You may remember last week I shared with you my very latest property deal. I wanted to share this with you to show that anything is possible when you have the right property knowledge!
I also promised on last weeks blog, I’m going to share with you some of the very first deals I did and an overview of the strategies that I used that took me to Financial Freedom.
Ready? Let’s dive straight in…
Buy to Let
This was the very first strategy I started implementing when I began my property journey over 18 years ago! I scrimped and saved to attended a property conference in London and about 98% of when the trainers told me went straight over my head! However, I understood the concept of buying a property below market value, adding value (such as a new kitchen and bathroom) and then remortgaging it for the higher amount to withdraw the deposit I initially secured the property with. I would then secure another property using the same deposit. The houses I renovated were rented out to people that were in housing need, just like I was when I left my husband and returned to the UK. Although I was so excited to be helping people, I was also sooooooo scared! In fact, even though my first property was incredibly successful it took me a further 9 months before I had the courage to complete my next deal. I had no professional network around me to support and encourage me so I felt completely isolated. This is why through all of the mentoring and programmes I offer, I always make sure everyone is supported and knows exactly where to go if they have any questions etc. When I reached 13 properties, I quit my job as a massage therapist and solely concentrated on property. This strategy is still so relevant in today’s market as there are more people needing rented accommodation.
Buy to Sell
As my portfolio grew, I made a conscious decision that I wanted to start selling some of the properties that I had developed. Using the same strategy as above, by adding value I was able to sell them for a larger lump sum rather than waiting for the rent to be collected each month. As I bought the properties in such a poor state of repair, they needed a serious face-lift which increased the value. Again, this strategy is still used in today’s market and if done right, it can generate a large lump sum of profit!
The HMO model
When I felt like I’d mastered the Buy to Let and Buy to Sell strategies, it felt right for me to move onto the HMO Model. A HMO property may also be known as shared accommodation. This is where the tenants will have their own bedroom but share facilities such as kitchens and bathrooms. As this is a shared facility the specification of the property differs from that of a single use property so I recommend you do your research and due diligence of the area before committing to this strategy.
One of the first HMO renovations I did was converting a huge house in Doncaster to a 14 bed HMO. This property had been on the market for over a year and due to the size no one had made an offer. So with that I mind, I carried out my due diligence and saw a gap in the market for affordable, single use occupation. I purchased the property for £116,000 and after all of the building works etc. I still made £183,000 profit. I sold the property to an investor who was interested in collecting the weekly rent and to add it to his portfolio. Again, this property strategy is still so relevant but you must do your due diligence before committing to this strategy.
I hope an insight into these few property strategies has got you thinking about the possibilities!
If you’re interested in property but feel like it’s out of your reach or if you’re a landlord and feel a bit stuck, why not come along to my next live day in Birmingham? During this day I will be giving away some of the strategies and key mindset shifts that have enabled me to grow and develop through property. Simply click on the link below for more information:
I absolutely love hearing from you so please feel free to leave me a comment below this blog or on my Facebook and tell me what strategies you are working on or what you would love to get out of property.
Live the Life you love,