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New Kid on the Block


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Greetings all! I thought I’d just drop a few lines here as to my current situation, strategy and goals to see how it stacks up on this forum. Basically I will be getting into property full time from May 2019 and will be around this forum regularly for advice, encouragement and comradeship!

 

OK, so I’ve had a nice little flat in South London since the early 90’s which has done very well value wise over the years. But now the lease is about to drop to under 90 years so I’ve decided to sell it on. Obviously there’s also the option of extending the lease, however I want to increase my capital by reinvesting it in property and I also feel that freeholds are a much safer option.

 

So now that I’ve made this decision I have set aside one year beginning from May 2019 to work fulltime at this. If it works out I can then spend 5 months every year fulltime on it. The plan is to purchase 2 flips and 1 BTL. The flips are to increase my capital so that I can go back and repurchase if successful the first time around, while the BTL’s are to hold onto and begin to build up a stream of passive income. I want to do this as a cycle. If the first time works out I’ll then do it again in 2020, ie 2 flips, 1 BTL and keep on doing this every year until I have enough passive income from the BTL’s to cover basic living costs and that I am confident with the flips that I can expand into larger refurb projects. I’m completely flexible and can do this anywhere in England. For the flips I’ll be chasing the BMV’s (I’ve signed up to EIG and am basically scouring the country for anything that looks substantially BMV, followed up of course by the due diligence) and for the BTL’s, I’ll be looking for more up and coming postcodes, ie northern powerhouses.

 

In terms of my experience, it’s not great! I have some experience in construction from many years ago as a builder’s mate! But I am confident in project management. I produce films with large crews and tiny budgets in incredibly challenging locations (Nepal!) and on tight schedules, so I’m guessing the skillset could be similar. Also I’ve started a 1 year diploma in construction management, though I’m sure that’ll be nowhere near as effective as real on the ground experience Basically, I have one year from now to get prepared for this and I wanted to check in with this forum and say hi :)

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Good Morning Murraykerr, 

 

Awesome to have you on the forum and thanks for letting us have a look at your strategy above, it looks like you've put some real work into it!

 

I think the fact you are used to working with tight budgets and time schedules will be invaluable to helping you with project managing flips, also the fact you are getting more education in the that area is also very encouraging. 

 

I think a couple of things that could make your life a little easier would be to determine a smaller radius for both the flips and where you are investing for BTL. This will make your travelling time simpler and it would be quicker to get to know which areas in a city or town are good bad, as well as where is likely to go up in value or are in demand for rentals. Also making sure the areas have the basic fundamentals (Universities/ big employers/ transport links)

 

Areas I am currently looking at and I think has great potential for growth as well as yields is Bolton/ Wigan/ St helens/ Warrington/ stockport these areas will al benefit from the ripple effect from Manchester and/or Liverpool. 

 

Here's a couple of podcasts I think you might find helpful:

 

'How to flip a property' 

https://www.thepropertyhub.net/tpp076-flip-property/

 

'Should you become a full time property investor?'

https://www.thepropertyhub.net/tpp160-should-you-become-a-full-time-property-investor/

 

enjoy and if there's anything I can help with, just let me know.

 

Cheers

 

Phil

 

 

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Thanks Phil, that's immensely helpful advice!

 

I'm certainly giving a lot of thought to the north and have been reading up on the northern powerhouse so I may well bump into you at a hubber's meet up in that neck of the woods!

 

Cheers!

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