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Hello everyone,

 

I'm Bob, and i'm from Leeds currently working as a Prosthetist (artificial limbs). I'm 33 and for the last 6 months I have been researching property investment as a way to one day reduce my hours at work or even leave work all together as well and building assets for the future. I'm gutted that it has taken me 33 years to learn about the concepts of storing wealth and investing, but i am now doing everything can to achieve my goals. 

 

After recently buying my first home with all my savings, i am having to start from scratch to build up a deposit for my first buy to let. I think it will take me between 1 and 2 years, so in the meantime I am trying to listen to every episode of The Property Podcast, watching Youtube videos and reading everything i can on the area. So far i've read 'Rich Dad Poor Dad', 'The Richest Man in Babylon' and 'How to Win Friends and Influence People'. I plan to read Rob's books next.

 

I have done my Property Dreamline and my property goals are:

 

2 years - Buy first property. One that could be used as a standard Buy To Let or Serviced Accommodation. Aim to buy BMV or add value and then recycle the deposit.

 

5 years - Net income from property of £1500.

 

10 years - Net income of £5000.

 

(I should say I have a partner who i will be investing with)

 

 

I wanted to post this not only as a way to introduce myself, but so I can be accountable, and I also wondered what people thought of my plan? Is it reasonable?

 

 

Thanks to all in advance and especially to Rob and Rob for a great, down to earth Podcast.

 

Bob 

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Hi Bob,

 

Welcome to the Hub.  Your goals seem very reasonable, and you have set yourself specific targets with specific dates.  If you are in the process of saving, I would recommend spending an exciting evening with your last 6 months bank statements and a spreadsheet, and start to calculate what your fixed monthly expenses are (utilities/council tax/ mortgage etc).  Then work out what you are spending the rest of your income on.  After this, see where you can cut back to accelerate your savings, and as the famous saying goes, "Pay yourself first."  (by this I mean remove the amount you want to save from your bank account at the start of the month, then learn to live with whats left).  This will aid you to get to your savings target much earlier.

 

After this, continue to educate yourself as you have mentioned (But AVOID paid courses).  One book that I HIGHLY recommend is "The One Thing" by Gary Keller.  A really simple concept, but very powerful indeed.

 

Good luck on your journey!

 

Darren

 

----------------------------------------------------------------------------------------

 

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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Hi Darren,

 

Thanks for the book recommendation. Not heard of that one so will definitely check it out. Regarding 'paying myself', that is exactly what I'm doing. I was already saving for a pension but after reading the richest man in Babylon, I now put this money into a savings account to invest in property instead. I also have a spreadsheet with mine and my wife's finances on so I'm pretty aware of what's going on there. So I guess now I just keep learning like you say. Regarding not paying for courses, I do get that most are all overpriced and I would never dream of paying for any of them but I have to say I did come across the £500 membership on propertyinvestmentsuk by Rob Jones and thought that looked pretty reasonable. Especially as it offers a kind of mentorship over email, and I notice people recommending having a mentor a lot. I've seen some of his videos and like Rob and Rob off the property podcast, he seems pretty down to earth and unsalesman like. I'm interested to know what people think of that though?

 

Regards

 

Bob

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17 hours ago, bobm84 said:

Hi Darren,

 

Thanks for the book recommendation. Not heard of that one so will definitely check it out. Regarding 'paying myself', that is exactly what I'm doing. I was already saving for a pension but after reading the richest man in Babylon, I now put this money into a savings account to invest in property instead. I also have a spreadsheet with mine and my wife's finances on so I'm pretty aware of what's going on there. So I guess now I just keep learning like you say. Regarding not paying for courses, I do get that most are all overpriced and I would never dream of paying for any of them but I have to say I did come across the £500 membership on propertyinvestmentsuk by Rob Jones and thought that looked pretty reasonable. Especially as it offers a kind of mentorship over email, and I notice people recommending having a mentor a lot. I've seen some of his videos and like Rob and Rob off the property podcast, he seems pretty down to earth and unsalesman like. I'm interested to know what people think of that though?

 

Regards

 

Bob

 

I hear a lot about the mentoring side, but what always chews away in the back of my mind is that BTL or Flips just aren't rocket science?  I appreciate that guidance may be required for more creative property strategies, but for the 2 basic forms of investment noted above, what is there that cannot be found online or on a forum?  I would never stop someone from spending their money if they felt that it offered them a little emotional/educational security, but personally I fail to see what advise they can give that is not freely available - unless I am missing something?

 

Its a tough one, as everyone is different, but in my personal opinion, if doing the basic BTL or BTS, its a simple process, you just have to take time and use the correct experts (brokers, solicitors, letting agents etc) along the way.

 

Darren

 

 

----------------------------------------------------------------------------------------

 

www.fmp-investments.com

www.f-m-p.uk

property@f-m-p.uk

 

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It's good to hear that side of the argument actually and I do feel pretty confident after listening and reading the excellent free content out there that id have a good idea of what to do for my first BTLs. It's just that on some forums such as Progressive Property, everyone seems to be really pro courses and pro mentoring. To be fair they seem like they are doing really well too. Anyway for the time being I think there is more than enough free content to be getting on with! 

 

Bob

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Personally I take a lot of things you read online with a pinch of salt.... the sole aim of that forum is to make the owners money (in my opinion).

 

I get that people are happy to pay to have the knowledge all bundled up for them, but its all the over priced, over hyped BS that really grates on me.  The first video I saw of this company was one of the founders saying how he started off with JV's with wealthy people.  That was the moment I simply pressed stop, thought &*&* head, and then moved on.  As you can tell I don't feel it for these types of people, but don't allow my thoughts to stop you if its something you feel you can get something valuable from.

 

Darren

 

 

----------------------------------------------------------------------------------------

 

www.fmp-investments.com

www.f-m-p.uk

property@f-m-p.uk

 

Get in touch regarding 

a 10% fixed ROI

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Hi Bob,

 

Just thought I would chip in with my opinion after reading the conversations between yourself and Darren.

 

I've been in the business 35 years and in that time have seen so many fads and fashions come and go in all sorts of cycles in the market. 

 

With regard to the organisations you mentioned the phrase "those who can, do, and those who can't, teach" comes to mind. Although this may not be true!!

 

Rob and Rob's stuff is great on here and the Property Hub is really friendly and informative for those starting off. 

 

I have read a few of Darren's posts. Unlike the organisations you mentioned, Darren is a real guy in the real world, working and giving advice every day. He spends a lot of time giving expertly crafted, comprehensive answers, help and encouragement to everyone he speaks to on here.

 

So I suppose really I'm just reinforcing what Darren has said. There are no quick fixes or magic actions, but if you follow the path you will undoubtedly get to where you want to go!!

 

Good luck in the future,

 

Steve

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Good to hear this from both actually. I did wonder myself. I just really want to follow the advice of people with experience and it just so happens that so far, most of those experienced people I've seen also sell courses. I guess I will just do what you say and keep doing what I am doing as I haven't yet felt I couldn't access any information I needed without paying for it. 

 

Thanks guys.

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14 hours ago, bobm84 said:

Good to hear this from both actually. I did wonder myself. I just really want to follow the advice of people with experience and it just so happens that so far, most of those experienced people I've seen also sell courses. I guess I will just do what you say and keep doing what I am doing as I haven't yet felt I couldn't access any information I needed without paying for it. 

 

Thanks guys.

 

They sell the courses because its easier than doing houses!  It's a crazy world, but I suppose if people are happy to pay then who's at fault?  They are offering a service I suppose..

 

I'm as tight as they come when it comes to spending money, so its a last resort for me (although I must admit I am slowly getting lazier with age!).

 

Stay with the resources the Robs give you and you cant really go too wrong.

 

Darren

 

 

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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23 hours ago, bobm84 said:

It's good to hear that side of the argument actually and I do feel pretty confident after listening and reading the excellent free content out there that id have a good idea of what to do for my first BTLs. It's just that on some forums such as Progressive Property, everyone seems to be really pro courses and pro mentoring. To be fair they seem like they are doing really well too. Anyway for the time being I think there is more than enough free content to be getting on with! 

 

Bob

 

Progressive Property's community has a lot going for it but it is a little like a cult at times. I've learnt a lot from their Facebook group and their events are good for meeting new contacts, but they are very heavy on the up-sell. I would say it is worth going to some of their cheap or free events just to get exposure to other property investors but whatever you do leave your wallet at home.

 

There might be some value to some of their training courses once you have a some experience with property and some cash to spare, but as a beginner you'd be better off reading books and forums and learning by experiencing what it is like to invest in property. The £1000s they try and convince people to spend on training would go much further as a deposit on a property.

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  • 6 months later...

Thought I would update this seeing as a few months have passed.

 

I set some goals at the start of this journey that I have achieved. Listening to every episode of the Property Podcast, and attending the Leeds Property Hub Meetup. I will be attending a Property Auction next month which was another goal. I have also ready quite a loot of books on top of the ones mentioned before. 'The One Thing' (thanks Darren), Millionaire Fastlane, Basic Economics, How To Win Friends and Influence People, The Subtle Art of Not Giving a F#ck, Principles: Life and Work, Dominate Your Ground and HMO Property Success. If anyone have anymore recommendations I'd love to hear them!

 

Myself and my business partner are still on track to be able to purchase our first property at the end of this year. We don't have a lot (25k) but i'm hoping this can get us started. However, due to our starting capital being low I am starting to worry that because of the types of property we could afford, building up cash for the next one, and the next will be too slow to achieve my goals in the timescale I stated. I have made an excel spreadsheet (attached) to plot this out and it looks as thought it would take me more like 10 years to achieve what I want to do in 5 years. The spreadsheet shows us buying a property for 55k, doing a refurb, refinancing after 2 years, pulling some money out, and buying another property. It is an extremely conservative (worse case scenario) and does not take into account capital gains so I appreciate things may be better than this, but they may not be.

 

I really need to earn enough to allow me to work 4 days a week as soon as possible as this extra time I would have would accelerate my property goals. So we are now thinking we may need to adopt another strategy in order to achieve this. Do I look at flips, doing Rent to Rent, HMO or Serviced Accommodation in order to get the cash? In Bradford I have seen nice flats in the city center that may work as Serviced Apartments and I have seen 4 bed houses that might be convertible into HMOs that would be in our budget. Or could the original BRR plan actually work better than my predictions?

 

I'm quite stressed about it at the moment because just when I thought we had a good solid plan, we are now unsure.  I would love to know what the communities thoughts are.

 

 

Bob

 

First 5 properies plan.xlsx

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Hi Bob,

 

I'm also from Leeds with similar goals and a similar strategy to you (kind of). I've had one BTL for two years now but looking to press ahead and achieve £2,000 per month in the next 5 years so I do think your goals are achievable with the timescales given. However, I did have a look at you spreadsheet and couldn't seem to make sense of some of the calculations. Hope you don't think this is too cheeky but I've reformatted some of it, I kept the same assumptions as you had with regard to purchase price, refurb and rental profits. But I moved the capital uplift to the end of year 2/start of year 3, in line with a 2 year fixed rate mortgage and assumed this would be withdrawn through a 75% remortgage, also I accumulated the rental profit. It seems to paint a more positive picture but see what you think, I may well have got something wrong! New file attached.

 

Also, just wondering where you would look to source the kinds of properties you refer to in the spreadsheet? I kind of keep an eye out for these kinds of properties in our sort of area but can never seem to see a deal that jumps out as working on the sorts of numbers you mentioned. Although, I have to admit I don't spend too much time looking as this kind of strategy isn't my main focus at the moment.

 

@darren mcneill If you're still following this thread, in your experience do you think these kinds of deals are available on the 'open market'? I've read your brilliant journal and I believe you source direct to vendor, do you think this is the only way to make the numbers work?

 

Thanks,

Brad

First 5 properies plan...xlsx

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  • 1 year later...

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