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Darren McNeill

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  1. Like
    Darren McNeill got a reaction from darren_reeks_gmail_com in BTL Calculator Spreadsheet   
    I have a basic one available.  I still use it to this day and have done over 20+ flips/personal BTL's, works well for me.  I find keeping it fairly simple is best as you can certainly overthink things!
    https://fmp-investments.com/free-planner
    Darren
     

          BTS -- BTL -- Lettings -- Sourcing
              www.fmp-investments.com   
                     
  2. Like
    Darren McNeill got a reaction from EvolutionBlogger in Newbie from Surrey looking at investment options   
    Hi Ken,
    Have you looked more into your investment areas since your last post a month ago?  Vineet mentioning up North is a good call.  Absolutely tonnes of opportunity that huge numbers of investors are missing out on.  Its so easy for people to be drawn to the big cities that everyone talks about on podcasts and YouTube, but there are so many areas that are commutable that people don't know about.  I now have 15 personal rental units and we have sourced, renovated and managed another 160+ for our clients.  We have recently had some amazing capital growth as we have felt the effect of the Manchester bubble.  You can pick up a really nice property for 85k that will return 550-650 all day long.
    If you want to have a chat then my WhatsApp number is on my signature below.  I know how daunting it can be thinking about investing somewhere that isn't local.
    And if your bored and want to see how I started with not a lot then I have journalled everything that I have done in the last 5 years on the Property Hub Forum:
    https://propertyhub.net/forum/topic/5604-i-did-it-financially-retired-in-5-years-starting-with-just-£20k-in-the-bank-in-2017-it-can-be-done/
     
    Darren
     

             www.fmp-investments.com   
          Whatsapp Direct on:  07908403515                     
                           01706 507202
                       
     
     
  3. Like
    Darren McNeill got a reaction from david slater in Quitting your job and going full time in Property   
    *From my other post*

    I have changed careers and went full time into property 5 years ago. I have now built up a sourcing business, a renovations company and also a lettings agency.
    You can read my entire journey here if you have a spare month or two! lol:
     
    The reality of doing this is much different from the fantasy that people write about, unless you have a significant pot of cash to start with.  I started off with only 20k so my journey has probably been much tougher than most people.
    I think what you need to do is sit down and establish what monthly income you need to support your life.  Then, establish how many properties you would need to get to this point.  The reality is that you cannot jump into doing something like this without sitting down and really spending time going through numbers and understanding what is needed.  The other thing to understand is that it is bloody hard work.  There are lots of struggles, lots of stresses and some days its absolute utter shit.  
     
    14.04.2022
    The reality here is that if you have a small amount of money you need to GRAFT to make it work as hard as you can. Its so stressful when your entire life relies on basically being self employed.
    Anyone who follows my blog and has read my most recent one will now see that I have handed over almost every element of my businesses tio people working for me and I am almost classed as retired.  And now I am struggling mentally with that side.  I am going to do a post about it later today as I don't think anyone has wrote about what its like when you achieve the goals and get onto the other side.....
     
     
    Darren

             www.fmp-investments.com   
          Whatsapp Direct on:  07908403515                     
                           01706 507202
                       
     
  4. Like
    Darren McNeill reacted to lindsay_m in Hello! First Post - (The Finnigan-McNeill Property Group)   
    Hi Darren,
    Great posts! I really enjoyed, thank you for sharing!
  5. Like
    Darren McNeill got a reaction from darrenbt in £250k to invest - what would you do?   
    With a starting pot like that then you have quite a few good options.  I try not to look at capital growth and personally focus on monthly income return.  I probably have £1m tied up in various projects, deposits, property growth etc, but that does not pay my bills each month and most of it is tied up in 5 year mortgage products.  When I started I simply focused on the income side, and the capital growth has come along for the ride.  Granted I bought everything at the right time before the market went crazy last year, but either way I would have had some form of growth.
    With a  significant amount of money that you are stating you have, you could go for a very simple income play and use the monthly income to add to the portfolio.  So the example numbers below:
    A basic £80k turn-key purchase would have a CASH cost of  £25,750 and would return you £321 basic (before maintenance and tax).

    If we keep these above figures as they are for explanation purposes the below scenario could be achieved:
    £80K property = £25,750 total cash
    £25,750 / £321 = 80 monthly payments.  So in theory you could buy another property in 80 months if you did not touch the rental income.
    So lets now buy FOUR properties at £80k each.  The rental income is now £1,284 per month.
    £25,750 / £1,284 =  You could buy another property in 20 months if you did not touch the rental income.  You have spent £103k of your money pot.
    Lets go crazy and double this so that you spend £206k of your cash pot and buy EIGHT properties. The rental income is now £2,568 per month.
    £25,750 / £2,568 =  You could buy another property in 10 months if you did not touch the rental income.  You have spent £206k of your money pot.
    You are now at the point where you are buying an additional property per year, just using the money at the start and not adding any more to it.  Every 10 months you are adding another property to the mix, which increases the amount per month and slowly reduced the amount of time before the next purchase.  
    This is the snow ball effect.  The snowball gets bigger and quicker the more properties that you have in the portfolio, and the quicker and quicker you can add to the portfolio.
     
    Most people obviously start much lower than this and it is a much slower process.  The above of course is using basic numbers.  No tax has been deducted, but no increased rents either or capital growth......
     
    You can improve the above by buying properties that need to have work completed on them:
    Another option is to buy something on a 2 year mortgage product that requires some modernising so you can try and force the capital appreciation.  So an example below:

    So in this example you are buying a property at £80k that requires modernising.  So carpets, decorating, kitchen improvements for example.  Using currently available on the market prices you could establish that if the work was done it would likely revalue at £100k.  So you would get the work done and then rent your property out until your initial 2 year mortgage package is due to end and then refinance with another lender.  Now if there has been no gains in the local market and everything has stayed the same it "should" be valued at £100k.  Of course the market could have risen and it could have fallen.... with that my crystal ball does not work.
    So if it did value at £100k the following would happen:
    £13,100 cash would be returned to you.  This would also be tax free as it is still a "loan" from the bank. 
    If you had gone and bought a house straight off at £100k you would have likely spent a total of £31,350 in CASH.  This is your deposit and various fees along the way (below).  The above example however shows that buying at £80k, small refurb and a revaluation at £100k would mean the ACTUAL cash cost would be £19,150 - so a nice saving of £12,200.

    The above doesn't account your monthly rental profits in the figures, and also don't forget that the actual REAL cash cost is when you deduct your deposit and just take into account the fees.  Your deposit is still sat there in the property.  The above numbers are all rounded, but its just an example of how I do my numbers for myself and my clients.  I always recommend a mortgage buy over a cash buy as I feel it is less risky as if the market suddenly drops you haven't got all of your cash tied up (as you have borrowed).  You do not get the same returns, but its that factor of risk which is reduced.
    There are lots of options and you could combine both strategies (if you went down a BTL route).  Best way is to spend an afternoon with a pad, pen and calculator and see how various scenarios could work.
     
    Hope this helps.
    Darren

             www.fmp-investments.com   
          Whatsapp Direct on:  07908403515                     
                           01706 507202
                       
  6. Like
    Darren McNeill got a reaction from benjiw in Hello! First Post - (The Finnigan-McNeill Property Group)   
    04.02.2022

    Well, who would have thought 5 years ago I would be still here now.  I have just re-read my first post and it seems so long ago now.  History is certainly more fuzzy now with so much that has happened, especially in the last few years.
    A small time stamp of where I am right now:
    Personal
    If everything goes to plan (as nothing is 100% until the cash is back in your bank account!) by the close of 2022 on the below numbers I should have a personal rental income of £7,440 Gross rent per month, £418k property equity and £400k working capital.  Thats crazy, im almost at my first £million!
     
    7 Personal rentals bringing in £3,765 (approx equity of £268k) 1 block of 7 apartments (due to complete May 2022).  Should bring in gross rent of £3,675 (approx equity £150k and return working capital of £250k) 2 flips being sold - £45k profit and £70k cash flow coming back into the business 2 flips being renovated - approx profit of £80k (one of these flips I have managed to borrow the purchase price and all of the renovation money).  
    Business
    Lettings agency: 133 active rental properties being managed - (75k per month) 5 properties being renovated - (2.7k forecast per month) 29 client properties being purchased (15.8k forecast per month) Total monthly forecast - £97.4k  Sourcing: 165 properties sourced in total with 136 physically completed  
    That's not too bad going!  See where it is up to and what adventures I have had by my 6th Birthday!!!!  
     
    Darren

             www.fmp-investments.com   
          Whatsapp Direct on:  07908403515                     
                           01706 507202
                       
  7. Like
    Darren McNeill got a reaction from carlhague in Good Letting Agent - Preston   
    I am now managing properties in Preston as we have extended our current operating area.
    Feel free to get in touch if I can help in any way.
    Darren

             www.fmp-investments.com   
          Whatsapp Direct on:  07908403515                     
                           01706 507202
                       
  8. Like
    Darren McNeill got a reaction from Sam_F3 in Property hotspots   
    Personally I don't pay much attention to the "Hot Spot" stuff.  I am fortunate that where I operate houses are relatively cheap.  When I started 4 years ago I was picking up properties at 25k-45k that were decent and in ok areas.  This has now massively changed and the same houses are 60-80k+.  In theory this would make it a hot spot?  Or is it just that the market has finally re-aligned to how it should be?
    I try not to look at capital growth and personally focus on monthly income return.  I probably have £1m tied up in various projects, deposits, property growth etc, but that does not pay my bills each month and most of it is tied up in 5 year mortgage products.  When I started I simply focused on the income side, and the capital growth has come along for the ride.  Granted I bought everything at the right time before the market went crazy last year, but either way I would have had some form of growth.
    With a  significant amount of money that you are stating you have, you could go for a very simple income play and use the monthly income to add to the portfolio.  So the example numbers below:
    A basic £80k turn-key purchase would have a CASH cost of  £25,750 and would return you £321 basic (before maintenance and tax).

    If we keep these above figures as they are for explanation purposes the below scenario could be achieved:
    £80K property = £25,750 total cash
    £25,750 / £321 = 80 monthly payments.  So in theory you could buy another property in 80 months if you did not touch the rental income.
    So lets now buy FOUR properties at £80k each.  The rental income is now £1,284 per month.
    £25,750 / £1,284 =  You could buy another property in 20 months if you did not touch the rental income.  You have spent £103k of your money pot.
    Lets go crazy and double this so that you spend £206k of your cash pot and buy EIGHT properties. The rental income is now £2,568 per month.
    £25,750 / £2,568 =  You could buy another property in 10 months if you did not touch the rental income.  You have spent £206k of your money pot.
    You are now at the point where you are buying an additional property per year, just using the money at the start and not adding any more to it.  Every 10 months you are adding another property to the mix, which increases the amount per month and slowly reduced the amount of time before the next purchase.  
    This is the snow ball effect.  The snowball gets bigger and quicker the more properties that you have in the portfolio, and the quicker and quicker you can add to the portfolio.
     
    Most people obviously start much lower than this and it is a much slower process.  The above of course is using basic numbers.  No tax has been deducted, but no increased rents either or capital growth......
     
    Darren

             www.fmp-investments.com   
          Whatsapp Direct on:  07908403515                     
                           01706 507202
                       
     
     
  9. Like
    Darren McNeill got a reaction from david slater in Instagram vs reality...   
    The problem with social media is that you can easily pretend, which is what 90% of the world already does.  Walk through the park on a sunny day and how many people do you see taking "selfies" over and over at the craziest angles with the most stupid poses, trying to make something look better than what it is.
    If normal people are doing this then its obviously going to go into the business world, especially now that everyone is lazy and wants a short cut to success.  If you believe anything you see on social media then it will be easy for you to fall for what people say.  I could go and view a £2m property today and take some pics and pass it off as my own house....... 
    But... there is also a positive side to social media.  There are genuine people who just write about what they are getting up to. They are hard to find but they are out there.  And when you do find someone decent who is doing something you like its a relatively cheap and easy way to get ideas/motivation etc.
    Darren

             www.fmp-investments.com   
          Whatsapp Direct on:  07908403515                     
                           01706 507202
                       
  10. Thanks
    Darren McNeill got a reaction from zahirm in Not sure how high to offer on this property   
    The reality is that you should always go in much lower than what you want to pay regardless of the situation.  If you went in straight at asking and they accepted it you would kick yourself.  If you go in lower, and they reject every lower offer until you get to asking then at least you know for your own mind you have tried.

    I also would not kick yourself if you go OVER asking price - Yes, I said it!  I have so many clients that will walk away from a brilliant property over a few £k because the numbers in their spreadsheet are a percentage off.  In 20 years time what would an extra £2-3-4k actually mean, nothing.  I know everyone bangs on about BMV, and I myself have lost out on properties in the past over a couple of grand, and now I kick myself when they pop back up on the market SIGNIFICANTLY higher.  Just don't write off a property over a few £k without thinking long and hard about it.
    Darren
     

             www.fmp-investments.com   
          Whatsapp Direct on:  07908403515                     
                           01706 507202
                       
     
  11. Like
    Darren McNeill reacted to DezzaT in Not sure how high to offer on this property   
    It may be a little unconventional and odd, but try a random number rather than a rounded to the closest 5/10 thousand (if that makes sense). Has worked for me before.
    For example, rather than £805,000 (I'm assuming it's that much?), then perhaps try £804,700 or £805,225? The agent/vendor might believe that you're trying to push every last pound out that's available, so may be willing to consider it if they've not received any other offer. 
  12. Like
    Darren McNeill got a reaction from david slater in Hello! First Post - (The Finnigan-McNeill Property Group)   
    2021 Review
    31.12.2021
    I had no idea that the last time that I posted was July.  This year has gone by so quickly, despite how crazy the world as we know it is.  The last 12 months have been incredibly challenging for me on a personal level.  It has meant quite a few dark days for me, but in some ways because of the business I have had no choice but to roll my sleeves up and get on with things.
    This Christmas I have actually taken REAL time off.  I shut everything down from close of business Wednesday 22.12.2021 and the team are not back in work until Wednesday 5th Jan.  This must genuinely be the first real break that I have had in maybe 4 years.  I haven't been getting any phone calls, minimal emails and messages, and this has enabled me just to forget about property, forget about the business, forget about the renovations, and just relax.  From a mental health side, this has been needed.  I started off just wanting to do a few flips and buy a couple of BTL's.  Roll on 4 years and I have created a bloody monster of a company and have the responsibility of multiple livelihoods in my hands, which is a scary thought knowing so many people rely on you for their income.  I have just worked out the annual wage bill for the people who work for me and it comes to an eye watering £161,000!!!  That doesn't include my wages....  I think I may have actually shit myself writing that.
    Anyway..... now that I have scared myself to death, I suppose I should try and have a look at the progression over the last 12 months.  Looking back through my posts I did not do a 2020 update (wasn't in the best frame of mind!), so I will have a quick roll back to see how the numbers look from that as well.
     
    Personal
    Renovation Flips:
    2019 - 5 flips @ 71,325 profit
    2020 - 3 flips @ 49,107 profit
    2021 - 1 flip @ 10,158 profit
     
    Company
    Lettings Agency:
    2019 - 28 active rentals with 17 being purchased
    2020 - 80 active rentals with 56 being purchased
    2021 - 131 active rentals with 30 being purchased
     
    Personal
    With the personal flips and lettings, things have massively changed due to the breakdown in my relationship.  My ex partner refused to get any further mortgages with me, so the properties that I had bought to renovate and keep ended up being sold.  I have also had the issue of my 7 apartment block that I am now in year 2 of renovating going MASSIVELY over budget.  Originally we though I might be able to get away with just cosmetic works (and a 70k budget), but as we have gone through everything, got building control involved (as they had never been present in the renovation by the seller) plus issues you find as you are working, this has grown to a whopping £160k renovation..... also, having paid back some large chunks of change to investors that I had borrowed, I have literally had to put every penny of income that I make into the apartments.  Fortunately I was given a lifeline by one of my clients who has loaned me £50k to complete the renovation costs, and we are now looking (FINALLY) at an April completion!!  I have also just placed 69 Hyndburn Road on the market before Christmas, which again was a big chunk of change to renovate and went over the planned timescales.  Covid and materials price rises have been a MAJOR sting this year.  Sprinkle into this the amount of cowboy traders that seem to be out there and its just a daily battle of carnage.
    On the positives, I am keeping the apartments now (Originally bought to flip, then keep, then flip, then keep!!).  This should bring in approx £3.5-£3.7k per month before costs and also return me around £380-£430k in equity once I repay my lenders.  Removing the 25% deposit that will be in the building I should have £242-£280k cash left over.  I then have Hyndburn Road on the market now, which once sold will put another £45k cash back into the pot.  I have also completed on another 2 flip projects; 599 Newchurch Road (which I have been buying now for 3 years!!) which should generate me a profit of around £60k and another one on Veevers that should generate 10k profit, meaning that HOPEFULLY this time next year the bank should have around £357k-£407k cash.  It has been a very very very very challenging 18 months and in all honesty I cannot wait to get the apartments completed and re-mortgaged as they have been the biggest weight around my neck that I could ever imagine.  Once they are completed my plan is to just take it easy for a month or two and re-evaluate.  I honestly have no idea what to do and tbh I am not even going to attempt to plan a strategy, as who knows what crazy 2022 might bring!  My main goal is just to get the above properties done, completed and get the cash in the bank, as like with everything, its not 100% done until you receive that bank transfer!!!
     
    Business
    The lettings agency continues to grow, and I am proud to say that we have sourced and renovated every single one of the properties.  The challenge that I have found here is finding reliable trades.  I can plan a renovation with my eyes closed, that's the simple part.  The hard part is dodging the cowboys.  Anyone that I speak to who does similar work seems to be having the same issues.  Shoddy work standards, over priced materials or just people who are flat out trying to con you out of money.  At first the team we used was small as you can imagine, but now we have 4 plumbers, 4 roofers, 3 handymen etc etc, and we have been through countless other trades who have just been major let downs.  We have been subjected to blatant thieves who have deceived us out of money and we are having to pursue some things through the fraud teams and through the courts.
    With lettings, because we now have so many properties we are now starting to see the rogue elements of tenants.  Again at the start we had no issues, but as with anything eventually you get one or two, and the more properties you acquire the more likely you have issues. My recommendation here for ANYONE reading this is get insurance for legal cover.  It is worth its weight in gold. The issue we have had is that evictions were delayed because of covid and then on top of that section 21's could last for what seemed forever.  It has been a bloody nightmare and some LL's have had an awful time because of the amount of red tape and hands being tied. Its awful having to give LL's bad news but unfortunately there are so many people who are out there trying to deceive you its crazy.
    Fortunately, it is only a minority. In the last 12 months we have only had 5 serious non payers, of which 1 has been forcefully evicted (We had bailiffs out), with another 2 going through the eviction process.  So out of the 131 active rentals the percentage is low, but my god do they take up all of your energy and resources.  We have of course had a few tenants who have left owing maybe 2-3 months rent but we have managed to get them on payment plans to repay what is owed.  But yes, this is very stressful.  There is nothing worse than giving LL bad news.
    So What about 2022?
    Personal - The plan is to clear the decks, complete my renovations and then settle down to re-evaluate.  If all goes to plan I will have the 7 apartments rented out and maybe £350k+ in the bank.  I might buy a few BRR's, I might do a few flips (but they will be small ones, the big stuff is sooooooooo stressful), I might just switch off for a month and not turn my phone on! lol.  I know everyone says you should give yourself stretch targets etc., but what is my reason for doing it?  You also need to notice when you NEED to take a break.  Truth is I wont, as is evident as to what has been achieved in just 4 years.  o doubt this time next year I will be writing how ive bought something crazy big and im stressed and going bald etc, but you cant help yourself! lol.
    Business - My main goal here is to make this more streamlined and efficient.  The major focus is the lettings agency and getting the best possible service to my landlords and my tenants.  There are so many moving parts to this business.  What I want to achieve is moving all of our operations over to a dedicated software program (which we are in the process of doing).  The biggest hold back is how labour intensive it is to do this, but the plan is to do so many per week, slowly inviting landlords and tenants over to the new software system and easing it in gradually.  Once this is in place it will make communication better, issue logging easier and will help us offer our clients a better service.
    I haven't set any numbered targets as you can see.  For me 2022 is all about re-grouping.  Analyzing where I am personally and as a business and then taking sometime to make educated decisions.  My life is now very comfortable and there is income there that I never have to work again.  But never working would be boring.  I also have the opportunity to REALLY go for it and be a multi millionaire but I could get hit by a bus tomorrow. 2022 is going to be about personal happiness and well being.  Focusing on my own mindset and only doing things that I want to do.  I have 4 months of hard work to start with to grind out these apartments, and then after that things should hopefully settle down.
     
    Anyway, that's me for 2021.  I literally have no idea when I am next going to check back in.  I do want to update regular but weeks and months seem to fly by now at a scary rate!
    I hope you all have a great 2022.
    Darren

             www.fmp-investments.com   
          Whatsapp Direct on:  07908403515                     
                           01706 507202
                       
     
  13. Like
    Darren McNeill got a reaction from horne-properties in How much do YOU think to REFURB this property??!   
    All surveys show roof issues and damp detected.  If it was anything significant you would see it in the upstairs bedrooms.  I will bet that you will just need the chimney stack and ridge pointing along with maybe a slipped tile or two.  Its very rare you need a full roof overhaul.
    Kitchen and bathroom - You still haven't actually said why you are changing these? - Are you approaching this like a business or as if you want to live there?  It seems to me that you are literally willing to spend money on things that do not need doing?  I can do a full house renovation including new wiring, plumbing, plastering etc etc for £20k, and that is when a house needs it.  Your images look as though minimal work is actually needed and more that you want to do the extra things.
     
    Rough costs come with experience and are area dependant.  When you are unsure the best way is to get a few different people round to quote.  I personally find splitting things into the separate trades works best for me as if you get one persona to do everything all they usually do is sub contract and charge you for the pleasure (I have been burnt by this before).
    Refurb order is pretty simple but again depends on what you want doing.  You do the messy stuff first and the pretty stuff last:
    Rip out and gut -> Wiring/plumbing (1st fix) -> plastering -> bathroom and kitchen fitting -> woodwork (skirting boards and door arc's etc) -> Wiring/plumbing (2nd fix) -> decorating -> carpets
     
    You have an amazing opportunity to get this done at a low price and make yourself some really good money, but you could go the path you seem to be heading and p--- it all away. If you really want to spend some money pay me £25k and I will drive down and get it all sorted for you! lol.
    Darren
     

          BTS -- BTL -- Lettings -- Sourcing
              www.fmp-investments.com   
                     
  14. Like
    Darren McNeill got a reaction from russiansergey in Market Research and Own Conclusion   
    Hi Jay,
    I am someone who is in property of every minute of every day as its my only job and I now have multiple property businesses... so here is my view:
    General news - I have stopped watching it.  I went for years without watching the news and was happy in my own bubble.  The world is shit but I cannot fix it so why subject myself to it?  I started watching again when the pandemic started (as it was pretty important) and got back into the habit of just having it on.  I am now weaning myself back off the news and will just work in silence without it in the back ground. Avoid Facebook property groups - Too many know it all's and too many people with an opinion that they will never change.  This area does my head in! Be careful what online forums you participate in - not all forums are equal!  PropertyHub for example is my favourite.  Sensible people and no-one spouting their own beliefs on others.  Some of the other forums can be a bit like the facebook groups. There are then other forums that are a mixed bag. Podcasts - Most of these are pretty good tbh.  I like to listen to podcasters who are actually out there doing property.  They are more likely to speak the truth.  I only listed to about 3 and not religiously.  You can have too much information thrown at you. Use common sense - Never believe anything you hear until you spend 5 minutes on google and research it.  The huge problem with society today is that people believe it because someone else has re-posted it. Stay in your own bubble - My favourite.  Block out 95% of the world.  Pop your head up once a week and then go back into your bubble.  Too much noise, too much BS.  The world is messed up at the minute and no-one has the answer, so don't listen to them.  If you want to go and buy right now (like I am doing) just do some extra research. Property is long term.  If you want to hold off in case the market drops, then hold off.  Do what you are comfortable with.  Personally I am still buying. That is me though and my risk tolerance maybe higher than yours.  I might also have found an amazing deal that stacks up regardless.  Just use common sense.  
    No news is good news as they say?  I would probably recommend as a minimum just catching up with the Robs one on a Thursday as I feel they would be the most genuine to say it might be wroth holding off in their opinion; but even then, it's their opinion......
     

          BTS -- BTL -- Lettings -- Sourcing
              www.fmp-investments.com   
                     
     
     
  15. Like
    Darren McNeill got a reaction from annie63 in What would you do if you had £ 30k cash?   
    Ok... Had a similar chat with a client this morning.  Looking at your situation is the auction route really a viable option?  You have stated that you are working every hours god sends and you havent got a lot of free time, so is this really the best option for you?  Your actual cash pot will also restrict you as with bridging you still need to put down a chunk of money as you will not be lent 100% of the purchase price.  You would then have legal fees, renovation fees, so in reality that £30k will very quickly disappear and will not leave you much of a safety blanket.
    How much are you currently able to save at the minute?
    Here is the conversation that I have had with someone today:
    He has £15k in savings and can save an amazing £1k per month as he simply lives frugally.  We based his numbers on a property purchase price of £60k in the area that I operate in and a rental income of £450PCM (again what he can achieve where I operate).
    A Vanilla £60k purchase would require:
    * £15k deposit @ 25%
    * £500 mortgage broker fee
    * £1,800 Stamp Duty
    * £1,000 legals
    *  £500 mortgage product (this is normally the searches)
    *  £19,000 rounded up to work with.
    A £60k return would be:
    *  £450PCM rent
    *  £45PCM Management fee
    *  £120 mortgage
    *  £20 Insurance
    £265 after the costs above, so round it to £250.
     
    This makes my clients "savings" at £1,250 per month now instead of £1000.  At £19k it will take him 15 months to purchase his 2nd property.
    At this point he now "saves" £1,500 per month.  At £19k it now takes him 12.6 months to save his deposit and he buys the 3rd property.
    We are now at £1,750 per month.  It now takes my client 11 months to get his 4th property.  
    So far we are on 3.25 years to buy 4 BTL's, which isnt bad going. 
    5th - At £2k per month saving now it takes 9.5 months - 4 years 
    6th - At £2.25k per month = 8.4 months - 4.7 years
    7th - £2.5k = 7.6 months - 5.3 years
     
    Of course these are all rough numbers, with no voids and no tax, but all are also at £60k purchases when I have clients picking up properties at £51k....
    I think what I am trying to say really is that getting on and doing something is better than procrastinating. You mention you have been looking into this for 2 years.  If you had bought 2 years ago with your £30k:
    £30k - 19k = 11k
    8k @ £250PCM = 2.6 years
    So now you would be 7 months off your 2nd BTL purchase and further into generating the snowball effect.
    I know the above is less than sexy, but property is the long term game.  Yes it can be done well in the short term but this involves being very creative with your money and also having a bit of luck.  I started out 2 years ago with just £20k:
     
    but I was very lucky.  I was in between careers so had the time to do the work myself.  I live in an area where houses are cheap, and I somehow managed to talk someone into selling their house for £25.8k and sold it for £70k after fixing it up.  Would I be lucky enough to get that break again, probably not.
    I mention the vanilla option above because you have said about time constraints.  You could of course buy something on a BTL mortgage that need some work, do the work and then refinance in 2 years to rinse some money back out of it with its increased value.
    I think you need to make a decision and go for it.
    Darren
     

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  16. Like
    Darren McNeill got a reaction from carl o in Who else is holding on purchases until mid 2021?   
    Nope.  Property is a long term strategy and if I see something that works now then it will work next year so why hold off?
    To me it seems daft, waiting for the crash that may or may not happen.  I bought 2 in the lockdown (due to complete soon) and if I see anything else I will continue to buy.  I haven't got time to waste waiting, that doesn't make money.
    Darren
     

          BTS -- BTL -- Lettings -- Sourcing
              www.fmp-investments.com   
                     
  17. Like
    Darren McNeill got a reaction from Ellski in Sweet spot: High vs Low value properties   
    £200k is a significant amount of money and if utilised well can really make a difference.  This is definitely the time where you need to stop and plan.  It is very easy to get excited and start buying, but then realising in 12 months that you went in the wrong direction and then have to pause things whilst you wait to refinance etc.
    I personally do not look for natural capital growth, I firmly believe that the best way (for myself) is to force this capital growth by adding value.  Adding value does not always mean building an extension or completing a £30k renovation!  This can be as simple as finding a property that is looking dated and giving it new carpets and a lick of paint for it to suddenly look like a completely different property.  Example below for one of our client properties:
    https://www.instagram.com/explore/tags/sandonstreet_fmp/

    As you can see the renovation was minor (we decorated, new carpets and did some tiling) but the property was completely transformed.  We also achieved £500PCM which was £50PCM above the original target rental.  Our client has purchased this on a 2 year mortgage and will revalue then to release equity:

     
    Effort - Is this down to you doing the works yourself, finding the properties yourself, viewing properties etc etc?  What do you deem as effort?  Obviously the more hands on that you are the lower your costs will be, just as the more you get others to do things for you money has to be paid.  When I was hands on at the start of my own journey I had no idea how people could work full time and work on houses!  It used to kill me and I was lucky enough to be doing it full time.  This is something where you need to trade off time vs cost of time.  Is it cost effective for you to do certain elements or is it more effective to pay someone else to do the work for you?
    Returns - Simple enough.  Pad, paper and calculator (or create a spreadsheet) and work out the basic numbers and projected returns.  Personally I would look at buying £60-£75k properties and increase the number of units rather than have just a few high cost units.  My personal goal however is monthly income.  I currently own 9 active rentals that generate just short of £3k per month after mortgages.  This will be increasing to 18 rentals by the end of this year generating approx £6-7k per month.  All our low cost purchases.
     
    Pad and paper time again!  The challenge is that there is no right/wrong answer because everyone has a different goal and view point.  I can only comment on my personal experience and those of my client base but we as a collective are all looking for initial income generation.  Last time that I checked having £100k equity in a house did not pay my bills at home.  I have just been through a period myself where all of my cash was tied up in multiple properties.  I had tonnes in equity but nothing in the bank.  My personal goal is to continue purchasing cash flowing properties and build up the monthly income stream.  It doesn't have to be spent, it can be re-invested, but if say for example I was at £6k per month rental income, I would not need to be relying on capital growth to grow my portfolio, I would simply wait 3 months (£18K) and buy another property.  This is where the snowball effect comes in.  I am currently at this point now where my various rentals and property businesses are generating money to the point I could buy every few months.  Every extra BTL that I add to the portfolio increases the monthly pot and reduces the time frame for buying the next.  I do not use the rental income to live off so the pot simply grows each month.

     
    Darren
     

          BTS -- BTL -- Lettings -- Sourcing
              www.fmp-investments.com   
                     
  18. Like
    Darren McNeill got a reaction from carlhague in New start up!   
    I use private finance to buy my properties.  Only just recently had an issue with 1 lender who didnt like it, despite the fact that I have 12 in my portfolio.  They would have preferred that I had paid a fortune in bridging.  I simply went to a different lender. 
     
    Using others people's money can be risky so triple check your figures and make sure you have a couple of exit strategies.  To secure the money you simply need to use a CH1 (first charge) on the property that you are buying, its what mortgage lenders use.  You can also add terms of the loan to the CH1 so you do not need to get a separate agreement.  You will need to wait 6+ months before you can get financing on it.  There are lenders who will finance before this but rates are usually worse and they are less inclined to give you a decent uplift. 
     
    You mention that you are wary of lending in case the market does have a an issue etc so why not just get your first one as a vanilla ready to rent and then take it from there.  Yes it wont break records in returns etc but what it will allow you to do is to go through the experience of buying and renting out.  Do not underestimate how important it is to get started.  Landlords with 100's of houses all had to buy their first one, and everyone has the same worries about it.  Getting something simple will allow you to experience the purchase process and also give you some time as a landlord whilst you save for the next.  If its all great and you have confidence then explore some of the other options?  BTL isn't as scary as it seems but its also nice to get through that first one to create some confidence.
    Darren
     

          BTS -- BTL -- Lettings -- Sourcing
              www.fmp-investments.com   
                     
       
     
     
     
  19. Like
    Darren McNeill got a reaction from carl o in Sweet spot: High vs Low value properties   
    £200k is a significant amount of money and if utilised well can really make a difference.  This is definitely the time where you need to stop and plan.  It is very easy to get excited and start buying, but then realising in 12 months that you went in the wrong direction and then have to pause things whilst you wait to refinance etc.
    I personally do not look for natural capital growth, I firmly believe that the best way (for myself) is to force this capital growth by adding value.  Adding value does not always mean building an extension or completing a £30k renovation!  This can be as simple as finding a property that is looking dated and giving it new carpets and a lick of paint for it to suddenly look like a completely different property.  Example below for one of our client properties:
    https://www.instagram.com/explore/tags/sandonstreet_fmp/

    As you can see the renovation was minor (we decorated, new carpets and did some tiling) but the property was completely transformed.  We also achieved £500PCM which was £50PCM above the original target rental.  Our client has purchased this on a 2 year mortgage and will revalue then to release equity:

     
    Effort - Is this down to you doing the works yourself, finding the properties yourself, viewing properties etc etc?  What do you deem as effort?  Obviously the more hands on that you are the lower your costs will be, just as the more you get others to do things for you money has to be paid.  When I was hands on at the start of my own journey I had no idea how people could work full time and work on houses!  It used to kill me and I was lucky enough to be doing it full time.  This is something where you need to trade off time vs cost of time.  Is it cost effective for you to do certain elements or is it more effective to pay someone else to do the work for you?
    Returns - Simple enough.  Pad, paper and calculator (or create a spreadsheet) and work out the basic numbers and projected returns.  Personally I would look at buying £60-£75k properties and increase the number of units rather than have just a few high cost units.  My personal goal however is monthly income.  I currently own 9 active rentals that generate just short of £3k per month after mortgages.  This will be increasing to 18 rentals by the end of this year generating approx £6-7k per month.  All our low cost purchases.
     
    Pad and paper time again!  The challenge is that there is no right/wrong answer because everyone has a different goal and view point.  I can only comment on my personal experience and those of my client base but we as a collective are all looking for initial income generation.  Last time that I checked having £100k equity in a house did not pay my bills at home.  I have just been through a period myself where all of my cash was tied up in multiple properties.  I had tonnes in equity but nothing in the bank.  My personal goal is to continue purchasing cash flowing properties and build up the monthly income stream.  It doesn't have to be spent, it can be re-invested, but if say for example I was at £6k per month rental income, I would not need to be relying on capital growth to grow my portfolio, I would simply wait 3 months (£18K) and buy another property.  This is where the snowball effect comes in.  I am currently at this point now where my various rentals and property businesses are generating money to the point I could buy every few months.  Every extra BTL that I add to the portfolio increases the monthly pot and reduces the time frame for buying the next.  I do not use the rental income to live off so the pot simply grows each month.

     
    Darren
     

          BTS -- BTL -- Lettings -- Sourcing
              www.fmp-investments.com   
                     
  20. Like
    Darren McNeill got a reaction from NickBoaz in What has 2020 taught you?   
    That when everyone else is sat there worrying about what might happen a lot of money can be made.
    I have made more money through Covid and pushed my businesses further than I did before.  Opportunities present themselves to people who can be bothered to find them.
    Darren
     

          BTS -- BTL -- Lettings -- Sourcing
              www.fmp-investments.com   
                     
  21. Thanks
    Darren McNeill got a reaction from heretamas in Failed My 2020 Property Goal   
    Where have you looked and what is it you are trying to find?  We have managed to source at least 20-30 properties since March for clients.  You just need to look a bit harder when things get tough.  The market is also starting to quiet down now everyone has spent their £50k BBL.
    Darren
     

          BTS -- BTL -- Lettings -- Sourcing
              www.fmp-investments.com   
                     
  22. Like
    Darren McNeill reacted to Steve Brown in Who else is holding on purchases until mid 2021?   
    I think there is a good point here - next years crash could become the self fulfilling property. I don't know if it will happen or not but I think most evidence is that whether it does or not there will be recovery and in the meantime cash-flow will still be there. For me that means keep looking for good deals and buy when appropriate.
  23. Like
    Darren McNeill got a reaction from Rob Cranston in Who else is holding on purchases until mid 2021?   
    Nope.  Property is a long term strategy and if I see something that works now then it will work next year so why hold off?
    To me it seems daft, waiting for the crash that may or may not happen.  I bought 2 in the lockdown (due to complete soon) and if I see anything else I will continue to buy.  I haven't got time to waste waiting, that doesn't make money.
    Darren
     

          BTS -- BTL -- Lettings -- Sourcing
              www.fmp-investments.com   
                     
  24. Haha
    Darren McNeill got a reaction from Steve Brown in Failed My 2020 Property Goal   
    Where have you looked and what is it you are trying to find?  We have managed to source at least 20-30 properties since March for clients.  You just need to look a bit harder when things get tough.  The market is also starting to quiet down now everyone has spent their £50k BBL.
    Darren
     

          BTS -- BTL -- Lettings -- Sourcing
              www.fmp-investments.com   
                     
  25. Like
    Darren McNeill got a reaction from Steve Brown in Who else is holding on purchases until mid 2021?   
    Nope.  Property is a long term strategy and if I see something that works now then it will work next year so why hold off?
    To me it seems daft, waiting for the crash that may or may not happen.  I bought 2 in the lockdown (due to complete soon) and if I see anything else I will continue to buy.  I haven't got time to waste waiting, that doesn't make money.
    Darren
     

          BTS -- BTL -- Lettings -- Sourcing
              www.fmp-investments.com   
                     
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