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1 posts from May 2008

May 29, 2008




Dear fellow Investor,

Today's broadcast is about a subject very close to our hearts, and our wallets! 

In the past, we have been big advocates of doing deals in a "no money down" format.  However, those days are now long gone (courtesy of the global credit squeeze), and a wave of change has swept through the U.K. mortgage market with over 600 BTL products being withdrawn in the past two weeks.

Every day, we are bombarded with emails from companies, property clubs, and mortgage brokers telling us that they have found a new way to do so-called "no money down" deals.   And every day, we investigate these deal structures and find them to be fatally flawed on a number of levels.

We are also bombarded everyday with emails from our clients asking us if certain deals structures presented to them by third parties are legitimate. And every day, after we have researched their enquiry, we have to go back to them and tell them that the deal structure is not legitimate.

For novice investors in particular, it is very confusing as one person is saying they can do "no money down", and we are telling them otherwise. At the end of the day, you must decide who's advice you trust.

Since April 2008, it is our opinion that there are now no legitimate ways to do "no money down" deals here in the U.K. with the current mortgage products, and taking into account Council of Mortgage Lenders and Law Society regulations.

(Indeed, our last networking event had a presentation to this effect by mortgage broker, Dan Peacock).

To this end, we have joined forces with our colleagues at Property Traders to bring you the truth about "no money down" deals and to bring into sharp focus the dangers of doing them: not only from a legal standpoint, but also from a tax perspective; something that is never considered by most investors.

This is an unbiased, independent report exposing the serious tax and legal implications of doing deals in this format and it will answer all your questions about whether you should be entertaining these deal structures.  There are issues here which no one else will tell you and YOU NEED TO KNOW THEM.  There is no need to be confused any longer.

The report was co-authored by former Accountant and full time investor, Mark Tolley, and Mortgage Broker and serial investor, Chris Wright, along with support and insights from the Directors of 4 Walls and A Ceiling.

For further information, or to purchase your report for £29.99, please click here

We at 4 Walls and A Ceiling have a deserved reputation for always giving you the best possible advice.  Unlike most other companies with hidden agendas, we have been warning our clients of the dangers and pitfalls of doing "no money down" deals for several months now.  Our very own Nick Tadd (Director) was recently seen on BBC2 on "The Truth About Property", calling for regulation of the BTL industry.  Yet people still want to believe it when someone tells them that they have found a way to fudge the system.   No doubt, you will be asked to use their solicitor and broker.  Ask yourself "why?".  If the deal is legitimate, you should be able to use any broker and solicitor you choose, as transparency is a pre-requisite of any legitimate property transaction.

The bottom line is ... if you are not disclosing the incentive and/or discount to the lender, it is tantamount to mortgage fraud.

Our report dissects all these latest "no money down" systems and exposes their flaws and also flags up the legal and tax implications.  If you are found to have done one of these fraudulent transactions, you can end up with a prison sentence and owing the Taxman thousands of ££££££'s.

Before entertaining doing one of these deals, you need to read our report.

For further information, or to purchase your report for £29.99, please click here

Remember that most of these deal structures require you to get the property valued at the gross price.  That means deceiving the valuer/surveryor in some fashion so that he is not aware of the net price or the discount/incentives involved.  We have one client who was advised by another company to pay for four valuations at £450.00 a shot, and was still unable to get a gross valuation through.  That's a lot of money to waste on a deal that fell at the first hurdle!.  On top of that, there are often significant costs such as bridging finance for the deposit, two lots of solicitors etc.  Hardly "no money down" when you take these costs into account!.  (And please do not even THINK about putting such costs on a credit card ... as recommended by unscrupulous clubs and companies of late ... ).

As much as we love the concept of buying property without putting our hand in our pocket, the time has come for us to take a stand against the "no money down" concept.  Too many unsuspecting people are being seduced into these kind of deals with false promises and a complete lack of understanding as to what they are letting themselves in for.

If you read our report, you will be convinced that it is now not possible to do it here in the U.K. legitimately  -

For further information, or to purchase your report for £29.99, please click here

Please do not waste your money on reservation fees, valuations, solicitors fees etc. This report will explain why and tell you the legal and tax implications of what you are contemplating doing.  The entity trying to sell you a "no money down" deal will never tell you these facts or be able to answer your questions about them.  Indeed, we ourselves have posed as "mystery shoppers" on many occasions and found fatal flaws in these deal structures that the person trying to convince us to use them was unable to explain or overcome!

However, rest assured, the second a
LEGITIMATE mortgage product or deal structure becomes available in the U.K. to do "no money down", we will be the first to tell you about it, because we will be using it ourselves!  Until then, extreme caution and a healthy dose of skepticism is advised.

For further information, or to purchase your report for £29.99, please click here

Finally, its worth noting that one in six property investors is going to be audited by the Inland Revenue.  Therefore, you need to be whiter than white, and your deals and accounts need to stand up to scrutiny.  Many of these "no money down"/cash-back formats have yet to be tested through doing a tax return, and when that happens, these deals will start to be exposed for what they are and a lot of people who got involved with them will start to find it hard to sleep at night.  Don't be one of them!.

If you are interested in the truth about "no money down" deals, you NEED this report.  It could save you from financial ruin in the future. It's everything you need to be aware of, but didn't know to ask about.

Every investor interested in "no money down" deals should read this report and make up their own mind whether to get involved or not. 

You can only make an informed decision on anything when you have all the facts and fully understand all aspects of what you are attempting to do!

Now, more than ever, education is vital to make sound investment decisions. This report will educate you as to the truth about "no money down" deals. 

We at 4 Walls and A Ceiling promote education and networking as we believe they are vital to your success.   This report is another example of us helping you increase your knowledge base and make informed decisions to secure your financial future.

Property investment is like taking part in a marathon - not the 100m sprint!. In other words, you need to take a mid to long term view and not be seduced by deals that seem too good to be true.  There is no "short cut", or "get rich quick" and be wary of anyone who is telling you there is!

For further information, or to purchase your report for £29.99, please click here