Daniel Twenefour was left near bankrupt following a failed sale of a London property – yet he managed to turn his luck around after finding a unique way to pass on the home.
Daniel, 36, started buying rundown properties, renovating them and selling them on several years ago. Each time he had a bit more disposable income, he bought another property.
However, things went horribly wrong when he decided to buy a property in Mitcham, south London, with a bridging loan that had to be paid back in 12 months.
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These are short-term loans used to help people “bridge the gap” when they want to buy something but are waiting for funds from another sale, for example, a property.
Daniel, who lives in south London, said: “I bought this property as I thought it was in a brilliant location. It was across the road from a tram stop – you could get into Wimbledon in about 15 minutes and East Croydon in 25.
“It was run-down but I renovated it relatively quickly. I gave it to an agent and it sold within a few weeks, which was fantastic.”
However, about a month later, as the sales process was going through, the buyer dropped out. Daniel put it back on the market and it sold quickly again. But again, the buyer pulled out of the sale and when it happened a third time, alarms rang.
“I spoke to the agent and asked them to go back to the three buyers and ask what had happened as it didn’t seem a coincidence.”
Daniel discovered that, because the property was close to a tram line, it was difficult for people to obtain a mortgage, leaving him unable to sell.
Then, the Covid-19 pandemic happened bringing the housing market to a halt.
As he was a personal guarantor for the bridging loan, Daniel feared he was about to lose everything. With the bank demanding £370,000, and threatening to seize his personal assets, he knew they could come for his family home and anything his name was attached to.
“I would have gone bankrupt,” he said. “I didn’t have that kind of money and I couldn’t sell the property. I needed a miracle. I was desperate and didn’t know what to do.
“It was an incredibly stressful time. Then I just had this overwhelming feeling that I needed to give the house away.”
Daniel began researching ways of giving away something of such high value and came across prize competitions giving away cars and expensive watches.
“At that time, there were no house giveaways,” he said. “I just saw smaller companies doing it and thought, ‘Maybe I can do that with a house.’ I had to pay off the debt so I sold £2 tickets to raffle off the property.”
Daniel admits that, initially, the idea struggled to gain traction and it was just advertised on an Instagram page and a website.
“People thought it was a scam. Also, the payment processes out there did not like the nature of the business and kept shutting me down. Nowadays, prize competitions are widely accepted, but at that time, it was considered gambling, which it isn’t.
“The first few weeks were a nightmare. Then, I received advice saying I should tell people exactly why I was doing this and share my story. I recorded a video and put it on social media and people began sharing it.
“Then, national media covered the story and it exploded online. Suddenly, I saw celebrities such as Love Island stars and musicians talking about it on Twitter and it went completely viral.”
Within days, Daniel had raised enough money to clear the debt and pay off the loan. A pregnant woman who was about to get married won the house in the raffle and he felt he could not have wished for a better outcome.
Daniel had just seen the venture as a one-off means of getting out of debt. However, he soon found himself inundated with messages from people wanting to know when the next house giveaway would be.
“At the time, I was completely burnt-out, mentally drained and emotionally exhausted, so I ignored all the messages. I was still working in my day job and it was a lot for one person.”
A few months later, Daniel was having lunch with his parents and brothers when inspiration struck.
“I thought, ‘Why don’t we create a business as three brothers from south London giving away houses? I just knew people would get behind it.”
Daniel launched Tramway Path – named after the road where the property that almost bankrupted him was located – and as it grew, other companies began launching similar house giveaway competitions.
Daniel now runs the firm full-time, while his brothers Jay and Will help him out.
Daniel said his main motivation is meeting the demand from people to have another way to get on the property ladder.
“The barriers to enter house-buying, as much as the government tries to help, are still just too high,” he said. “It is difficult to save and if you’re renting, it’s nearly impossible.”
Tramway Path has been running since early 2020 and by the end of this year, will have given away six homes.
The business now has a team of around 10 people and has given away millions of pounds of homes. Customers can either buy one-off tickets or a subscription.
A few months ago, Tramway path entered into a partnership with homelessness charity St Mungo’s and has so far donated £40,000. Daniel said: “It aligns with our mission which is to help people have their own roof over their head.”
Anyone buying a raffle ticket for a property should check the terms and conditions carefully as some will give you a cash prize instead of a home if there are not enough ticket sales – something Tramway Path does not do.
Others can also subscribe you to monthly draws without being widely signposted, taking money each time.
People should also be aware that while a property is free, often fees such as stamp duty and moving costs still apply.
