X

Sign Up

or

By signing up I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Sign Up

Sign Up With Facebook, Twitter, or Google

or


By signing up, I agree to Property Tribes Terms and Conditions


Already a PT member? Log In

Log In

or


Don't have an account? Sign Up

Forgot Password

To reset your password just enter the email address you registered with and we'll send you a link to access a new password.


Already a PT member? Log In

Don't have an account? Sign Up

  • New Members

    Hello from SE / Kent & the Gulf

    Dear All,

    A big hello...

    Well done on having built this wonderful community and fountain of knowledge/resources. I am a long term reader - it has been my first port of call when researching mentors or property sourcing/portoflio building services - but not would like to engage more actively to tell my story, see if I can be of help to others and most importantly continue my education.

    I am currently working in Financial Services in the Gulf, though home is Sidcup (SE London/Kent area).

    Current experience/situation:
    - Family residence; mortgage free. This is a new build next door to our previous family home. Learnt a lot about how stick to my strengths (financing basically!) and delegate (we had a dedicated project manager look after and manage the building works themselves)
    - BTL property in Abbeywood; purchased in 2007; good gains with circa 85k equity. Learnt a lot about tenancy agreements, how to deal with teanants, challenges of being a land lord etc!
    - Investment property in Sidcup - former family home, which was extended at same time as building of new family residence. Currently let out and mortgage free.
    - BTL in Paisley scotland - yielding 10%+, small outright cash purchase (40k)
    - Two active investments with Sow & Reap; these are 12-24 month investments; target IRR of 18-25%.
    - One exited investment with Sow & Reap; ROI of 28% in 13 weeks as part of a syndicate invested in a property in W2 which was flipped between exchange and completion.
    - Currently work in an intense day job and so unfortunately do not have as much time to dedicate to property as I would like. However am determined to make 2015 the year where I really increase my knowledge (and actual physical asset) base.

    Goals:
    - Continue education in all property related issues (sourcing, active vs passive and which is best for me, financing, legal documentation, etc)
    - Leverage my current tax free income, liquid assets and untapped equity, to build a good, safe and long term asset base
    - Hoping to strike an optimal balance between owned property (focussed on long term gains) and investments in JVs/syndicates providing short-medium term capital gains through trading etc

    I look forward to contributing to the forum as best as I can and will be sharing some areas where I could do with advice in due course.
    0
    0
    Hi EPB,

    Welcome to Property Tribes and thank you for the introduction and the kind comments.

    Strangely enough, I grew up in the Gulf - Bahrain and Abu Dhabi - but I am sure it has changed dramatically since I was there. Smile

    Your biggest challenge is finance and managing your U.K. stock while you are so far away.

    I believe you need to build a very trusted team of mortgage broker, solicitor, and lettings agent, who can be your eyes and ears on the ground here.

    Northwood have a Guaranteed Rent service which is very popular with expats.

    Nick Harris of Northwood has some video advice:





    All the best for your plans in 2015!
    0
    0

    Many thanks Vanessa - I actually live in the sandpit across the causeway from Bahrain so have been there on many an escape weekend.

    Will check out the video you kindly provided.
    0
    0

    Dear all,

    It has been almost 2 years since my last posting and thought I would share a quick update:

    - performance of existing assets:

    * Abbey wood single BTL: continues to perform well.  Given the low interest rate environment it is giving a nice net yield which equates to around 12% ROE (originally invested) and currently has c. 200k in total equity (and c. 175k net equity less original equity invested).  I have resisted remortgaging until I properly analyse the implications of section 24 and my wider plans for the medium to long term.  Also purchased a 2 bed flat in Feb 2015 which is yielding net 9% ROE and has around 60k in additional equity since purchase.

    * Scottish single BTL: has been occupied throughout the period and continues to provide a good yield.

    * central London developments with Sow & Reap: these have been severely tested.  The original premise was to diversify away from South East London where I had 100% of my investments and I kept thinking it would not continue to generate such high annual price rises. Since time of my original post, the market has significantly cooled/corrected/mildly crashed.  Unfortunately these were structured using expensive bridge financing and at the high end of the market and therefore one of the investments is looking like a total loss (yet to be realized) and the other one has been creatively reengineered to be converted into multiple studios though it will be several years before the original equity can be returned.  I have learnt a lot through the process and have developed a feel as to what works better for me in a JV.

    * Bridge financing:  this is a new area I have ventured into.  Given my experiences with the central London developments, and my status as an expat limiting my mortgage options, I delved into finding out as much as possible about financing.  For me peer to peer seemed a bit too impersonal though the small ticket entry and ability to diversify significantly were plus points. I extensively reviewed crowd sourcing and other lending avenues and particularly liked LendSwift, SimpleEquity and Code Investing.  in the end I decided the best way was with someone I trusted and somewhere close to home.  I ended up investing in 3 opportunities all in the local area, looking to take first charge, conservative LTV (up to 70% max) and unique situation (auction purchase, quick funds required for a BMV purchase). 1 of the deals has already paid back on time whilst the others are on track and structured so I am getting a monthly return rather than roll up. I have enjoyed working with the solicitors on the documentation, reviewing the credit parameters etc.  Though the returns are not as spectacular, it is currently a good investment for me as provides more certainty on timing and less risk than straight equity deals.

    Other key points:

    * I have moved jobs in the last 12 months and so my day job has become my real focus.  Still working crazy hours...and still an expat!  So the lower pound has really helped me since I earn in dollars,.

    * Whilst I have learnt a lot on the bridging side, I now would like to contribute back more to the community including on PT and the couple of facebook groups on which I am a member.

    Anyways just wanted to share the update and thanks again to everyone on this forum - wishing everyone the best for their property journey during 2017 and onwards!

    0
    0

    Lovely reading and learning from you!  Welcome back to the forum!

    Wishing you all the best

    0
    0

    Dear all,

    Hope everyone is well.

    It has been almost 2.5 years since my last posting and thought I would share a quick update:

    - performance of existing assets:

    * Abbey wood single BTL: original 2 bed terrace continues to be a stellar performer.  Current tenants have been in there approaching 5 years now.  They are great, always paying on time and generally taking care of the place.  I have had to fund some minor maintenance, all of which was fair.  Rent is currently 150-200 PCM below the market, however I am fine with this and would look to increase as and when it becomes void.  Equity still in the region of 200-225k. Annual profit before tax is roughly 4.5k (after mortgage, management fees, maintenance, etc.).  The additional flat is also a great performer.  Same tenant has been there since the purchase.  Around 75k equity and annual profit before tax is roughly 3k (after mortgage, management fees, maintenance, etc.).  I did not buy these for monthly yield but rather long term assets to be held for many years.

    * Scottish single BTL: has been occupied throughout the period and continues to provide a good net yield before tax of c. 8-9%

    * central London developments with Sow & Reap: continue to be a disaster unfortunately. One was a total write off – only redeeming feature is I can use the capital loss against future capital gains (for example if I sell the Abbeywood house). Work is still on-going in relation to the one which was supposed to be restructured into a high-end HMO.  The rent from the last one (part ownership in flat in Mayfair) is at least almost entirely covering the annual expenditures as this had a conventional private banking mortgage and not bridging finance.  So hoping this can be exited at par or a small loss in the next 24-36 months.

    * Bridge financing:  this has been the area of most interest and joy.  Of the 3 investments I previously mentioned, all were paid on time and in full.  Since then I have undertaken an additional investment in the local area which will be repaid on Friday in full and on time.  All 4 deals were at 12% p.a., came with a first charge and PG, and were a maximum of 12 months.   Finding deals in the local area through my own network has been difficult to scale up.  Therefore I have begin dipping my toes with third parties, including Godwin Development and Lendswift, thus far. Plan is to invest small amounts and diversify over many projects whilst still trying to source and fund my own opportunities within my network.

    Other key points:

    * Coming up to 3.5 years in the new job.  Am enjoying the transition from banking to buy-side.  Still based off-shore so the weak pound has helped me.

    * Family is growing, already have a toddler with a new addition expected towards the end of the year J

    * No definitive plans to head back to the UK yet, however have started to research where we may want to move to when we do return.  So far it has been Sevenoaks, Pettswood and Chelsfied.

    Anyways just wanted to share the update and thanks again to everyone on this forum - wishing everyone the best for their property journey!

    0
    0

    Thank you so much for sharing your up-date.  It's very interesting to follow this over a sustained period of time and see how it all works out.

    ​Look forward to the next up-date! Smile

    0
    0