Welcome to the Slow Money Club Podcast. The show giving you realistic ways of attaining financial freedom. We share Get Rich Slow strategies to help you go from employee to entrepreneur and turn your dreams into income streams.
In this episode, we are joined by Piotr Rusenik, a specialist in auction property purchases and director of Synergy Property Partners. We also go behind the story of my own recent purchase of a property at auction, in true SlowMoney fashion.
Piotr specialises in the buying and selling properties at auction. He mainly assists people experiencing issues selling a property, or just need to sell quickly and have typically never used auction house before.
His journey started after spending time as an employee buying and selling properties at auction for a boutique London firm. He went on to start his own business 5 years ago.
Piotr not only shares his own strategy for bidding at auctions, but we also tell us about the downsides of auction purchases. Most importantly drops an Easter egg about how you can find out the reserve price from the guide price.
In contrast, we talk about my recent experience of buying at auction. While Piotr provides me with some guidance on what I should do differently next time.
Piotr Rusenik on buying Property at Auction | Key Discussion Points
Piotr on how did he got started sourcing properties at auction:
“I was working for a Boutique agency and it was just pretty much me and my boss in the company so I was going to agents and building relationships.”
Piotr’s auction property research approach:
“I would check whether the property has been in the auction before. I use Google, Rightmove, Zoopla and try to gather as much information as possible. Then once I am very comfortable with the property I would go and view it. I review about 400 properties every month in auctions and I make a shortlist of properties I like. There will be 30 to 40 properties that I might initially like and I would do further research on. Within 5 minutes I would cross out most of them and be left with maybe 5 properties which I might go and view or I do some more research.”
Advice on going to an auction from a finance perspective:
“I would suggest doing a lot of research in advance and speaking to professionals. Especially a solicitor and possibly bridging company or a lender or mortgage broker. And also speaking to other investors so someone who possibly have done similar deals in the past.”
How does an auction work on the day?:
“When you are in the auction and you raise your hand in the bidding and you basically go to the contract’s table and in the contract’s table you need to pay usually 10% deposit. If it’s a small property there might be a fixed amount that you have to pay that’s more than 10% but usually, its 10% of the purchase price and you also have to pay the auction admin fee which is around ₤1000 to be paid on the day so 10% plus about ₤1000. Then you normally have 20 working days to complete. I.e. Providing the balance of the completion money.”
What happens if you don’t complete on time?
“If you don’t complete in 4 weeks, normally you’re being sent a notice known as a 10-day notice, and you have 10 days to complete on this transaction so another 2 weeks. If you then don’t you lose your deposit and you can also be sued for their loses by the seller.”
Website – www.synergy-pp.com
Piotr Rusenik – LinkedIn