I have just completed my first HMO back in November and I can relate to feeling pressured to get the tenants in asap. I made a mistake of rushing for one of the rooms and regreted right away. Luckily the tenants left in 3 months.
Nice work. Been watching you for some time since you bought this property and now viewing some myself. Got an offer on a london flat though has a low lease. If things go through i plan to save up and pay to extend the lease which will instantly increase the value then likely do equity release to recoup that money and then possibly use that for the next property. This place id plan to keep long term and likely be my own place if i get married so not too focused on huge profits but to build up equity
The house looked in great shape. What jobs did you and your family have to go in and do please? My wife and I are looking at getting a buy to let - we dont have families that could help sadly so would need to pay or do work ourselves.
Thanks Tony. Just odd jobs required at the house; bits of plastering, painting, fixing taps, fixing blinds, etc etc. I’d say that for most people getting a ‘ready to rent’ buy-to-let and then getting any odd jobs done by a local trade is easy to manage and setup!
Hi Justin, been watching you since day 1, great content. Given current times of high interest, what do you think of b2l? Doesn't seem worth it as it was couple years ago.
Great video Justin thankyou. One question - you alluded to putting a 20% deposit instead or 25% down so you cN move on another property. Does this not increase your risk and over leverage? Case and point noone could have predicted the mini budget and hike in interest rates. Would this not risk tipping you into neg equity?
@@joey-pn3xeIt makes a difference if you want to refinance after a fixed term is up. In this case he bought at such a good price, it would take a crash of epic proportions for him to fall anywhere near negative equity.
Great video! May I know why lenders don't approve refinancing of properties in your buy to let company because you are deemed to be flipping properties? Is there disadvantage for them?
Thanks! not all lenders are quite so fussy, but some lenders can be. On this occasion, they felt like I was a high risk for leaving a mortgage with them early. E.g. I get a 2 year mortgage product with them, and then sell the property 5 months in (meaning they don't get their full interest on the debt). I don't know this for definite, but his is my theory off the back of discussing this with a few mortgage brokers.
As a former financial advisor I've seen lots of landlords with high leverage literally lose everything in a few months...85% interest only loans , re finance, and if you have 10 or more of these I'd love to see your exit strategy when you have a few voids, a dew tena ts who won't pay, interest rate rises etc...a system like this will eat you alive financially if you don't have a big war chest...
@@pault3705 really interesting points Paul and I actually really agree. Two really important things you mentioned there; don't over leverage, and have a large war chest - theres bound to be some bad times. I personally try not to refinance a property more than once, and ideally keep 25-40% equity in my properties. 1 property I have is at about 45% equity. Exit strategy is also a very important consideration, at some point investors need to consider their timeline for switching to repayment, or paying down the debt on their portfolio. Thanks for sharing.
Flipping too soon is what the problem was, nothing to do with it being in your Company ... ... said this b4 and say again : do your own homework to get finance - there are too many out there who are VERY happy to lend 😏
Have to disagree in this one. The better rates / fees are usually from lenders that are not happy with flipping. Lenders that are, usually come at a higher price. There was so many factors involved in my purchase, and change of strategy, that it wasn’t as simple as choosing a better lender (sadly). However, it would probably be helpful for anyone watching if you could list the lenders you’d recommend below Jo 👇 thank you!
@@JustinWilkins Personally, and from past experience, I would always go with a Building Society - they are usually not as greedy as banks ‼️ At present I buy outright, I don't need to lend - lucky me 😊
@@JustinWilkins I know that we also vastly disagree on Repayment -v- Interest Only mortgage. IO will cost you much more and the banks are laughing their heads off at you if you go this route - speak with your Accountant
Buying cash reduces the return on your cash investment. By using the lenders money he could buy 3 of these for the same cash investment. There’s no right and wrong in property, only what’s right for YOU
@@StupidIsTheNorm and this from someone who calls themselves 'stupid' 😀😀 but yes, you make a very good point - everyone has different ideas, listen to ideas, but do what you think is the right route - obviously cash or finance plays the major role when starting out ... 👍
How much interest did you forgo on your deposit.... lets say 4% over the three year period. How much did you spend on ongoing maintenance ! How did you pay yourself monthly for the labour and management and how much set aside for the total refurbishment allowances at the end of renting, because the valuation you had was when the property was looking at its best... not after renters have not looked after it or the garden for a number of years... the longer you rent it... the more maintenance will cost as everything becomes more warn and old again... the reason I ask is because obviously this is a business, not a hobby, so you do not seem to be including everything when giving us your costings... but you do seem to be giving us everything imagined for your profits, which to me is a little disingenuous... because that's not how companies run profit and loss accounts.
Good work Justin it’s looks a good deal and after a refinance you’ll have pulled out all your original deposit 😊
Thanks David. Yes happy with this property 😃
Kinda preferred the old camera angles and editing , keep it simple !
Noted!
I prefer these updated angles and higher quality. I’m sure most others do
Thanks Michael. Hard to know what’s best. appreciate feedback from both perspectives 🙏
Great vid ! Great update ! Looking forward to hearing about more of your properties and how they are going too 👍
Thanks! And yes il definitely look to create some videos on my latest property purchases soon 😃
Man the editing is such high quality!
Great video as always buddy
Thanks Matthew! 🙏
Really liking the revamped content mate, video looks awesome!
Cheers Jonny 🍻
Great video and good returns, this is the kick i need to get into property investing! Subscribed!
I have just completed my first HMO back in November and I can relate to feeling pressured to get the tenants in asap. I made a mistake of rushing for one of the rooms and regreted right away. Luckily the tenants left in 3 months.
How is your ROI if you don’t mind me asking
Great video Justin. I’m halfway on saving for my first Turn Key.
great work 🔥🔥
Cheers Ben, appreciating your support 🤝
@11:41 for the numbers.
Thanks Stu! Meant to timestamp it
Nice work. Been watching you for some time since you bought this property and now viewing some myself. Got an offer on a london flat though has a low lease. If things go through i plan to save up and pay to extend the lease which will instantly increase the value then likely do equity release to recoup that money and then possibly use that for the next property. This place id plan to keep long term and likely be my own place if i get married so not too focused on huge profits but to build up equity
The house looked in great shape. What jobs did you and your family have to go in and do please? My wife and I are looking at getting a buy to let - we dont have families that could help sadly so would need to pay or do work ourselves.
Thanks Tony. Just odd jobs required at the house; bits of plastering, painting, fixing taps, fixing blinds, etc etc. I’d say that for most people getting a ‘ready to rent’ buy-to-let and then getting any odd jobs done by a local trade is easy to manage and setup!
Amazing video
Hi Justin, been watching you since day 1, great content.
Given current times of high interest, what do you think of b2l? Doesn't seem worth it as it was couple years ago.
The gross yield should be done on current value of the property. Unsure why you would use the purchase price.
Regardless, yield is fairly useless as a measure of the profitability vs capital invested
Great video Justin thankyou. One question - you alluded to putting a 20% deposit instead or 25% down so you cN move on another property. Does this not increase your risk and over leverage? Case and point noone could have predicted the mini budget and hike in interest rates. Would this not risk tipping you into neg equity?
Negative equity is only an issue if you want to sell I guess
It doesn’t make a difference unless you’re selling. Even if you bought today for £100k and tomorrow it’s worth £1
@@joey-pn3xeIt makes a difference if you want to refinance after a fixed term is up. In this case he bought at such a good price, it would take a crash of epic proportions for him to fall anywhere near negative equity.
Great video! May I know why lenders don't approve refinancing of properties in your buy to let company because you are deemed to be flipping properties? Is there disadvantage for them?
Thanks! not all lenders are quite so fussy, but some lenders can be. On this occasion, they felt like I was a high risk for leaving a mortgage with them early. E.g. I get a 2 year mortgage product with them, and then sell the property 5 months in (meaning they don't get their full interest on the debt). I don't know this for definite, but his is my theory off the back of discussing this with a few mortgage brokers.
Is it always convenient to ask for a credit or, in an ideal scenario, buying the flat with cash in hand?
What about those cunning negotiation tactics...?
If your mortgage payments are more than the rent you're getting per month, how are you making anything other than when you sell it?
My mortgage payments are far lower than my rent? I wouldn’t recommend ever buying a property where the mortgage payments are higher than the rent
How did you learn to source deals in the first place, self taught?
Had a mentor who showed me the ropes, and self taught certain parts / ideas to myself.
Sorry for the silly question question but is this a interest only mortgage or normal buy to let one?
Interest only mortgage! Most buy-to-let investors use them to get more cashflow from a property, rather than repayment
Is this a interest only mortgage or repayment ?
Yes interest only!
As a former financial advisor I've seen lots of landlords with high leverage literally lose everything in a few months...85% interest only loans , re finance, and if you have 10 or more of these I'd love to see your exit strategy when you have a few voids, a dew tena ts who won't pay, interest rate rises etc...a system like this will eat you alive financially if you don't have a big war chest...
@@pault3705 really interesting points Paul and I actually really agree. Two really important things you mentioned there; don't over leverage, and have a large war chest - theres bound to be some bad times. I personally try not to refinance a property more than once, and ideally keep 25-40% equity in my properties. 1 property I have is at about 45% equity. Exit strategy is also a very important consideration, at some point investors need to consider their timeline for switching to repayment, or paying down the debt on their portfolio. Thanks for sharing.
Flipping too soon is what the problem was, nothing to do with it being in your Company ... ... said this b4 and say again : do your own homework to get finance - there are too many out there who are VERY happy to lend 😏
Have to disagree in this one. The better rates / fees are usually from lenders that are not happy with flipping. Lenders that are, usually come at a higher price.
There was so many factors involved in my purchase, and change of strategy, that it wasn’t as simple as choosing a better lender (sadly).
However, it would probably be helpful for anyone watching if you could list the lenders you’d recommend below Jo 👇 thank you!
@@JustinWilkins Personally, and from past experience, I would always go with a Building Society - they are usually not as greedy as banks ‼️ At present I buy outright, I don't need to lend - lucky me 😊
@@JustinWilkins I know that we also vastly disagree on Repayment -v- Interest Only mortgage. IO will cost you much more and the banks are laughing their heads off at you if you go this route - speak with your Accountant
Buying cash reduces the return on your cash investment. By using the lenders money he could buy 3 of these for the same cash investment.
There’s no right and wrong in property, only what’s right for YOU
@@StupidIsTheNorm and this from someone who calls themselves 'stupid' 😀😀 but yes, you make a very good point - everyone has different ideas, listen to ideas, but do what you think is the right route - obviously cash or finance plays the major role when starting out ... 👍
How much interest did you forgo on your deposit.... lets say 4% over the three year period. How much did you spend on ongoing maintenance !
How did you pay yourself monthly for the labour and management and how much set aside for the total refurbishment allowances at the end of renting, because the valuation you had was when the property was looking at its best... not after renters have not looked after it or the garden for a number of years... the longer you rent it... the more maintenance will cost as everything becomes more warn and old again... the reason I ask is because obviously this is a business, not a hobby, so you do not seem to be including everything when giving us your costings... but you do seem to be giving us everything imagined for your profits, which to me is a little disingenuous... because that's not how companies run profit and loss accounts.
lol wtf, erratic investor for selling a property, LMAO
😂😂