I would love to find out more about the differences in buying a property as an individual /limited company . You’ve mentioned difference in tax etc. But there is soooo much more that I would like to hear about 🎉
Good video. Only thing to note is when changing use class to a HMO then refurbs will include all fire safety aspects, like fire doors, smoke alarms in every room etc. with 2 tenants I’d imagine that wasn’t the case
That’s true, great point. I always install fire regs in my properties such as doors etc. Especially this one as I knew I would be applying for planning permission.
James, thanks this is really interesting and has open my mind to what is possible. I am always at the Refinance end but it is great to hear about the Buy Refurbish part. I am always interest in BRRR as before I heard about this I was only aware of LTB strategy. Thanks for opening my eyes to other possibilities.
Super well explained, thank you. Looking at those pictures, seems that £30k was a bargain!! They charged £5k for a bit of paint, electrical, gas check and cleaning! Unfortunately, I live in the south, no way you find properties that low.
Re expenses : Depending on the number of tenants, dont forget a Landlord licence to run an HMO. It's really important as the council can impose a fine and tenants can sue you if there isn't one in place. If you have more than one household living in one house, people that arent related, so say a couple in one room, a single person in another, thats 2 households already...so add a third person and its its another household. All councils are different so check with yours, it takes about 10 weeks to get one and you need it before you rent out your property. Plus there are changes coming in the renters reform bill. Thanks to the government there are few incentives for Landlords now. They are home providers and all this crap is forcing them to leave the private rental sector so there's less homes, higher rents and more homelessness. The press bash landlords, forcing policy changes to win votes, but only the tenants will suffer in the end. Good luck everyone!
Great video and explanation. Hate to be that guy, but just so you know the refinance was £2500 not £2000. So all numbers are £500 more but it’s minor, thought I’d raise some you were aware. Great content and information 👍🏼
Hi Lew, correct and just to confirm after running through the mortgage terms, the valuation fee on this refinance was actually free! Therefore refinance costs are still £2000 for this calculation. I would also add that it’s quite common to find valuations free from some lenders when refinancing!
Thank you for the content. I have a query in regards to understanding how much money is left in the deal after BRRR, I understand if I do a cash purchase it would literally just be the 75% refinance minus what I have invested in the deal, so if all my purchasing fees total 75%, I have purchased a free house. But if I get a bridging loan for the deal, would I work out my money left in the deal as follows: the 75% refinance minus purchasing costs, including my deposit and bridging fees, then minus the original gross bridge advance? I think I am confusing myself with the bridging scenario.
So using the prices in the video as an example, can you explain how a bridging loan would work please? So let’s say I take out an £80k bridging loan (£50k purchase + £30k refurb), would I then use the 75% LTV to pay off what was left of the bridging loan?
So the property has a mortgage that is paid by renting it out, the benefit is you own the property and have been able to recycle your investment money ?
Correct - The interest rate is 3.09% on an interest only mortgage. Remember this property was secured in 2021 when the Bank of England base rate was almost 0% 😄
Great point - you would usually be allowed to do this. However, the agent made it very clear that they would need in-person letters to be dropped off before 12.
No, you can choose this option but for me it’s easier and cheaper to source my own energy company and to pay them directly. Apart from this, the management company does everything else
![My Clients First Buy Refurbish Refinance Property [BRRR]](http://i.ytimg.com/vi/aTFPIa-6YZs/mqdefault.jpg)
![My Clients First Buy Refurbish Refinance Property [BRRR]](/img/tr.png)
One of the best videos I have ever watched explaining and breaking down the nitty gritty. You have my like and subscription!
@@alvindavidchan627 pleasure to have you 🙏
I would love to find out more about the differences in buying a property as an individual /limited company . You’ve mentioned difference in tax etc. But there is soooo much more that I would like to hear about 🎉
Awesome - keep watching 🕺
Amazingly helpful break down of the whole process, well done James. Thank you
amazing, simply amazing. well done james you've earned yourself another subscriber👍
@@jadlien260 awesome, thank you 🙏
Very clearly explained :-) Thanks a lot
Brilliant video James, more in-depth explanations like this please, very educational thanks
Thanks, Carl 👍
Good video. Only thing to note is when changing use class to a HMO then refurbs will include all fire safety aspects, like fire doors, smoke alarms in every room etc. with 2 tenants I’d imagine that wasn’t the case
That’s true, great point. I always install fire regs in my properties such as doors etc. Especially this one as I knew I would be applying for planning permission.
James, thanks this is really interesting and has open my mind to what is possible. I am always at the Refinance end but it is great to hear about the Buy Refurbish part. I am always interest in BRRR as before I heard about this I was only aware of LTB strategy. Thanks for opening my eyes to other possibilities.
@@Manda_Mortgagecoach my absolute pleasure!
Fantastic James, keep going!!
Thank you 🙏
Fair play that was a nice breakdown, definitely a good idea to buy next door aswell 👍
Thank you 🙏
Wow! I understood every word of that.
Always interested in property.
Very very informative video!!! Thank you so so so much my friend
Super well explained, thank you. Looking at those pictures, seems that £30k was a bargain!! They charged £5k for a bit of paint, electrical, gas check and cleaning!
Unfortunately, I live in the south, no way you find properties that low.
This has to be one of the most educative videos that I have watched. Do you mind if I asked where I could get the white board you used in this video
Re expenses : Depending on the number of tenants, dont forget a Landlord licence to run an HMO. It's really important as the council can impose a fine and tenants can sue you if there isn't one in place. If you have more than one household living in one house, people that arent related, so say a couple in one room, a single person in another, thats 2 households already...so add a third person and its its another household. All councils are different so check with yours, it takes about 10 weeks to get one and you need it before you rent out your property. Plus there are changes coming in the renters reform bill. Thanks to the government there are few incentives for Landlords now. They are home providers and all this crap is forcing them to leave the private rental sector so there's less homes, higher rents and more homelessness. The press bash landlords, forcing policy changes to win votes, but only the tenants will suffer in the end. Good luck everyone!
Really really good explanation
Great video and explanation. Hate to be that guy, but just so you know the refinance was £2500 not £2000. So all numbers are £500 more but it’s minor, thought I’d raise some you were aware. Great content and information 👍🏼
Hi Lew, correct and just to confirm after running through the mortgage terms, the valuation fee on this refinance was actually free! Therefore refinance costs are still £2000 for this calculation. I would also add that it’s quite common to find valuations free from some lenders when refinancing!
Man like James what a dream 🥵🥰🥰🥰😇 thanks for lovely explanation. ❤
Thanks 🙏 🎉
Thank you for the content. I have a query in regards to understanding how much money is left in the deal after BRRR, I understand if I do a cash purchase it would literally just be the 75% refinance minus what I have invested in the deal, so if all my purchasing fees total 75%, I have purchased a free house. But if I get a bridging loan for the deal, would I work out my money left in the deal as follows: the 75% refinance minus purchasing costs, including my deposit and bridging fees, then minus the original gross bridge advance? I think I am confusing myself with the bridging scenario.
So using the prices in the video as an example, can you explain how a bridging loan would work please? So let’s say I take out an £80k bridging loan (£50k purchase + £30k refurb), would I then use the 75% LTV to pay off what was left of the bridging loan?
So the property has a mortgage that is paid by renting it out, the benefit is you own the property and have been able to recycle your investment money ?
So you borrowed 101k and your monthly repayments are only 264? How is this possible what interest rate did you get?
Correct - The interest rate is 3.09% on an interest only mortgage. Remember this property was secured in 2021 when the Bank of England base rate was almost 0% 😄
How to get on the waiting list for the next JPU? 😬
If you’ve got an interest only mortgage and you refinance does that mean your monthly payments increase because you’re borrowing more money ?
James, aren't some Final Offers accepted by email, don't have to send do by post or in person?
Great point - you would usually be allowed to do this. However, the agent made it very clear that they would need in-person letters to be dropped off before 12.
What a champion 🎉🎉🎉🎉
Thank you 🙏
Are deals like this still available nowadays?
Whats your plan on repaying the £101,250 mortgage off, because your only paying the interest off at the moment ?
There is no plan to pay that off anytime soon I would guess, he is getting £600 rent (after tax) with no money in!
Are you deducted only the interest rate or you could deducted the whole mortgage through the limited company, regards
Only the interest.
Mate make a realistic one that applies for the average
50k is way too cheap
This 90 000£ been given to you by bank as a loan with 6% of interest. Why you never say that
Does the management deal with the bills as well?
As in do they pay them for you and then transfer you what’s left over?
No, you can choose this option but for me it’s easier and cheaper to source my own energy company and to pay them directly. Apart from this, the management company does everything else
Greetings to you and cookie 🍪 😂
❤❤
How do I join the university?
@@Elvin5388 jamespropertyuniversity.io or link in the description 🕺
❤
How to get on the waiting list for the next JPU? 😬
How to get on the waiting list for the next JPU? 😬