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Everything posted by mickflynn39

  1. I was very unimpressed by RK. He mostly seemed to be offering opinion which he’d struggle to back up with evidence. He struck me as someone who has let fame go to his head. Some of the opinions he offered were just plain crazy. A bit more humility from him would be in order. He has gone down a lot in my estimation and I won’t be taking much notice of any of his future proclamations.
  2. As your situation is not straight forward I would strongly recommend you avail yourself of the services of an experienced BTL mortgage broker. Don't use a broker that just does mainly residential.
  3. It depends. Each lender is different. For example you can get a 'consent to let' based on the existing residential mortgage. However you will need a good reason for this request. For example your partner has just died and you are moving to be near family. Or you could be going to work abroad or in another town or city. A consent to let would usually last for 12 months then be reviewed. If the mortgage continues to be paid as normal you may well find the consent to let just carries on indefinitely. Bear in mind with a residential mortgage you may well be paying capital as well as interest whereas with a BTL mortgage you'd only pay interest.
  4. Have you thought about splitting the utilities so each flat has it's own bills?
  5. I bought for £66,000 and sold for £155,000. I kept it for less than a year. It doesn't get much more concrete than that. I have also provided another example in one of my other posts. You can also check Rightmove and see what price HMOs have sold for and check what the house was originally bought for. There are hundreds of examples. You don't necessarily have to prove a track record of stellar rental income. THere is a strong demand for brand new HMOs with no track record. Comparables of other HMOs would be used in stead to prove rental demand/income.
  6. I'm not advocating keeping HMOs. I'm advocating flipping them. I wouldn't recommend keeping HMOs medium to long term as they are a lot of hard work and don't have a lot of capital appreciation in them.
  7. HMO flips as I described previously, definitely do work if done right.
  8. In reply to Adiel I don't think this was a very lucky first foray into HMO land. I did a lot of research before I got involved. I was also an experienced BTL landlord with an extensive building background. I agree that HMOs do cause a lot of headaches but that is only if you decide to keep them. My strategy was about flipping them. It takes 3 months to convert a house into an HMO. You could say you're destroying a Victorian house but on the other hand you could say you're converting a very run down house into good standard housing accommodation for many more people than before thus helping to solve the housing crisis. I had no intention of ever converting it back into a typical house so those costs are irrelevant. Maintenance is a factor to consider. I don't use macerators in toilets and never would. I'd refuse to convert a house to an HMO if macerators were the only option. Students aren't the only customers for HMOs. Where I invest there isn't a student market! Voids are a problem but this is why you need to do a lot of research and only have HMOs where there is strong demand and you must have a good management company onboard. There was and still is huge demand from foreign investors for HMOs. I'm actively involved with several of them mainly from Hong Kong. Most investors will negotiate with you to try and get a good deal. There is no need to go to the bone if the deal suits both parties. I agree managing tenants can be a nightmare. It is certainly much more challenging than with your typical BTL. But then the yield is better. I also agree that you'd be better avoiding HMOs as a long term investment as BTLs will make you a lot more money and give you an easier life. This is only because capital appreciation is much better with BTLs. The value of an HMO is inextricably linked to the amount of rent it commands. This is not the case with BTLs. HMOs have their place if income is your main goal. If you're mainly after capital appreciation I'd avoid HMOs. I invested in 2 more HMOs of my own after my foray into the market. I bought one for £80,000 (it was a bigger house than the first one in a better area). I spent £50,000 on the refurb and ended up with a very high quality HMO. I kept it for 18 months and made £16,200 net profit on the rent after all expenses. I sold it for £175,000 and made a gross profit on the sale of around £35,000 (excluding rent profit). So in 18 months a very healthy profit. I bought my third one for £78,000 so when sold it will make a very similar profit as my second one (it's on the same street). So I stand by my first post. Converting a house to an HMO and selling one every year, if done right can allow you to leave the day job and have more than enough to get by on.
  9. I know someone with 63 houses in his personal name. As you might expect he’s a higher rate tax payer and is interested in going down the incorporation relief route. Can he keep say 20 houses in his personal name (50/50 with his wife) and put the other 43 into a company? Or does the whole of his portfolio i.e. 63 houses have to be transferred into the company to qualify for incorporation relief? Thanks in advance for any advice.
  10. I doubt there will be one that isn’t biased. The same would go for the Brexiteer side of the argument. I wouldn’t waste your time. We’re leaving so the issue is already settled. I very much doubt that will change. If by some miracle the remainers overturn the decision then I dread to think what the consequences would be. There would be unbelievable civil unrest. Half the population would be up in arms and it wouldn’ t end well.
  11. Brexit is a mere blip on the horizon. The economic cycle is all powerful. I don’t lose any sleep over it and ignore all the media sensationalism. When the economy booms which it will over the next 5 years or so we will adapt and Brexit will be forgotten about. Long term I think as a country we’ll do very well and there will be many opportunities available to us that weren’t there before.
  12. Location is Doncaster rented to professionals. We don't have a university (yet). The standard of work was poor throughout the whole refurbishment. For example 3 extractor fans vented directly into the roof space. A chimney stack wasn't properly supported. Rising damp issues were caused by the builder. Radiators were located in inappropriate places. TV points didn't work and were badly located. The project took much longer than it should have. I could go on. The experience left me traumatised. It was like a bad dream and I just wanted to put the whole experience behind me so selling was the easiest way to do this. I put right as much as I could and the buyer is now getting a good HMO. However it could have been much better. The silver lining is that I've made good money selling it and the experience has led me to get into project managing HMO refurbs as I knew I could do a much better job than the so called HMO specialists out there. Within the last 8 months I've done 2 for myself and 2 for clients. I've got 3 underway at the moment with several in the pipe line. I own several single lets and got into HMOs simply because the yield is so much better. I'm lucky that I live in a town where property prices are low so yield is great and capital growth has yet to take off. So I feel I'm covered on both fronts so haven't favoured yield over capital growth. I expect to get both. Going forwards I'm more likely to invest in single lets for capital growth now than in HMOs as according to the property cycle we should get around 165% capital growth over the second half of the cycle. I've got more than enough rental income now so taking a punt on the property cycle playing out is well worth it in my opinion. Even if we only get half the growth that's predicted I'll be very happy with that.
  13. I thought I'd share my experience on my first HMO as I've made quite a bit of money almost by accident. I am now actively pursuing this strategy as it generates a lot of money and could be a quick way for people to pack the day job in in less time than is usually the case. Property is generally not a get rich quick scheme but I believe I've come across a way of packing the day job in within a year if not less. I bought a 3 bed Victorian terraced house for £66k. I turned it into a 5 bed ensuited HMO. Refurb costs were £40k. So with solicitors bills, stamp duty etc. I invested £110k. I then rented the property out for £23,660 gross annual rent. I was unhappy with the quality of the refurb so decided to sell. Had I been happy I would not have even thought of selling. I was able to sell for £155,000. I arrived at the sales price as I wanted to offer an investment to a client with just over 15% gross yield. To my surprise there were many takers (mostly foreigners). During the time it took to sell I was getting £1972 per month in rent. So once all incomings and outgoings were factored in I made £55k gross profit. So the moral of the story is if you want a very good income from just one property and enough to pack the day job in then buy a rundown house, convert it into an HMO and then sell it. It's basically a flipping strategy but by converting to an HMO rather than a BTL the rewards are far greater.
  14. These people don't just concentrate on 'education' though do they? They claim to practice what they preach. If what they are preaching is so good then why don't they spend all their time putting their 'education' into practice? The answer is because most of them are nothing but professional con men looking to make a huge fast buck at the expense of the naive and gullible.
  15. I've met the same character. He took smugness to a new level.
  16. A senior Tory politician involved in housing (I can name him if necessary) has let the cat out of the bag and confirmed what a lot of us are already probably thinking and fearing. They want anyone involved in the landlord business to become a proper business. They have got it in for non incorporated landlords. In his narrow view, you are not a proper business unless you incorporate. It is important for us all to be as aware of the macro economic environment when planning our businesses. I am not incorporated and will not be going down this path anytime soon. I rely on income from rent and crunching the numbers I am far better off not incorporating as things stand. In future I will be stress testing my portfolio to see what impact the removal of mortgage interest relief will have on non incorporated landlords. I strongly suspect this will be the next thing they do to try to speed up the removal of private landlords from the market. I believe the reduction to a 20% allowance for mortgage interest costs is just the first phase in removing the relief. One thing is for sure. It's only going to get tougher for non incorporated landlords.
  17. It would have to be Conservative. The only other choice is Labour. Bad as the Tories are, Labour would be much worse.
  18. It was Legacy. All the information needed to be successful in property is right here on this website. Most of it is free. Unfortunately a lot of these 'trainers' are snake oil salesmen and they get their claws into people before they find out about the Property Hub
  19. I'm not a fan of these alleged training providers. If it hadn't been so cheap I wouldn't have bothered. You make a great point. All these 'trainers' seem to spend an inordinate amount of time training instead of getting on with what they preach.. I recently bumped into a naive investor who had parted with over £20,000 to be mentored. The crazy thing is that she thought it was good value!
  20. Hi Derek The webinar is to reel you into the course. I'm sure it will be very similar to one I recently listened to. It's worth a listen if you are keen to broaden your knowledge on HMOs. The £37 course is good value as well. I'm glad I went but will not be parting with anymore money.
  21. I went last Sunday and found the course both good and bad. First the good. Rick is a very good communicator and the course cost £37. This is very cheap compared to other course I've seen advertised and Rick clearly knows his stuff. I did learn a lot from the course. Lunch is also thrown in which was a fairly average buffet. If you're a vegetarian I hope you like jacket potato and beans. If you sign up for his online mentoring course you can get it for £189 per month with the first month free. Normally he charges £250 but if you're on the course you get the cheaper rate. Other experts do presentations on mortgages and tax and some of Rick's mentees give presentations on their property journey so far with Rick. Rick does strike me as being pretty honest and does talk about the good and the bad. Now the bad and I think it is very bad. Rick spends a lot of time explaining how to find and manage your own tenants. He does not tell you to use an experienced HMO lettings agency. To me it is a no-brainer that you should not be trying to manage an HMO yourself, particularly if it's your first one. No doubt the vast bulk of the audience of 55 were HMO newbies which is why they were on the course. All through the day, the impression given was that you needed Rick as a mentor and you would be very successful very quickly. To ram the point home a short video was shown at the end of the day showing how invaluable a coach was. So to summarise, I would recommend going on the course as you will learn a lot. Just be aware there will be boring bits where he bangs on about managing your HMO yourself. Not recommended. The up sell to the mentoring course is not overly aggressive and I'd sign up anyway as the first month is free and you can cancel before month 2 costs you. If you did decide to do more than one month you can cancel your subscription at any time.
  22. I despise these kind of courses. I would never attend any of these up sell courses. Do yourself a favour and get along to a free monthly property hub meet up. Get along to a property hub summit (for a small cost). There you will find genuine people only too willing to help you. I recently bumped into someone that had been on a Legacy course. He wants to pack the day job in as soon as possible. He is joint venturing with his brother. Having paid for the initial course he signed up for the mentorship up sell for £20,000!!! I nearly fell off my chair. So far the 'mentor' has helped him find an alleged below market deal in an area that is not the best for buy to let in the town. By the time the house is brought back up to rentable condition, having been refurbished by a builder they recommended (I wonder why), it will be a market value purchase. There is no way someone is going to pack the day job in any day soon by following this strategy. They would need dozens of houses. For someone wanting to pack the day job in as quickly as possible an HMO strategy is much better. Despite spending this vast amount of money on training and mentoring, he was completely unaware of resources such as Property Tribes and Streetcheck. I would strongly urge anyone tempted by these courses to avoid them like the plague. Everything needed to be successful in property can be found on this website mostly for free. Anyone that is tempted needs to ask themselves a question. Why have the 2 Robs been totally unable to recommend a single course offered by the likes of Progressive in their hundreds of podcasts? Indeed if anything, they advise the opposite course of action without being as blunt as I am.
  23. Great opening post. I'm sure you'll do well in property. I would advise against going down the JV route initially. Nothing wrong with this idea but I would see it as running before you can walk. I've done a few JV's and there are a lot of complications with them. If you get the wrong partner it can be a disaster. If this partner is a family member, even more so. You are very young and no doubt impatient but you do have time on your side. I would urge patience. Property as you rightly say is not a get rich quick scheme. This demands incredible patience from those of us involved. I would advise you to take the plunge on your own initially. Buy yourself a straightforward buy to let with a good yield. You are in a great area to do this. Stay local initially. Buy below BMV and add value. Get a normal variable rate mortgage and look to remortgage in 6 months. Depending on how well you've bought below BMV and how much value you've added, it might take longer than 6 months. Save as much as you can in this period. As soon as you've got enough for another deposit repeat the same formula. Because you are so young you don't need to rush things. You've got so many years ahead of you that I'd advise you to get a few straightforward buy to lets under your belt before looking to do anything fancy, such as JV's, HMO's etc. All the best.
  24. Hi Malcolm I'm an experienced investor in Doncaster and would recommend Leigh Hesketh. He works for Preston Baker a local estate agent. Their office number is 01302 898405 (press 5 on the menu to get through to him) and his mobile is 07525 186662. The key thing with Leigh is that although he mainly does residential mortgages he also owns property and understands buy to let very well. He's also happy for you contact him on his mobile out of hours. Whoever you go with, I'd always recommend going for a broker that is also an investor. He's not into bridging finance etc just standard buy to let mortgages. If you need something a bit fancier I could recommend another broker that does bridging finance etc (not based in Doncaster). Please feel free to contact me as I'd be happy to meet and help in any way I can (for free, no pushy sales involved etc). Well done for taking the plunge. Kind Regards Joe
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