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Thanks for the advice, but im fine, and the loan will be taken. If I cant borrow a few quid of my dad, then its a sad state of affairs!
Obviously you have been stung with past experiences, and I feel for you and your family member.
I would say put your money where your mouth is
If you are so confident that everything will go OK then apply a 2nd interest in your father's name for the amount he lends you.
Will cost £50.
If you are not prepared to risk your home for the family loan then you shouldn't be borrowing from your father..
It would be unfair that your father carries all the risk and you none at all.
Only borrow from family or close associates if you are prepared to give security.
Believe me if things go wrong you won't pay your father.
You will pay your mortgage rather than him.
That being the case what position would he be left in!?
Or do you think that he should carry the can if you muck up without anything detrimental happening to you like losing your home because he had to force its sale to recover the money you won't or can't repay him.
If you are not prepared to risk your home borrowing from your father then quite frankly you are taking the p out of him.
Is that what you do and the way you behave!?
I think you need to seriously reconsider borrowing from your father unless you do as I suggest.
Once you have repaid him your father can remove the 2nd interest.
Thanks for the input.
Comments duly noted and will be reviewed in due course.
I have been chatting with a new client via email who has just sent me a screen shot of my first post saying hello. I completely forgot that i had posted it and it has taken me some time to actually find it. My original post was just over 2 years ago, so I thought that it may be a good idea to update where I have been over the last 2 years.....
I think I am someone who has definitely seen just how quickly property can change and how fast it can move (sometimes). 8 months ago I was on purchase number 4, now I am on purchase number 20. This doesn't include the 4 properties that I have sourced for my clients or the 6 units that I have also agreed pre-completion sales on with an investor that I am working with. I also set up a small boutique lettings agency in Jan and already have 2 properties that we are managing with another 6 due to come on board. Life as you may imagine is now very very busy, but fortunately I do a job that I love. I am now in a position where I have some buyers for properties before I have completed them, which does take a huge amount of pressure off myself.
Here are my updates from another forum that I have used:
6 Month Update:
So how has my journey gone?
There have been a lot of ups, and probably more downs. The property business is definitely one that is worth perusing, but it does have a tenancy to give you a really good kick in the ........ every so often! I have had 3 failed purchases (2 of which were both 1 week from completion), as well as a very annoying delay of 2 months on my first property flip sale (again, just 1 week from completion!). You will find that these little tests are just that, tests. They arent the end of the world (although they do sometimes feel like it!). What they are is an opportunity to grow, and expand your knowledge. For every issue that you face, there is the chance to improve your knowledge, over come it, and move forward.
At the moment I am now just a few weeks away from received the cash in the bank from my 1st flip. I have a property that I am in the process of buying with a JV partner, and I am also looking at a couple of other properties to purchase as well. I still operate at the lower end of the market, so it is possible to stretch my money much further than others would be able to. As I have just mentioned, my 2nd purchase is with a JV partner. I met this person through this forum, so it does show the benefits of like minded people all being in the same place. The private financing through a JV has been a difficult one for me in all honesty. Initially this wasnt something that I had planned on doing just yet, but I was approached, we had discussions, and this made great business sense. Where I struggled in my own mind was with the 10% ROI that I was giving to my JV partner. The property that I am currently buying has cost £58,000. The result is that I will return an additional £5,800 to my JV partner upon sale of the property. Where I have struggled is coming to terms with handing back a large amount of money out of my potential profits. Of course, my profits look far greater with an additional £5.8k on top, and not quite as juicy once you remove the £5.8k!! What I needed to do however is look at the much bigger picture, and how this would help me to grow my business. I could continue to use just my own cash, and I could keep all of the profit for myself. The restriction here is that at this moment in time, I would only be able to buy and renovate just 1 property at a time. Once the property was renovated, I would then have to sit around for 3 months whilst it sold, and I purchased my next project.
Move forward now with the thinking, and how working with someone else to leverage your money has a positive impact. As mentioned my JV partner is fronting the cost of the purchase. This means that I now have £58k of funds that are not being used on this property. This has now enabled me to continue to look for another project, which I would not have been able to do so before. With the next project, again I will fund the purchase with my JV. They will receive a 10% ROI, and I will have the opportunity to be working on 2 projects at the same time, something that I would not have been able to do for possibly 12 months. Yes I earn less on each project, but it makes far more business logic to earn a little less on each project, but to have more projects, that to earn a little more on a project, but just have that one solitary property being worked on.
As you can see, both of us are benefiting from the agreement. My JV partner is receiving a fantastic 10% ROI, which in all reality they will get back within 4-6 months, so their actual ROI is far higher than 10%. I can continue to grow my business model, and expand quicker than previously planned, so much so that over the weekend I placed an offer direct to vendor for a 3rd property.
The previous 6 months have changed my goals. My long term goals remain the same; I have a target of £4,000 rental income per month. How I get to that point continues to evolve on a monthly basis. Failed purchases, and missing out on property bargains that I often see, has meant that I have looked a little more at increasing my working capital significantly, before I decide to look into BTL's. My overall strategy will be far easier to achieve if I have the cash behind me to purchase opportunities when they arrive. This way I will be able to adopt a BRR strategy, but still have the funds available to pick up any properties that have potential, and still grow both my working capital, and my BTL business.
My current goals are now:
2017 - Complete 3 x BTS. Continue to develop working relationships with my existing JV finance partner, as well as expand on this and start to work with similar individuals who are looking to fund such ventures for a fixed ROI.
2018 - Complete 6 x BTS. Continue to work with JV partners. This will give me a great working capital fund, and allow me to start my BRR strategy, where I can refinance and retrieve all of my money from the BRR, so basically start to collect properties in my rental business for free. 2018 is dependant upon opportunities that arise. If a potential BRR project comes at the start of the year, and the numbers make sense and it does not tie up much capital, then I will peruse it earlier. If nothing comes up until the end of the year, then I will hold off. What I do not want to happen is that I miss out on potential flips, because I do not have the funds. I would much rather continue to generate income from flips, than miss out because I have tied up all of my money in a rental that is not giving me the same return. In my mind rentals are easy to come across, and I can pick those up at any stage. If it happens to be 12-18 months later than planned, then I know I will have significantly increased my working capital over this period to make up for it.
2019-2026 - Continue to grow the business through BTS and BRR. Look into other opportunities, such as build to rent, commercial conversions etc. My end focus is still to generate £4,000 per month after tax, and each year i will set a target to generate a set amount. These targets need to be identified closer to the time, as I may be able to achieve certain goals much sooner depending on how my business and personal knowledge has developed.
I have reduced my target "optional retirement" age to 45, which is in 9 years. I of course would not dream of such silliness as to retire, but I want to be in a position of choice, I choose to work because I want to. I choose to take a month of because I can do.
I do have a number of personal goals within the above (lifestyle etc). I have the end goals in mind, but they are not as important as my business goals, as they will slot into place as my business goals grow. The most important thing is that I know what I want, I know how to get what I want, and I know what I need to do. My goals will continue to evolve as I get more experience and confidence, and one day I may look back and thing how small the above goals are, which is why I will review every 6-12 months, take stock of my current situation, and adjust where required.
Back to 2017. Hopefully I will achieve 3 more properties this year, and bring my total for 2017 to 4 flips, which would be 1 above my initial target. I am still going to look for like minded individuals who are looking to receive a 10% ROI on private finance, so if this is something that may interest you, then please feel free to get in touch for a chat. I am happy to spread the wealth, and to help someone grow themselves whilst allowing my own business to grow.
Saturday 2nd December 2017 Update:
Today was quite a large point in my life, I left my small part time job and I am now without any form of normal income! I am now a full time property developer, and have achieved this in around 11 months from making the decision that this is what I want to do. It has been a long 11 months, but it has also flown by! I am now in a position where:
* Sold 1 property
* Almost started to rent out my first BRR
* Started my first JV purchase
* In the process of buying three other properties
I am now looking to continue to grow and develop my skills and continue on my exciting property adventure. I honestly cant believe how things have changed in less than a year, and that I have the job that I had always dreamt about but never thought it would ever be possible.
I am lucky to have had such a supportive family around me, and a Mrs who despite moaning about everything and worrying, has also let me give it a go (although it took some persuading!!)
Keep the positive thoughts, and anything is possible, it just takes time!
21st December 2017:
Reflection on 2017 & Goals For 2018
Although its not quite the new year and we haven't even had Christmas yet, I thought as I have now stopped for Christmas it would be worth having a look back on what has been achieved and what I would like to achieve in 2018. It has been a very interesting year and a lot has been learnt, but there is still a great deal of opportunity to learn more!
* First BTS renovation completed with profit of £28,331
* First BRR rental completed with a ROI of 8.9% after tax (Rising to ROI of 15% once refinanced)
* First JV project started
* Became a full time property developer
There have been a lot of ups, downs, and pure boredom during this period! Things in property take a long time, and no-one in the process seems to be in any form of rush! I found this part of the job the hardest to come to terms with. After 20 years in retail where things move very quickly, this world moves very slowly!
I had targeted 3 flips for 2017 but unfortunately missed this target. This was caused by the delay on Project 1, a purchase of Project 2 where I had to pull out because of another garden issue and then a subsequent delay on the replacement property of Project 2 (delayed by 5-6 months), an issue with Project 3 where it was discovered that the property had been underpinned so I decided to keep and rent, and then another delay on Project 4 due to issues with one of the owners not being compos mentis so another delay of 1-2 months! If I hadn't had the above issues then I would have achieved my goals.... but remember my comment on how slow things are?
What I have Learnt
One complete nugget that I have taken away is that small issues (what appear to be small to me) in any of the legal aspects of the purchase should not be ignored, as they will come round and bite you on the bum when you come to sell. I had this on Project 1 where I did not think an adverse possession application would be too much of an issue for the buyer... turns out it was and it cost me 3 months of my time and a few £k in expenses.
Building up my working capital is definitely the most important thing - without it I have seen a number of opportunities pass me by which sticks in your throat! The only way to do this however is to slowly build by continuing to flip. I think my original targets had me looking at BTL's after just 3 flips, but instead I have increased my working capital goal and put the BTL's on the back burner (with the exception of Project 3, but this was reactionary to an issue).
EDIT 27/12/17 - Looking back on my renovations so far, there are parts where I am wasting time/money. Tiling for example. I have gone very much over kill on Project 1 and Project 3. Granted Project 3 is due to the property being rented out, but this cost and the massive amount of time involved could be greatly reduced for flip projects. Going forward I am now looking how to use less tiling in the bathrooms and kitchens, and therefore reduce costs and time involved. Combining the right number of tiles and correct colour scheme will give just as much an impact, and who has not bought a property as they thought there weren't enough tiles!
I am also going to start to look more into how I can have trades complete the majority of the work in the property. If I am to achieve my goals of multiple property renovations then I need to think bigger and look at the project management side of the job. Another thought that I had last night was looking at what the cost would be for my builder to take on more of the jobs where |I am using other people, so for example my builders are great at plastering, tiling etc. I think for Project 4 I am going to get them to price up completing the required internal works, as well as the plastering/tiling/fitting the kitchen etc and see what the end project cost comes out at, and also how much quicker the renovation takes. If I can have the guys in there working solid for a few weeks and everything gets completed, then it could be worth while. It may also be more cost effective, as they are on a day rate of £120 per person and I get a detailed breakdown of material costs so I know nothing else is added. I am going to give it a go and see what happens and whether it is worth then taking this model forward to the following renovations. If it does work well I could in theory have the guys going from one project to the next.... interesting thought.
* Complete 6 Flips
* Earn my JV partner £30k in ROI payments (30% return on their investment)
* Increase working capital by £120k
* Start to become more hands off with projects and take up more of a Project Management role
With 2 projects due to complete by early Feb (Project 2 & Project 4), the additional 4 should be achievable if I focus and the timing is right! I have been slightly unlucky with purchase timing in 2017, but surely I will eventually get a few properties that have no purchase issues!!
My other focus area is to do what I seem to be able to do best, spend time sourcing and building network relationships. When I had my period of time without a renovation I was able to spend real quality time making contacts and helping to grow my business. As soon as I started my current project this side of the business had to be dropped as I was trying to be hands on with the renovation to save some money in labour. What I need to look at here is how to get that right balance of being on site, but still pushing and growing my business. Spending my time tiling, fitting kitchens, installing skirting boards etc - is this really the best use of my time? Another reason why I am struggling with trying to complete tasks within the property myself is that I am in essence the stay at home dad, and everything that I do on site has to be organised around the school day and my Mrs day's off from work. Only being able to work 10am-2pm on the property 3 days of the week is simply not practical, and as a result I am then having to work longer days on the days that are available to me, and not taking any time off from being on site, which at the time doesn't feel draining, but after multiple weeks of being on the go everyday it does actually start to drain you. People reading might think I wish I only worked 10am-2pm, but what isn't looked at is that I am up at 6:30am to start getting the kids ready for school, then dropping them off, then driving to the site to work, then leaving the site to collect the kids, then feeding the kids and then starting their after school activities (Drama, Dance, Brownies, Swimming etc etc). The reality is that I don't sit down until at least 7pm each day, so its a 12 hour day every day - Plus kids are bloody stressful!! For my Project 4 I am going to look at how being more hands off will affect the renovation budget in comparison to when I do bits myself. Productively I think this is going to be best for myself and my business, so lets see!
Sunday 4th Feb 2018:
1 Year old today!
1 year ago today I said hello for the first time on this forum. I thought that I should take a moment to reflect on the last 12 months to see how/if my life has changed and how my property path has developed.
When I first joined the forum I was still completing my teaching experience in Primary Schools, had just secured my place at Edge Hill university and was working part time at Asda, stacking shelves 3 mornings a week. Now I am in property full time, decided not to become a Primary School teacher, and left my PT job at Asda just before Christmas (bringing to an end 20 years in retail). My knowledge has massively increased from where I was 12 months ago with me continuously trying to educated myself using forums, podcasts and audio books. Whilst I did have my PT job it meant that I could squeeze in an earphone and work away whilst educating myself. My real education however came when I physically got on with it! In there, hands mucky, learning how things are done.
What Have I learnt?
So after 1 year – what is the main thing that I have learnt? Property takes time and is very very slow!! I am not referring to the renovation of a property, that's really easy and doesn't take long at all. What I am referring to is the process of buying the property, selling the property, sourcing a property... all of the things that are vital in this job! Solicitors are slow (although mine is brilliant). Vendors solicitors are useless, Estate agents aren't quick. Posting a simple document seems to have 1-2 weeks time requirement, as once the vendor has received it, they faff around before posting it back. Then the vendors solicitor posts this to your solicitor.... why are they posting when you can scan to email?? Large companies of solicitor are the worst as they “stack-em-high-sell-em-cheap,” so there is no rush unless you nag your solicitor to nag their solicitor.... such fun!!
After this, be prepared for purchases to collapse. They had the stat of 1 in 3, mine has been far higher. In 2017 I had 5 in 7 fail (so twice the norm!).
1st failed purchase - £18k charge placed on the property by the council because of a contact the seller had with them. This came to light 1 week before completion. I found out on the Monday (I think), and I am sure that I was due to sign on the Tuesday.... could be wrong, but it was close.
2nd failed purchase – This was a rebound offer that I made after my first property fell through. It was overpriced fr a flip, but it was a cracking property for a BTL. Fortunately I had my previously agreed mortgage refused, so this deal fell through.
3rd failed purchase – seller had lied to me regarding the garden. I was informed by them that it was rented from the council for £20 per year, it was actually £200 per year and came with a tonne of legal fees on top.
4th failed purchase – This was down to myself, and was just before Christmas. I had underestimated the amount of work required. Once in there with the builder it was a far bigger task than first though, basically needing to go back to brick. The problem was that there was no-where for a skip to go in-front of the house, so everything would need to be hand balled down the road to a skip, adding extra work. At the time I also had 2 other properties with the solicitor, so I made the decision to cancel and walk away. The property is still on the market and I am considering going back with a substantially lower offer to see what happens....
5th failed purchase – This only occurred last weekend, and it is still stinging me a bit. The property turns out to be in a high risk flood zone. It hasn't been flooded itself, but you try and explain that to a buyer!! The decision to pull out was my own – did I want to complete a heavy refurb and have a lot of money tied up, to have a property sit on the market because the flood info scared people away, ultimately to just reduce it in price? - No. I bit the bullet and cancelled the purchase. All searches had been completed as we were 1 week off completion (I was due to get the keys 2 days ago!). The cost was around £450.
Not bad for 12 months eh? I laugh with my solicitor as I have been incredibly unlucky this year. We joke about the amount of lemons that I have picked up, and eventually I will find one that is straight forward!
Well, yes and no! Lol....
1st Purchase – Bought direct to vendor. Great learning property with a final end profit of £28,331 (ROI 55.1%). All wet smoothly until I sold the property. Issue with the land at the back (small patch of garden) which resulted in the offer being accepted in June, and the purchase not completing until NOVEMBER!!
2nd Purchase – Bought direct to vendor. During the purchase process we established that the property had been underpinned. It was costing hardly anything to purchase, so rather than try and struggle to sell onwards I chose to keep the property and rent out instead. I now have an unencumbered property that brings in £450PCM rent. Total property cost including all legals etc etc was £45,031. Property is valued at £65k, so £20k additional equity here. I am unsure whether to refinance at 6 months, or just leave it as it is for now. I will look at this further in the year.
How many courses would have taught you all of that above? If you want to see it raw then the above is a great example. I have had the good as well as the bad. Some of it was my own fault, some of it wasn't. I have had some lucky escapes, and with 1 I used my gut instinct to walk away with what could have been a potential mine field when it came to selling – Read the information that your solicitor gives you and pay to have all of the searches completed!!
The Good Bits!!
Despite the set backs that are mentioned above there have been countless good times through the last 12 months. I think it is best to start with how my home life has changed, as this is why we are all looking to get into property, to improve our work/life balance. My home life now is great. I have a lot of time on my hands, I see my children every single day, and when I am not working on a property I pick them up from school 5 days a week. I even enjoy spending time with the Mrs!! Yikes!!! 2 years ago I was working 70+ hours per week, with long commutes added in, numpty clueless senior management, and general stress,exhaustion and grumpiness. I was a grumpy person, always snapping at the kids and feeling constant stress.
I am now the property developer, stay-at-home dad, general house keeper, and after school club master. It's hard work! Anyone who thinks being at home with 2 children isn't stressful then they need to try it, and my kids are good as gold! It was difficult to do this and renovate project 2, but it was all a learning curve and I will be adopting how I manage things going forward.
Our home finance situation has improved. The sale of the first project allowed me to clear the last remaining small amount of debt that we had. We only owed £3k on my car (loan), but this was a payment of £280 per month. Paying this off gave us the equivalent of a £3,360 pay rise (after tax). I am now also taking an income from my rental property. This extra income is enough to keep up living comfortable, allows me to focus solely on my property business, and that all extra revenue that I make from either BTS or BTL can go back into the business.
1st Year Goals Review
Goals - Feb 2017
2017 - Purchase 3 x flip properties
2018 - Purchase 3 x flip properties and 1 x BTL
2019-2029 - Purchase a minimum of 3 BTL properties per year, with an end goal of £4,000 rental income after tax/expenses
2031 - Be in a position at 50 years old where I am able to choose whether I wish to work, or not.
£4,000 Rental income achieved - Continue to build the business for my children.
Unfortunately I did not achieve my 2017 target. As mentioned above, it wasn't for a lack of trying, but more because of the situations that came about. This year I have planned on increasing my flips to 6 (from 3), and I already have a BTL in hand so there I no need to add to that.
My goals do keep changing, as I am still fine tuning my strategy. I have been reactive over the last 12 months to situations that have presented themselves to me, and I think that this is the best approach. If an opportunity arises, or a situation changes, then its best in my eyes to adapt, rather than ignore them.
The Next 12 Months
In the next 12 months I am going to continue the way that I have been, but hopefully try to find a few less lemons!! I will continue with my plan, but will also be reactive towards opportunities that arise. Property is a funny industry. One of my main areas for me to focus on is to make the most of when I have down time. If I am not in a renovation then I really want to make the most of having time off, and to focus on my health and well-being. I am in a position most people would give anything for, and sometimes I need to sit back and remember this.
Wow... what a busy year! I'd say that the start of the year was fairly quiet in all honesty with the last 6 months just being absolutely insane... and I have loved every minute of it!
So what were my goals for this year?
* Complete 6 Flips
* Earn my JV partner £30k in ROI payments (30% return on their investment)
* Increase working capital by £120k
* Start to become more hands off with projects and take up more of a Project Management role
My other focus area is to do what I seem to be able to do best, spend time sourcing and building network relationships. When I had my period of time without a renovation I was able to spend real quality time making contacts and helping to grow my business. As soon as I started my current project this side of the business had to be dropped as I was trying to be hands on with the renovation to save some money in labour. What I need to look at here is how to get that right balance of being on site, but still pushing and growing my business. Spending my time tiling, fitting kitchens, installing skirting boards etc - is this really the best use of my time? Another reason why I am struggling with trying to complete tasks within the property myself is that I am in essence the stay at home dad, and everything that I do on site has to be organised around the school day and my Mrs day's off from work. Only being able to work 10am-2pm on the property 3 days of the week is simply not practical, and as a result I am then having to work longer days on the days that are available to me, and not taking any time off from being on site, which at the time doesn't feel draining, but after multiple weeks of being on the goeveryday it does actually start to drain you. People reading might think I wish I only worked 10am-2pm, but what isn't looked at is that I am up at 6:30am to start getting the kids ready for school, then dropping them off, then driving to the site to work, then leaving the site to collect the kids, then feeding the kids and then starting their after school activities (Drama, Dance, Brownies, Swimming etc etc). The reality is that I don't sit down until at least 7pm each day, so its a 12 hour day every day - Plus kids are bloody stressful!! For my Project 4 I am going to look at how being more hands off will affect the renovation budget in comparison to when I do bits myself. Productively I think this is going to be best for myself and my business, so lets see!
So how have I done?
Becoming More Of a Project Manager
I started to really focus on the management side of the business in November, and pulled myself away from working within the properties full time. Although I enjoy being on site, I know that my time is now better spent finding deals and finding people to fund them. The cost side of the renovations has increased (as I am employing more people), but in my mind it is better to make slightly less but sell more, as overall that has the most positivity on the cash flow. Another area that I have improved is with the child care side of my life. I have put the kids in the school after-school club on a Wednesday and Thursday. The cost is £24 per week, but it enables me to continue working up to 5-5:30pm, and those couple of hours have really made a huge difference. Some days I will still be working at home but will not collect the kids until I need to as it allows me to continue working and being productive. Me stepping away to become more of a project manager ultimately did not start until the end of this year, and that was because the volume of projects had increased...
Looking back at the renovation targets for this year:
Complete 6 flips
This year I have completed:
Newchurch Road (2) – SOLD
Bold Street – SOLD (with solicitors and due to complete Feb 2019)
Rosendale Crescent – SOLD
Newton Street – SOLD (with solicitors and due to complete Feb 2019)
Currently under renovation:
Inkerman (1) - Scheduled completion Jan 2019 but offer accepted
Burnley Rd East – Scheduled completion Jan 2019
Hope Street - Scheduled completion Jan 2019
Garnett Street - Scheduled completion Jan 2019
St James Row – Completed Jan but started Nov 2017
Hardman Avenue – BTL now LET
Acre Mill – BTL now LET
Newchurch Road (3)
I have completed 6 full projects (excluding St James as that is going as 2017), but only 4 of these have been flips as 2 have been kept as rentals. My 3 current renovations will all be completed in Jan so I was actually only around 3 weeks off having completed 7 flips for this year... either way, it has been a successful year regardless. I know on the podcasts its mentioned to set high goals so that if you don't achieve them you have still done well, so I am more than happy.
What is interesting with the above is the purchase dates of each project:
Newchurch (2) – April
Bold Street – August
Rosendale Cres – August
Hardman Ave – October
Newton St – October
Acre Mill – October
Burnley Road East – November
Inkerman (1) – November
Hope Street – December
Garnett Street – December
9 of the 10 purchases have been since August, and at the moment I also have 2 more purchases with my solicitor as well as waiting to hear back on an offer that has been placed. The momentum really started to grow in August when one of my investors secured a £45k loan on my St James rental. This property was unencumbered so the cash released from this was then used to pay for the next couple of projects, and then the momentum started to grow.
Earn My JV Partner £30,000
At the time of writing last year I only had one JV partner, now I am currently working with 8 individuals with more coming on board soon. As some projects have sold, some are being renovated and some are just being purchased I will break each investor down into their amounts. Most of the investment as mentioned above has occurred at the end of the year, so most of the return will be paid in 2019.
£7,350 Pending – 2 properties on the market Jan 2019
£9,200 Pending – 1 property sold, 1 being remortgaged
£8,500 Pending – 1 property sold, 1 being remortgaged
£3,000 Pending – property being renovated but offer accepted
£2,750 –Pending - property being renovated and on the market Jan 2019
£4,350 – Pending - property being renovated and on the market Jan 2019
£3,500 – Pending – property currently being purchased
£3,750 – Pending – property currently being purchased
£10,750 paid out
£10,700 to be paid for properties currently with solicitors being sold
£24,450 under renovation
£7,250 for properties currently being purchased
This goal can be interpreted in any way you choose to. I didn't actually “achieve” the £30k payout but have secured a grand total of £53,150. One positive however is that a £53,150 payout means funding of £531,500 in the last 12 months, which is a brilliant result and one that I am very proud of.
Achieve £120k In Working Capital
This is a tough one as the moment I receive the money back into the business it goes back out on other projects. If I stopped buying right now, completed anything that was with the solicitors, sold anything that was on the market or under renovation, and paid everyone off I would have an approximate total in the bank of £160k + 3 rental properties.
Summary of 2018
I am over the moon with what has been achieved this year, and know that I can achieve a while lot more in 2019. The key for growth will be the snowball effect that is often mentioned, as I can feel it and see it almost on a daily basis at the moment. What I find amazing is how suddenly things grew from August onwards, and the rate at which things started to move. I am really looking forward to seeing what I can achieve in 2019 and more importantly helping my investors grow their returns – they deserve every penny, as without them I would still be renovating single units.
1/. Complete 20 flips/BTL's
2/. Increase rental income to £3k per month after costs
3/. Manage 10 properties for investors through Finnigan-McNeill Boutique Lettings
4/. Increase working capital to £300k
1/. Pretty much what it states on the tin. I need to determine what is classed as complete. Is this when it is finally sold and money is in the bank, when the renovation is physically completed and on the market, or when I actually get my hands on the keys? What it probably will exclude is all of the properties that I currently have the keys to at the moment, as they are technically 2018 achievements.
2/. My rental income currently stands at £1k per month from 3 rentals. I would like to increase this to £3k to give myself an income safety buffer so that I know that there is always something coming in each month to pay the bills. What is most likely is that I would like to have this £3k per month growing in the bank so that it can be used for deposits on more properties. Here I am looking for the snowball effect where as each property adds to the monthly pot, the closer I get to the next deposit, and as each property is purchased this grows and grows, reducing the time that is required. I am estimating a clearance of around £300PCM per property, so a £2k increase should require another 6-7 rentals in 2019. As these take up bigger chunks of money this target maybe slightly more challenging to achieve, but I will give it a go!
3/. I have 1 investor signed up for me to manage, and a few more in the enquiring stage so this is an area that I will try to develop. I have mentioned previously that this isn't something that I want to grow into a monster. I do not want this for an income, but to pay for the employment of 2 people to manage my own properties for me and allow me to be a hands off investor. What will happen here is that it will never be understaffed as the extra effort for each property will require more hours, but it will give my investors the 5**** service that they are looking for that other lettings agencies cannot achieve. I will not be pushing this side of the business physically, but will allow it to naturally grow with word of mouth and general enquiries through my social media presence. I could go hell for leather to grow it, but I think a better use of my time would be to grow my property trading business as this creates the most money.
4/. To grow the working capital figure and bring in multiple BTL's will be more challenging. The BTL's chew up lots of cash (deposits etc) so I will need to be clever with how I do this to use the minimum amount of capital. I do have a few ideas on how I can stretch my capital but I am leaving that in my head for now until I can test out a few ideas.
There we have it, time to see what 2019 brings and whether Brexit ruins everything!
If you have read through the essay above then a big thank you! lol. I hope that my journey can inspire others and show that despite how hard it is it is still possible to achieve. I am fortunate that I am located where there are low cost properties, as i would have never have been able to do this if I had lived further south. If you have enjoyed my story then I do have every project logged with details and images:
I also document everything that I do on Instagram, so again, feel free to say hi and see what I am getting up to:
Wow what a Journey. Congratulations, I really like your mentality on once you put your mind to it, you do it. Thats great trait to have and its paid off. Absolute great read and insight into your property life. I wish you continued success and thank you for updating this post.
Transparency notice: OneandOnlyPro is a commercial partner of Property Tribes.
I thought that I might as well update my journey on Property Tribes as I do on the other forum. I hope that my story (you can access it from day 1) will be interesting for anyone new coming on board. I will update this journal every week going forward.
Weekly Update04/03/19 - 10/03/19Good morning! I am on my 4th brew, the kids are in bed still (The Mrs is just about to leave for work) and I can have an hour or so of peace and quiet updating my various journals.First up this week is that I have made the decision to re-brand the company. I now have multiple ltd companies that cover my own personal properties as well as the lettings agency, sourcing business and property development for clients:Back to normal...... here are this weeks property updates: * Project 4 - Bold Street - SOLD - No Update - Completion scheduled for the end of the month now (March!)* Project 7 - Newton Street - SOLD - GONE!!!!! Money received in the bank on Wednesday..... Yeay!* Project 9 - Burnley Road East ON THE MARKET - More viewings. We have an interested party but their property is on the market unsold....* Project 11 - Hope Street - ON THE MARKET - The viewings keep coming. One offer less than asking that we refused.* Project 12 - Garnett Street - ON THE MARKET - Viewings being conducted.* Project 14 - Inkerman Street (2) - RENOVATING - Just the bathroom and kitchen to fit - Already SOLD* Project 15 - Wasp Avenue - ON THE MARKET - Still the bathroom and kitchen to finish but we have the listing live by tomorrow.* Project 17 - Mill Street - BUYING - With solicitors - No update* Project 18 - Edleston Street - RENOVATING - House has been stripped and ready for decorating - Already SOLD * Project 19 - Lightbown Street - BUYING - With solicitors. Delayed until the end of the month - No updates* Project 20 - Newchurch #2 - Shop conversion into 2 x 2 bed duplex apartments - SOLD - No updates* Project 21 - David Street - BTL property with existing tenant. No updates* Project 22 - Newchurch #3 - House conversion into 2 x 1 bed duplex apartments - SOLD - No updates* The Lettings Agency Journal - Nothing new this week* Management 2 - BUYING - With solicitors - No updates* Management 3 - BUYING - With solicitors - No updates* Management 5 - BUYING - With solicitors - No updates* Management 6 - BUYING - With solicitors - No updates* Management 7 - BUYING - With solicitors - No updates* Management 8 - BUYING - With solicitors - No updates* Management 9 - BUYING - With solicitors - No updates* Management 10 - BUYING - With solicitors - No updates* Management 11 - BUYING - With solicitors - No updatesThis week saw the sale of Newton Street and we also placed the deposit on the new office. We are scheduled to collect the keys on Monday, so i had better get some office furniture on order!!With the current properties that are on the market things feel really slow, but i think that is because out of the 3 we have live, 2 had sales agreed and they have failed, so it now feels like they have been on the market forever! The viewings keep coming on all of the properties, so the interest is there, it just seems to be taking slightly longer. We were definitely spoilt early on as we were selling the properties very quickly, but a touch of that was me not asking enough for them and probably selling them too cheap. The benefit of that however was quicker cash flow, which sometimes is most important. The couple that we are working on at Inkerman street and Edleston Street already have buyers lined up, so we cannot really complain as they will be with the solicitors by the end of March with tenants in by early April. You just want things to move fast, but people buying their homes do actually take their time! They do not walk through the door and say "we'll take it," like I do! You do sometimes forget that this is a huge decision for most people, and they want to thing about it for a week or two.....This week I have also spoken to a couple of handymen who are based in Accrington and Burnley, one of which is now booked in to tile a full bathroom for me at £400 labour which is a great price. The other handyman who got back to me has a day rate of just £85 so I am going to get in touch with him and try him out on a few jobs that we have coming up.That is about it really, the individual properties have been updated in the links above..... See you all next week!
Weekly Update11/03/19 - 17/03/19My first full week in my new office, and I must admit it feels great. I actually feel now that I am achieving something, rather than everything being just on my laptop and random pieces of paper in the office. I had my first clients meeting yesterday, and again it was nice to meet people in my own space where we can have a brew and a chat without having to meet in a noisy cafe trying to talk business. The office is not complete yet, but the main elements are there. I have my desk, a couple of couches, filing cabinets, the printer (which for some reason will not setup on the wifi despite it always working.. and most important of all, my brew station!! There is an amazing kitchen facility in the office but sometimes its just nice to flick a switch and have the brew ready whilst i'm tapping away. So here are a few images of the office as it is now:Here are this weeks property updates: * Project 4 - Bold Street - SOLD - No Update - Completion scheduled for the end of the month now (March!)* Project 7 - Newton Street - SOLD - We have been asked to manage for the owners but a complete lack of response!* Project 9 - Burnley Road East SOLD!!!! - The previously interested party have accepted an offer on their home!* Project 11 - Hope Street - ON THE MARKET - The viewings keep coming. Nothing to update* Project 12 - Garnett Street - ON THE MARKET - More viewings, nothing to update.* Project 14 - Inkerman Street (2) - No work completed this week. - Already SOLD* Project 15 - Wasp Avenue - ON THE MARKET - Viewing requested within 2 hours of going live on the portals.* Project 17 - Mill Street - BUYING - With solicitors - No update* Project 18 - Edleston Street - RENOVATING - Fully decorated, bathroom and kitchen to be completed this week - Already SOLD * Project 19 - Lightbown Street - BUYING - With solicitors. Delayed until the end of the month - No updates* Project 20 - Newchurch #2 - Shop conversion into 2 x 2 bed duplex apartments - SOLD - No updates* Project 21 - David Street - BTL property with existing tenant. No updates* Project 22 - Newchurch #3 - House conversion into 2 x 1 bed duplex apartments - SOLD - No updates* The Lettings Agency Journal - Nothing new this week* Management 2 - BUYING - With solicitors - No updates* Management 3 - BUYING - With solicitors - No updates* Management 5 - BUYING - With solicitors - No updates* Management 6 - BUYING - With solicitors - No updates* Management 7 - BUYING - With solicitors - No updates* Management 8 - BUYING - With solicitors - No updates* Management 9 - BUYING - With solicitors - No updates* Management 10 - BUYING - With solicitors - No updates* Management 11 - BUYING - With solicitors - No updatesGood week, although as I am typing I am not sure what has actually been achieved. I do enjoy updating the journals as it does help me to reflect on what has happened over the week (it can all merge sometimes). Newton Street has been completed and the Chinese investors have asked me to manage it for them... but I haven't heard from them in over a week....... One thing that I have decided to do this week is to walk every single property that we have on the market and get a list of the last bits of snagging that need completing. Matt has literally spent the entire work going to each property making sure that all of the last little jobs are completed, rather than doing viewings where I know something isn't right. At the start of my journey I needed to get them on asap, but now the properties wont have viewings until they are 100% completed.I have just noticed that on some of my journals the images have all vanished from the property hub forums. No idea why this has happened, so if you notice any can you let me know and I will go back and try to update them all. I went on my original Inkerman Street forum post by mistake and have just seen all of the images are missing...... great!! (Sarcasm!!) "> "> "> Honestly, i'm not busy enough!Wasp Avenue has had a viewing request within 2 hours of it going online. Nothing else though... granted I have put it on at £5k higher than what i want just to see what will happen, I am in no rush to sell so seeing if I can squeeze extra cash from this project.Edleston is not far off being completed now!! Carpets are going in on the 1st April.....
I am in London for two days on Thursday 4th April and Friday 5th April, staying at the Holiday Inn in Whitechapel. This is a business trip as I thought that I would come down to see some of my clients who have not got the time to travel all the way oooop North to see me.
It would be great to put some faces to names so if you are free over the two days then please feel free to get in contact and we can arrange to have a brew and a chat.... I feel I may be having a few brews so if your around in the evening this may become something a little stronger! It would be great to chat property and if there is anyone interested in what I am doing then its a great opportunity to sit down and get any questions asked.
Look forward to seeing some of you there,
Weekly Update18/03/19 - 24/03/19It has been another busy week. We have secured our 22nd property renovation as well as having an offer accepted on a BTL for one of our clients. On Friday we also collected the keys for a BTL renovation project for another client, and work should be starting on that next week. You can see more details on this here.It has also been a bit pants with Bold Street. Yet another delay means that we are now looking at an April completion.... a great example of how you can try and do everything right but yet it drags on and on and on!!! Hope street and Garnett street have also not had any viewings. Makes you feel a little sad as they both have felt like they have been on the market forever.... but both having a failed sale makes it feel longer than it actually is! Garnett has only been on the market for less than 3 weeks.Here are this weeks property updates: * Project 4 - Bold Street - SOLD - Completion now moved to April!!!* Project 9 - Burnley Road East SOLD!!!! - Valuation tomorrow!* Project 11 - Hope Street - ON THE MARKET - No viewings this week* Project 12 - Garnett Street - ON THE MARKET - No viewings this week.* Project 14 - Inkerman Street (2) - Due to be completed by next week - Already SOLD* Project 15 - Wasp Avenue - ON THE MARKET - First viewing yesterday* Project 17 - Mill Street - BUYING - With solicitors - No update* Project 18 - Edleston Street - RENOVATING - A great example of having a couple of crap trades this week! - Already SOLD * Project 19 - Lightbown Street - BUYING - With solicitors. Delayed until April as it is replying on Bold Street - No updates* Project 20 - Newchurch #2 - Shop conversion into 2 x 2 bed duplex apartments - SOLD - No updates* Project 21 - David Street - BTL property with existing tenant. No updates* Project 22 - Newchurch #3 - House conversion into 2 x 1 bed duplex apartments - SOLD - No updates* NEW Project 23 - Clifton Street - A full blown renovation of a grotty house!!! * The Lettings Agency Journal - Keys for 1 project and an offer accepted on a new project.* Management 2 - RENOVATING - We have the keys!!!* Management 3 - BUYING - With solicitors - No updates* Management 5 - BUYING - With solicitors - No updates* Management 6 - BUYING - With solicitors - No updates* Management 7 - BUYING - With solicitors - No updates* Management 8 - BUYING - With solicitors - No updates* Management 9 - BUYING - With solicitors - No updates* Management 10 - BUYING - With solicitors - No updates* Management 11 - BUYING - With solicitors - No updates* NEW Management 12 - OFFER ACCEPTED* NEW Management 13 - This is a renovation project that we have sold and the buyer asked us to manage the letting as they are based in ChinaOn the sourcing and management side of the business it again has been a good week. We have advertised a new rental property for our clients, this was Newton Street that wee sold to Chinese investors. They have asked us to manage the property for them and now that all of the legal paperwork has been signed we can proceed with advertising it. We have received the keys for the Management 2 project and have the renovation planned out. We have also secured our 12th property for our clients. This is a BTL that has been purchased at a brilliant price, and when revalued in a couple of years they should be able to extract most of the money spent:We are also negotiating a DTV deal for another client. The seller has actually approached me through Facebook, and this week we took over the management of the property on their behalf until a buyer is secured. The property has a sitting tenant and even at the current purchase price the return is good. A client is just looking to secure this purchase this week and then it will be another one added to the list.For this upcoming week we have Tuesday booked down for a full day of viewings. These are a combination of projects for ourselves as well as researching potential projects for clients.Hopefully we can get some more properties with offers accepted and get some more renovations underway.Darren
Weekly Update25/03/19 - 31/03/19Good morning everyone, and to the mums reading this, Happy Mothersday!! The clocks have moved forward so at the moment its almost like I have had a lie in.... I was up at 7am (so 6am normally)..... it wont be long until my body reverts back. I have also got a bit of a hang over this morning, so there might be a lot of pausing during this update! We took my Mrs out for tea last night (Me and the kids) as going out on Mothersday just isnt worth the effort. We ended up having a nice meal in a quite local eatery... we did however drink quite a bit, and on the way home the Mrs insisted on getting a bottle of fizzy stuff.... she had 1 glass, I finished the bottle!! Head is a little fuzzy, so it has been a brew and 2 paracetamol this morning whilst the sun is shining on me through the window and the kids and Mrs are all upstairs still snoring.... I do enjoy a Sunday morning when I can quietly work away.This week I am down in London Thursday 4th and Friday 5th. I have a few meetings booked in and also a few evening drinks, so if you are free and would like to meet up for a chat to see if we can help you then why not get in touch and book a slot?So, apart from my delicate head, how has this week been?? * Project 4 - Bold Street - SOLD - The most irritating sale known to man.* Project 9 - Burnley Road East SOLD!!!! - Valuation passed, legals have started.* Project 11 - Hope Street - ON THE MARKET - 1 viewing booked* Project 12 - Garnett Street - ON THE MARKET - 1 viewing booked.* Project 14 - Inkerman Street (2) - All that is left is the vinyl for the kitchen and bathroom - Available @ £60k with £450PCM return* Project 15 - Wasp Avenue - ON THE MARKET - No viewings. Price reduced.* Project 17 - Mill Street - BUYING - With solicitors - No update* Project 18 - Edleston Street - RENOVATING - Carpets going in tomorrow - Already SOLD * Project 19 - Lightbown Street - BUYING - With solicitors. Delayed until April as it is replying on Bold Street - No updates* Project 20 - Newchurch #2 - Shop conversion into 2 x 2 bed duplex apartments - SOLD - Completion on Friday.* Project 21 - David Street - BUYING - BTL property with existing tenant. No updates* Project 22 - Newchurch #3 - House conversion into 2 x 1 bed duplex apartments - SOLD - No updates* Project 23 - Clifton Street - BUYING - With solicitors - No updates* The Lettings Agency Journal - Keys for 1 project and an offer accepted on a new project.* Management 2 - RENOVATING - The floor has been levelled off, decorating starts in a week* Management 3 - BUYING - With solicitors - Completion scheduled for next Friday!* Management 5 - BUYING - With solicitors - No updates* Management 6 - BUYING - With solicitors - No updates* Management 7 - BUYING - With solicitors - No updates* Management 8 - BUYING - With solicitors - No updates* Management 9 - BUYING - With solicitors - No updates* Management 10 - BUYING - With solicitors - No updates* Management 11 - BUYING - With solicitors - No updates* Management 12 - BUYING - With solicitors - No updates* Management 13 - ADVERTISED FOR RENT - Tenant found on the first day of viewingsArrrrggggghhhhhhhhhhhhhhhhhhhhhhhh!!!!! Bloody Bold Street just keeps rolling on and on and on!!!!! There is nothing like the feeling of having quite a bit to loose on a property sale that really makes it even more stressful. NEVER AGAIN will I accept a military mortgage, NEVER!!!!!! On a more positive note the sale of Burnley Road East seems to be going well (Of course I have now cursed this sale!!!). We have waited until the mortgage valuation had been completed before getting the solicitors involved, and the valuation has come in and everything is good to move forward. Initial contract papers have been exchanged and looks good. I have been told that this should be completed just after Easter, although I will show my bum if it goes that smoothly!! This delay is causing me a number of issues. As the property should have been completed over a month ago I continued with the business as normal and offered on other properties and started other renovations. Where I am now is that the funds in the bank are starting to get low. I have decided to stop all unnecessary work now and I am also planning the next months worth of spending in advance. I do have money spread across the business in various accounts, but i do want to avoid constantly moving money between the various businesses as it makes keeping track hard work. Fortunately the renovations of my existing BTS are coming to an end and Matt has requested the week off before Easter, so there is some great timing. I may even have a week off myself!!The 3 properties that are currently on the market seem to be struggling for interest. Garnett and Hope street have been reduced and this generated just 1 viewing on each. Wasp avenue has been reduced and no viewings have been requested. Granted with Wasp Avenue I threw it on higher than planned just to see what happened. I reduced all 3 properties on the 27th March, so granted it hasn't been that long. I will see how this week goes and whether there is any more interest. This is the first time that I seem to be struggling to sell my properties, although 2 of them have had sales that have fallen through. Still very irritating though!The lettings agency and sourcing business has had another busy week. We have had 3 new clients sign up looking for properties to be sourced and managed, and have also found tenants for one of the properties. Some more good news is that another property is close to completion and the other one is being renovated at great speed! Woohoooooo!!!! - * The Lettings Agency JournalHave a great week everyone!Darren