and Special Conditions and getting their heads around office copy entries and searches. Many spend the day with me, viewing auction properties and immersing themselves in my world.
The results are stunning; most are novice property investors building a portfolio solely by auction and other routes for distressed assets. Compared to others following the traditional retail acquisition method through estate agents and Rightmove, they are miles ahead of the curve with higher initial rental income yields and in-built equity from the start.
As I said to the entire group after the auction yesterday, the immense pleasure I get from seeing my mentees achieve such success is one of the reasons I do it. Members of the group are from the UK, Ireland, Germany, the US, South Africa, Italy, Sweden, Nigeria, and Hong Kong. They range from entrepreneurs to surgeons, to doctors, lawyers, and accountants—and not least a former Royal Marines Commando.
I will be showing attendees at the forthcoming Property Investor Show in Excel London on 11/12 April 25 some of the methods we use to identify outstanding property investments that can be held or, in some cases, flipped on the retail market or traded at another auction.
I look forward to seeing you there. We are on Stand 10. I am speaking on both days and also on an auction discussion panel. The timings are on the Property Investor Show website above.
Dominic Farrell
