The £50 check that could save you £29,000 at auction
In this week's episode of The Property Rebel, Arsh Ellahi talks through one of the most expensive mistakes in property: bidding at auction without reading the legal pack. He admits he has bought blind himself because of the tight auction timeframes, and he is clear that it is a risky strategy nobody should copy. If a property is in an auction, there is usually a reason, whether that is a title issue, a problem with the building, missing searches or fees buried in the contract.
Arsh then shares the story of an investor who booked a One Hour Property Coach call with him after buying a block of three flats in Wolverhampton for £200,000 at £25,000 a year rent. No viewing, no legal pack review. When Arsh went through the pack, there were no searches, no tenancy agreements, and a clause making the buyer pay the seller £29,000 of rent arrears, plus the auction fees, the seller's legal fees and other disposal costs, pushing a £200,000 buy towards £250,000 with £20,000 already down. Off the back of problems like that, Arsh has built auctionpackpro.co.uk, a platform where you upload the legal pack before you bid and get a report back within an hour for £50, listing what is in the pack and what is missing so you can hand it to your solicitor and decide properly.
In this episode, you'll learn:
- Why properties end up in auction in the first place
- The red flags Arsh looks for in any legal pack
- How hidden fees turn a £200,000 buy into £250,000
- What the 28-day completion deadline really means if you cannot complete
- Why you should never bid without seeing the tenancy agreements
- How Auction Pack Pro appraises a legal pack in one hour for £50
Timestamps
00:00 Intro
00:53 Property Investor App reminder
01:47 Buying at auction blind
03:20 The Wolverhampton coaching call
04:35 Red flags in the pack
06:02 The £29,000 rent arrears
06:49 The 28-day completion trap
07:39 Introducing Auction Pack Pro
Join the Property Investor App WhatsApp Channel: bit.ly/PIAWhats
Book Your 1 Hour Call with Arsh here: http://bit.ly/1HourPropertyCoach
Wanna connect with Arsh? Click this link: www.arshellahi.com/contact
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Have you heard about Arsh's app The Property Investor? You can download it directly to your mobile by clicking the links below:
Apple Devices: Download Here
Android Devices: Download Here
Or Visit the website by clicking HERE
Thank you for listening!
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