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Moving from Adhoc to Organised Property Investment.


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Living in Cheshire, couple in our 40's, fulltime working professionals aiming to work less and live more as we get older!

 

We are mortgage free on our home and have a second property for rent...and that was as far as we had got, until now...

 

After a bit of research, this is where we are at....our long term investment, good returns, low risk strategy?

 

Property Investment Goal.         

To have a business with a property portfolio worth a minimum one million pounds in 20 years, with no outstanding mortgages.

Business Plan.

  1. To set up a limited property company.

  2. To initially invest £200,000 over two years, into property.

  3. Utilise mortgages upto 75% of each property value to fund purchases.

  4. Within the first five years, acquire further property from the business profits.

  5. Beyond five years, re-invest profits into accelerated mortgage capital repayment.

  6. Safeguard the business, by retaining a minimum of six months rental value for each property within the business.

  7. Manage properties ourselves, using Letting Agents only for each initial letting.

  8. Invest only in properties within an hour drive of *******.

Initial Investment Capital

  • 100k - Re-mortgage *******

  • 50k – Sale of ******

  • 50k – Business Loans from existing business ******* Limited.

Initial Action Plan.

By July 2019.

  • ******** Limited has two years accounts.

  • Set up new Limited Company.

  • Re-mortgage *****

  • Sell *****

  • 30k Loan from ***** Limited.

  • Appoint an independent Mortgage Broker

By July 2020.

  • Purchased initial properties.

  • Further 20k loan from ****** Limited

 

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Afternoon Phil B (amazing name! it's the same as mine)

 

Welcome to the forum and thanks for all the info above. It's great to see someone who has sat down and written them out with clear goals and guidelines in place. They say a goal without a plan is just a dream. I think we can both agree you definitely have a Goal!

 

Have you thought about setting up a progress journal, so you can tell everyone how the portfolio building is going and you can get advice and give advice from it? I for one would love to hear about how it's all going. 

 

To see other peoples journals or start your own, click the link below. 

https://thepropertyhub.net/forum/forum/15-progress-journals/

 

Cheers

 

Phil

 

 

 

 

 

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Hi Phil B

 

Great to see such a plan, that's the best way to start.

 

My only real comment is...why wait a year to get going? You don't need two years accounts to get a limited company mortgage, especially when you are in full-time employment (assuming a lender will look through the company to you...and take your personal guarantee).

 

So, start now I say :)

 

Good luck with it.

Richard

Richard W J Brown a.k.a. The Property Voice

Property Investment Strategist

10%+ ROI property deals every week: check out PROPERTY DEAL TIPS
Amazon best-selling author Property Investor Toolkit & #PropTech, YPN Magazine columnist & PODCAST host

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Let's connect...mention The Property Hub :)

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43 minutes ago, Phil Brown said:

Afternoon Phil B (amazing name! it's the same as mine)

 

Welcome to the forum and thanks for all the info above. It's great to see someone who has sat down and written them out with clear goals and guidelines in place. They say a goal without a plan is just a dream. I think we can both agree you definitely have a Goal!

 

Have you thought about setting up a progress journal, so you can tell everyone how the portfolio building is going and you can get advice and give advice from it? I for one would love to hear about how it's all going. 

 

To see other peoples journals or start your own, click the link below. 

https://thepropertyhub.net/forum/forum/15-progress-journals/

 

Cheers

 

Phil

 

 

 

 

Hi Phil,

 

Thanks for the positive feedback, I'll take a look...though I'm hoping the journey will not be too full of dramas, sleepless nights and frustration ( If only! )

.

Any recommendations for local Mortgage Broker/Advisor?

 

Cheers,

 

Phil (Great Name!)

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16 minutes ago, richard brown said:

Hi Phil B

 

Great to see such a plan, that's the best way to start.

 

My only real comment is...why wait a year to get going? You don't need two years accounts to get a limited company mortgage, especially when you are in full-time employment (assuming a lender will look through the company to you...and take your personal guarantee).

 

So, start now I say :)

 

Good luck with it.

Richard

 

Hi Richard,

 

Thanks for the positive response.

 

I'm working fulltime (QS/Project Manager) for my own company, which has been trading just over a year. My wife works fulltime.

 

Hopefully, the mortgage lenders will look favourably on us and we get the ball rolling quicker.

 

Taking advice and researching at the moment, but hope to push the start button soon.

 

Cheers,

Phil.

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