I get a lot of value from the posts of Simon Allen, Landlord & Founder of TB Finance, and wanted to find out more about him via a Spotlight feature.

I hope Simon does not mind answering the following questions:

1. When did you first get involved in property and what attracted you to it initially?

2. What is your own personal strategy with regards to investing?

3. What is your main area of expertise and skill set?

4. How do you see the future of property investment?

5. What is the worse mistake you ever made in your property investment career?

6. What is the best bit of advice you could give to a novice investor?

7. How can you support or assist other members of the tribe?

8. Tell us one unusual non-property related thing about you ....

9. If you could advocate one other person or company in property, who would it be?

10. Anything else you would like to say?

If any tribal member has a question for Simon, please add it to this thread .....

My next Spotlight will feature the wonderful Kevin Wright.

Spotlight Library:

John Paul

Colin Parker

Stephen Fay

Jack Jones

John Corey

Phil Stewardson

Mary Latham

Jonathan Clarke

Nick and Vanessa

Glenn Ackroyd

Angela Bryant

Samantha Collett

Brian Heath

Ahm Charles

Lisa Orme

Mortgage brokers

If you would like to be featured "In the Spotlight", please drop me an email, but please note that this feature is for active contributers to the forum.

We also have Location Spotlights on various towns including

Guildford

Hull

Liverpool

Edinburgh, Lothian & Fife

Milton Keynes


Bristol

1. When did you first get involved in property and what attracted you to it initially?

I have been arranging finance for landlords and developers since the early 80’s and I had noticed a trend that more and more first timers were getting involved in the sector. I thought that I would have some of that but being a single lad at the time whose hobbies were football and staying out as long as possible I never seemed to have the money. It appealed both as a long term investment, pension and inheritance for my children. My first property was bought nine years ago in Northwich Cheshire.


2. What is your own personal strategy with regards to investing?

I’ve always stuck to terraced houses in and around Manchester aiming at working families although I do have some local authority. I don’t go for high yields and am happy at 6-7% with an element of capital growth. Equally happy if it’s a full refurbishment as I tend to get stuck into most of the work myself. At the moment I’m not buying as my business is taking up all my time. When buying if I couldn't live in the property and the area with my family I won’t buy. I personally don’t believe in armchair investing, but do accept that it works for many. I feel that being a landlord has certain responsibilities attached to it and you can influence your tenants and their family’s lives.


3. What is your main area of expertise and skill set?

Money. Not spending it but getting hold of it. I’m a finance broker and my clients include landlords and other mortgage brokers. As well as the usual BTL companies I also have direct access to the likes of Aldermore Commercial, Shawbrook, private banks and the main clearing banks. I deal with the underwriters of these lenders on a daily basis so understand their appetite,

As well as being a landlord I’ve run the operations of a national bridging company so have had to go to lenders on many occasions to get funds for both the business and its clients. I understand the frustrations of the delays in response times, changes of criteria and the issues that landlords have faced over the last five years as I’ve been there on both sides.

I do a lot of bridging as there is a vast difference in price, service and morals from lenders. A recent thread mentioned FSA regulation of lenders. That won’t help as I’ve recently been told by one such company that they want loans to default so that they can get the properties! I use that knowledge to ensure none of my clients/introducers never use such companies.

4. How do you see the future of property investment?

More regulation, more local council interference, a single landlords association and the finance market improving slightly. A positive future for the long term landlord although tears from investors who get ripped off by unscrupulous property “experts”. Thankfully these are reducing but there are a lot of sharks out there preying on the novice landlord.

We hear about Article 4, what Newham council has done and I can see more of that in our big cities. There are currently two landlord associations and I can’t see the difference between their policies. I do see a difference in culture and feel that for landlords to be heard and more importantly listened to there needs to be one national voice.

Possible regulation of the BTL market. I don’t have too much of an issue as whilst it is not currently regulated by the FSA, you have to be FSA registered to source and place the mortgages. What I would like to see for new landlords is a reality check. Does a landlord living in Exeter really want to buy a property in Carlisle without seeing it or the area?

We all need food and a roof over our heads, I’ve no intention of being a chef and the PRS will continue to grow, but landlords need to run their portfolios as a business which I would expect within this forum. They need to be more of a service industry and to stay ahead and enjoy good occupancy we have to reinvest.


5. What is the worst mistake you ever made in your property investment career?

Buying three properties in a limited company at the top of a market from a friend without getting them surveyed. Within three months all were empty and had major damp problems. Add to that a mortgage with a standard variable rate that Tom Daley could jump off. They say you learn by your mistakes and I certainly did.


6. What is the best bit of advice you could give to a novice investor?

As per post 4 be aware of the sharks that are circling you There are plenty and remember the old adage of if it’s too good to be true it is. Use this forum, talk to existing landlords and always use your own choice of solicitor from a decent size firm. If a seller recommends a firm run a mile. If you need finance be honest and open with your broker and/or lender from Day 1.Have a plan in place and share that information with your advisors.

The main reason we are successful as a company is we find out and discuss the strategy of our clients. It’s not just what you want now but over the next 2-3 years along with your ultimate aims.

Have funds in reserve and there’s no such thing as armchair investing. Being a landlord has responsibilities and you can’t delegate all that.


7. How can you support or assist other members of the tribe?

Giving my view of the mistakes I have seen by dealing with over a thousand landlords and developers. Having empathy for the issues tribe members have as they are also my issues. I know what it’s like to go debt collecting when the rent is late and to see where it has gone when their television is almost as big as the wall.

Lenders naturally look at what can go wrong and the risks attached to it. Then it’s how those risks are managed. By understanding these issues I can help structure more complicated deals in a way that will maximise the chances of getting a yes.

Getting finance can be time consuming and sometimes bewildering. It’s not just about rates and fees but also how lenders treat the application, their culture and morals (especially with the bridging lenders).

8. Tell us one unusual non-property related thing about you...

I once got on the wrong plane home from a holiday in Corfu. That’s all I will say.


9. If you could advocate one other person or company in property, who would it be?

Difficult one this. It was going to be one of my first clients from many years ago who had about fifty properties in and around Bolton. I remember two points from him. Anaglypta paper hides a multitude of sins and if the landlord won’t live in it why should a tenant. However I am going to choose Tom Bloxham one of the founders of Urban Splash. He has led the regeneration of many iconic buildings and has turned the wastelands of several UK cities into desirable palaces to live.


10. Anything else you would like to say?

I don’t have a magic wand and I can be quite forthright but I am passionate about the world of finance. There are plenty of good lenders and the issues within the finance industry have mainly been caused by people most of us will never meet. Finance has changed and what we are seeing now, with a few tweaks will become the norm. Be positive and look for the good. It will be there you just have to find it.

Simon,
Great replies and a really interesting read, as have been other comments I have read from you on various threads .


Phil Stewardson.
Stewardson Developments Ltd.
http://www.stewardson.co.uk

(05-11-2012 06:25 PM)Simon Allen Wrote:  4. How do you see the future of property investment?
More regulation, more local council interference, a single landlords association

Hi Simon, an interesting read and very wise words, thanks for sharing.

Just picking up on your point about a single landlords association, do you see NLA and RLA merging or are you suggesting a new alternative?

Thanks Daniel

I don't know whether a new one or a merger. For a new one to start from scratch will be very difficult as what they can offer will be the mainly the same as the existing ones. NLA is bigger but when lobbying government etc I always feel it is better to have one voice and consistency.The only difference between the two I can see is their first letter.