Buy Refurb Refinance - Pros and Cons - Property Investing UK

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  • Опубликовано: 13 окт 2024

Комментарии • 140

  • @dominicgilbert519
    @dominicgilbert519 3 года назад +15

    Been following you for a while and enjoy your videos. Suggestion: buy a lapel microphone. It’ll make all the difference to your production quality and the experience from your viewers. You can get a top notch one for £100.

    • @JustinWilkins
      @JustinWilkins  3 года назад +10

      Thanks for watching and following 👊 It’s on my list 100%. I just bought another one but it gave us load of editing issues, so just in the process of swapping!

  • @Me-fn4wh
    @Me-fn4wh 2 года назад +2

    Brilliant video. Very detailed. One of the best channels I have come across on property stuff.

    • @JustinWilkins
      @JustinWilkins  2 года назад

      Legend, thanks for the amazing feedback 🤝🔥

  • @MaxiZee
    @MaxiZee 2 месяца назад

    Which builder in Liverpool have you worked with?

  • @simondewey655
    @simondewey655 3 года назад +3

    Great video Justin, good to see you making the time to travel up to a different area, the location thing often holds me back as its so damn expensive in my area. If your 5 hours away from Liverpool, it'd be great to know how you fouind out about the vacant run down property?

    • @JustinWilkins
      @JustinWilkins  3 года назад

      Hi Simon,
      Thanks for watching and yes I know investing in different areas can be difficult and daunting! I went direct to vendor on this property, and I found the property by driving round the streets in between viewings on one of my visits.
      It’s not efficient or time effective, but it can work as I’ve found it 😃

  • @cameronairth3227
    @cameronairth3227 5 месяцев назад

    So do you get a buy to let mortgage eveytime? Guessing you need to leave 25% in the property when refinancing?

  • @Brandon_S_
    @Brandon_S_ 3 года назад +3

    Great way to grow your portfolio, just a lot more money needed in hand

    • @JustinWilkins
      @JustinWilkins  3 года назад +2

      100% accurate. A lot more cash intensive at the start

  • @jask00
    @jask00 2 года назад +2

    Really great content. The main concern for me is how do you handle a refurb happening all the way in Liverpool if you live 5 hours away? Drive up constantly? Video calls? Source local builders? Get contracts with builders/contractors in place first? Lots of questions...

    • @JustinWilkins
      @JustinWilkins  2 года назад

      Everything you’ve said!
      This is my point of view - At the end of the day, if you live 5 minutes from the investment you buy… are you going to be doing work on it yourself?
      If that’s a no, then it doesn’t matter where you are located.
      Obviously, it’s a lot easier if you are able to nip round and let trades in - however this can be overcomed with trusted contacts.

  • @andrewlloyd486
    @andrewlloyd486 2 года назад +3

    Great video! If you use the brrr method rather than a standard BTL, surely pulling any money out is better that no money as it starts your pot up for the next one? For example if I bought a standard BTL with a deposit of 25k, it would be better to do the brrr method as even if I pulled out 5k, that's a fifth of the way to the next one? Is that correct?

    • @JustinWilkins
      @JustinWilkins  2 года назад

      Yes, absolutely correct!
      The more the better, so that you can continue cycling money.
      Most BRR projects will cost at least a total of £30-£40k, as you’ll need to purchase and then refurbish. So if you can do that and only leave in £5-£10k after refinance - that’s a great place to be! 😃

  • @ryanbell4952
    @ryanbell4952 2 года назад

    From what I can gather the best thing to do for
    Some one whos starting out is go down the BTL route, then once youve built a big enough portfolio, go down the BRR route to accelerate property aquisition

  • @lazer1235
    @lazer1235 2 года назад +1

    Another insightful video Justin. Been Following you for absolutely ages, I might actually look to book another 1-1 call quite soon as I've learnt alot more now.

    • @JustinWilkins
      @JustinWilkins  2 года назад

      Cheers 🍻 glad it was useful !! Thanks for the ongoing support

  • @erikstewart5548
    @erikstewart5548 2 года назад +1

    Very well done! It's cool to see the differences from here in the States compared to over there!

    • @JustinWilkins
      @JustinWilkins  2 года назад

      Thanks Erik! I often do the same in reverse, and watch US videos to see how you guys approach investing 😄

  • @Amy_PS
    @Amy_PS 3 года назад +1

    Another great video! Really enjoying following your journey, thanks for sharing it

    • @JustinWilkins
      @JustinWilkins  3 года назад

      Thanks 🙂 really glad you enjoyed it and thanks for watching!

  • @joline2730
    @joline2730 3 года назад +2

    Interesting video Justin, nice to see it all come together. Question: just what is the purpose of that music? It's incredibly irritating, you can't hear it, it just throbs intermittently in the background and does nothing to enhance what you are talking about. The only good thing was that it was not loud !! Get rid, is my advice !!

    • @JustinWilkins
      @JustinWilkins  3 года назад +2

      Thanks watching Jo! And good feedback, the media guy I work with Tom has added in the music, it’s often used to give the video a certain tone or pace. For me it’s all about trial and error. Im always trying to improve quality and come up with new ideas. Some work and some don’t 🙂 but it’s good to know your feedback for future videos! Thanks

  • @BenWhitfordFitness
    @BenWhitfordFitness 3 года назад +2

    Thanks for another informative video Justin! I’m hoping to do a BRR for my next deal and make a RUclips series documenting it! Keep up the good work mate

    • @JustinWilkins
      @JustinWilkins  3 года назад +1

      Thanks for watching Ben! Great to hear it and be sure to send me the links when you get started :)

  • @rhysmackenzie187
    @rhysmackenzie187 3 года назад +2

    Great video Justin. Would you consider selling your DTV letter template for others to make use of? I purchased your BTL and BRR spreadsheet and found these extremely useful. Thanks mate.

  • @jp9412
    @jp9412 Год назад

    great vid Justin. I'm in the process of getting educated and have set up my deal packaging business. Also want to build my own portfolio so this is very helpful

  • @gerryofarrell4653
    @gerryofarrell4653 3 года назад +1

    Good video Justin - you mention the council tax costs while property is empty. In Scotland we only pay that if the property is furnished, so I have more recently been renting out unfurnished to avoid council tax when empty. Also I think ( but dont know for sure) that tenants stay longer in unfurnished flats. Do you rent furnished or unfurnished ?

  • @crimsonbride
    @crimsonbride 3 года назад +2

    Really useful. Thank you! I hope next year I can buy my first investment property. The problem is that i have no connections to trades people. I feel like experienced people like yourself have trusted tradesmen you always work with. I'm scared of being ripped off . Can you give any advice on how to find good tradesmen and how much certain works tend to cost.
    Thanks!

    • @JustinWilkins
      @JustinWilkins  3 года назад +1

      Thanks for watching! Glad it was useful 👊
      I would recommend networking within the area you are looking, go to property meet-ups or business meet ups. Build up your network and connections, then ask for recommendations within your new network. Alternatively you could just get quotes from builders on check a trade or social media - but you are taking more of a risk that route. Hope that helps 👍🏻

    • @crimsonbride
      @crimsonbride 3 года назад

      @@JustinWilkins thank you!

  • @abdulmuhaimen4895
    @abdulmuhaimen4895 2 года назад +2

    Great videos as always Justin. So happy to see how much you’ve learnt and how far you’ve come. Do you have a template of the letter you have sent to vendors as part of the direct to vendor method?

    • @JustinWilkins
      @JustinWilkins  2 года назад

      Thanks Abdul! Really appreciate you watching mate.
      I’m afraid I have to keep my D2V letter exclusive to my property x program members as it’s part of what’s included when they sign up.
      But I believe there are some ok letters on Google, which you can find and improve upon! Good luck 😃🙏

  • @captainflipflop8805
    @captainflipflop8805 2 года назад

    All these videos on buy refurbish rent out and refinance all sounds great but what are you telling the banks about how your going to repay the mortgage?

  • @pepeyogan1
    @pepeyogan1 3 года назад +2

    Another fantastic video Justin!

  • @ledjoajdje3796
    @ledjoajdje3796 3 года назад +2

    Hi Justin, Can you do an update on your first Liverpool property. what was the real RIO and how did it deviate (or not) from you initial whiteboard numbers? If you could do it again would you have waited to save more for a more expensive property?

    • @JustinWilkins
      @JustinWilkins  3 года назад +1

      Great suggestion, and funnily enough ive started to put together some content for this as it’s been almost 2 years since I bought it! I will definitely get this video made and shared in the upcoming week- month latest. 🙏

    • @ledjoajdje3796
      @ledjoajdje3796 3 года назад

      @@JustinWilkins looking forward to it!

  • @Chris-sx4qw
    @Chris-sx4qw 3 года назад +1

    Great vid Justin for making this content simple that even a child can understand this great stuff mate cheers👍

    • @JustinWilkins
      @JustinWilkins  3 года назад

      Haha I hope that’s a compliment 😝😝

  • @lukewatts6603
    @lukewatts6603 Год назад

    Just found your videos, really great content !
    Do you have a BRRR deal analyser that I could use ? Now in the process on buying my first student HMO, would be handy to have a ready made spreadsheet for it.
    Thanks in advance

  • @nickbeswick5542
    @nickbeswick5542 2 года назад +2

    So are you saying you got a bridging loan for the deposit and refurb and took out a mortgage? You said you only had £32k in and took out £20k.
    When you re-finance or remortgage are you saying the increase in value was enough to pay the bridge in full plus interest, leave 25% in for the BTL mortgage also.
    I don’t think I’m following this correctly.

    • @deansimons4979
      @deansimons4979 Год назад

      I was looking for a comment making this point

  • @mothballjim
    @mothballjim 3 года назад +2

    Another banger mate. What’s Hera?

    • @jorawarsidhu2009
      @jorawarsidhu2009 3 года назад

      Bodybuilding brand

    • @JustinWilkins
      @JustinWilkins  3 года назад +1

      Thanks mate! Appreciate your support brother. Yes it’s called Hera London. They do oversized style tshirts 🤙 (brand is nothing to do with me - just don’t mind their Tshirts and hoodies haha)

    • @greetingsbox4229
      @greetingsbox4229 3 года назад

      @@JustinWilkins Are you getting ripped you will have to be showing the guns in future videos.

    • @JustinWilkins
      @JustinWilkins  3 года назад

      😂😂 I am absolutely not getting ripped, or doing that hahaha

  • @doublespeak8745
    @doublespeak8745 Год назад

    Thanks for the insight!
    I’m looking to Buy and renovate to sell next year.
    - to avoid CGT how long do I have to hold the property? (It would be my only & main residence)
    - where the sale or and renovation take too long, could I rent it as HMO until I can sell it?
    Any advice or opinion welcome

  • @yoyo895
    @yoyo895 3 года назад +2

    My understanding from my own broker on refurbing via a standard mortgage is that they expect the work to be completed so that the property is in a lettable condition within 28 days. If it's just a bathroom or kitchen and TLC, prbably doable but for a full refurb nigh on impossible I would think. Really appreciate the honest content.

    • @JustinWilkins
      @JustinWilkins  3 года назад

      Thanks for the comment, useful for people to see what you’ve found out. Usually if using a normal mortgage, they probably have a timescale in which they want the house ready to rent. If doing a large refurb, or lots of projects every year then it can be best to work with bridging finance or purchase the property cash 🙂

  • @ducatinya
    @ducatinya Год назад +1

    Does not refinancing and pulling money out increase your mortgage and hence decreases your cash flow?

    • @JustinWilkins
      @JustinWilkins  Год назад

      Correct, hit the nail on the head. Positive is releasing capital to purchase more, negative is that cashflow decreases.

  • @sahab999
    @sahab999 Год назад

    Hi Justin, you know at your ‘repeat’ section, if you cannot refinance enough money or if your refinance is below your total costs, what do you do then in this instance? You need to have enough capital / deposit if you repeat it

  • @_lancejeffers
    @_lancejeffers 3 года назад +1

    Love it Justin, must be nice to take a deep breath and look around to see what you’ve achieved🙏🏽 Keep smashing it!

    • @JustinWilkins
      @JustinWilkins  3 года назад +1

      Cheers Lance!
      100% man. I’m still new and just getting started, but each step, each property feels like a great achievement 🙏🔥

  • @markbentley9683
    @markbentley9683 Год назад +1

    When you refinance a property i dont understand how you get the difference in proft? do you get paid cash frrom the lender?

    • @JustinWilkins
      @JustinWilkins  Год назад

      Correct, once original debt is repaid, then any remaining balance is paid into your bank account.

    • @markbentley9683
      @markbentley9683 Год назад

      @@JustinWilkins so why would you sell it instead of just refinancing and renting out? Seems like if you refinance you get the profit from the value increase and the rent too? Am I missing something here

  • @daddo1600
    @daddo1600 3 года назад +1

    Cash flow suffers? Did you consider a bridging loan to not put as much of your cash in the deal.

    • @JustinWilkins
      @JustinWilkins  3 года назад

      Yes absolutely, in fact I used one on this deal 🙂 with regards to the ‘cash flow suffers’ comment. This means that there is a short period of time usually 3-6 months where you can earn money from the property because you are refurbing it, so then you are paying for your mortgage cost, or bridging cost… whilst not having any incoming rent.

  • @Jackofspades11
    @Jackofspades11 2 года назад +1

    Hi Justin been following you a while now. I have quick question. I’m looking at starting into property myself after been inspired by yourself. I was going to go down the route of flipping. So refurbing and selling on. can you get a normal mortgage on them rather than a buy to let as the plan would be to always sell on? I’m asking as a BTL Is 25% deposit. So I thought a standard
    Mortgage could be 10% instead. Any idea on this? Thanks

  • @leesmith8810
    @leesmith8810 2 года назад +2

    Can I ask what is the positive cash flow out of the £575 rent after the mortgage interest and costs have been paid?

    • @JustinWilkins
      @JustinWilkins  2 года назад +2

      This one is £308 profit per month 🙂

  • @danpunia1624
    @danpunia1624 6 месяцев назад +1

    Thank you for sharing

  • @thethinkingman2005
    @thethinkingman2005 Год назад +1

    Can I ask, do you get the builder to quote for labour only, some materials or everything?

  • @colinrobinson4327
    @colinrobinson4327 3 года назад

    Great video as usual mate!👍 Man loves a white board! 😂 So when you take the money out does that not increase the mortgage repayments and cut into the rent profit a little? Cheers

    • @thepropertynoobs9089
      @thepropertynoobs9089 3 года назад

      Mortgage payments will be low as it will likely be an interest only and the rent from the tenant will more than cover this. When doing due diligence and assessing how viable a deal is, the mortgage payments will be taken into consideration. 👌🏼

    • @Cronus111
      @Cronus111 3 года назад

      @@thepropertynoobs9089 What happens when you're on interest only payments and you eventually reach the time where you need to produce the cash to settle the original full mortgage amount?

    • @thepropertynoobs9089
      @thepropertynoobs9089 2 года назад

      @@Cronus111 you have a few options.
      One is to sell the property which should have gone up in value due to capital appreciation (by how much is dependent on a few factors). This will more than cover the mortgage debt plus should net you quite a healthy return.
      Another option is to refinance the property taking out another mortgage.
      My understanding is that when a property investor comes to the end of their journey so to speak, they will sell off a portion of their portfolio and pay off the remaining mortgages leaving them with a number of mortgage free houses bringing in income for the rest of the investors life.

  • @sahab999
    @sahab999 Год назад

    Once the project is done, do you use the 25% equity in the refinance as a deposit or some portion of the released 75% to repeat the process again for buying another property?

  • @stuartnicklin4101
    @stuartnicklin4101 3 года назад +1

    Hi ...who is the best mortgage broker for buy to lets deals ?
    Thx

    • @JustinWilkins
      @JustinWilkins  3 года назад

      Hi Stuart, feel free to email me at team@propertyx.store and il intro you to my broker 🙂

  • @LizziLou0007
    @LizziLou0007 3 года назад +2

    Given that you live 5 hours away how did you research properties that were empty? Did you pay someone to send you that information?

    • @JustinWilkins
      @JustinWilkins  3 года назад +4

      I go up to the area regularly and in between viewings I drive all the roads seeking for empty houses 😃

    • @LizziLou0007
      @LizziLou0007 3 года назад +1

      @@JustinWilkins ahh makes sense. Thank you.

  • @BenMansfield2023
    @BenMansfield2023 Год назад +1

    Great work 🔥🔥

  • @lulut3469
    @lulut3469 7 месяцев назад

    Great video - thanks

  • @federicobaggi2544
    @federicobaggi2544 3 года назад +1

    Brilliant, thanks for sharing

  • @Jeffybonbon
    @Jeffybonbon Год назад

    I have been in this game a very long time and I will share the biggest problem to have when you come to refinance and itts this a lender will send out a man with a clip board to do the valuation and he may not value with the same eyes as you and he can stop dead what you are trying to achive i learned long ago that you need to save good deposits in cash and then move on what your trying to use was used in the early 2000s when lending was very differant from today you could buy on a monday and remortgage the next week up to 85%LTV

  • @feathermen1138
    @feathermen1138 3 года назад +1

    Why dont you just bridge it? Just find deposit the Bridging company will cover rest plus refurbishment...you could have two delas on the go then....

    • @JustinWilkins
      @JustinWilkins  3 года назад

      That’s what I did 🙂 except, I just did 1 BTL as I had my bungalow refurb going on aswell. Not sure the stress of 3 refurbs would be good for me 😅

  • @JwiseTheRealist
    @JwiseTheRealist Год назад +1

    For the first 1 minute I thought the word "HERA" on his t shirt was a subtitle that wouldn't disappear

  • @danr5371
    @danr5371 3 года назад +1

    Another great video, interesting to see your tips and things that you've learned through the process

    • @JustinWilkins
      @JustinWilkins  3 года назад

      Thanks Dan! Glad it was interesting and thanks for watching !!

  • @TRayre1
    @TRayre1 2 года назад +1

    Hey man, who is your solicitor?!

    • @JustinWilkins
      @JustinWilkins  2 года назад +1

      Secret 😉
      Not really but she’s on maternity leave, so no use right now haha

    • @TRayre1
      @TRayre1 2 года назад

      @@JustinWilkins 😅 Fair

  • @kav1187
    @kav1187 3 года назад

    Great video! What happens with the council tax while the property is empty/being refurbished?

    • @joline2730
      @joline2730 3 года назад +1

      You have to pay it from day 1 - bummer 🤨

    • @Holdeenio
      @Holdeenio 3 года назад +1

      I’m pretty sure this differs based on the actual council. They often have a vacant property “rate” or grace period; especially if the house is uninhabitable (no functional kitchen or bathroom) 👍🏼

    • @kav1187
      @kav1187 3 года назад

      When I bought my first house I got a reduced rate, however I'm not sure how it works when it goes through a LTD company or if it even makes a difference.
      Thanks for your replies 🙂

    • @joline2730
      @joline2730 3 года назад +1

      @@Holdeenio Yes, some councils do give a reduction, you have to apply and it's at their discretion. My present council (Durham) gives abso no redutions at all 😠 Of course, once a tenant takes occupation they pay.

    • @kryptokeeper2638
      @kryptokeeper2638 3 года назад +2

      @@Holdeenio The vacant property rate/grace period tends to only apply when the property is in a serious state of structural disrepair. We're talking major subsidence, missing roofs etc, not just a missing/non-functional kitchen or bathroom.

  • @thepropertynoobs9089
    @thepropertynoobs9089 3 года назад +1

    Hi Justin, what were the numbers and estimated GDV on this one?

    • @JustinWilkins
      @JustinWilkins  3 года назад +1

      thanks for watching. I will do a full numbers breakdown soon, but pp £50k, refurb £17k and est GDV is £80k :)

    • @thepropertynoobs9089
      @thepropertynoobs9089 3 года назад +1

      Nice one mate. Keep up the good work 👌🏼

    • @JustinWilkins
      @JustinWilkins  3 года назад

      Thanks man! Let me know if I can ever help 🤙

  • @bryonyhulbert7256
    @bryonyhulbert7256 2 года назад

    Thanks for the great tips!

  • @wesleybrett9711
    @wesleybrett9711 3 года назад +1

    Where are you finding mortgage/finance which doesn’t have an exit fee when you refinance

    • @JustinWilkins
      @JustinWilkins  3 года назад +3

      Hi Wesley, cheers for watching man. So best to speak with a good mortgage broker (sorry generic boring response lol!) but a good broker will find you a mortgage lender with a low or no ERC (early repayment charge). You just need to explain your goals, and plans for the mortgage / bridging and they’ll try to suit you with the best product!

    • @wesleybrett9711
      @wesleybrett9711 3 года назад

      Hello Justin, thanks for the prompt response dude, I’ll mention it to my broker next time we chat 🤙🏼

    • @CooKopite
      @CooKopite 3 года назад

      @@wesleybrett9711 I opted for a tracker mortgage as rates aren't going to rise anytime soon.

    • @rmendola759
      @rmendola759 3 года назад +1

      @@wesleybrett9711 If the exsit free is 2k, and the profit is 30k, then is worth paying in my opinion

    • @wesleybrett9711
      @wesleybrett9711 3 года назад +2

      @@rmendola759 I typically get a 2 year 90/95% LTV, reno while living on site in 3-6 months. Enjoy the fruits and save more capital for 18 months, then refinance to BTL, and repeat. I just don’t like the idea of giving the bank more money which could be used on the next deposit (or a nice holiday ☺️)

  • @callumliles3849
    @callumliles3849 3 года назад +1

    Another quality video

  • @insulinpapi
    @insulinpapi 2 года назад +1

    Is the money withdrawn during the refinance tax free?

  • @antonino12345678910
    @antonino12345678910 3 года назад +1

    When you refinance the house and you pull out more money, the rate of the mortgage will increase or will increase the interest and the years of the mortgage?

    • @Holdeenio
      @Holdeenio 3 года назад +2

      When you refinance, you are basically taking out a new loan of a higher amount. The interest rate and term (on interest-only payments) will entirely depend on the product and your circumstances, borrowing more doesn’t necessarily mean a higher rate of interest will be charged

    • @antonino12345678910
      @antonino12345678910 3 года назад +1

      @@Holdeenio thank you very much

  • @cancer2361964
    @cancer2361964 2 года назад

    How do you schedule the refurb trades

    • @JustinWilkins
      @JustinWilkins  2 года назад

      Hi June- I usually work with either a group of individual trades, although the organisation of that can be difficult and it only takes one trade to be off on their timing and it can upset everyone else. OR I use a full build team, I did this on my most recent refurb and my btl was transformed it just a matter of weeks!

  • @Air51
    @Air51 2 года назад

    5 hours away? There must have been similar deal within 30 mins of your home?

    • @JustinWilkins
      @JustinWilkins  2 года назад

      If only! Not even close sadly. Same house would have costed £175,000+ for pretty much 2 hour radius around where I live!

  • @Joe_-_-_
    @Joe_-_-_ 3 года назад +1

    Good video 👍

  • @sunilhpatel
    @sunilhpatel 3 года назад

    Can I have a copy of that Direct to vendor letter? Thank you

    • @bg-fl5kr
      @bg-fl5kr 3 года назад +1

      What makes you think he'll just give that to you?! Write one yourself and then see how you feel about giving it out to others

  • @505fatty
    @505fatty 3 года назад +2

    Can we have your solicitor’s contact?

    • @JustinWilkins
      @JustinWilkins  3 года назад +1

      She’s on maternity leave atm 😢😢

  • @NickBotha
    @NickBotha 3 года назад +1

    🍺🍺🍺

  • @carlowens9585
    @carlowens9585 3 года назад +1

    That finger click at the end... I hate it. Otherwise good video

    • @JustinWilkins
      @JustinWilkins  3 года назад +1

      Haha well if thats all you hate about watching my videos, then I am happy! The click is a trade mark, so you won't see it going anytime soon

  • @Jay-xr3sb
    @Jay-xr3sb 2 года назад

    I think you need to buy a mic first

    • @JustinWilkins
      @JustinWilkins  2 года назад

      😂😂 have done now, check recent videos

  • @christianmontgomery7490
    @christianmontgomery7490 3 года назад

    Need to show figures