Browse All Tribes or choose a Tribe below:
By signing up I agree to Property Tribes Terms and Conditions
Already a PT member? Log In
Sign Up With Facebook, Twitter, or Google
By signing up, I agree to Property Tribes Terms and Conditions
Already a PT member? Log In
Don't have an account? Sign Up
To reset your password just enter the email address you registered with and we'll send you a link to access a new password.
Good afternoon all,
My name is Tom, I'm 28 and new around here, so just thought I'd say a quick hello and introduce a little bit about myself, for those who fancy filling a few minutes of their day, so here goes..
I've stumbled across this forum during a few searches online, I am looking to find some like-minded people with knowledge to give and I hope there's some people out there who are or have been in a similar situation to my own and are willing to lend some advice to me!
I currently live in Sheffield with my girlfriend of 4 years, and we have recently bought a house together. I am in the Royal Navy and work as an engineer, however it is my intention to leave in a couple of years to pursue property developing full-time. That's where my heart is, and is really what I think I will enjoy doing as a career.
I want to get into property for all the generic reasons that people come up with, to be able to manage my own time and workload (very different from the Navy I appreciate). To be able to make a passive income through BTL's, and just to be able to live the life that I feel like I deserve without the ties of a 9-5 and financial restrictions when it comes to holidays and taking time off.
My plan going forward is yet to be structured, and I hope there are some people out there who would give me a bit of advice on which direction they feel would suit me and maybe be willing to lend some advice from their experiences too. The big picture (how I see it) would be purchasing 5 properties (BTL's) over the next 5 years while this was still a part-time interest, coupled with other work commitments, and then leaving my full-time job to focus on property permanently, creating a portfolio of 10+ properties and eventually managing them with other investors properties too.
So this is where the uncertainty comes in, when should I purchase my first property? I have the available funds to do so within the next 6 months, but managing a house purchase/renovations coupled with my job is tricky, due to lack of communications when on ship and the uncertainty of what I may be doing from week to week. This leaves me in a situation where I consider waiting to leave the Navy to start up properly, but then that will be a few years down the line, and one I don't feel I should wait for. Also once I have purchased my first property, the management issue comes into play, should I look at paying a property letting company 10-15% straight away, as I won't be around to deal with the problems on a day to day basis. The last thing I want when away at work is to have a problem with the property or tenants and not be around to resolve it in a timely fashion.
Anyway, I feel as though I have gone into a good amount of detail for now, and look forward to speaking with some of you across the forum.
Tom - Aspiring Investor out of Sheffield.
Hi Tom,Welcome to the tribe. You sound like a very considered individual and that will stand you in good stead in property. Thank you for the introduction, it allows people to offer far more prescriptive advice.Here is my plan for you:Buy a TENANTED property that is going to need some refurbishment at a later date. Buy this property NOW with a view to undertaking the refurbishment sometime in the future when the current tenants vacate. Have a look at the Vesta platform for tenanted properties for sale, preferably close to where you live - within a 15 mile radius.Buying a tenanted property significantly reduces your risk. Find out why on the link below:Benefits of buying a tenanted propertyHave the property fully managed - it may even come with a lettings agent in situ.Now to your plan to go full time in property. This needs quite a bit of planning. See my guide:Guide: Giving up day job to become a landlordThe big problem with giving up the day job is that it will be far harder to get finance, so I would recommend that you start to buy properties while still working, having them fully managed, with a view to taking over the management when you are finally ready to go full-time. You will also need training, accreditation, and compliance if you wish to start managing other people's properties and the Keller Williams start-up model for independent agents looking for support in starting their own business might be just right for what you have in mind because it provides training, support, compliance, and access to the major portals as part of the low-cost package.Finance comes first, so its important to have a conversation with a reputable mortgage broker (if you have not already done so), and the team at Property Tribes Financial Services on 01206 654444 would be delighted to assist you here.I hope those suggestions help for starters and please do not hesitate to ask if anything I've said requires clarification. Good luck!
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
All views expressed are my own and do not represent the opinion of any entity which I have been, am now, or will be affiliated. I am not responsible, in any way whatsoever, for the use of the information contained in or linked in the post.
Hi Vanessa and Richard, and may I thank you for your speedy responses.
I'll respond to you primarily Vanessa, and thank you for kinds words. You have given me a lot of detail in your reply, and certainly some food for thought. I like the idea of purchasing a tenanted property, that appeals to me greatly and is certainly an option I'm going to investigate and research with a more detail, if the numbers work with the yields and cost price, then I'd definitely like to get my money working for me sooner rather than later.
One thing that concerns me, waiting and waiting but never doing anything, that feels like I'm wasting the capital I currenltly have with inflation and the likely capital growth of properties over the years. The longer term strategy of where I'd like to be in 5-10 years is more a concept rather than a realistic plan currently, so I will definitely have to research and plan that as time passes, the financing issue is also one of the biggest barriers to leaving a full-time job which I appreciate and will consider properly before taking the plunge!
Thanks again Vanessa for all your information and useful links to different topics and people and I will look into them all in the coming days.
Hi Richard and thank you for your welcome, the way I plan to achieve this is through renovating and adding value to properties and re-financing from a modest starting capital of 50k. To do this I appreciate will not be easy, however, with some hard work and time spent on the properties, I believe I can achieve this. I sense you believe this to be a little ambitious and maybe naive of me, perhaps it is, but if I don't set myself goals then there's even less chance of me achieving them! Who would you suggest a power team to consist of primarily to get me going Richard?
I agree. The more you wait the more you delay - the sooner you start the sooner you learn (and enjoy it).
Power team depends on your circumstances, start with a mentor (I found PT is better that any single mentor out there) - then get a good mortgage broker (see Vanessa's post)... followed by solicitor, property manager if you won't have time to manage, and builders (fitters, decorators, etc). if you will not have time to build and renovate yourself.
You need to post and ask more here. Do you intend to manage the renovation yourself? Are you looking at properties close to you or far away?
In my journey, I found that properties close to me, that I managed from start to finish, gave me the steepest learning curve - but it would be a challenge (I am sure you will be able to overcome) with your comment: "but managing a house purchase/renovations coupled with my job is tricky, due to lack of communications when on ship and the uncertainty of what I may be doing from week to week."
Thanks for your input again, you are very constructive. I will definitely look into finding myself a good team to work with, I guess this is one of those things that comes with an element of trial and error attached to it, to find the correct people who work with me.
I will definitely strive to post some more and ask the questions as and when required. I am intending to manage the renovations where practical and realistic, this will become part of the power team you suggested earlier, whereby I can have a trusted team of builders and ideally just leave them to the renovation once they have my instructions. That's the long term aspiration at least. I am primarily going to be looking at properties in and around my area, Sheffield itself is relatively cheap, however it doesn't offer the yields of some places I've looked at such as the North East, but for my first few projects I feel close to home makes the most sense and may be the only way to do it for now, while I get my head around things!
This is going to be one of my problem areas unfortunately with my type of work, and may be a stuttering block rather than stumbling block (or so I hope). I feel it could just cause some delays on when things get done with regards to communication with solictiors, builders etc. I believe I can overcome this hurdle, I will just have to manage the projects from afar, with todays technologies I don't forsee it being a deal-breaker.
Welcome to PT hope you enjoy your stay and find the intel as useful as I so far
Thanks for your support, and I wish you all the best in your journey too. There is certainly a lot of information to get my head around and I look forward to reading and watching videos to learn a lot more about the ins and outs of property!
It might be worth talking to PT partner, Nova Financial. They offer a support service and wealth planning for investors.Also, as their M.D., Paul Mahoney said, "It's not TIMING the market, its TIME IN the market" and I concur with that ....
Welcome to PT, it's a great community from which I'm sure you will gain a lot.
Also, thanks to Vanessa for the kind introduction.
So Tom given that you're just getting started it's great that you're seeking guidance and advice on where to begin as I am a strong believer that your first investment or at least your first few, are probably the most important of your whole property journey, as it sets you on a path of success or failure. If you make risky unsuccessful investments to start with, you're very unlikely to have the confidence to get back onto a successful path any time soon, "once bitten, twice shy" as they say.
After reading your comments, I'd encourage you to not focus on the number of properties you're going to buy but rather what and where you're going to buy and aim for a certain amount of income and equity in your properties over a given timeframe. Ie 5 x £500k properties are very different to 5 x £50k properties and I think too many people focus on the number of properties rather than the end goal which is usually enough income to stop working and be comfortable.
I definitely agree with Vanessa, that you should invest now as it's rarely a good idea to stay out of the market but given you won't be able to actively manage, you want the investment to be passive ie fully managed and low maintenance. We like this type of investment for first timers anyway as they are lower risk and take less of your time. In the right circumstances, this can set you on the right path for becoming more creative in the future.
As a business, this is exactly what we assist clients with such as;
I'd like to offer you a no-obligation and free consultation with one of our qualified advisors to help you understand your options.
To take advantage of this, simply email me directly on firstname.lastname@example.org or call our office on 0203 8000 600. You can learn more about us here; https://www.nova.financial
I look forward to hearing from you.
Founder & Managing Director
Nova Financial Group
Thanks for your kind words and input, I will certainly look at getting in touch with you for some much needed advice. I am a little snowed under right now, but will definitely make some time in the upcoming weeks to reach out and try to make a plan for going forward.
I appreciate your advice also regarding the first investment and just how important that is, it is one that I definitely won't be taking lightly and will be completing plenty of research before taking the plunge! It also makes sense what you said about the overall objective rather than the number of properties, and something I will look at and have a proper think about.