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Buy... refurbish... let... refinance: The start of my journey


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Hi all,

 

Listened to the podcasts/ Rob D's audio books for over a year to prepare for investing. What triggered this was being faced with the decision to keep or sell a property that was my main home, once I bought a new place with my partner. With reading all about Section 24... I decided to sell, set up a limited company and get started!

 

It started as educating myself to make sure I was making the right decision, but has developed in to something much more... where I have a 10 year plan to build enough passive income to replace my current income.

 

I am currently refurbishing my own residential property with the support and guidance of more experienced family members (trying to learn as much as possible) and conveyancing on the sale of my old house.

 

Investment wise I plan to work mostly near home in Leeds/Surrounding areas and primarily buy... refurbish... let... refinance, but also do some flipping to raise more capital.

 

As far as skills/knowledge goes, I guess I am going to be learning more than I am helping at the start... but you've got to start somewhere I guess!

 

Thanks for reading,

 

Richard

 

 

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Afternoon Richard, 

 

Great to have you on the forum and thanks for all the info above. Rob D's books as well as the podcast are a great source of constant education and will help you get through those days refurbing a property. 

 

Setting up a company to start with is a great shout! I have a property in London that I wish I had in a company, but nevermind... a property cash flowing that you have to pay tax on is still. better than not having a property at all. 

 

buying... refurbing... and letting is a great shout but will take up your capital. (depending on how much you start off with) Have you thought about buying... refurbing.... selling? So as to get more capital out. Doing this a few times until you have a pot big enough for 2 deposits. Then from there you can hold one and keep flipping. 

 

Either way, I think your enthusiasm and positive approach will keep you in good stead. 

 

If you need anything else? just ask the forum. They're a pretty helpful group and there's knowledge on almost every subject. 

 

Cheers

 

Phil

 

 

 

 

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Hi Phil,

 

Thanks for your response and support.

 

I agree with your point... better to own one in your own name that cash flows well than not at all. I think if mine worked really well as a rental it would have been a toss up, by the yield wouldn’t have been great, and I only had about 75% LTV so wouldn’t have had any equity left to go out an invest for quite a few years.

 

Absolutely right about flipping... as it stands I have enough for 2 deposits (just) so I am looking at a flip first to top up my capital before buying to hold.

 

Thanks again,

 

Richard

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  • 2 years later...

Hi Richard,

How are you getting on with your strategy?

I am in the process of completing on my first deal and I plan to follow a very similar strategy here in the North. I intend to refurb and flip this property, hopefully the capital boost will be enough to then buy, refurb and refinance on my next project.

Have you found any challenges when it comes to the refinancing element of this strategy? That is my main concern and reservation at the moment. 

How are you finding the market in and around Leeds? I'm getting started in Newcastle, but I'm looking to move around the North wherever the best opportunities arrive, and Leeds seems to perform consistently well in the BTL market. 

Hope all is going well.

 

Matt 

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Hi there,

I am so sorry for the delayed reply...

Strategy is going well but has adapted somewhat.

I bought, refurbed and refinanced my first in 2019 which is now rented out and has been for over a year now.

I am just about to complete the purchase of my second, this time with cash (some from an investor on a jv basis)

And in other news I decided to make a career change so I can work in a property related industry, because I love it so much! :) I am now a Mortgage & Protection Advisor and loving being involved in property every day and not just on the side.

I used a "Bridge to Let" Product for my first, which was great as it meant I remortgaged after a 4 month bridge, all underwritten by the same lender. Sadly, that product isn't available now given the current climate.

Generally speaking... if you're buying with cash or a bridge, refinancing shouldn't be a problem (subject to the property being suitable security for the lender). Some lenders will allow "back to back" remortgaging inside 6 months. I would never advise you used a mortgage with no or low early payment charges when your intention is to refinance after 6 months... that's just not what the product is designed for.

It's just a case of being very organised in evidencing the work you've done, the money spent and then making the valuer a coffee :)

All the best with the strategy and if I can help in any other way please get in touch.

Thanks

 

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No problem at all Richard. Sounds great, congratulations on the career change! It makes a lot of sense.

Glad to hear you didn't find any issues with the refinancing side of things. After my initial flip I'm going to see what the Bridging and Mortgage markets are like, if they aren't in a great state I'll be looking to Buy, refurb, refinance with cash, but if bridge to let products are back on the table with good interest rates, I may look to split the pot and take on two projects with staggered start dates.

Once you are comfortable and confident in your new role you'll have to share your firm's details on the blog as I'm sure plenty of people are always after a good broker!

thanks

 

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  • 4 weeks later...

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