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david graham

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About david graham

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  1. Check out Propertygeek podcast episodes 84 and 52. These are both pretty relevant for you
  2. You would be looking for properties where you have the opportunity to either buy below market value or add value and therefore remortgage (after 6 months) on the new value. This allows you to pull some or all of the initial investment back out and therefore pay back the silent partner while holding on to the property. But it relies on getting the right deal. Exaggerated and simplified example... buy a house BMV at £60k. Deposit is £15k. For the purpose of the example I'll ignore stamp duty, legal costs and assume no refurb is needed. So your dad puts £15k in and you get a mortgage for £45k. But the house is actually worth £90k so after 6 months you remortgage based on the new value. You can get 75% mortgage so you can now get a mortgage of £67,500. You use that to clear the original £45k mortgage and you have £22500 left over. You can now pay your dad back with interest and still hold on to the property. This was an exaggerated example but investors often with with property Sourcers to find these opportunities.
  3. I suggest spending some time researching Joint Ventures and look for relevant Propertygeek podcasts. It is not that uncommon for one person to supply the money and the other supply the time and expertise and effort. There is no one size fits all way to structure this. One approach is to check what return your Dad (business partner or silent investor) would accept. If he puts his money in the bank he'll get nothing. If he buys stocks he might get great returns but it's risky. You could offer say 8% per year and an agreement to pay him back plus the extra 8% one year later. Give him legal first right to have the property sold after that point if he wishes and he gets paid back immediately after the bank. That way you minimise his risk. There are alternative options but research joint ventures and listen to a few good podcast episodes to begin with.
  4. You should be able to find a bridge loan. Bridge finance is designed to fill a short term gap between a debt arriving and the main credit coming (or your new mortgage). Only use this if you are confident it is short term because it is expensive. Alternatively I'd imagine the seller of the new house should be happy to wait if they've accepted your offer. Surely this is normal when moving house? You need to sell your own before you can pay for the new one
  5. There are lots available but maybe start with google keep notes, available for download for free on the play store. It allows exactly what you are talking about and includes a widget for your home screen. You can have check lists, add photos etc. Although it is not specifically for property.
  6. Hi, I was wondering where the sourcers on this forum typically advertise their deals? Do most rely on their investor networks and email lists or do they advertise in particular forums or Facebook groups? Thanks, David.
  7. Limited by shares is normal for a profit making company. Limited by guarantee is normally considered most suitable for charities or other non-profits. I'm not sure if it's expressly prohibited for a limited by guarantee company to make profit but limited by shares means you can take a dividend every quarter.
  8. While the responses nicely answer the second part of the question, so far nobody has answered the first. Each person has done a great job of describing desirable "features" bit nobody has described the "pain". I think (by the original phrasing) @mattr42 would love to know what is really difficult, without solutionizing. For example is it really difficult to evaluate the likely sell price of a flip because you can't find out the sold price of similar properties? Or is the pain actually the amount of time spent trying to work out the likely sale price? Each of these "pains" might result in a subtly different product. Good luck @mattr42, my company (Property Connect Software Ltd) is also currently building some software that I hope will be a real game changer for UK property investors.
  9. Hi Elaine, I'll second some of the comments already made. IF you've got the cash to fund the project completely then do that because: 1. You'll be able to move quickly and therefore may even be able to secure the property for a lower price on that basis. You can move to take it off the market before you end up in a bidding war. 2. You'll be able to avoid any mortgage set up costs at this first stage 3. You won't be paying interest on it while doing any refurb work 4. You won't have to wait 6 months before remortgaging in order to get your money back. Just make sure you do actually mortgage it and get your money back so you can scale up. Good luck, David
  10. Hi Haf1963 and Richard Brown. Thank you both kindly for your responses. I now appreciate that the opportunities lie in converting a single let to something else. Thanks, David.
  11. Hi, I was wondering if any experienced rent to rent investors could advise me what is a realistic cashflow for a single let and for multi-let? I know mark and Brad at Goliath describe rent to rent as good for cashflow but in my head I can't understand why a landlord would rent his / her property out with a discount of more than about £100 or else why would they not just rent to tenants themselves or hire a letting or management agency for about 10%? I'd love to hear from anyone what kind of cash flow is achievable. Thanks, David.
  12. As long as you have a genuinely good deal then I think you have a good shout. Having a deal puts you in a good position and gives you options. A savvy investor wants to make money so if you've got a genuine good deal then they will bite. Making money while someone else does the work sounds good. If you don't have a deal then I'd say probably not.
  13. Not sure I'd trust an algorithm to be always accurate, I'd rather partner with a sourcing agent (real person) and do my own due diligence if I was trying to find more BMV deals.
  14. I'm not saying it couldn't work but it wouldn't be my approach. I think you need to consider how much it will cost you to live. You'll need to buy food and if you give up your job, where is that income coming from? If you pack up your job right away, you'll feel under pressure to get deals quickly and likely rush into something that's not a great deal but you think you need to because you need to put bread on the table. Put you black hat on (negative thinking) what happens if a renovation takes longer than expected? What happens if you get sick? If you complete one house every 6 months, you'll have nothing coming in for 6 months and then just the rental income. 6 months later you'll have only two rental incomes. Is this enough to live on? Personally I would keep my job (or get a different job up North as you suggested, closer to your intended property empire) and the relative security that offers and build the property portfolio slowly for a few years.
  15. If I was going to buy a deal from you I'd want to know some of the following: 1. Price 2. Actual Market Value with some evidence / justification. Other similar properties on the market etc. 3. Work required. Minor refurb / major renovation 4. Estimated value after work is complete. 5. Some details of the agreement (is the deal secured or a lead only? What kind of deal is it; Rent to Rent, lease option, normal vanilla purchase?) 6. Are you direct to seller or is this a chain? I'd also want to know a little about you, for example how many deals have you sourced and sold before? Have you got much experience? Hope this helps and good luck.
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