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DerekT

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  1. Like
    DerekT got a reaction from thosken in Good lettings agents in crewe   
    Hi Lukel
    I've been using Your Move AN for a few years now. They're quick to respond to any issues, don't cost too much and have found decent tenants with minimal void periods. They also have an online portal to keep track of your portfolio. 
  2. Like
    DerekT got a reaction from Mark Rocks in SPV and letting legislation   
    Hi Colenago
    As long as the lettings agent is legit and decent, then you should be covered. However, the onus still falls back on the landlord in the event anything happens - e.g. the agent doesn't protect the tenant deposit, the liability is still on the landlord.
    But no, there's no official scheme you need to be a member of as a hands-off landlord. 
  3. Like
    DerekT got a reaction from kalok in Help! "Director’s board resolution approving terms of the lender’s offer..."   
    Hi Kalok
    Your solicitor should be able to confirm what's required, but my understanding is some typed up minutes of a 'board meeting' would be sufficient.
    You can Google what needs to be in them, but the standard company name, address, date of meeting, and then confirmation that it accepts the terms of the mortgage offer dated XX April 2021 from XYZ Lender, signed and dated by the directors of your limited company.
  4. Like
    DerekT reacted to frankroberts in Leeds Area Review - 22/04/2021   
    @DerekT Evening Derek, yeah that would be great. Please fire it over to frank_harry@me.com when you have a moment! Much appreciated, I’ll catch up with you after a few days once I’ve take a look?
    Thanks, Frank
  5. Like
    DerekT got a reaction from frankroberts in Leeds Area Review - 22/04/2021   
    Hi Frank
    Great spreadsheet and research, looks great! 
    If it helps, I can ping you a spreadsheet I created for someone else that was looking to invest in HMOs in certain Leeds postcodes. I don't personally invest there and it's a bit outdated (two years!), but you're more than welcome to look at the data included in it to build on your own one.
    It includes things like population size, employment/social class breakdown, housing stock, price/earnings ratio, current/recent sale prices, and room rates.
  6. Like
    DerekT got a reaction from pauldavies in Assured returns?   
    Hi Max
    Most likely the assured rent and no expenses have been factored into the purchase price, or they're being used as sweeteners to try and shift the properties. 
    Some things to consider besides the headline figures:
    As they're student accommodations, you're limited in terms of exit - i.e. selling to another investor. What's the end goal/exit plan? What's the local market / competition like? i.e. for the same level of rent and purchase price, what else is available? Are there other purpose built student accommodation available / being built causing over-supply? Who's assuring the rent? The agent, developer or insurance policy? If it's the agent/developer, what happens to the assurance if they go bust? Continue to do your due diligence and see what else you can find.
  7. Like
    DerekT got a reaction from mo_mir in Build/Project manager help needed   
    Hi James
    Great to hear your plans! 
    You may initially find it difficult to engage a builder / PM without a property in place. Most builders (the good ones at least) are generally booked out for weeks these days, so might be hesitant to attend viewings with you to cost up projects. 
    Unless you have an existing contact or recommendation, you could find a  potential builder from places like MyBuilder, ask your local building merchants for recommendations, or walk around the area and see if you can see any working on existing homes. You can then ask or offer them a small payment for their time to attend the viewings with you. 
    An alternative is to take loads of photos on the viewings, then ask for online opinions. Obviously won't be exact but might give you a ballpark figure for costs.  
    Good luck!
  8. Like
    DerekT got a reaction from Stephen clay in Selling existing contents   
    If you're looking to give the items away for free, or sell them at a very lost cost, then Gumtree works a treat. Nextdoor is also good for local collections. You'd be surprised what people are willing to pick up!
  9. Like
    DerekT got a reaction from horne-properties in Renovation insurance   
    Hi Stephen
    I use insurance brokers, Alan Boswell for landlords insurance, and they have 'unoccupied property' insurance when you're refurbing and it's empty. 
    There are other brokers available, but I've found AB helpful and affordable. 
  10. Like
    DerekT got a reaction from Stephen clay in Renovation insurance   
    Hi Stephen
    I use insurance brokers, Alan Boswell for landlords insurance, and they have 'unoccupied property' insurance when you're refurbing and it's empty. 
    There are other brokers available, but I've found AB helpful and affordable. 
  11. Thanks
    DerekT got a reaction from EvolutionBlogger in What is your number one tip for success?   
    As @EvolutionBloggerand @dino vhave mentioned, not giving up.
    If you come across a problem or setback in property, it's probably not the first time it's happened. So reaching out for help, whether it's a forum like this, a broker, accountant, builder etc, there's most likely an answer or solution for it. 
    And always keep learning. Things change, especially over time (e.g. new taxes, building regs, council crackdowns etc.), so to be and stay successful, you need to be on top of things. You don't need to know everything, you just need to know who to call...
  12. Like
    DerekT reacted to laura186 in Can I revise my offer by 10k?   
    Hi, Thankyou for all your advice.
    We ended up going in at 133k (costs of works) and after lots of negotiation settled on 138k! 
  13. Like
    DerekT reacted to EvolutionBlogger in How to assess your sourcer and the sourced deal?   
    That's the opinion that I took. It's quicker to find a good property, than a good sourcer!
  14. Like
    DerekT got a reaction from EvolutionBlogger in How to assess your sourcer and the sourced deal?   
    In addition to the good advice above, Rob D has a handy page on his Geek site about finding sourcers. 
    In short, you have to do your due dil on both things, the sourcer and the property. Sometimes it's more work than trying to find your own property! 
  15. Like
    DerekT got a reaction from foster in Hello   
    Looks like you have a great property there foster! Lots of options and depends on what your plans and goals are. 
    I'm not familiar with the area, so cannot provide any specific insight, but if you want a bit of both based on the considerations you've listed above, could you perhaps live in one building, and rent out the other as a service accommodation/short term let?  You can then get the good life whilst generating an income from it.
  16. Like
    DerekT got a reaction from dannyh123 in £600k to invest - advise appreciated!   
    +1 to Chris' strategy. Difficult to top the tax benefits and potential returns of a SIPP and ISA. There's plenty of decent ETFs and funds generating 10+% year on year in a tax-efficient environment. You compare this against the taxes placed on landlords and the additional work involved. However, it does depend on your personal circumstances and financial needs. 
    If you decide to invest the entire balance into property, then £60k per annum is achievable based on your initial sum, but you'll most likely need a few HMOs to boost the income to get to that level as single BTLs won't give you the 10% return.
    With property sourcers, please do your due diligence on them and the property deals they offer. Ensure you're confident with your numbers and theirs, check the area (demand, comparable prices, developments, crime rates etc) as there may be some unscrupulous sourcers after your funds!  Also, check that they're compliant (registered with ombudsman/redress scheme, ICO, AML, insured).
  17. Like
    DerekT got a reaction from horne-properties in HOT Market- I think I may becoming impatient   
    Congrats Home-Properties! 
  18. Like
    DerekT got a reaction from james-cook in Company Name - quick thoughts   
    Depends if you're going to be reaching out for private financing, direct to vendor mailouts, or Instagram followers. 
    If you're just looking to invest your own funds in the property business, the name doesn't really matter. Banks and agents aren't that fussed. 
    If you're looking to build that brand for the purposes of attracting investors, or interested in creating a following on IG, then perhaps a memorable name is desired to build that relationship and stand out.
    For mine, it's just [Family name] Investments Limited, which outlines who owns it and what it does. I think a company is only as memorable based on how successful (or unsuccessful) it is. If you can show others your experience or what you can offer, then the name becomes attached to whatever you end up calling it. 
  19. Like
    DerekT reacted to horne-properties in HOT Market- I think I may becoming impatient   
    thank you for all you advice everyone so the day I wrote this I actually had an offer accepted a few hours after haha, I am really happy with the property and deal 
  20. Like
    DerekT got a reaction from Mark Rocks in Currently at Uni so I can't invest in property yet, what should I do?   
    Hi Leoa
    Congrats on wanting to get started at your age! I'm guessing you're saying you can't invest in property yet due to lack of income and deposit?
    If so, in addition to educating yourself as Mark's suggested, is there anything else you can do during down time from university? Some examples might be:
    Work experience at a local real estate agent - e.g. helping to do viewings on weekends; Work experience at a local hardware store on weekends - e.g. B&Q, Howdens, Selco - get to know local builders and what they're working on; Networking events / seminars - some are free, some cost £5 - £20 to attend, but provides opportunity to network with property investors; Start to track areas / properties that you're potentially interested in - i.e. pretend you have the funds available and track properties that you would've bought and at what price. Then wait a few months after they've been sold and check on Land Registry / RightMove Sold Prices / Nethouseprices and see what it sold for.  Following from above, by tracking properties, start to learn about the numbers and analysing deals; Depending on the agents (as some ask for proof of funds before viewings these days), try and book some properties to view, allows you to chat to local agents.  Walk around the neighbourhood and see if there are any homes being refurbed / developed, and if available, chat to the builder/vendor to get an insight as to what they're doing. I'm sure there's plenty more, but all depends on how much time you have. Good luck!
  21. Confused
    DerekT got a reaction from EvolutionBlogger in Special case - Ltd Company vs Individual   
    It depends on how you structure the payments out of the limited company. You can have a mix of salary, director's loans, or dividends. Note you get £2,000 dividends tax-free and then 7.5% dividends tax up to the basic rate, so assuming you have no other income, it can work out more tax efficient. In addition, you can claim additional expenses, including mortgage interest that you otherwise couldn't if held in personal names. And there's the annual £150 'event' expense you can deduct, or depending on your age, you could just pump all profits into a pension and draw down the income that way in a tax-efficient manner. 
    As always though, depends on your personal situation and you should always seek professional advice.
  22. Like
    DerekT got a reaction from oumdaldn in Hi, new and eager to learn and have advice   
    I think you can only answer that one oumdaldn!
    It depends on what your goals are, who your target market is, your exit strategy, risk tolerance, how hands on and involved you want to be with the property, how far you're willing to travel, whether you want to use a local sourcer etc...
    You can perhaps spend a week or weekend in one of those locations (subject to lockdown conditions) so you get a feel for the place. Another option, you can punch in RightMove properties up to £200k (based on your £50k deposit) and then limit the range to however far you're willing to travel from your current postcode. That might pop up property locations closer to home. For example, I'm based on SE London, and if I set a max. price of £200k and a radius of 15mi with at least a studio, it returns 1,010 properties for sale. 
  23. Like
    DerekT got a reaction from jacquichall in ROI calculation   
    I kind of view cost of voids at the backend of the calcs, given that they're not guaranteed compared to the other expenses. This will depend on the area, demand, managing agent. The maintenance one covers annual certificates etc and squirrelling funds away in case the boiler breaks.
    Once all the knowns are done, then I look at the estimated annual profit and see if it can cover 2-3 months of no rent. If it does, then happy days.
    There's a field for insurance in there, just that you didn't specify the cost of it. I tend to use £200-300 as an estimate if it's a house,  depending on rebuild value. If it's a flat then the service charge you pay generally covers the building insurance, then it's up to you if you want extra.
    Yes, you'll still be subject to 3% if under £125k and through a limited company. 
  24. Like
    DerekT got a reaction from AdamPH in £32000 salary, 30 year old Male, Single. Options for a FTB to Enter Property Market.   
    Like the two Adams have suggested, the lodger option would probably be the route I'd take.
    With your budget of £200k, you can get some decent 2 bedders around London, depending on which area you prefer to live in. As you're currently single, it also makes life easier as you're the sole decision maker on who the lodger will be. The lodger provides up to £7,500 in tax-free income which will help build your next deposit, or help pay off the residential one which in turn helps build your savings/equity. It'll also help you learn about property (i.e. going through the purchase/conveyancing process, managing and maintaining the property etc). 
    Owning your own home first will also open you up to more lenders and/or better rates. Also, 
    Finally, if you're buying in London. as it'll be your first home and your principal place of residence, you can avoid the extra stamp duty which makes a difference in London where prices tend to be higher. Then if you decide to invest in a BTL up North, where prices tend to be lower, the stamp duty impact will be less. 
  25. Like
    DerekT reacted to Adam Hosker in Transfering Leasehold Flat into SPV - Questions About Process   
    Yes, deposit is in the equity.
    You do not have to have £25k in the company account.
    The limited company lenders that do this are very content with the process.
    In addition the amount of equity/deposit is typically noted on the Companies Book's as a Directors Loan. So it can be paid back in a tax efficient manor.
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