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alex eves

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  1. This is all great feedback guys, it makes for a great discussion. To steer it slightly back on track, does anyone else have a breakdown of their figures for any of their properties? The more that can be gathered, it can be easier to see patterns evolving; i.e. the solicitor fees in relation to the mortgage amount, or spotting fees that newcomers weren't aware of. This will make it easier to estimate the returns of a deal, by having a firm grasp of the most likely costs (upfront and running). As I mentioned in my original post, so often the miscellaneous costs are bundled up as "a few gran
  2. Thanks Rob, that's a really insightful reply. So, you have 10k in the pot, and you're pricing up the returns of property 11, for example. Like you say, the pot is large enough, even for 11, so does this mean your calculations do not need to account for 10% voids and 10% maintenance, and only the 10% management fee needs budgeting for? If this is your strategy, the returns must look far nicer when you have already built up your global contingency pot.
  3. Thanks Silv, it's interesting how the figures change dramatically by altering the source of your refurb costs. It's also interesting that you would continue to build your contingency pot for each property, regardless of it reaching a sensible measure. I couldn't help but feel the "over buffer" could be going towards my next investment, and ultimately generating more money in the meantime. This topic was discussed in a recent podcast from Rob and Rob, about how much cash should be saved for a rainy day.
  4. @Barny thanks for your response. It's really interesting to see the mortgage fees and the different interest rates people are paying. This information offers a finite list of all BTL/landlord expenses that must be factored in, not just the typical mortgage payments and voids which don't tell the whole picture. As Rob says, it'd be great to know how the 10% voids and maintenance hold up over the long run. Also, if a property is fortunate enough to not have to dip into that fund for 2 years, for example, would one stop adding to the pot and pocket the money instead? To put another way, once the
  5. Thanks Silv that is a great breakdown of a real life scenario. Any other contributions would be very welcome, it'd be great to compare the different figures that people have, to see any patterns that emerge, eg a standard void and maintenance allowance
  6. Hi All, I don't have any properties of my own to analyse some real figures, and each time I try to run some figures through a calculator, I am forced to estimate a lot of figures. The usual culprits are mortgage fees, solicitor fees, and not knowing exactly all monthly or annual expenses for a landlord, for each property. Many examples are overly simplistic, using simple round numbers, but I now need to figure the exact sums. It would be great if people could list the figures of 1 or more of their properties. Including the property value, deposit, mortgage interest rate, monthly expenses,
  7. Thanks Richard for the very well thought out response. It highlights all of the processes and potential pitfalls, and your response regarding the residential mortgage has confirmed that I had the process wrong in my mind. I assumed that once my bridging loan had expired, I would need to refinance, and the only reasonable mortgage would be a residential one whilst further renovations were carried out, until it was eventually finished and sold. From what I gather, the correct route would be to arrange bridging finance that will easily cover the timespan of the refurb, and then put it straight to
  8. Great response, thanks. I guess alternatively the option is to sell instead of mortgaging, but I was curious about the mortgage scenario whereby the property isn't market ready after 3 months, but am wanting to get off of the costly bridging loan as soon as possible
  9. Thanks Simon, My case study does indeed include a refurb which for the purpose of the example, adds 30k to the property value. Also, the 90% mortgage was on the assumption that it was a residential mortgage. The point here is that whilst the intention is to sell when the property is complete, the example is a situation where it isn't ready after 3 months, but want to get off of the expensive bridging loan as soon as possible. That is where my main questions lie in my original question. If you can rework my sequence of events to better reflect how things work - where the bridging l
  10. I would like to get the entire process mapped out on paper, and would be grateful in people could fill in the blanks for me. Case study (Simplified for math purposes) Auction purchase price £100,000 Bridging finance arranged at 80% LTV for 3 months at 1% Mortgage to be arranged after a 3 month period of renovation 1) Pay 10% on the day of the Auction (£10,000) 2) Within 28 days, arrange the bridging loan. The loan is only for 80% of the purchase price (£80,000), yet £90,000 is due. Does this mean that although the auction house require 10% down payment, the reality is tha
  11. I would like to get the entire process mapped out on paper, and would be grateful in people could fill in the blanks for me. Case study (Simplified for math purposes) Auction purchase price £100,000 Bridging finance arranged at 80% LTV for 3 months at 1% Mortgage to be arranged after a 3 month period of renovation 1) Pay 10% on the day of the Auction (£10,000) 2) Within 28 days, arrange the bridging loan. The loan is only for 80% of the purchase price (£80,000), yet £90,000 is due. Does this mean that although the auction house require 10% down payment, the reality is tha
  12. Thanks Kevin. Whilst it may not be the response I wanted, it certainly prevents me from walking blindly into a strategy for 3 years and having a shock at crunch time. With your input, I can now re-model my strategy from an early stage, and look towards a residential mortgage. I still very much want to make a profit before I take out a mortgage for my own house, so I will now explore the buy to sell route, and make capital that way. This way I can take out a residential mortgage first time buyer mortgage instead, albeit without living there, and begin to turn my cash around through renovations.
  13. Thanks all for your input. From the advice, it seems it is possible, but won't make life easy. My best option is to approach a mortgage broker and discus my plans with them, weighing up the downsides of not having a residential mortgage in the short term, against the downsides of having one
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