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Hello My aim is to create a space to discuss HMO/SA/BMV/BRRR deals in Oxford.

Hello All, First of all I would like to introduce myself, my name is Moe and I currently work in IT , IT was a hobby turned into a profession, however this can change when you no longer do what you are passionate about but what you are told to do. Fortunately I found property and fell in love with property and different ideas or income generating streams that property can provide while helping people and being your own boss. I Currently have 1 property paid off (I know its not right thing to do) but this is a security for the girls in my family in the event of a disaster, I currently let it out for passive income and one i currently live in which has a nice little bit of equity. I live in Glasgow so ideally will be investing here, The more I learn the less certain of the strategy I want to follow but I will stick to my original plan that is to FLIP or BRRRR depending on the circumstances, I do have some refurb skills and know of people who are very handy who can help in refurbs at much lower costs. In terms of skill sets, I might not be the best in property yet but I will strive to learn as I go long, I do have IT technical skills that might be very useful in the property industry for automation or cloud services. I am also a gym fitness bunny, Fitness is my longest passion (16+ years) I am in my early 30s so if my skill sets above can be offset to some of yours then please don't be shy. Also moving forward, If you ever notice bad grammar go easy on me and please correct me English is my 4th language but slowly becoming my first if that make sense, if you don't use it you loose it.

Hi sorry am newbie on here so please put this post where it needs to be if its in the wrong place thanks. OK, so I will just jump straight in, so the initial small start-up of our LTD company was done back in September 2017 as a JV between Father and 2 sons we will call this company "X", I am one of the sons that came up with the idea of creating a Property Co between us and sourced the first property and I have been doing all the work on the property myself since to begining. My father supply's the funding via a bussiness loan from his sole trader bussiness, my brother does the accounting and set up the company etc. My brother and I jointly loaned the company 65K (this money was borrowed so needs to be paid back to someone else intrest free) on start-up basically to buy the property and pay fees for purchase. The agreement is we take a equal shares 1/3 each of the final profit of the company. As well as I will draw a small wage weekly from the Co X's bussiness account, I am set up as a PAYE on the books (£185 a week after tax). We also have a written agreement that I will be paid an extra £215 a week (after tax) deferred until work is finished on the property this will be at the END of the project works as a cost/expence to Co X in the most tax efficient way. My fathers bussiness loan (interest free) will pay for running costs and materials of the project. Unfortunatly time has drag on, due to severe illness and Covid on my part the job is only nearing completion now. I have been working the whole time but at a serious reduced rate for the last 2 years. Finally 2 major operations later I am on the mend and back to my normal self and finishing the project quickly now. I have been paid £48100 in total via the £185 a week method so far and we have discussed and factored this illness into the project and came up with a fair payment for the work completed which is £38915 after tax either via PAYE or possibly another tax efficient method maybe discussed on here if you guys can help with that? Finaly we get to the profit part (refinancing part maybe not classified as profit yet for tax purposes). We have decided to refinance the property and rent it out. Let me give you some figures first before we get into were we go now. Joint Directors Loan in £65,000 in. Bussiness to bussiness loan from Fathers sole trade company £90,000 in. Total costs so far without my final payment of £38915 = £155,000 Re finance Value of property £320,000 at 25% LTV = £240,000 out After refinancing minus costs + my £38915 payment = £46,085 surplus for dividends or other. Monthly Rental Value £1100 after costs £900 to Co X as profits. The refinance has not taken place yet so Co X is still running at a loss right now. OK so this is what we want to do now. My father and brother wish to cash out their profit via dividends and keep the the house rented for as long as possible we can all draw down £300 a month dividends going forward as per shares allocated. They are no longer interested in property investment and have other business concerns going forward. I would like to start-up by myself a new group of companies though if possible/feasible. The idea is to start-up a new holding company "Co H" with 2 subsidiary Co's "Co 1 and Co 2" one for buying/renting properties and one for refurbing/building contract work. Main questions are: 1) If my holding Co "Co H" held/bought my 1/3 shares in Co X, would I be able to move my part of the refinance/dividend tax free into Co H? 2) If so, do I need to form Co H before we refinance the property in Co X to be more cost and tax efficient going forward for Co H? 3) If I formed a separated LTD company (SPV) whats the best way to move my funds from Co X into the SPV for future projects, I do not wish to take the Co X's money for my own use, I want to invest further whats the best way forward? 4) Can Co 2 (the building company set up in a group) or another new SPV invoice Co X for my final payment of £38915 as building labour (because thats what it is) and then invest that money into further projects in a more tax efficient way? You may have a completely different way of doing this, if so please share, as any help would be Golden! Please note I am not trying to avoid Tax but to be Tax efficient. If you think I am please point it out where as I do not want to fall into any problems in the future. Thanks for kindly reading this far if you managed it! Thanks in advance for any help or advice. Christopher

Hi All, I'm Nick based out of the West Midlands. As part of my initial research and educating process, I stumbled across the Property Hub Podcast 3 months ago and have been binge listening at 1.5 x speed to absorb as much info as possible on my commute to work/gym. Found the Podcast really resourceful and informative with no-nonsense and "hard-sell" attached to it, which as a novice being new blood to the wolves, was a breathe of fresh air - thanks PH Team! I've always been interested in property having refurbed many domestic and commercial properties whilst working as an electrician in my younger days and manged to secure my first property in 2012, which was a repossession that I refurbed and rented out (as I wasn't educated enough to know about the BRRR strategy). My personal circumstances changed so I ended up moving into the property and lived there for 4 years, but it never felt like "Home" as was always an investment property. Fast-forward to December 2019 I had the property re-valued and with 40K positive equity, I decided to sell up (looking back I could of done different, see lessons learnt note below), move on and after seeing the equity generated, decided that I needed to seriously invest time and set myself up for property investment, "if not now, when?" I'm now working as an Electrical engineer managing projects for a company more office-based environment but still out on site as needed, but my property journey has re-started with setting up a ltd company and raising finances in the background for when the right properties come along. I'm still working on finding my power team of conveyancers/brokers/bridgers/etc which I'll pick back up when companies open next week, open to suggestions 🙂. Lessons Learnt Alternative route - looking back I maybe could of re-financed my first property after valuation to release money, rented that out, bought another property to rent out in ltd company and looked for somewhere for me to rent until I was in a position to buy a home for myself. The rent off my 2 x properties would cover the rent of my own rental and would boost my journey of acquiring properties to replace my income. This wouldn't suit everyone but I was in a position where I could do that since living by myself, but lack of education meant that I couldn't project that route. Current route - my new "Home" that I purchased I managed to secure just before lockdown 1 and the crazy property price increases so purchased £15k below asking price (£20k bmv) so there's positive equity in this property, which is also located in an area that I had been researching and is due for redevelopment soon so there's also capital growth potential which I'd plough into the LTD for the property funds. I could go into strategies etc but I think I'll save those for future posts saves writing an essay and risk boring you all 😅. Thanks for reading and all the best for 2021! Nick

Hi all, Just looking for a bit of advice regarding BTL investments. I am trying to calculate the amount of money i would leave in the deal until such time that I can refinance and try to pull some of my money back out. I am hoping to buy 3 or 4 properties soon but I feel that I would stuck after that as all my cash will then be tied up. Firstly.. Is it realistic to expect to pull all or most of your initial investment out of the deal? I am struggling to see how this could be achieved even with the properties that need refurbishment. I have found that the refinance only covers the original loan and part of the refurb costs. Is there an 'acceptable' percentage to leave in a deal? Secondly... Some people I have spoken to have said you can refinance after 6 months and 1 day, some people have advised against this? Is there any implications on my credit score if I refinance after only 6 months? What are the down sides regarding this? Any help or advice would be greatly appreciated, Steve C

I'm looking at purchasing properties using the BRR model, but I will want to refinance them before the so called '6 month rule' of ownership. However, I would rather avoid buying the property using 100% cash through bridging finance if possible (due to the expensive nature of short-term finance). The podcast mentions Day 1 Remortgaging where you buy the property (typically BMV) and the surveyor agrees in principle what the house will be worth when refurbished to a high standard. Using numbers to illustrate: Purchase price: £90k Value once refurbished: £140k Refurb cost: £20k Other costs: £5k Realistically the only other alternative appears to be standard bridging finance or a bridge to let, with the latter looking quite similar to a day 1 remortgage. I will also be purchasing through a SPV ltd company - Can anyone who has actual experience with this shine some light for me please? - Which brokers have you used in the past for these deals? - Failing the above, which lenders understand these requirements? Thanks in advance!

Hi all, My wife an I are new to the property investment game. I am just reaching out to see if anyone could share a basic calculation that they use to formulate an offer on a property that we would like to buy, refurb, refinance and then rent out. I am using figures that involve me buying in cash initially, then hopefully pulling my money out after the refurb, but the offers required seem too low and we haven't had much luck with our offers so far. I'm not sure if I should be focusing on buying with a mortgage so only putting 25% down then refinancing after 6 months?? Any help/advice would be much appreciated, Thank you in advance. Steve.

Hi Hubbers, I'm Davide from London, I recently started my journey through property investment and put my first buy to let property under contract (South England) which is expected to give me a 12% ROI, pretty excited about that and about the fact that I will be self managing the property, so will be learning how to do that as well. At this point I'm starting to think about my next deal, I have invested a good chunk of my savings in the first property and for my next one I was looking for ways to avoid trapping all the money in the deal, so thought the best strategy for that would be Buy Refurb Refinance Rent. I’ve been studying this strategy for a while and I understand how it works, but I’m struggling with the followings: Areas to invest in: I’m stuck on this, I believe i need to find something that is close enough to be able to coordinate the rehab or at least be present once a week (maybe 1-1.5h from London?) but at the same time it needs to be an area where it will be rending well. Should I carry on investing in South England where my first property is, or perhaps go somewhere in the midlands (maybe in the Bedfordshire area?) Find the property: I get it that the best way is to find off-market deals from owners that have some sort of discomfort and they want to get rid of the property. I looked into direct mail marketing but I can’t find a mailing list and I’m a bit stuck on how to actually execute it, do you create, print, pack and send letters manually or use some service that does that for you? Which service? Connections: How do I find good contractors for the rehab project? I guess they need to be local to the area, so should I ask estate agents and investors in the area for recommendations? I understand all of this might sound confusing but essentially what I need is to speak to people about what I want to do and get feedback/suggestions on the approach I'm taking. Happy to also meet up with investors in order to discuss opportunities and goals. Thanks for your help. Davide

Hi all, I’m just in the process of buying a property that I want convert from a studio to a proper 1 bed flat. I m planning on following the Buy Refurbish Refinance Rent strategy as it fits quiet well for this property and plan. I’ve come across precise mortgages Refurbish Buy to Let product and it looks prefect for this application, but I’d love to hear if anyone has any experience using this type of product before and if so, how was the process , was there any aspects to be aware of that aren’t so obvious setting out or any general pros’ and cons? Any pointers of general advise would be greatly appreciated! Cheers.

Good Afternoon All, I have been reading your comments on this forum and found them all to be very informative with great content. I am excited about joining the discussions. I would like to share a current BRRR (Buy Refurbish Refinance Rent) deal I am closing in on, please let me know if this stacks up. 3 Bedroom Mid terrace House in Birmingham that requires modernising (no structural work, just new kitchen, bathroom, replaster and decorating. This is a probate sale where the owner has sadly passed away and his three sons selling, Asking Price: £130,000 Negotiated to £117,000 as I am cash buyer and able to proceed quickly and also I think the Brexit uncertainty has reduced the number of buyers recently. Therefore the figures are: House price: £117,000 Stamp Duty and Legals: £4,500 Renovation Cost: £15,000 Holding cost for 6 months (Utilities, Council tax, water): £1,500 Total Invested: £138,000 Expected Market Value after Renovation: £160,000 (The above figure is based on 4 properties with: identical layouts, within 1/2 mile radius) I know I will have to convince a RICS valuator. Post Renovation Mortgage to 75% LTV, therefore: Mortgage on House: £120,000 Money left in Deal: £18,000 Rent: £750 (based on local comparison and estate agent recommendations for the area) Mortgage Interest (2.5%rate): £250 Management fee (10%): £75 Maintenance and Insurance: £75 Net Profit (before tax): £350 ROI = 4200/18000 = 23% Capital appreciation has been approx. 4%/yr and hopefully continues in this area of Birmingham, although might slow down for the short term. I am planning to hold on to the house for 20+ years. Please let me know what your thoughts are. This is the first BRRR project I am undertaking and hope it goes well. Many Thanks. Ahmed