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darren mcneill

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Morning (it is at the moment!),

 

Just wanting to say Hi.  I am currently in the process of my first purchase, with my initial strategy being BTS properties.  I am in a fortunate position where there is low cost property that can be purchased, so my initial cash start up has not had to be huge (in comparison to a number of posts I have read through on various forums!).

 

Here is a link to my progressive story:

My REAL story - Starting with £20k

 

 

 

Me and My Background

 

 

I've been fascinated with property as long as I can remember.  Im fascinated by architecture, new and old.  Yes I've watched the usual TV shows, but its not the quick profits that they try to show you that attracts me, its the end product that you create for someone.  After all, you are giving some people their dream home.  I do not have the disillusion retire at XX age thoughts in my mind, or create £xx income so that I can blah blah blah.  What I would like to do, is to create a business that my 2 children (if they chose to do so), could take over and never have to enter the rat race. So that they could still put in a good day's work, but yet have the luxury of having time on their side.  Yes it would be lovely to be able to retire early, make £millions within 5 minutes....  but the reality is this wont happen, and if it did I would probably just keep going anyway.  I struggle to keep still, and I need to keep my mind occupied at all times by doing something.  I love property.  

 

I'm currently 35, and up until August 2016 I had spent my entire life in Retail (Despite having a degree in I.T.), with the last 12 years as a Store Manager for Lidl, Aldi, Netto, Asda & B&M.  The final straw for my retail career came in around June 2016.  I had a visit from a jumped up "senior manager," with delusional thoughts of how to run a shop with no colleagues.... the straw broke the camel's back.  I went home, told the Mrs that I had enough of this £$%$ and looked for another career path.  By the end of June I had decided my path was Primary school teaching (Maths Specialism), I quit my job (Aug), got a part-time job (3 mornings per week), and planned to spend the following Academic year gaining experience in schools (2 days per week)....  Finances were tighter as I had gone from a good salary to just £500 per month, but I plan every penny, knew we could cope, and we have seen very little in change in our home life... with the exception that there is little stress on my part, and I'm home to see the kids everyday now!

 

 

Sept-Dec 2016

 

So the teacher route is on track.  I've applied to Edge Hill University and been accepted for Sept 2017 for Primary School Teacher Training with a Maths Specialism.  I'm really enjoying my work experience in schools, and everything is set for my new career change........

 

 

Christmas 2016

 

So, first relaxing Christmas that I have ever had.  So much time on my hands.......

 

bit of background information...

 

I own a flat with my mum, that we bought from the council around 9 years ago at discount.  I had popped round for some reason, and noticed that the flat over the road was up for sale.  I'd always fancied getting a few of the flats near my flat, as I thought they would be easy to manage.  

 

Back to Christmas......

 

So I've got all of this time on my hands.  My brain is ticking away with the property I've seen.  I go online.  I start playing with numbers.  I start investigating the existing equity in my flat.  Next thing I know I've established I have around £20k to play with from releasing equity and some money I have put on the side.....  Previous to this, years ago I had decided I wanted a BTL property (but at the time didn't have the capital).  Despite this I had chosen the area I wanted to purchase in, developed a spreadsheet, tracked the sales or properties vs rental incomes etc.  I did this for around 6-8 months before other things began to take my mind away, and it became a distant memory...  Then this was all re-ignited.  I had money, I could get my 1st BTL!  The area that I had analysed and studied had low value housing and a great rental yield, so even with very little funds I could achieve my 1st BTL property!  I'm excited!  I start to study the area again.. but then I start to think... one BTL?  That's not really enough.  It will take me years before I can buy my 2nd, then my 3rd....  What can I do to increase the speed?  BTS... Hmmmm......  Find a property, renovate, sell on, build up some more funds........ I studied the market, a lot, and i'm talking a good 50+ hours in a week on Right Move, Land Registry etc, and Ive picked up the people who are doing this, buying cheap, renovating and flipping... ( I LOVE the land registry!).  Before I know it, I've arranged my re-mortgage with my Mortgage adviser, whilst enquiring about my options to purchase another property, and established the viability.  In time scales within a week ive gone from casual browsing, to an in depth Excel spreadsheets crunching numbers, percentages, costings etc.  I think this is going ahead....

 

January 2017

 

Teaching has become a bit of an after thought.  I have put in an offer on a property, the remortgage is only just going though the paperwork side, and I haven't got the funds in place yet but they will be coming in around 4-5 weeks.  The property that I found was on the Market at £40k.  It pinged up on my email as soon as it was listed.  Checking the history of the area, a property 4 doors up sold for £68k in Dec 2015...  I rang the estate agent straight away, viewed it 2 days later, popped in a cheeky offer of £35k and by the following Monday had an offer of £36,500 accepted....  The more I studied the area, the more I can see the potential, the more i'm debating my current plans for teaching... By Mid-Jan I've told the Mrs i'm "delaying" teaching by 12 months, to see what I can achieve with the property side.  To say she is not happy could be an understatement, but if I'm not going to attempt it now whilst in-between careers, when am I?

 

 

 

Cheers

 

Darren

 

 

Goals - Feb 2017

 

2017 - Purchase 3 x flip properties

2018 - Purchase 3 x flip properties and 1 x BTL

2019-2029 - Purchase a minimum of 3 BTL properties per year, with an end goal of £4,000 rental income after tax/expenses

2031 - Be in a position at 50 years old where I am able to choose whether I wish to work, or not.

£4,000 Rental income achieved - Continue to build the business for my children.

 

 

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www.fmp-investments.com

property@f-m-p.uk

I am looking for private financing

with a 10% ROI - get in touch

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28th August 2017

 

6 Months on.....

 

It has now been a little over 6 months since my welcome post, and how time has flown!  I now have a number of progress journals, so if interested you can see the detailed commentary below:

 

A Real Journey With a 20k Starting Pot

 

Project 1 Case Study

 

Project 2 Case Study

 

Project 3 Case Study

 

Direct To Vendor Case Study

 

 

So how has my journey gone?

 

There have been a lot of ups, and probably more downs.  The property business is definitely one that is worth perusing, but it does have a tenancy to give you a really good kick in the ........ every so often!  I have had 3 failed purchases (2 of which were both 1 week from completion), as well as a very annoying delay of 2 months on my first property flip sale (again, just 1 week from completion!).  You will find that these little tests are just that, tests.  They arent the end of the world (although they do sometimes feel like it!).  What they are is an opportunity to grow, and expand your knowledge.  For every issue that you face, there is the chance to improve your knowledge, over come it, and move forward.

 

At the moment I am now just a few weeks away from received the cash in the bank from my 1st flip.  I have a property that I am in the process of buying with a JV partner, and I am also looking at a couple of other properties to purchase as well.  I still operate at the lower end of the market, so it is possible to stretch my money much further than others would be able to.  As I have just mentioned, my 2nd purchase is with a JV partner.  I met this person through this forum, so it does show the benefits of like minded people all being in the same place.  The private financing through a JV has been a difficult one for me in all honesty.  Initially this wasnt something that I had planned on doing just yet, but I was approached, we had discussions, and this made great business sense.  Where I struggled in my own mind was with the 10% ROI that I was giving to my JV partner.  The property that I am currently buying has cost £58,000.  The result is that I will return an additional £5,800 to my JV partner upon sale of the property.  Where I have struggled is coming to terms with handing back a large amount of money out of my potential profits.  Of course, my profits look far greater with an additional £5.8k on top, and not quite as juicy once you remove the £5.8k!!  What I needed to do however is look at the much bigger picture, and how this would help me to grow my business.  I could continue to use just my own cash, and I could keep all of the profit for myself.  The restriction here is that at this moment in time, I would only be able to buy and renovate just 1 property at a time.  Once the property was renovated, I would then have to sit around for 3 months whilst it sold, and I purchased my next project.

 

Move forward now with the thinking, and how working with someone else to leverage your money has a positive impact.  As mentioned my JV partner is fronting the cost of the purchase.  This means that I now have £58k of funds that are not being used on this property.  This has now enabled me to continue to look for another project, which I would not have been able to do so before.  With the next project, again I will fund the purchase with my JV.  They will receive a 10% ROI, and I will have the opportunity to be working on 2 projects at the same time, something that I would not have been able to do for possibly 12 months.  Yes I earn less on each project, but it makes far more business logic to earn a little less on each project, but to have more projects, that to earn a little more on a project, but just have that one solitary property being worked on.

 

As you can see, both of us are benefiting from the agreement.  My JV partner is receiving a fantastic 10% ROI, which in all reality they will get back within 4-6 months, so their actual ROI is far higher than 10%.  I can continue to grow my business model, and expand quicker than previously planned, so much so that over the weekend I placed an offer direct to vendor for a 3rd property.

 

Goals

 

The previous 6 months have changed my goals.  My long term goals remain the same; I have a target of £4,000 rental income per month.  How I get to that point continues to evolve on a monthly basis.  Failed purchases, and missing out on property bargains that I often see, has meant that I have looked a little more at increasing my working capital significantly, before I decide to look into BTL's.  My overall strategy will be far easier to achieve if I have the cash behind me to purchase opportunities when they arrive.  This way I will be able to adopt a BRR strategy, but still have the funds available to pick up any properties that have potential, and still grow both my working capital, and my BTL business.

 

My current goals are now:

 

2017 - Complete 3 x BTS.  Continue to develop working relationships with my existing JV finance partner, as well as expand on this and start to work with similar individuals who are looking to fund such ventures for a fixed ROI.

2018 - Complete 6 x BTS.  Continue to work with JV partners.  This will give me a great working capital fund, and allow me to start my BRR strategy, where I can refinance and retrieve all of my money from the BRR, so basically start to collect properties in my rental business for free.  2018 is dependant upon opportunities that arise.  If a potential BRR project comes at the start of the year, and the numbers make sense and it does not tie up much capital, then I will peruse it earlier.  If nothing comes up until the end of the year, then I will hold off.  What I do not want to happen is that I miss out on potential flips, because I do not have the funds.  I would much rather continue to generate income from flips, than miss out because I have tied up all of my money in a rental that is not giving me the same return.  In my mind rentals are easy to come across, and I can pick those up at any stage.  If it happens to be 12-18 months later than planned, then I know I will have significantly increased my working capital over this period to make up for it.

2019-2026 - Continue to grow the business through BTS and BRR.  Look into other opportunities, such as build to rent, commercial conversions etc.  My end focus is still to generate £4,000 per month after tax, and each year i will set a target to generate a set amount.  These targets need to be identified closer to the time, as I may be able to achieve certain goals much sooner depending on how my business and personal knowledge has developed.

 

I have reduced my target "optional retirement" age to 45, which is in 9 years.  I of course would not dream of such silliness as to retire, but I want to be in a position of choice,  I choose to work because I want to.  I choose to take a month of because I can do.

 

 

I do have a number of personal goals within the above (lifestyle etc).  I have the end goals in mind, but they are not as important as my business goals, as they will slot into place as my business goals grow.  The most important thing is that I know what I want, I know how to get what I want, and I know what I need to do.  My goals will continue to evolve as I get more experience and confidence, and one day I may look back and thing how small the above goals are, which is why I will review every 6-12 months, take stock of my current situation, and adjust where required.

 

 

2017

 

Back to 2017.  Hopefully I will achieve 3 more properties this year, and bring my total for 2017 to 4 flips, which would be 1 above my initial target.  I am still going to look for like minded individuals who are looking to receive a 10% ROI on private finance, so if this is something that may interest you, then please feel free to get in touch for a chat.  I am happy to spread the wealth, and to help someone grow themselves whilst allowing my own business to grow.

 

 

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image.png.3d3068677c2b0273d6234e4ea9139428.png

 

 

Follow my daily property updates via Instagram or Facebook:

Instagram Daily Updates

Facebook Daily Updates

 

 

Have a look to see how we could work together:

www.fmp-investments.com

property@f-m-p.uk

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Hi Darren,

 

I really enjoyed reading your posts above and sense a kindred spirit in your approach and passion. It's so encouraging for someone like me, who is just in the researching stage and yet to take the plunge, to read about your endeavours. I look forward to your future posts (and hope that mine will show as much energy and progress!).

 

All the best,

Charlotte

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On 9/22/2017 at 8:23 PM, charlotte wilson said:

Hi Darren,

 

I really enjoyed reading your posts above and sense a kindred spirit in your approach and passion. It's so encouraging for someone like me, who is just in the researching stage and yet to take the plunge, to read about your endeavours. I look forward to your future posts (and hope that mine will show as much energy and progress!).

 

All the best,

Charlotte

 

Thanks for the kind words.  I have just responded to your own post today.

 

Keep the positivity up!

Darren

 

www.fmp-investments.com

www.f-m-p.uk

property@f-m-p.uk

I am looking for private financing

with a 10% ROI - get in touch

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Hi Darren

 

i have taken great pleasure in reading your posts.

 

I too live and invest in St in the North West. Where about a do you invest?

 

I would be be interested in swapping notes as we appear to invest in similar value properties. Feel free to contact me johnlugsden@live.com 

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16 hours ago, John Lugsden said:

Hi Darren

 

i have taken great pleasure in reading your posts.

 

I too live and invest in St in the North West. Where about a do you invest?

 

I would be be interested in swapping notes as we appear to invest in similar value properties. Feel free to contact me johnlugsden@live.com 

 

 

Hi John,

 

I work in the Rossendale Valley, and now also the Calder Valley.  Both are commutable to Manchester.  Im building up for when the Manchester bubble pushes outwards in the next few years.

 

Ive just pinged you an email now.

 

Darren

 

 

www.fmp-investments.com

www.f-m-p.uk

property@f-m-p.uk

I am looking for private financing

with a 10% ROI - get in touch

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Well Darren, thanks to your blog, my work output in the last day and a half has been absolutely zero!

 

What a journey! Fair play to you as I can only imagine how many people you have encouraged, motivated and influenced. It couldn't have been easy to turn your back on a career you'd built to try your hand at something new, especially with a family to take care. Big kudos to you.

 

In my case, you've tweaked my dreams and slightly altered my desired path!

 

I'm an aircraft engineer and live just up the road from you in Clitheroe where I own a 2 bed cottage (£143,500, (Clitheroe house prices are fairly steep)). I also own a city centre flat in Manchester which I bought for £125k 3 years ago and have just re-mortgaged where it was valued at £190k. There was £109k left on the mortgage. £47.5k put down on the flat, which leaves me with around £33.5k to invest somehow.

 

After listening to the 2 Rob's podcast about Manchester booming I'm focusing my attentions on the Greater Manchester area, most probably the student areas of Rusholme/Fallowfield/Levenshulme or possibly Salford around the Uni. I'm thinking possibly a 2 bed, £120k max, £30k deposit.

 

I've toyed with the idea of flipping a property (Burnley, Blackburn, Accrington are supposedly decent areas for this) or BRR but my job demands long hours (albeit not in the last 2 days!) and I don't think I'm quite ready (don't know enough, not much property experience, not the same size balls as yours). So for now I'm sticking to BTL and hoping on decent capital growth in the Manchester area.

 

After spending hours reading your posts I've discovered that you do actually know what you're talking about!.....So do you have any thought's on my property venture? (Always good to pick the brains people with more experience than myself).

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3 hours ago, sam johns said:

Well Darren, thanks to your blog, my work output in the last day and a half has been absolutely zero!

 

What a journey! Fair play to you as I can only imagine how many people you have encouraged, motivated and influenced. It couldn't have been easy to turn your back on a career you'd built to try your hand at something new, especially with a family to take care. Big kudos to you.

 

In my case, you've tweaked my dreams and slightly altered my desired path!

 

I'm an aircraft engineer and live just up the road from you in Clitheroe where I own a 2 bed cottage (£143,500, (Clitheroe house prices are fairly steep)). I also own a city centre flat in Manchester which I bought for £125k 3 years ago and have just re-mortgaged where it was valued at £190k. There was £109k left on the mortgage. £47.5k put down on the flat, which leaves me with around £33.5k to invest somehow.

 

After listening to the 2 Rob's podcast about Manchester booming I'm focusing my attentions on the Greater Manchester area, most probably the student areas of Rusholme/Fallowfield/Levenshulme or possibly Salford around the Uni. I'm thinking possibly a 2 bed, £120k max, £30k deposit.

 

I've toyed with the idea of flipping a property (Burnley, Blackburn, Accrington are supposedly decent areas for this) or BRR but my job demands long hours (albeit not in the last 2 days!) and I don't think I'm quite ready (don't know enough, not much property experience, not the same size balls as yours). So for now I'm sticking to BTL and hoping on decent capital growth in the Manchester area.

 

After spending hours reading your posts I've discovered that you do actually know what you're talking about!.....So do you have any thought's on my property venture? (Always good to pick the brains people with more experience than myself).

 

Hi Sam,

 

Thanks for the compliments, and apologies for taking up so much of your time with my journals :lol:.  I find on a personal level it really helps me, as its good to get out in the open what is going on in my life regarding the property side.  My Mrs doesnt get it, and it is very difficult to chat property with people who know nothing about it.  I am slowly growing my number of property friends online that I can vent off to, but I still enjoy writing away - Its quite nice reading back through some of my old posts to see where I was and what my frame of mind was, its quick to forget the little wins that you have along the way.

 

With regards to your situation, take anything that I say with a pinch of salt (and get advice from others as I know sod all compared to the experience that is available on this site).  If you personally havent got the time to flip, then in my opinion dont do it.  You do not want it to be something that might become a chore.  When I was renovating my Project 1 property I mentioned to a few people that I dont know how someone working full time could come home and then spend a few hours in the evenings working away on a property.  I found it tiring and I was at it full time (Granted I think I did 40+ days on the bounce without a day off), but either way, its hard work!  I suppose its like anything and you would need to be truly honest with yourself and decide if you want to give up X amount of hours per week to do a flip, or can you get someone else to do the work and take less profit etc.  You can always pay someone to do a job for you.

 

The other side to think about is whether the working capital that you have mentioned from your equity release is realistically going to be enough to buy and sell?  Bridging at the bottom end of the market is almost impossible as the fee's and costs strip out most of the profit, and then the risk of a renovation going over the allotted time (as it did with my Project 1  could result in additional costs running into £000's.  For a refurb I set way a figure of £20-25k for all of the legal costs, selling costs, renovation ect etc.  After this you then need to get the purchase costs.  If the cheapest property you can find is £30k for example, thats £50-55k that you require.

 

What you may want to consider is will you be in a better position in a couple of years to do flips (if that is what you want to do at some point).  If that is the case then maybe not having your cash tied up in a BTL is not the best idea (unless of course you can re-finance some of your other properties in a couple of years and get the money back out).  An option for the short term might be working with someone close to you on a JV - less pressure on yourself to do all the work, but enough that you can get some experience. 

 

Id sit down and just have a good think of what your goals are for the next few years, and then see what options are then in front of you after you have decided that.  Ultimately your not in a massive rush, so taking a week or so to slow things down and scribble on some paper may be invaluable.  A BTL might be the best thing for you at this moment in time, and you will at leats be gaining some growth and a revenue stream that you can keep putting to one side.

 

Good luck, and wow with the Manchester growth!!  Amazing to see.

 

Darren

 

 

 

www.fmp-investments.com

www.f-m-p.uk

Facebook Page - FMP Ltd

property@f-m-p.uk

I am looking for private financing

with a 10% ROI - get in touch

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Darren's points are very valid however I wouldn't rule out bridging entirely. Yes it costs but it also allows you to tie up less capital meaning there is more chance you could potentially do more projects at once so yes more cost but potential for more profit in the same time frame. Obviously this really depends on buying at the right price just like any flip regardless of funding strategy.

 

I recently spent the weekend with Kevin Wright on his course to learn more about bridging and it has certainly opened my eyes to exactly what can be done with bridging finance on the right projects allowing to more efficiently recycle your cash without tying as much up. Believe me I'm really really skeptical of courses and this was the first and only one I intend to go on but this was a real eye opener especially when I personally have a small amount to start with so I really needed to get educated on funding strategies that suit the Flipping or BRR strategy I intend on actioning in the near future. 

 

Anyway however you decide to get started I wish you all the best with your journey into property investment. 

Dan

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Saturday 2nd December 2017

 

Today was quite a large point in my life, I left my small PT job and I am now without any form of normal income!  I am now a full time property developer, and have achieved this in around 11 months from making the decision that this is what I want to do.  It has been a long 11 months, but it has also flown by!  I am now in a position where:

 

*  Sold 1 property - Project 1

*  Almost started to rent out my first BRR - Project 3  Renting For The First Time Blog

*  Started my first JV purchase - Project 3 

*  In the process of buying three other properties - Project 2   Project 4    Project 5

 

I am now looking to continue to grow and develop my skills and continue on my exciting property adventure.  I honestly cant believe how things have changed in less than a year, and that I have the job that I had always dreamt about but never thought it would ever be possible.

 

I am lucky to have had such a supportive family around me, and a Mrs who despite moaning about everything and worrying, has also let me give it a go (although it took some persuading!!)

 

Keep the positive thoughts, and anything is possible, it just takes time!

 

5a22dcd2b1fd2_Photo02-12-2017063437.thumb.jpg.7f086568b5e6a36c85a82d99370187f2.jpg

5a22dcd8a4d76_Photo02-12-2017110536.thumb.jpg.20dedfd75ce52c92dd732cdf7118be7e.jpg

 

Darren

 

www.fmp-investments.com

www.f-m-p.uk

Facebook Page - FMP Ltd

property@f-m-p.uk

I am looking for private financing

with a 10% ROI - get in touch

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On 02/12/2017 at 5:46 PM, John Lugsden said:

Sounds like good progress has been made and good to hear!!

 

here is hoping you continue to be successful now you have managed to do this full time. 

 

Good luck

 

Thanks!  I'd better start earning some wages!

 

Darren

 

www.fmp-investments.com

www.f-m-p.uk

Facebook Page - FMP Ltd

property@f-m-p.uk

I am looking for private financing

with a 10% ROI - get in touch

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Well done Darren!! I remember when you were just staring out the back window drinking tea after being kicked by life! I had a feeling your hard work, tenacity and research would come good and it seems you're on the way :) Look forward to hearing more about your journey B) 

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On 11/12/2017 at 6:35 PM, ollie h said:

Well done Darren!! I remember when you were just staring out the back window drinking tea after being kicked by life! I had a feeling your hard work, tenacity and research would come good and it seems you're on the way :) Look forward to hearing more about your journey B) 

 

How time flies!  Not too far off my 1 year anniversary from starting out!  Just need to keep grinding away and finding those little gems that are hidden away.

 

 

Darren

 

www.fmp-investments.com

www.f-m-p.uk

property@f-m-p.uk

I am looking for private financing

with a 10% ROI - get in touch

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21st December 2017

Reflection on 2017 & Goals For 2018

 

Although its not quite the new year and we haven't even had Christmas yet, I thought as I have now stopped for Christmas it would be worth having a look back on what has been achieved and what I would like to achieve in 2018.  It has been a very interesting year and a lot has been learnt, but there is still a great deal of opportunity to learn more!

 

2017 Review:

 

Achievements

 

*  First BTS renovation completed with profit of £28,331 - Project 1

*  First BRR rental completed with a ROI of 8.9% after tax (Rising to ROI of 15% once refinanced) - Project 3

*  First JV project started - Project 3

*  Became a full time property developer - A Real Journey With a 20k Starting Pot

 

 

There have been a lot of ups, downs, and pure boredom during this period!  Things in property take a long time, and no-one in the process seems to be in any form of rush!  I found this part of the job the hardest to come to terms with.  After 20 years in retail where things move very quickly, this world moves very slowly!  :o  

 

 

My Targets

 

I had targeted 3 flips for 2017 but unfortunately missed this target.  This was caused by the delay on Project 1, a purchase of Project 2 where I had to pull out because of another garden issue and then a subsequent delay on the replacement property of Project 2 (delayed by 5-6 months), an issue with Project 3 where it was discovered that the property had been underpinned so I decided to keep and rent, and then another delay on Project 4 due to issues with one of the owners not being compos mentis so another delay of 1-2 months!  If I hadn't had the above issues then I would have achieved my goals.... but remember my comment on how slow things are?   

 

 

What I have Learnt

 

One complete nugget that I have taken away is that small issues (what appear to be small to me) in any of the legal aspects of the purchase should not be ignored, as they will come round and bite you on the bum when you come to sell.  I had this on Project 1 where I did not think an adverse possession application would be too much of an issue for the buyer... turns out it was and it cost me 3 months of my time and a few £k in expenses.

 

Building up my working capital is definitely the most important thing - without it I have seen a number of opportunities pass me by which sticks in your throat!  The only way to do this however is to slowly build by continuing to flip.  I think my original targets had me looking at BTL's after just 3 flips, but instead I have increased my working capital goal and put the BTL's on the back burner (with the exception of Project 3, but this was reactionary to an issue).

 

EDIT 27/12/17 - Looking back on my renovations so far, there are parts where I am wasting time/money.  Tiling for example.  I have gone very much over kill on Project 1  and Project 3.  Granted Project 3 is due to the property being rented out, but this cost and the massive amount of time involved could be greatly reduced for flip projects.  Going forward I am now looking how to use less tiling in the bathrooms and kitchens, and therefore reduce costs and time involved.  Combining the right number of tiles and correct colour scheme will give just as much an impact, and who has not bought a property as they thought there weren't enough tiles!  :D

 

I am also going to start to look more into how I can have trades complete the majority of the work in the property.  If I am to achieve my goals of multiple property renovations then I need to think bigger and look at the project management side of the job.  Another thought that I had last night was looking at what the cost would be for my builder to take on more of the jobs where |I am using other people, so for example my builders are great at plastering, tiling etc.  I think for  Project 4 I am going to get them to price up completing the required internal works, as well as the plastering/tiling/fitting the kitchen etc and see what the end project cost comes out at, and also how much quicker the renovation takes.  If I can have the guys in there working solid for a few weeks and everything gets completed, then it could be worth while.  It may also be more cost effective, as they are on a day rate of £120 per person and I get a detailed breakdown of material costs so I know nothing else is added.  I am going to give it a go and see what happens and whether it is worth then taking this model forward to the following renovations.  If it does work well I could in theory have the guys going from one project to the next.... interesting thought.

 

 

 

2018 Goals

 

*  Complete 6 Flips

*  Earn my JV partner £30k in ROI payments (30% return on their investment)

*  Increase working capital by £120k

*  Start to become more hands off with projects and take up more of a Project Management role

 

With 2 projects due to complete by early Feb (Project 2 & Project 4), the additional 4 should be achievable if I focus and the timing is right!  I have been slightly unlucky with purchase timing in 2017, but surely I will eventually get a few properties that have no purchase issues!!  :D

 

My other focus area is to do what I seem to be able to do best, spend time sourcing and building network relationships.  When I had my period of time without a renovation I was able to spend real quality time making contacts and helping to grow my business.  As soon as I started my current project this side of the business had to be dropped as I was trying to be hands on with the renovation to save some money in labour.  What I need to look at here is how to get that right balance of being on site, but still pushing and growing my business.  Spending my time tiling, fitting kitchens, installing skirting boards etc - is this really the best use of my time?  Another reason why I am struggling with trying to complete tasks within the property myself is that I am in essence the stay at home dad, and everything that I do on site has to be organised around the school day and my Mrs day's off from work.  Only being able to work 10am-2pm on the property 3 days of the week is simply not practical, and as a result I am then having to work longer days on the days that are available to me, and not taking any time off from being on site, which at the time doesn't feel draining, but after multiple weeks of being on the go everyday it does actually start to drain you.  People reading might think I wish I only worked 10am-2pm, but what isn't looked at is that I am up at 6:30am to start getting the kids ready for school, then dropping them off, then driving to the site to work, then leaving the site to collect the kids, then feeding the kids and then starting their after school activities (Drama, Dance, Brownies, Swimming etc etc).  The reality is that I don't sit down until at least 7pm each day, so its a 12 hour day every day - Plus kids are bloody stressful!!  :angry:  For my Project 4 I am going to look at how being more hands off will affect the renovation budget in comparison to when I do bits myself.  Productively I think this is going to be best for myself and my business, so lets see!

 

 

Darren

 

www.fmp-investments.com

www.f-m-p.uk

property@f-m-p.uk

I am looking for private financing

with a 10% ROI - get in touch

 

 

 

 

 

 

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Sunday 4th Feb 2018

 

1 Year old today!  :lol:

 

1 year ago today I said hello for the first time on this forum. I thought that I should take a moment to reflect on the last 12 months to see how/if my life has changed and how my property path has developed.

 

When I first joined the forum I was still completing my teaching experience in Primary Schools, had just secured my place at Edge Hill university and was working part time at Asda, stacking shelves 3 mornings a week. Now I am in property full time, decided not to become a Primary School teacher, and left my PT job at Asda just before Christmas (bringing to an end 20 years in retail). My knowledge has massively increased from where I was 12 months ago with me continuously trying to educated myself using forums, podcasts and audio books. Whilst I did have my PT job it meant that I could squeeze in an earphone and work away whilst educating myself. My real education however came when I physically got on with it! In there, hands mucky, learning how things are done.

 

 

What Have I learnt?

 

So after 1 year – what is the main thing that I have learnt? Property takes time and is very very slow!! I am not referring to the renovation of a property, that's really easy and doesn't take long at all. What I am referring to is the process of buying the property, selling the property, sourcing a property... all of the things that are vital in this job! Solicitors are slow (although mine is brilliant). Vendors solicitors are useless, Estate agents aren't quick. Posting a simple document seems to have 1-2 weeks time requirement, as once the vendor has received it, they faff around before posting it back. Then the vendors solicitor posts this to your solicitor.... why are they posting when you can scan to email?? Large companies of solicitor are the worst as they “stack-em-high-sell-em-cheap,” so there is no rush unless you nag your solicitor to nag their solicitor.... such fun!!

 

After this, be prepared for purchases to collapse. They had the stat of 1 in 3, mine has been far higher. In 2017 I had 5 in 7 fail (so twice the norm!).

 

 

Failed Purchases!

 

1st failed purchase - £18k charge placed on the property by the council because of a contact the seller had with them. This came to light 1 week before completion. I found out on the Monday (I think), and I am sure that I was due to sign on the Tuesday.... could be wrong, but it was close.

 

2nd failed purchase – This was a rebound offer that I made after my first property fell through. It was overpriced fr a flip, but it was a cracking property for a BTL. Fortunately I had my previously agreed mortgage refused, so this deal fell through.

 

3rd failed purchase – seller had lied to me regarding the garden. I was informed by them that it was rented from the council for £20 per year, it was actually £200 per year and came with a tonne of legal fees on top.

 

4th failed purchase – This was down to myself, and was just before Christmas. I had underestimated the amount of work required. Once in there with the builder it was a far bigger task than first though, basically needing to go back to brick. The problem was that there was no-where for a skip to go in-front of the house, so everything would need to be hand balled down the road to a skip, adding extra work. At the time I also had 2 other properties with the solicitor, so I made the decision to cancel and walk away. The property is still on the market and I am considering going back with a substantially lower offer to see what happens....

 

5th failed purchase – This only occurred last weekend, and it is still stinging me a bit. The property turns out to be in a high risk flood zone. It hasn't been flooded itself, but you try and explain that to a buyer!! The decision to pull out was my own – did I want to complete a heavy refurb and have a lot of money tied up, to have a property sit on the market because the flood info scared people away, ultimately to just reduce it in price? - No. I bit the bullet and cancelled the purchase. All searches had been completed as we were 1 week off completion (I was due to get the keys 2 days ago!). The cost was around £450.

 

Not bad for 12 months eh? I laugh with my solicitor as I have been incredibly unlucky this year. We joke about the amount of lemons that I have picked up, and eventually I will find one that is straight forward!

 

 

Successful Purchases

 

Well, yes and no! Lol....

 

1st Purchase – Bought direct to vendor. Great learning property with a final end profit of £28,331 (ROI 55.1%). All wet smoothly until I sold the property. Issue with the land at the back (small patch of garden) which resulted in the offer being accepted in June, and the purchase not completing until NOVEMBER!!

 

2nd Purchase – Bought direct to vendor. During the purchase process we established that the property had been underpinned. It was costing hardly anything to purchase, so rather than try and struggle to sell onwards I chose to keep the property and rent out instead. I now have an unencumbered property that brings in £450PCM rent. Total property cost including all legals etc etc was £45,031. Property is valued at £65k, so £20k additional equity here. I am unsure whether to refinance at 6 months, or just leave it as it is for now. I will look at this further in the year.

 

 

 

How many courses would have taught you all of that above? If you want to see it raw then the above is a great example. I have had the good as well as the bad. Some of it was my own fault, some of it wasn't. I have had some lucky escapes, and with 1 I used my gut instinct to walk away with what could have been a potential mine field when it came to selling – Read the information that your solicitor gives you and pay to have all of the searches completed!!

 

 

 

The Good Bits!!

 

 

Work/Life Balance

 

Despite the set backs that are mentioned above there have been countless good times through the last 12 months. I think it is best to start with how my home life has changed, as this is why we are all looking to get into property, to improve our work/life balance. My home life now is great. I have a lot of time on my hands, I see my children every single day, and when I am not working on a property I pick them up from school 5 days a week. I even enjoy spending time with the Mrs!! Yikes!!! 2 years ago I was working 70+ hours per week, with long commutes added in, numpty clueless senior management, and general stress,exhaustion and grumpiness. I was a grumpy person, always snapping at the kids and feeling constant stress.

 

I am now the property developer, stay-at-home dad, general house keeper, and after school club master. It's hard work! Anyone who thinks being at home with 2 children isn't stressful then they need to try it, and my kids are good as gold! It was difficult to do this and renovate project 2, but it was all a learning curve and I will be adopting how I manage things going forward.

 

 

Income

 

Our home finance situation has improved. The sale of the first project allowed me to clear the last remaining small amount of debt that we had. We only owed £3k on my car (loan), but this was a payment of £280 per month. Paying this off gave us the equivalent of a £3,360 pay rise (after tax). I am now also taking an income from my rental property. This extra income is enough to keep up living comfortable, allows me to focus solely on my property business, and that all extra revenue that I make from either BTS or BTL can go back into the business.

 

 

 

 

1st Year Goals Review


 

Goals - Feb 2017


2017 - Purchase 3 x flip properties

2018 - Purchase 3 x flip properties and 1 x BTL

2019-2029 - Purchase a minimum of 3 BTL properties per year, with an end goal of £4,000 rental income after tax/expenses

2031 - Be in a position at 50 years old where I am able to choose whether I wish to work, or not.

£4,000 Rental income achieved - Continue to build the business for my children.

 

 

Unfortunately I did not achieve my 2017 target. As mentioned above, it wasn't for a lack of trying, but more because of the situations that came about. This year I have planned on increasing my flips to 6 (from 3), and I already have a BTL in hand so there I no need to add to that.

 

My goals do keep changing, as I am still fine tuning my strategy. I have been reactive over the last 12 months to situations that have presented themselves to me, and I think that this is the best approach. If an opportunity arises, or a situation changes, then its best in my eyes to adapt, rather than ignore them.

 

The Next 12 Months

 

In the next 12 months I am going to continue the way that I have been, but hopefully try to find a few less lemons!! I will continue with my plan, but will also be reactive towards opportunities that arise. Property is a funny industry. One of my main areas for me to focus on is to make the most of when I have down time. If I am not in a renovation then I really want to make the most of having time off, and to focus on my health and well-being. I am in a position most people would give anything for, and sometimes I need to sit back and remember this.

 

 

Darren

 

www.fmp-investments.com

www.f-m-p.uk

property@f-m-p.uk

I am looking for private financing

with a 10% ROI - get in touch

 

 

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Hi Darren, what have you been up to in the past 6 months? You've not been idle I'm sure! This blog post is a great example of what can be achieved through hard intelligent work and also a warning to anyone who thinks investing in property with a small pot of cash is easy!

 

I now own 4 BTL houses (mainly in the south Manchester area) which I have refurbed partly myself, but also enlisted help where my time / skills were lacking. I'm now looking closer to the centre of Manchester and I'm currently in the process of buying a city centre apartment. It's a different kettle of fish but hopefully there will be better long term capital growth. I've been in IT for the past 20 years but enjoy working in property more. Whether I could do what you have done is questionable though - well done on all your achievements!

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On 8/7/2018 at 8:13 AM, gareth b said:

Hi Darren, what have you been up to in the past 6 months? You've not been idle I'm sure! This blog post is a great example of what can be achieved through hard intelligent work and also a warning to anyone who thinks investing in property with a small pot of cash is easy!

 

I now own 4 BTL houses (mainly in the south Manchester area) which I have refurbed partly myself, but also enlisted help where my time / skills were lacking. I'm now looking closer to the centre of Manchester and I'm currently in the process of buying a city centre apartment. It's a different kettle of fish but hopefully there will be better long term capital growth. I've been in IT for the past 20 years but enjoy working in property more. Whether I could do what you have done is questionable though - well done on all your achievements!

 

Hi Gareth,

 

It's great to hear how well you are doing.  You have achieved more than 95% of the country ever will and are making the right steps for securing your future.  I know when you are in the middle of it it doesn't seem remarkable, but once you stop and think about it most people cannot afford 1 home, and your moving forward securing multiple!

 

What have I been up to since Feb?  There is more detail thread here that goes into the warts and all of my journey:

 

 

Things have been fairly quiet since Feb with just 1 renovation but there is quite a bit of movement starting now.  I purchased and renovated another property (below) which is now in the process of being sold (what a farce that has been!).  I received the keys to two more properties last Friday.  One I have purchased which was a repossession, one is a property that I am buying and the vendor has given me the keys before completion so that I can empty the property.

 

Property Renovated and Being Sold:

 

 

 

Repossession:

 

 

 

Keys Early:

 

 

 I have purchased the repossession with a new investor who has come on board to work with me.  This is their first project like this so a great project.

 

I also have 1 more property that is due to complete in the next few weeks.  This is going to be my 2nd BTL property and will be linked in a chain to the sale of my current property.  I had the offer accepted on this one back in November 2017, so it has taken almost a year to complete:

 

 

I do also have another property with my solicitor, but this one is dragging and dragging so I have just left it in the background and cracked on with other opportunities.  I did wait for a month or two but got to the point where I needed to crack on otherwise I wouldn't make any money this year:

 

 

 

Once you put it down on paper it looks like there is a lot going on really! lol

 

 

Darren

 

 

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2019 Goals

 

 

2018 Review

 

Wow... what a busy year! I'd say that the start of the year was fairly quiet in all honesty with the last 6 months just being absolutely insane... and I have loved every minute of it!

 

So what were my goals for this year?

 

 

2018 Goals

(Wrote 21/12/18)

 

* Complete 6 Flips

* Earn my JV partner £30k in ROI payments (30% return on their investment)

* Increase working capital by £120k

* Start to become more hands off with projects and take up more of a Project Management role

 

My other focus area is to do what I seem to be able to do best, spend time sourcing and building network relationships. When I had my period of time without a renovation I was able to spend real quality time making contacts and helping to grow my business. As soon as I started my current project this side of the business had to be dropped as I was trying to be hands on with the renovation to save some money in labour. What I need to look at here is how to get that right balance of being on site, but still pushing and growing my business. Spending my time tiling, fitting kitchens, installing skirting boards etc - is this really the best use of my time? Another reason why I am struggling with trying to complete tasks within the property myself is that I am in essence the stay at home dad, and everything that I do on site has to be organised around the school day and my Mrs day's off from work. Only being able to work 10am-2pm on the property 3 days of the week is simply not practical, and as a result I am then having to work longer days on the days that are available to me, and not taking any time off from being on site, which at the time doesn't feel draining, but after multiple weeks of being on the go everyday it does actually start to drain you. People reading might think I wish I only worked 10am-2pm, but what isn't looked at is that I am up at 6:30am to start getting the kids ready for school, then dropping them off, then driving to the site to work, then leaving the site to collect the kids, then feeding the kids and then starting their after school activities (Drama, Dance, Brownies, Swimming etc etc). The reality is that I don't sit down until at least 7pm each day, so its a 12 hour day every day - Plus kids are bloody stressful!! default_angry.png For my Project 4 I am going to look at how being more hands off will affect the renovation budget in comparison to when I do bits myself. Productively I think this is going to be best for myself and my business, so lets see!

 

So how have I done?

 

 

Becoming More Of a Project Manager

 

I started to really focus on the management side of the business in November, and pulled myself away from working within the properties full time. Although I enjoy being on site, I know that my time is now better spent finding deals and finding people to fund them. The cost side of the renovations has increased (as I am employing more people), but in my mind it is better to make slightly less but sell more, as overall that has the most positivity on the cash flow. Another area that I have improved is with the child care side of my life. I have put the kids in the school after-school club on a Wednesday and Thursday. The cost is £24 per week, but it enables me to continue working up to 5-5:30pm, and those couple of hours have really made a huge difference. Some days I will still be working at home but will not collect the kids until I need to as it allows me to continue working and being productive. Me stepping away to become more of a project manager ultimately did not start until the end of this year, and that was because the volume of projects had increased...

 

Looking back at the renovation targets for this year:

 

 

Complete 6 flips

 

 

This year I have completed:

  • Newchurch Road (2) – SOLD

  • Bold Street – SOLD (with solicitors and due to complete Feb 2019)

  • Rosendale Crescent – SOLD

  • Newton Street – SOLD (with solicitors and due to complete Feb 2019)

 

Currently under renovation:

  • Inkerman (1) - Scheduled completion Jan 2019 but offer accepted

  • Burnley Rd East – Scheduled completion Jan 2019

  • Hope Street - Scheduled completion Jan 2019

  • Garnett Street - Scheduled completion Jan 2019

 

BTL Projects:

  • St James Row – Completed Jan but started Nov 2017

  • Hardman Avenue – BTL now LET

  • Acre Mill – BTL now LET

 

Being Purchased:

  • Newchurch Road (3)

  • Inkerman (2)

  • Newchurch (4)

 

I have completed 6 full projects (excluding St James as that is going as 2017), but only 4 of these have been flips as 2 have been kept as rentals. My 3 current renovations will all be completed in Jan so I was actually only around 3 weeks off having completed 7 flips for this year... either way, it has been a successful year regardless. I know on the podcasts its mentioned to set high goals so that if you don't achieve them you have still done well, so I am more than happy.

 

What is interesting with the above is the purchase dates of each project:

 

  • Newchurch (2) – April

  • Bold Street – August

  • Rosendale Cres – August

  • Hardman Ave – October

  • Newton St – October

  • Acre Mill – October

  • Burnley Road East – November

  • Inkerman (1) – November

  • Hope Street – December

  • Garnett Street – December

 

9 of the 10 purchases have been since August, and at the moment I also have 2 more purchases with my solicitor as well as waiting to hear back on an offer that has been placed. The momentum really started to grow in August when one of my investors secured a £45k loan on my St James rental. This property was unencumbered so the cash released from this was then used to pay for the next couple of projects, and then the momentum started to grow.

 

 

Earn My JV Partner £30,000

 

At the time of writing last year I only had one JV partner, now I am currently working with 8 investors with more coming on board soon. As some projects have sold, some are being renovated and some are just being purchased I will break each investor down into their amounts. Most of the investment as mentioned above has occurred at the end of the year, so most of the return will be paid in 2019.

 

Investor 1:

  • £10,750 Received

  • £7,350 Pending – 2 properties on the market Jan 2019

  • £18,100 Total

 

Investor 2:

  • £9,200 Pending – 1 property sold, 1 being remortgaged

 

Investor 3:

  • £8,500 Pending – 1 property sold, 1 being remortgaged

 

Investor 4:

  • £3,000 Pending – property being renovated but offer accepted

 

Investor 5:

  • £2,750 –Pending - property being renovated and on the market Jan 2019

 

Investor 6:

  • £4,350 – Pending - property being renovated and on the market Jan 2019

 

Investor 7:

  • £3,500 – Pending – property currently being purchased

 

Investor 8:

  • £3,750 – Pending – property currently being purchased

 

 

Totals:

  • £10,750 paid out

  • £10,700 to be paid for properties currently with solicitors being sold

  • £24,450 under renovation

  • £7,250 for properties currently being purchased

  • £53,150 TOTAL

 

 

This goal can be interpreted in any way you choose to. I didn't actually “achieve” the £30k payout but have secured a grand total of £53,150. Oner positive however is that a £53,150 payout means funding of £531,500 in the last 12 months, which is a brilliant result and one that I am very proud of.

 

 

Achieve £120k In Working Capital

 

This is a tough one as the moment I receive the money back into the business it goes back out on other projects. If I stopped buying right now, completed anything that was with the solicitors, sold anything that was on the market or under renovation, and paid everyone off I would have an approximate total in the bank of £160k + 3 rental properties.

 

 

Summary of 2018

 

I am over the moon with what has been achieved this year, and know that I can achieve a while lot more in 2019. The key for growth will be the snowball effect that is often mentioned, as I can feel it and see it almost on a daily basis at the moment. What I find amazing is how suddenly things grew from August onwards, and the rate at which things started to move. I am really looking forward to seeing what I can achieve in 2019 and more importantly helping my investors grow their returns – they deserve every penny, as without them I would still be renovating single units.

 

 

 

2019 Goals

 

1/. Complete 20 flips/BTL's

2/. Increase rental income to £3k per month after costs

3/. Manage 10 properties for investors through Finnigan-McNeill Boutique Lettings

4/. Increase working capital to £300k

 

 

1/. Pretty much what it states on the tin. I need to determine what is classed as complete. Is this when it is finally sold and money is in the bank, when the renovation is physically completed and on the market, or when I actually get my hands on the keys? What it probably will exclude is all of the properties that I currently have the keys to at the moment, as they are technically 2018 achievements.

 

2/. My rental income currently stands at £1k per month from 3 rentals. I would like to increase this to £3k to give myself an income safety buffer so that I know that there is always something coming in each month to pay the bills. What is most likely is that I would like to have this £3k per month growing in the bank so that it can be used for deposits on more properties. Here I am looking for the snowball effect where as each property adds to the monthly pot, the closer I get to the next deposit, and as each property is purchased this grows and grows, reducing the time that is required. I am estimating a clearance of around £300PCM per property, so a £2k increase should require another 6-7 rentals in 2019. As these take up bigger chunks of money this target maybe slightly more challenging to achieve, but I will give it a go!

 

3/. I have 1 investor signed up for me to manage, and a few more in the enquiring stage so this is an area that I will try to develop. I have mentioned previously that this isn't something that I want to grow into a monster. I do not want this for an income, but to pay for the employment of 2 people to manage my own properties for me and allow me to be a hands off investor. What will happen here is that it will never be understaffed as the extra effort for each property will require more hours, but it will give my investors the 5**** service that they are looking for that other lettings agencies cannot achieve. I will not be pushing this side of the business physically, but will allow it to naturally grow with word of mouth and general enquiries through my social media presence. I could go hell for leather to grow it, but I think a better use of my time would be to grow my property trading business as this creates the most money.

 

 

4/. To grow the working capital figure and bring in multiple BTL's will be more challenging. The BTL's chew up lots of cash (deposits etc) so I will need to be clever with how I do this to use the minimum amount of capital. I do have a few ideas on how I can stretch my capital but I am leaving that in my head for now until I can test out a few ideas.

 

There we have it, time to see what 2019 brings and whether Brexit ruins everything!

 

Darren

 

 

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On 2/4/2017 at 10:40 AM, darren mcneill said:
Hi Darren,
 
A fellow hubber linked me to your journals and I just wanted to say thank you for sharing your incredible journey. I've been thinking about investing in a property for a couple of years now but for various reasons have only just made the first step towards it.
 
Me and my partner have just agreed a sale on our house, and purchase of a new house, with about £25,000 kept back to invest in a 2nd property with. It's only been a few months but I've gone from incredibly confident to terrified we made a mistake on more than one occasion! 
 
To see however, that you were in a similar situation, with a similar goal, and a similar amount of money, and you've succeeded, has put me back on the confidence track several times, so thank you =)

 

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Image result for 2 years

 

Hello and good morning!  Today is the 2nd anniversary of my first ever post on the property hub form!  It has been quite a busy couple of years.  In this time I have managed to achieve the following:

  • Full time property developer, leaving employment Christmas 2017
  • Began working with 12 individual investors
  • Had an offer accepted on what will be our 7th BTL property
  • Had an offer accepted on our 21st property in 2 years
  • Set up a boutique lettings agency and have sourced 2 properties for clients as well as managing two properties and currently renovating another

It has been an absolute roller coaster of a couple of years, with the last 8 months completely exploding work wise.  People often talk about the snow ball effect, and I definitely have seen that.  Back on the 8th July 2017 I was just about to start my 3rd property renovation....  then this is where things started to grow quickly.  I met my 2nd investor who helped me purchase my 4th renovation property but also secured a £45k loan on my unencumbered.  This was what I see as the most important point in my growth journey, as the £45k then allowed me to renovate 2 more properties at the same time...

Here is the timeline of my journey:

  • Feb 2017 - First property hub post
  • May 2017 - 1st property renovation started
  • November 2017 - 2nd property renovation started, my 1st BTL property
  • April 2018
  • August 2018
  • October 2018 - Rental
  • October 2018
  • November 2018 - Rental
  • December 2018
  • December 2018
  • December 2018
  • December 2018
  • December 2018 - Offer accepted and being purchased
  • December 2018 - Offer accepted and being purchased
  • Jan 2019 - Offer accepted and being purchased
  • Jan 2019 - Offer accepted and being purchased
  • Jan 2019 - Offer accepted and being purchased - Rental
  • Jan 2019 - Offer accepted and being purchased - Rental
  • Jan 2019 - Offer accepted and being purchased
  • Feb 2019 - Offer accepted and being purchased - Rental
  • Feb 2019 - Offer accepted and being purchased - Rental

There is also one other property being purchased that I keep forgetting about as it is over 12 months into the process, so 22 properties in total.

The above shows you how up to August last year i was just plodding along with single renovations, then moved into completing 2 at once.  December was then the busiest month that I have had as I had 5 renovations at the same time.

I have set some ambitious targets for this upcoming year as my thoughts are that if I miss them then it isn't the end of the world as I will have achieved lots.  To be perfectly honest I am not working to number targets in my head.  My only thought process is that as soon as I have a property sold then I buy another, then make the decision as to whether it is flipped or kept depending on what the numbers say, and most importantly what money is in the bank.

Over the last 12 months I have got to the situation where there is £0 in the bank.  This isn't one of those exaggeration comments, we literally had nothing in any bank accounts.  I even took the kids savings from their accounts to subsidise us.  The first time was due to the delay in my 3rd project selling.  It had dragged on for at least 6 weeks longer than anticipated, and with other renovations under way the pennies were strained.  The next time is now as I am typing.  I again have got to the point where there was no money left in the kitty.  This time has been worse as I had to cancel trades because i could not pay them, and I also had my plumber allow me to pay him later this week, and my labourer Matt hasn't been paid for 4 weeks (he is happy to wait).  A saving grace has been the rental properties that I own, as £1800 came in on the 1st of Feb in rent which has given me breathing space, which shows the importance of having rentals that bring in an income.

The above seems extreme, but I currently have 5 properties that are being sold, with 3 due to complete this month.  One property is due to complete in the next few days, so yesterday I booked in my trades again for the current projects.  To say it has been stressful is a slight understatement, but the works that have been outstanding on the current projects are only minor, so were things that I knew I could get done myself.  The extremes are that great that once the 3 properties sell and clear this month (they are all scheduled to), I will go from £0 in the bank to just over £64,000.  Once all of the properties have cleared that are currently being sold this then rises to £80,000.  If I sell absolutely everything that is being purchased at the minute the amount rises to £150k, and this includes paying the deposits to get me to 7 BTL properties and paying everyone back (The BTL deposits will equate to around £140k on their own).

The above really does show the extremes, but I have tried to stay focused on the positives and have kept level headed knowing that regardless everything would be fine.  The best decision that I made was when I prioritised the renovations.  I knew which ones would cost the least to complete so focused on them, knowing that the others I could simply jump on myself and work on them whilst the others sold.  Fortunately the properties have all sold very quickly once going on the market and I have had a couple of cash buyers which have really made things move faster.  My aim now is to ensure that I have a cash buffer going forward, but no doubt an opportunity will arise that I cant resist and I will be back in this position.  My dad however has instructed me to move £16k over to him as an emergency slush fund, so thankfully I have someone watching my back to keep me on track.... buying houses is very addictive, I find it more fun than selling them as I love the hunt and the chase.

The next big part of the last 12 months was the decision to start my lettings agency.  I have always had enquiries from my investors about whether I would ever consider managing rentals for them as the yields are great where I operate. In December of last year I decided to just go for it.  I listed some of my flips as turn-key properties and within the first 2 days I had sold my first turn-key house (I hadn't even bought it!).  Since then things have moved very quickly.  Last week the tenants moved into the above turn-key property (we are due to complete on this on Wed), so my investor has a fully managed property with a tenant already in it.  This weekend I also received the keys to another rental property that one of my clients has sourced himself.  I am going to manage a light renovation for him and then find the tenant and look after it for him.  In Jan 2 of my clients also had offers accepted on properties that i had sourced for them, so we are just waiting on these to complete and this will make 4.  I have also sold another of my turn-key properties to an investor which we are due to complete on this month and then renovate.

 

One thing that I must make clear is that I work a serious amount of hours.  I have been writing this journal update since 06:30am and I will be working both on site and later on when I get home until at least 9pm.  I am also fitting in being the stay at home dad (I'm still not seen as having a real job yet!!).  This is 7 days a week and I have had only 1 day off since the Christmas break on the 7th Jan (this was because of snow).  Despite this I love what I do.  I love the people that I interact with and its great having clients come and spend a day with me to chat property.  I still have so much to learn, but its just so much fun!

I am not sure if I have rambled on a bit here as I am typing away and the kids are both getting ready for school and the Mrs decided to come home with a puppy yesterday (because I'm not busy enough!).

Its now time to get ready, we have 2 properties to dress today and put on the market!  I hope that in 12 months time I can speak about some more great achievements.

Darren

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Hi Darren, 

Thank you for this thread, I think its excellent and has managed the impossible of making me even more excited about the possibilities. Your story is great and you write it so well. Great effort and I am very much looking forward to following your progress in the future. 

I am just getting started and spending my holidays cramming as much information in my head as possible. Just finished 2 of Rob's books, put together different strategy spread sheets, in the middle of the written plan and visiting accountants, mortgage brokers and estate agents, just need the opportunities to start coming together now, very excited. 

Thanks again for your post, its really great to see how others are getting on. I wish you all the best of luck. 

Jon 

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Sunday 12th May 2019

Image result for happy 2nd anniversary

2 years ago today I received the keys for my first ever property renovation on Newchurch Road:

I personally cannot believe it has only been 2 years.  So much has happened and the small project that I started with has snowballed into multiple companies.  I thought it would be worth taking a snap shot of exactly where I am at this moment in time:

Purchases - On Friday I completed on my 19th purchase, with another due to complete next week.

Rentals - The Friday completion was my 7th rental with the completion next week being my 8th.

Rental Income - The rental income on my 8 BTL's is £3143 after mortgage costs

Money in the bank - £40,000

Money tied up in BTS projects - £62,500

Money tied up in BTL properties - £ 56,500                            

 

The main bulk of my purchases above have occurred since July 2018!  Back last August I was completing on my 4th property purchase:

This was one of those moments that boosted my growth.  The investor that I purchased this property with also loaned me £40,000 on my unencumbered rental property (I have just paid them back this month after re-mortgaging).  That injection of physical cash then allowed me to buy and renovate 2 more properties, and then the purchases scaled up.

In 2019 I decided to go into lettings for my clients.  As of this morning I have 19 properties either under management, renovation or being purchased by clients that we will manage.  At the moment the income from management is at £614.50.

 

So that is where I am up to after my first 2 years physically involved in property.  I am unsure where I will be on my 3rd anniversary as you never know what opportunities arise, but what I can say is that I still have the same determination and hunger so will keep pushing forward to see  what we can do,

You can follow my regular weekly journal below if you would like to see what we get up to each week:

 

Thanks,

Darren

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       BTS -- BTL -- Lettings -- Sourcing

         www.fmp-investments.com

 

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