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10 Year Plan for Side Income with 50K Investment
Alvin posted a topic in Introduce yourselfHello, I work in IT for the last 10 years and currently based in London. It is quite demanding but not rewarding in terms of financial benefits as a perm in the long term when I reflect on it. I enjoy the job and having picked up new passions over the years, I realised it would not make sense to keep depending on only one source of income. So, I started looking for investment opprtunities. My main goal is to have side income to fund my passions and living cost. I will keep working full time or part time on interesting projects in IT or some other areas with ability to take long breaks in between projects. Buying and renting was something I had in mind for later down the line after I buy my first house to have some supplemental income. Beginning 2019, I stumbled on the world of property investment and the strageties while I surf the internet at night (I tend to like the night as it's more productive on many occasions ). The figures seems to work out and decided to acquire some more knowledge about it. I bought some audiobooks and listened to them while communiting to work. It was an eye opener. After doing some risk analysis on the topic for buy to lets and some other investment categories (stock market, fx trading, cryto, funds, peer to peer lending, etc), I decide to put some goals and since it fit what I was looking for, I launched myself. The first thing was to buy a car to travel outside of London to have more mobility, trains are outrageously expensive even between towns. Amount of time I have available to dedicate to the business is a few hours during the day in the week, at night and on the weekends. I am very leniant with the 10 year timeline, although I had feedback that it could be achieve in much shorter time. I will review as time goes by. High Level Plan - Started in 2019 Acquire knowledge about property investment - In Progress Spend at least 4 hours per weekday & 4h per weekend on Property - In Progress Buy a car less than £1000 to keep for 1 year - Done Setup goals & review every 6 months - Done Build spreadsheet calculation for deals evaluation - Done Setup Limited Company & Bank Account - Done Loan £50k to limited company - Done Find locations for investment - In Progress Acquire first buy to let - Done Acquire a buy to let every year Perform a flip every year - In Progress Find an accountant Network to find deals, learn more about strategies - In Progress Explore ways to build up capital faster - In Progress Be hands off - find deals, management, refurbishment Goal / Objective Acquire buy to lets to be able to have side income Acquire buy to lets with 10% return on cash invested every year Do a property flip with possible Joint Venture Generate £6000 monthly income in 10 years time Thoughts on Progress Once I started spending the hours I set myself to during the week and on weekends, I started to progress. Initially, my main objective & more detailed targets were not specific enough and I spent some time to review them and putting actual figures to project them over the 10 year period. I need to be able to acquire one buy to let every year and one flip to be able to achive my goals. I need to be able to find deals, refurbish, manage or renovate with a hands off approach. Build spreadsheet calculation for deals evaluation - Done Started building my own. Got some few templates from Property Geek and online. Good to play with initially but time consuming trying to build for flips, etc. End up buying the toolkit from Rob's Property Geek. It has some video courses and the spreadsheets. It's worth the money/effort/time spent on building my own as I want focus on other items as part of trying to do a busines. You can tweak the spreadsheet as you go along. Find locations for investment - In Progress After becoming the proud owner of a car, I targeted Northampton and Leicester to focus on the first property. Reason: 2h drive from London, hospitals, universities, businesses, properties less than £100k Only saturdays allows me to visit properties. I drove to Leiceter to see the area with a friend who is also interested in investing in properties later. On following saturdays, I booked a few viewings and we went to see them in Leicester. I realised it is time consuming and drains a lot of energy to wake up early on saturdays, drive all the way and back being stuck in traffic, see 3-4 properties, try to bid on them and wait So, I evaluated if good used of time and energy => not. So, I started looking for sourcing/services which provided deals. Found and working with sourcer for my first buy to let property which has been completed early 2020 I came across a few other sourcers which I looking at for next potential projects which is maybe anywhere across the country, especially in the midlands. Acquire first buy to let - Done Keep chasing the solicitors else they will not respond. If no reply buy email, call them the next day and every day until a reply is obtained. Now with the unfortunate circumstances with the virus affecting all our lives, all I can do is wait for better times to have the house put into a state to be put on the market for letting. Perform a flip every year - In Progress Working for a sourcer to find a deal north east I've put this in hold with no physical viewing taking place and waiting to see how the interest rate affect the bridging products.
10 year Rent Review Provision !?!
eamonHeggarty posted a topic in General property discussion1 month before the development is due for completion, I have just recieved this message from my solicitor. Has anyone any experience in this and should I accept or reject this 10 year rent review provision? “Good Afternoon, We have received notification from the sellers solicitor that their client is proposing a change to the format of the Lease for the XxxX Development. The Seller has proposed that the Rent Review provisions be changed to allow for a rent review on each tenth anniversary of the Lease and any such increase would then be in line with RPI. In addition to this, the Landlord is proposing to reduce the Ground Rent from £300 to £275 per year. The contract does not allow the seller to make changes to the Lease without your prior consent (although such consent cannot be unreasonably withheld) and so we would be much obliged if you could confirm whether you are happy with the above proposal? Kind Regards Solictor”