I was speaking to one of my clients, we'll call her Sally (name changed to protect the innocent)…
...and she was going crazy about Mortgage Express and their big bully tactics. Saying how she'd like to take them down a peg or two.
What are they doing now, I wondered?
Sally has quite a large portfolio and about 40% of them are with Mortgage Express. Now she built her portfolio rapidly at a time when if you had a decent credit rating the banks were chucking money at you. It was possible to refinance the same day and pull money out of the deal as well. Heady stuff I can tell you.
But because Sally didn't follow one of the cardinal rules of property investing -- "Make your money on the way into the deal" -- she is now sitting on a mortgage time bomb.
You see she has mortgages which are due in 5 years -- that are currently in negative equity (the house is worth less than the mortgage) and the lender (Mortgage Express) are getting a bit nervous.
They want to know what she's going to do about it.
Sally's not alone in her situation there are literally 100,000's of properties and investors out there who face the same problem.
I know because I get calls & emails from them daily -- complaining about their situation.
Now I'm not heartless.
But I've very little sympathy for them.
Because they rushed headlong into something they didn't understand. Thought they'd make a quick buck and guess what?
It don't work that way.
And now they've been caught with their trousers down. Dumb really.
In 2013 the market is different but the fundamentals are the same.
Religiously follow cardinal rule numero uno "make your money on the way into the deal" and you'll be fine.
And there are sooooo many ways to find properties at great prices that frankly if you don't utilise them then you deserve whatever comes your way.
As they say every cloud has a silver lining and for those who are properly equipped with no more than a bit of nous and a sympathetic ear, there are rich pickings to be had from grateful investors who will be eternally thankful that you stepped up to help.
Brett Smart runs a boutique Lettings Agency, he is a Landlord and active Property Investor. He provides practical and straight forward hints & tips to Landlords learnt over the last 15 years at the school of hard knocks.