Great Justin, please also think about other ownership outgoings, I list some below: General repairs and maintenance Boiler service / replace every 7-10 years Compliance with electrical safety inspections/ regulations Compliance with gas safety yearly inspections / checks Smoke alarm / carbon monoxide alarms Redecoration / replace carpets between tenants Generally great spreadsheet but need to add more outgoings
My portfolio nets me around £15k a year at the minute. Whilst it's not massive, it's as passive as it gets. Good to be open about the real earnings. People think a couple of houses means you can retire. I think 10 houses is safe. After that it's cream!
Hi Justin. I stumbled across your videos. I bought my first house at 22 and had 5 houses by 28 and i am a millionaire at 32. You seem very similar to myself so i wish you the best of luck. One peice of advice given the relatively low margins would be drop the management fees from agents. Pay them a finders fee (vet tenants etc) and then you get the details and see which you prefer. Get good tenants ideally on 24 month contracts and there really shouldn’t be much to manage!Have local trades - most likely ones you used during renovations - at the end of the phone should the tenant contact you with an issue. Leave a key safe at the properties and do not tell the tenants the code. If there’s any issues anyone you send can get in the property to resolve the issue no problem then and all you need to do is make a phone call every now and then. Also group your landlord insurance under one company if possible as works out cheaper and comes out as one bill. Just my initial thoughts. James
@@younginvestor9657 uk property, then I diversified into gold and shares - this was mainly to secure my position rather than grow it, although it snowballs over time and before you know it you’ve hit 1mil net worth. He mentions in the video about wanting a 1 mil portfolio but main focus should be the net value not the gross value. Wealth preservation is just as important as growing it. You tend to become slightly more risk averse as your wealth grows.
@@auricgoldfinger8249 thanks for the advice, I’m a small developer in the SW trying to get my cash to work for me as when I’m only developing it’s only making capital and no investments as such. sorry for confusion I actually meant area in the uk for property investment? Many thanks
@@younginvestor9657 the midlands! I have developed all of the properties i own but rather than sell I refinanced although I’ve been very careful not to over leverage. Easiest money I’ve ever made on property is not through the development or even the rental income but from the value increases over time. Time has had the most significant impact on my net worth
Great insight mate. I started property investing roughly the same time as yourself(similar age also) . I have only managed to get 2 properties which cash flow slightly higher than yours but you have definitely added more value to yours. Keep the good work and updates going man very interesting. From Glasgow 👍
12 property's over 12yrs ,all BRRRR tactic but on repayment mortgages ,in hindsight ,so glad I did ,now at 38%LTV ,it's not just expanding your portfolio, it's protecting it in bad times (price drops,interest rates,) that's just as important
Great LTV, and portfolio. Credit to you building that and using the BRR strategy! I agree repayment mortgages is a good long term strategy for most investors. But aslong as investors know how to stress test, mitigate risk and have a plan on when to start switching mortgages to repayment, then I still believe interest only is the better route for most investors in the first 5-10 years of their property journey. Leveraging money makes so much sense whilst properties increase in value and inflation diminishes the value of money
Exactly, bought first house 5 years ago then another 2 rentals within a year.. Only now 4 years later can I refinance all of them to look to buy another 3 in the next year. Needed to be patient.
well done Justin, long term planning is the best way. thanks for showing everyone it's not get rich over night promoted by the 2 car on the drive, no milk in the fridge guru's that soley rely on selling their courses
Love it Justin, the meat and potatoes content no one else does haha. I think that having a core BTL portfolio is best before exploring other models which are riskier but potentially more rewarding. Keep up the hard work
Great video Justin. It makes a change to see a property youtuber be properly transparent about profits rather than sugarcoating everything. Like you said it's not a get rich quick scheme. You have a good portfolio with strong yield properties which helps. Not everybody in the game would be able to aquire such good investments. 👍
I really appreciate your honesty this is exactly what i needed to see to understand a bit better about renting out under a LTD company. Im looking to buy a residential and BTL property as soon as the sale of my first property completes. Nice one
Fantastic insight into a beginner portoflio. I am looking to start building my portfolio within the next 12 months and this is a fantastic insight into what I should expect. Cheers Justin.
Thank you Justin. Really helpful to see the figures. Sobering! But great to have a heads up about the reality of what you can realistically earn. Appreciate your honesty very much. Good for you, well done, so organised, keep going :)
Thank you so much Justin.😀 So refreshing to see you being honest and transparent with the figures but bigger credit to actually coming onto RUclips to display this private information because most other investors would not! Great to see for those of us who are new to property or havent quite got started yet to see a real breakdown of figures that we might expect into our journey.😀
Slow and steady I’m getting there 😂 but as you said, it is more sustainable that way and means I can focus on each individual buy-to-let functioning the way it should!
How are your mortgage repayments so low? Are you remortgaging the whole property? Are you still in your fixed period? For 100k loan all i can find are £400ish interest only repayments after the fixed period (using price comparison sites).
Interest only mortgages. Most property investors use these as a way of making more Cashflow from a property. You’re always best to speak with a broker over a comparison site too 🙂
@@JustinWilkins Look at the numbers. If you refinanced your 84k home for maybe 60k to take your money back out. Only paying back 154 * 12 * 25 years = 46200. There is no way you're only paying that back over the course of your loan. It should be more like 80k for a good loan. Which is 2x what you're claiming. I feel like the only explanation is your using the fixed period numbers which is going to give you an inflated profit for the first few years. If thats the case there will be bringing in maybe £150 each at best long term. Not accusing you i'm just confused
Hi Justine - hope you're well! Just wanted to say love what you're doing - and have just subscribed!👍 Looking forward to seeing next steps with Properties 3 and 4. All the best with everything! Josh
Good information, well presented, not sure if this has already been mentioned in the comments, but in addition to the 19% corporation tax, when you draw any income out of your limited company you are subject to a second tax payment depending on what rate tax payer you are. However you do get the first 2k of your dividend payment tax free. Also any money you provide the company eg deposit money to buy a property etc, is classed as a directors loan and is not subject to tax when you take it back out. I'm still learning all this myself after operating my limited company for 2 years now, I've had to set one up as it's no longer viable to own more than the 3 BTLs I have in my own name. Great vid 👍
Such information is rare to find so thank you for doing this video. Unfortunately, this video is again not 10/10 but a dissapoinging I'm sure 9.5 as it seems you have missed some standing/operational costs that run along a property portfolio. Like accountant costs (even the ones per extra propery) for that matter, annual gas cert etc... the unavoidables. Obviously, those differ depending on who you work with but it is not possible to do accounts yourself for LTD at least. Congrats on finding your place within "prop investing realm". Very impressed with PropertyX and looking forward to seeing your growth.
Thanks for watching and appreciate the good feedback. Agreed I should have included annual gas cert fee! I don’t pay for an accounting fee as I have a referral deal setup with my accountant. For anyone else watching, maintenance and voids should also be accounted for.
great to see some real numbers there Justin, a couple of questions for you... firstly, (nosey one from me) how much funds did you have to start your business? the second question, if i was after raising a steady monthly income after tax of approx £3K from simple buy to let properties, what would you say is the amount of initial investment you would need, to get to that level within say 5 years? and what would be the best way to hit those targets?
I don't think this guy realises how many lives he may have changed by giving people confidence to start a property portfolio. Selflessly sharing knowledge. The majority of Property Developers I have met give you a riddle when you ask them direct questions or enjoy simply bragging about how much money they make a month.
Great honest video. Very well explained. Limited company seems to make sense with the tax etc. Nice to see your journey and experience is building more and more.
Hi, Just wanted to say by looking at your honest calculations that is one reason why I didn’t go for cheap properties. Rather buy one property in london. God forbid if one of the boilers needs to be replaced or heating system needs to be power-flushed. It eats up the entire years profits. -Also your managing agents are charging abit to much. You could save that 10-12% on each property and get away with probably paying side road estate agents just 5%. Obviously reliable ones with good morals. -Having looked at your tax. Bare in mind you’re able to deduct a lot of things for expenses. Finance relief cost, accountant cost. Also if you set yourself or your Mrs as a employee In your company you can withdraw wages ane claim it against the profits as an expense lol. You can then send the money back into your business ac and just say capital funding to buy the next property. -Now that you’re invested in property. Don’t forget to diversify your portfolio perhaps crypto is one. We have dropped 90%. So it’s time to look into that. NOt financial advice but something to really think about. -I think interest rates will continue to rise which will have an negative impact on the house prices. You’re doing great though Justin. Better than most people our age so keep it up. We live and we learn.
Interest costs seem low for Ltd Company borrowing. That said I don’t know what your LTV is. You should actually consider building a portfolio In your own name until you max out your basic rate tax earnings, at c50k. There is no/limited benefit of a Ltd company up until that point, and you’ll avail of better rates.
Very interesting but beware of the interest rate rises around the corner. A HMO would be your safest bet as your returns can be around 10%. Good Luck !
Thanks and good tip. Although personally I’d avoid HMOs like the plague given the energy cost issues at the moment. But I think being cautious around interest rate rises is a fantastic tip, as this can dramatically effect Cashflow of properties. Cheers for watching Peter
Why are these properties so cheap? By the looks of how much value you’ve added to each of them I’m guessing you bought some really run down ones. But even still, many run down properties cost £150k+ in most of the UK
Yes I purchased these run down and added value through refurbishment. The reason for the low values is because they are location in the North West. Certain parts of the North West, North East, Yorkshire and other locations in the UK has good housing for under £150k
Hi Justin, I live on the South coast too, and I’m always seeing online about buying in the north, but how do you research the area? I’d hate to buy in a rough area
great video, I used to have property, and am now back in the game (as they say). Will need to head North, I suspect to see better yields from my investments. Once this one is done here.
Out of interest, why do you do a interest only mortgage? Is it the give your more money for a few years, then you will remortgage and pay normal mortgage? Just wondering how you plan to pay it off otherwise
This is really good as a starter portfolio 👍👍 I have similar numbers when starting out and can resonate with your experience and business model a d returns 💕
Hi Justin, I have a question I hope you can help me with. Do you buy at auction? If so, or if you would buy at auction in future, when would you involve the builders? Would you try and get builders to come along to a viewing to size up the refurb or buy first then invite builders to come along and quote? And, sorry to monopolise your time with a further question - I wondered how you visualise how you might do a house up you;re interested in? When I;ve been out viewing I just find it hard to visualise a property's potential. Do you employ concept planners or do you just keep it simple and not attempt to remodel internally?
@@JustinWilkins no worries. Have signed up for the PX sourcing - I also have a associate whom is interested if you want to send me the details and I can make an introduction
So you purchase a property at around 50k and there’s no refurb costs on a property at that price ? I’m frugal mate but I’d love to know what you purchased and what area because properties at that price are in the worst areas imaginable, also are your purchases aimed at people / families on benefits?
There are refurb costs, I just didn’t add them in here 🙂 wanted to focus more on the rent and Cashflow element. Prices are cheap because I’ve managed to secure them at a very good price, and then done full refurbs on them. Usually spending around £20k. None of my tenants are on benefits
@@JustinWilkins benefits can be good if it's a family who are getting housing assistance. Guaranteed rent and often it's a bit easier to increase rent.
If you move service accommodation then you will get good cash flow right? Can you Explain how equity generate from your property particularly when you buy next property and how mortgage will help?
I am a relatively new BTL investor myself, with 2 under my belt. I manage these myself so have no need at present for a Managing Agent. Could you share some details around how a Managing agent could be beneficial and what they cover for their costs?
Managing agent for me = less time input, less stress (not always though), and most of all a LOT less paperwork. For me a managing agent is a barrier between myself and the tenant, between myself and the rental payment. Meaning anything relating to regulations, paperwork and chasing money is handled by a managing agent. I don't intend to manage my portfolio when it grows to above 20 properties, so why manage it now :P
Love it, Def want to hear your opinions on the housing market with interest rates pitted to increase again by Q1 2023 (up to 2.5% base rate). Do you see the competition dropping in BTL and bigger deal potential as people see a softening in demand when trying to sell their house.
🙏🙏 thanks and appreciate you commenting on other questions to help people out! My thoughts - I believe demand will inevitably soften as the rate increases as the Cashflow on properties will get impacted heavily. A lot of brokers are predicting rates to then ease up mid 2023 (but who knows 🤷🏻♂️). If that happens then we could see the start of 2023 ease up, and then buying continuing mid way through the year. I think a change up is definitely coming, but investors are smarter than ever and therefore many people will utilise this opportunity to continue buying 🙂 What are your thoughts?
Hi Justin, really good video which gave me food for thought! I currently only have one BTL at the moment but really wabt to push forward with the next and at 44 im no spring chicken 🐔! Can i ask how you source you're properties? Do you go to auction or use estate agents and do you try to get properties close to where you live? Cheers john 👍
Hi Justin another great video, thank you for being so candid! Slightly cheeky question prehaps but I'm wondering have you managed to buy these four properties by recycling your cash via a BRR model or have you needed outside investment?
Hey Simona, not cheeky as I like to be completely transparent. I have used a combination of my own recycled funds, and borrowed private investor funds to help finance these deals.
@@JustinWilkins many thanks for letting me know - I'm in the process of educating myself on building a portfolio and keep reading that eventually people run out of their own funds and need to seek private finance, is that something that you've found difficult to obtain? It sounds like it could be a stumbling block, although I'm assuming having a great network helps.
Depending on your goals, i presume if you are getting anything from 3-5k profit a month, that is more than comfortable to live off and create better wealth than money, TIME.
Yes £3-£5k seems to be the magic number for most people, or the main milestone to achieve as it can be enough to free someone from a job or their main expenses!
Very transparent video thank you for sharing ! Just after collecting the keys to my second BTL here in Ireland ! Do you think quitting your job has sped up your progress with property or slowed it down not having that extra income coming in? Thanks!
👏👏 congrats on your second BTL. Leaving my job has certainly sped up my progress in both my investing and growth in my sourcing business. Working with private investors and using Cashflow from my sourcing business has been key though - without those 2 I would have definitely slowed down
It’s nice to see realistic numbers. I don’t own any BTL yet but I’ve become demotivated as the US channels make it look so easy and lucrative and my data never adds up in the research phase. £8,500 a year after tax additional income is a huge step forward to financial freedom. Did you consider putting them on traditional mortgages and not interest only?
So many great areas for buy-to-let’s that it’s hard to pin point one. Depends on where you live, your budget and your investing strategy. I like the North West, and also West Yorkshire 🙂
Great video, no frills just digestible information. Am I right in assuming the properties are on interest only mortgages then so the properties aren’t actually being paid off but the hopes are that the value grows YoY?
Thanks! And correct. Interest only mortgages are a great way of getting more Cashflow out of a property, but the down side is that you are not reducing the debt. Over time the properties will either grow in value, or I can switch the properties over to repayment mortgages in the future once I reach my property and Cashflow goals
@@JustinWilkins appreciate the reply, that does make sense. Would you recommend this to be the best way to break into BTL? Currently I’m looking to diversify my investments. Making steady returns on stocks and crypto I want to now introduce property
@@brownbear8134 For most people, interest only mortgages are a good place to start - but it entirely depends on your appetite towards risks and your 10-20 year plan. I would recommend creating an investment plan and spending time learning the different methods of property and investing. Property is a great way to diversify a portfolio, and is quite a different exposure to owning stocks and crypto.
I have enough money saved for a deposit and really want to buy my first but all I seem to hear is doom and gloom about people getting out of BTL so its putting me off
Property is still one of the best asset classes in my opinion - right now it does appear doom and gloom, but it’s a great opportunity to secure a house at the right price, and play the long game!
So I spent in the region of £20k to refurb BTL 2 and BTL 3. That’s not included in the Cashflow though as the Cashflow is used to determine monthly rent and expenses.
Fortunately I don't have any major refinances coming up until 2024, so I am hoping to ride the current wave and hope it has cooled off come December 2024 for my next BTL refinance. For anyone that is about the refinance, or intends to purchase in the near future. I believe its important to take a long term stance, if you genuinely plan on holding a BTL for 20 years, then why get bogged down in the 1 year ROI %. Think about the 5 year ROI %
Great video! I am also starting out and thinking of single lets through a LTD company. My question is, if any any point i wanted to sell one of the properties, i would be charged corp gains tax right? even once this has occurred, how can i use this money to fund something personal?
Hi John, yes all interest only mortgages at the current time. There was renovation costs, but I didn’t include them as they don’t effect the monthly costs at all 🙂
@@JustinWilkins thanks. I have a couple of properties in uk currently on tracker repayments. One has under 50k to go the other 180k on the mortgage. What would u do in this scenario with raising interest rates and market that could well fall hard. If I switch to fixed that would introduce early repayment charges if I sell..... Any help would be great
I'm wary of HMO and although it's a condensed way to get the same return with only 1 property the management of many people puts me off. Turnover could be greater and you have to play mum and dad for any disputes. Also offloading the task of managing a HMO to an agency or estate agent isn't so simple. They won't manage it as well as you want them to so expectations will be far lower than what you epxect.
Good question. Personally I wouldn’t recommend it, as it’s a very different strategy. It can provide more Cashflow but can also come with a variety of extra costs at the start, and issues with tenants (not always though). If you are very confident in your ability and you are keen to proceed with HMOs then it could be worth trying. If not, then single let’s are usually a good way to start a portfolio 👍🏻
@@JustinWilkins cheers Justin. I've got 2 BTL on repayment as I'm planning or remortgaging at a later point and taking out some of the equity. I was asking in case there was something else I was missing. Thanks again
Yes it has on one of my properties in particular, but comes down to the condition it’s bought it / or refurbed too. I’d highly recommend only buying turnkey buy-to-lets that require minimal maintenance, or getting BRR properties that you can completely refurb throughout and replace everything from new! 🙂
Hi Justin would you be kind enough to attach a copy of Excel spreadsheet like the one you have, thank you, please your assistance would be very much appreciated, thank you
Lol before the video I got an advertisement saying property investors online are talking 💩. Harsh ad lol. One thing I would say all these vids make no sense. Like if you aren't working you can't get a mortgage to buy more places etc. So I'm guessing it's parents money. So ultimately it doesn't help normal people to see these. Sharing profits in an environment where I see many people struggling to pay rent etc. Just my take. Have you thought about renting them out yourself to cut out the middle man? Also the profit you have what cash input is that based on if you get me? How much cash have you put into the houses to get that return? Finally good luck building a few houses up.
Never used any of my parents money, that’s usually a jealous comment/assumption but I don’t get that feeling with this comment. If you watch my previous videos, you’ll quickly see that I’ve fucking worried my bollocks off for over a decade to build up money and be able to leave my job and work for myself. As for sharing my small profit margins when people are struggling with finances - appreciate its not ideal, but these videos are made for and targeted at other investors that want to create a better life for themselves. Instead of just going through life, or relying on the government I’m trying to show others that the average person can invest and make money! It doesn’t have to be the pension funds, or already rich people that make money. So I’d argue that I’m doing a service! I’ve thought about not using a managing agent, but I like the hands off nature of the way I invest. As for cash in vs the money I make, I use a strategy called buy refurbish refinance which allows me to release most of my capital from the properties and make a high % ROI 🙂 Cheers for watching and sharing your thoughts 🤝
@@JustinWilkins ahh good work 👏 that's impressive and kudos to you. I know it's impossible to get onto that ladder without real hard work or help and just guessed with so many you had help. Of course I don't mean any insult and congrats on what you did so far so relatively quickly. My friend has a couple of places and rents them himself but does seem to get into issues of people not paying so maybe while we are in a cost crisis its better to have someone manage all that for the cut. Also I guess as you scale up it would become harder to manage yourself. I invest in stocks as you can use a smaller initial pot but I was interested to see what the relative return on money was percentage wise at this early stage. The great advantage you have is being able to potentially sell them at retirement for lump sums or comfortably live off the income. I bet leaving work was the best feeling ever! 😌 you got a follow from me anyhow and thanks for taking the time to reply
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I think you are the only property investor on RUclips that’s so transparent. Bravo 👏🏻
Boom! Great feedback thanks
Appreciate your transparency as always Justin.
Thanks Tanique! 🙌
Great Justin, please also think about other ownership outgoings, I list some below:
General repairs and maintenance
Boiler service / replace every 7-10 years
Compliance with electrical safety inspections/ regulations
Compliance with gas safety yearly inspections / checks
Smoke alarm / carbon monoxide alarms
Redecoration / replace carpets between tenants
Generally great spreadsheet but need to add more outgoings
A lot of that might be part of the 10% management fee?
My portfolio nets me around £15k a year at the minute. Whilst it's not massive, it's as passive as it gets. Good to be open about the real earnings. People think a couple of houses means you can retire. I think 10 houses is safe. After that it's cream!
Hi Justin.
I stumbled across your videos. I bought my first house at 22 and had 5 houses by 28 and i am a millionaire at 32. You seem very similar to myself so i wish you the best of luck.
One peice of advice given the relatively low margins would be drop the management fees from agents. Pay them a finders fee (vet tenants etc) and then you get the details and see which you prefer. Get good tenants ideally on 24 month contracts and there really shouldn’t be much to manage!Have local trades - most likely ones you used during renovations - at the end of the phone should the tenant contact you with an issue. Leave a key safe at the properties and do not tell the tenants the code. If there’s any issues anyone you send can get in the property to resolve the issue no problem then and all you need to do is make a phone call every now and then.
Also group your landlord insurance under one company if possible as works out cheaper and comes out as one bill.
Just my initial thoughts.
James
I like the key safe idea, brilliant and simple, normally the best ones, thank you, will be using this
Out of interest what was your area of investment?
@@younginvestor9657 uk property, then I diversified into gold and shares - this was mainly to secure my position rather than grow it, although it snowballs over time and before you know it you’ve hit 1mil net worth. He mentions in the video about wanting a 1 mil portfolio but main focus should be the net value not the gross value. Wealth preservation is just as important as growing it. You tend to become slightly more risk averse as your wealth grows.
@@auricgoldfinger8249 thanks for the advice, I’m a small developer in the SW trying to get my cash to work for me as when I’m only developing it’s only making capital and no investments as such. sorry for confusion I actually meant area in the uk for property investment? Many thanks
@@younginvestor9657 the midlands! I have developed all of the properties i own but rather than sell I refinanced although I’ve been very careful not to over leverage. Easiest money I’ve ever made on property is not through the development or even the rental income but from the value increases over time. Time has had the most significant impact on my net worth
Brilliant breakdown Justin. Refreshing to have someone willing to be transparent and clear in their content👍
🙏🙏 glad that came across! Trying to share the truth to help people make better decisions 🙂
Great insight mate. I started property investing roughly the same time as yourself(similar age also) . I have only managed to get 2 properties which cash flow slightly higher than yours but you have definitely added more value to yours. Keep the good work and updates going man very interesting. From Glasgow 👍
Great work mate! Good cash flowing properties is very important, especially with the changes to interest rates. Keep it up mate 🙌
This is the content I’ve been searching for! Showing your numbers gives such a realistic indication thank you buddy! And keep at it 💪🏼
🙌🙌 thanks James!
Great to see somebody getting on. Well done
😃🤝 thanks mate!
12 property's over 12yrs ,all BRRRR tactic but on repayment mortgages ,in hindsight ,so glad I did ,now at 38%LTV ,it's not just expanding your portfolio, it's protecting it in bad times (price drops,interest rates,) that's just as important
Great LTV, and portfolio. Credit to you building that and using the BRR strategy!
I agree repayment mortgages is a good long term strategy for most investors. But aslong as investors know how to stress test, mitigate risk and have a plan on when to start switching mortgages to repayment, then I still believe interest only is the better route for most investors in the first 5-10 years of their property journey. Leveraging money makes so much sense whilst properties increase in value and inflation diminishes the value of money
Loved this video mate, the transparency and honesty is what I really appreciate on your channel. Cant't wait for more content and to see your journey
Appreciate it a lot, thank you! 😃🙏
Same, love Justin's channel for same reasons.
The thing people forget is the capital growth. The snowball takes a while to form! Good vid Justin, starting out myself, I know it’s gonna be tough!
100%! Take a few years for it to build and take effect, but if the market continues to grow then the snowball can make a big impact
Exactly, bought first house 5 years ago then another 2 rentals within a year.. Only now 4 years later can I refinance all of them to look to buy another 3 in the next year. Needed to be patient.
well done Justin, long term planning is the best way. thanks for showing everyone it's not get rich over night promoted by the 2 car on the drive, no milk in the fridge guru's that soley rely on selling their courses
Thanks Pete and well said 😂👏
Slow and steady wins the race Justin. Well done.
100% long game 🙂
Thanks Justin for keeping it real and showing us it doesn’t happen over night.
💯 thank you, glad you liked it!
Love it Justin, the meat and potatoes content no one else does haha. I think that having a core BTL portfolio is best before exploring other models which are riskier but potentially more rewarding. Keep up the hard work
100% well said!
Can’t beat the meat and potatoes too
Great video Justin. It makes a change to see a property youtuber be properly transparent about profits rather than sugarcoating everything.
Like you said it's not a get rich quick scheme.
You have a good portfolio with strong yield properties which helps. Not everybody in the game would be able to aquire such good investments. 👍
I really appreciate your honesty this is exactly what i needed to see to understand a bit better about renting out under a LTD company. Im looking to buy a residential and BTL property as soon as the sale of my first property completes. Nice one
Awesome! Pleased to hear that and great plan 🤝🏠
Fantastic insight into a beginner portoflio. I am looking to start building my portfolio within the next 12 months and this is a fantastic insight into what I should expect. Cheers Justin.
Yes its good to be able to embark with eyes wide open and realistic expectations. Justin kind enough to share lived experience and true numbers.
Thank you Justin. Really helpful to see the figures. Sobering! But great to have a heads up about the reality of what you can realistically earn. Appreciate your honesty very much.
Good for you, well done, so organised, keep going :)
Pleasure! I think it’s important to share that property isn’t overnight wealth (sadly 😂) but it’s still great in the long run
Thank you so much Justin.😀
So refreshing to see you being honest and transparent with the figures but bigger credit to actually coming onto RUclips to display this private information because most other investors would not!
Great to see for those of us who are new to property or havent quite got started yet to see a real breakdown of figures that we might expect into our journey.😀
Pleasure! Glad you enjoyed it and appreciate you watching 🤝🤝
Your vids are amazing, straight to the point, transparent and easy to understand. New subscriber here !!
Your content is very much appreciated 😊
Haha yes! Welcome to the channel and thanks for subbing 🤝
Definitely be interested in a video breakdown on how you fund your properties, move your cash around to make more money, and if you're a LTD etc
Okay, just got to the LTD part :)
Great suggestion actually! Il add that video to my ideas list 👌
Great video Justin. But moreover well done, you are smashing it. Building the portfolio steadily is more sustainable.
Slow and steady I’m getting there 😂 but as you said, it is more sustainable that way and means I can focus on each individual buy-to-let functioning the way it should!
Yes - it’s best to focus on quality over quantity! Really enjoy your videos. Wishing you all good things! 🎉🎉🎉🎉🎉
Kudos for being completely transparent! This is so insightful. Would you be able to share roughly how much capital invested or ROI?
How are your mortgage repayments so low? Are you remortgaging the whole property? Are you still in your fixed period? For 100k loan all i can find are £400ish interest only repayments after the fixed period (using price comparison sites).
Interest only mortgages. Most property investors use these as a way of making more Cashflow from a property. You’re always best to speak with a broker over a comparison site too 🙂
@@JustinWilkins I was looking at interest only. i still can't see a mortgage advisor getting less than £300. But maybe he could idk
@@JustinWilkins Look at the numbers. If you refinanced your 84k home for maybe 60k to take your money back out. Only paying back 154 * 12 * 25 years = 46200. There is no way you're only paying that back over the course of your loan. It should be more like 80k for a good loan. Which is 2x what you're claiming. I feel like the only explanation is your using the fixed period numbers which is going to give you an inflated profit for the first few years. If thats the case there will be bringing in maybe £150 each at best long term. Not accusing you i'm just confused
Hi Justine - hope you're well! Just wanted to say love what you're doing - and have just subscribed!👍
Looking forward to seeing next steps with Properties 3 and 4.
All the best with everything!
Josh
Cheers Josh 🙌
Good information, well presented, not sure if this has already been mentioned in the comments, but in addition to the 19% corporation tax, when you draw any income out of your limited company you are subject to a second tax payment depending on what rate tax payer you are. However you do get the first 2k of your dividend payment tax free. Also any money you provide the company eg deposit money to buy a property etc, is classed as a directors loan and is not subject to tax when you take it back out. I'm still learning all this myself after operating my limited company for 2 years now, I've had to set one up as it's no longer viable to own more than the 3 BTLs I have in my own name. Great vid 👍
You can’t beat transparency. Great vidéo mate 🙌🏻
🤝 cheers Daniel
honesty wins you a subscriber 😁
Haha result!
Thanks for the sub
Such information is rare to find so thank you for doing this video. Unfortunately, this video is again not 10/10 but a dissapoinging I'm sure 9.5 as it seems you have missed some standing/operational costs that run along a property portfolio. Like accountant costs (even the ones per extra propery) for that matter, annual gas cert etc... the unavoidables. Obviously, those differ depending on who you work with but it is not possible to do accounts yourself for LTD at least. Congrats on finding your place within "prop investing realm". Very impressed with PropertyX and looking forward to seeing your growth.
Thanks for watching and appreciate the good feedback.
Agreed I should have included annual gas cert fee! I don’t pay for an accounting fee as I have a referral deal setup with my accountant. For anyone else watching, maintenance and voids should also be accounted for.
No gas no fluff! Subd
great to see some real numbers there Justin, a couple of questions for you... firstly, (nosey one from me) how much funds did you have to start your business? the second question, if i was after raising a steady monthly income after tax of approx £3K from simple buy to let properties, what would you say is the amount of initial investment you would need, to get to that level within say 5 years? and what would be the best way to hit those targets?
I don't think this guy realises how many lives he may have changed by giving people confidence to start a property portfolio. Selflessly sharing knowledge. The majority of Property Developers I have met give you a riddle when you ask them direct questions or enjoy simply bragging about how much money they make a month.
Great honest video. Very well explained. Limited company seems to make sense with the tax etc. Nice to see your journey and experience is building more and more.
Cheers John, appreciate you watching 🤝
Hi,
Just wanted to say by looking at your honest calculations that is one reason why I didn’t go for cheap properties. Rather buy one property in london.
God forbid if one of the boilers needs to be replaced or heating system needs to be power-flushed. It eats up the entire years profits.
-Also your managing agents are charging abit to much. You could save that 10-12% on each property and get away with probably paying side road estate agents just 5%. Obviously reliable ones with good morals.
-Having looked at your tax. Bare in mind you’re able to deduct a lot of things for expenses. Finance relief cost, accountant cost. Also if you set yourself or your Mrs as a employee In your company you can withdraw wages ane claim it against the profits as an expense lol. You can then send the money back into your business ac and just say capital funding to buy the next property.
-Now that you’re invested in property. Don’t forget to diversify your portfolio perhaps crypto is one. We have dropped 90%. So it’s time to look into that. NOt financial advice but something to really think about.
-I think interest rates will continue to rise which will have an negative impact on the house prices.
You’re doing great though Justin. Better than most people our age so keep it up. We live and we learn.
Cant claim finance relief as its a ltd but other points are valid 😊 my portfolio is in Birmingham
@@peters3724 Youre right because with the limited company you claim deduct all the mortgages as an expense.
Interest costs seem low for Ltd
Company borrowing. That said I don’t know what your LTV is. You should actually consider building a portfolio
In your own name until you max out your basic rate tax earnings, at c50k. There is no/limited benefit of a Ltd company up until that point, and you’ll avail of better rates.
Love this
🙌🙌
Very interesting but beware of the interest rate rises around the corner. A HMO would be your safest bet as your returns can be around 10%. Good Luck !
Thanks and good tip. Although personally I’d avoid HMOs like the plague given the energy cost issues at the moment. But I think being cautious around interest rate rises is a fantastic tip, as this can dramatically effect Cashflow of properties. Cheers for watching Peter
Mate, even 100k is real bargain, I think will start investing in your area lol and, transparency is building your true audience
once again, amazing video, I always enjoy your content, keep up the good work. Looking to buy my first property end of next year
Great to hear it! Good luck with the first purchase 😃
Why are these properties so cheap? By the looks of how much value you’ve added to each of them I’m guessing you bought some really run down ones. But even still, many run down properties cost £150k+ in most of the UK
Yes I purchased these run down and added value through refurbishment. The reason for the low values is because they are location in the North West. Certain parts of the North West, North East, Yorkshire and other locations in the UK has good housing for under £150k
Great video Justin very honest keep up the good work
Cheers Michael 🤝
Hi Justin, I live on the South coast too, and I’m always seeing online about buying in the north, but how do you research the area? I’d hate to buy in a rough area
great video, I used to have property, and am now back in the game (as they say). Will need to head North, I suspect to see better yields from my investments. Once this one is done here.
Out of interest, why do you do a interest only mortgage? Is it the give your more money for a few years, then you will remortgage and pay normal mortgage?
Just wondering how you plan to pay it off otherwise
Well done and congrats. Some good returns there.
This is really good as a starter portfolio 👍👍 I have similar numbers when starting out and can resonate with your experience and business model a d returns 💕
Thanks! 🙏 great to hear it. Onwards and upwards from here hopefully 😃
Hi Justin, I have a question I hope you can help me with. Do you buy at auction? If so, or if you would buy at auction in future, when would you involve the builders? Would you try and get builders to come along to a viewing to size up the refurb or buy first then invite builders to come along and quote?
And, sorry to monopolise your time with a further question - I wondered how you visualise how you might do a house up you;re interested in? When I;ve been out viewing I just find it hard to visualise a property's potential. Do you employ concept planners or do you just keep it simple and not attempt to remodel internally?
Congratulations on become a ‘portfolio landlord’ 👍🏻👍🏻👍🏻
Cheers Matt 👍🏻
@@JustinWilkins no worries. Have signed up for the PX sourcing - I also have a associate whom is interested if you want to send me the details and I can make an introduction
@@FrugalFinance great to hear it! And yes please mate 👍🏻 sourcing@property-x.co.uk
So you purchase a property at around 50k and there’s no refurb costs on a property at that price ?
I’m frugal mate but I’d love to know what you purchased and what area because properties at that price are in the worst areas imaginable, also are your purchases aimed at people / families on benefits?
There are refurb costs, I just didn’t add them in here 🙂 wanted to focus more on the rent and Cashflow element.
Prices are cheap because I’ve managed to secure them at a very good price, and then done full refurbs on them. Usually spending around £20k. None of my tenants are on benefits
@@JustinWilkins benefits can be good if it's a family who are getting housing assistance. Guaranteed rent and often it's a bit easier to increase rent.
Great detail video Justin👏🏿👏🏿👏🏿
🙏🙏 thanks!
If you move service accommodation then you will get good cash flow right?
Can you Explain how equity generate from your property particularly when you buy next property and how mortgage will help?
Great vid, are there any issues/rules around living in one of your limited company's properties yourself as the director?
That’s amazing also I’m becoming a property investor as well sourcing in Blackpool but I live in London Tottenham to be precise
Great to hear it 🍻
I am a relatively new BTL investor myself, with 2 under my belt. I manage these myself so have no need at present for a Managing Agent. Could you share some details around how a Managing agent could be beneficial and what they cover for their costs?
Managing agent for me = less time input, less stress (not always though), and most of all a LOT less paperwork. For me a managing agent is a barrier between myself and the tenant, between myself and the rental payment. Meaning anything relating to regulations, paperwork and chasing money is handled by a managing agent. I don't intend to manage my portfolio when it grows to above 20 properties, so why manage it now :P
Love it, Def want to hear your opinions on the housing market with interest rates pitted to increase again by Q1 2023 (up to 2.5% base rate). Do you see the competition dropping in BTL and bigger deal potential as people see a softening in demand when trying to sell their house.
🙏🙏 thanks and appreciate you commenting on other questions to help people out!
My thoughts - I believe demand will inevitably soften as the rate increases as the Cashflow on properties will get impacted heavily. A lot of brokers are predicting rates to then ease up mid 2023 (but who knows 🤷🏻♂️). If that happens then we could see the start of 2023 ease up, and then buying continuing mid way through the year.
I think a change up is definitely coming, but investors are smarter than ever and therefore many people will utilise this opportunity to continue buying 🙂
What are your thoughts?
Thank you for sharing keep up the video they are very informative
Thanks very much 🤝
Great video!
Cheers Tej 🤝
You just earned a subscriber
😂🤝
Your smashing it bro keep it up 💙
Cheers Peter 🍻
Thanks for sharing, your videos are transparent and informative ..
Hi Justin..we are just starting out...just out of interest what sort of management level are you paying the letting agencies for?
Full management to keep me completely hands off 🙂 a lot of people pay less and would rather get hands on, but I decided not too
Hi Justin, great video. Do you invest in these properties close to you or are they all over the country where house prices area j cheaper than London?
Hi Justin, really good video which gave me food for thought! I currently only have one BTL at the moment but really wabt to push forward with the next and at 44 im no spring chicken 🐔! Can i ask how you source you're properties? Do you go to auction or use estate agents and do you try to get properties close to where you live?
Cheers john 👍
great video :))
where is your 2nd buy to let?
Thanks! All my investment props are in the north west 🤝
Hi Justin another great video, thank you for being so candid! Slightly cheeky question prehaps but I'm wondering have you managed to buy these four properties by recycling your cash via a BRR model or have you needed outside investment?
Hey Simona, not cheeky as I like to be completely transparent. I have used a combination of my own recycled funds, and borrowed private investor funds to help finance these deals.
@@JustinWilkins many thanks for letting me know - I'm in the process of educating myself on building a portfolio and keep reading that eventually people run out of their own funds and need to seek private finance, is that something that you've found difficult to obtain? It sounds like it could be a stumbling block, although I'm assuming having a great network helps.
Thats a great question. The bungalow at £290k as second property must have an external income source.
And thanks Justin for answering
Depending on your goals, i presume if you are getting anything from 3-5k profit a month, that is more than comfortable to live off and create better wealth than money, TIME.
Yes £3-£5k seems to be the magic number for most people, or the main milestone to achieve as it can be enough to free someone from a job or their main expenses!
Very useful vid! Could you possibly provide information into how much capital you actually have left in each of the properties?
I will do at some point soon 🙂
Very transparent video thank you for sharing ! Just after collecting the keys to my second BTL here in Ireland ! Do you think quitting your job has sped up your progress with property or slowed it down not having that extra income coming in? Thanks!
👏👏 congrats on your second BTL. Leaving my job has certainly sped up my progress in both my investing and growth in my sourcing business. Working with private investors and using Cashflow from my sourcing business has been key though - without those 2 I would have definitely slowed down
What area in Ireland are you focusing on Niall?
Love this video :) keep it up my friend
Thanks brother 🤝
Brill video, what mortgages do you go for when doing the brr? Im confused on how they can be refinanced so quick after purchase. Cheers
Brilliant transparent content ✨🌟
I'm in a similar position to you. Slow & steady 👊🏿
Great to hear it mate. Long game 🫡
It’s nice to see realistic numbers. I don’t own any BTL yet but I’ve become demotivated as the US channels make it look so easy and lucrative and my data never adds up in the research phase. £8,500 a year after tax additional income is a huge step forward to financial freedom.
Did you consider putting them on traditional mortgages and not interest only?
Not many lenders offer this in the UK now and if they do the rate will be high and cashflow very low!
What is the best area for buy to let's?
Birmingham for me
So many great areas for buy-to-let’s that it’s hard to pin point one. Depends on where you live, your budget and your investing strategy. I like the North West, and also West Yorkshire 🙂
@@JustinWilkins I'm looking to invest and I was looking at Liverpool or Birmingham. What areas in the north west?
Well done mate 👏 👍
Thanks Jason!
Just wondering what account software do you use? Would you recommend dext and xero. Maybe a video would be good ? Thanks Andy
Good video suggestion Andy thanks! I use Quickbooks and dext, but Xero is more or less the same as Quickbooks from my experience
Only problem is…..people can be horrible and tenants can ruin your life….I’m very wary of the BTL scene, lots of work and headaches potentially!
It’s no walk in the park, issues can definitely arise … but it’s also pretty rewarding and can be great for building long term wealth
@@JustinWilkins yeah, think I’ll stick to serviced accommodation and commercial property….higher margins and generally fewer assholes!
Great video, no frills just digestible information. Am I right in assuming the properties are on interest only mortgages then so the properties aren’t actually being paid off but the hopes are that the value grows YoY?
Thanks! And correct. Interest only mortgages are a great way of getting more Cashflow out of a property, but the down side is that you are not reducing the debt. Over time the properties will either grow in value, or I can switch the properties over to repayment mortgages in the future once I reach my property and Cashflow goals
@@JustinWilkins appreciate the reply, that does make sense. Would you recommend this to be the best way to break into BTL? Currently I’m looking to diversify my investments. Making steady returns on stocks and crypto I want to now introduce property
@@brownbear8134 For most people, interest only mortgages are a good place to start - but it entirely depends on your appetite towards risks and your 10-20 year plan. I would recommend creating an investment plan and spending time learning the different methods of property and investing. Property is a great way to diversify a portfolio, and is quite a different exposure to owning stocks and crypto.
@@JustinWilkins Definitely something I’ll be looking into in 2023 ✊🏼
I have enough money saved for a deposit and really want to buy my first but all I seem to hear is doom and gloom about people getting out of BTL so its putting me off
Property is still one of the best asset classes in my opinion - right now it does appear doom and gloom, but it’s a great opportunity to secure a house at the right price, and play the long game!
Great video. What did you spend on refurbishment for those properties please? Does that factor into your cash flow?
So I spent in the region of £20k to refurb BTL 2 and BTL 3. That’s not included in the Cashflow though as the Cashflow is used to determine monthly rent and expenses.
Great video, thanks for sharing.
Cheers Jack 🤝
Brilliant thanks you!!
Thanks Jenny!
Great video 🙌
Thanks for your update.
Appreciate you watching 😃
I’m which areas do you find properties so cheaply?
North West is the area I buy in
So if you have put in 25% deposits on your properties, that would give you an ROI of 21%???
Depends on which house, but most my properties produce 20-30% ROI after I refurbished and then refinanced 🙂
Very motivating watching this ! Thanks
🙏🙏
What’s your plan going forward with regards to higher interest rates and refinancing?
Fortunately I don't have any major refinances coming up until 2024, so I am hoping to ride the current wave and hope it has cooled off come December 2024 for my next BTL refinance.
For anyone that is about the refinance, or intends to purchase in the near future. I believe its important to take a long term stance, if you genuinely plan on holding a BTL for 20 years, then why get bogged down in the 1 year ROI %. Think about the 5 year ROI %
Great content. Whats your thoughts on the policy change for 2025 regarding to EPC rating?
Great video! I am also starting out and thinking of single lets through a LTD company. My question is, if any any point i wanted to sell one of the properties, i would be charged corp gains tax right? even once this has occurred, how can i use this money to fund something personal?
Thanks for watching. Correct CGT on the increase in value, but yes you can use the sale proceeds to purchase anything you decide too.
Im assuming these are all on interest only mortgages Justin? What about renovation costs where is this factored in to the monthly income?
Hi John, yes all interest only mortgages at the current time. There was renovation costs, but I didn’t include them as they don’t effect the monthly costs at all 🙂
@@JustinWilkins thanks. I have a couple of properties in uk currently on tracker repayments. One has under 50k to go the other 180k on the mortgage. What would u do in this scenario with raising interest rates and market that could well fall hard. If I switch to fixed that would introduce early repayment charges if I sell..... Any help would be great
Awesome stuff, would you recommend to someone new who has the cash to buy a HMO rather than several small buy to let like yourself?
I'm wary of HMO and although it's a condensed way to get the same return with only 1 property the management of many people puts me off. Turnover could be greater and you have to play mum and dad for any disputes.
Also offloading the task of managing a HMO to an agency or estate agent isn't so simple. They won't manage it as well as you want them to so expectations will be far lower than what you epxect.
Good question. Personally I wouldn’t recommend it, as it’s a very different strategy. It can provide more Cashflow but can also come with a variety of extra costs at the start, and issues with tenants (not always though).
If you are very confident in your ability and you are keen to proceed with HMOs then it could be worth trying. If not, then single let’s are usually a good way to start a portfolio 👍🏻
Hi buddy, can I ask what type of insurance cover you take out for your BTL houses compared to a lease hold flat? And what provider?
Thanks Jack
Great video.
Thanks 🤝
Why interest only mortgages. Is there a long terms benefit to this rather than a repayment one?
Short term benefit is getting more Cashflow from the property. Long term over decades, it’s better to switch to repayment and reduce the debt
@@JustinWilkins cheers Justin. I've got 2 BTL on repayment as I'm planning or remortgaging at a later point and taking out some of the equity. I was asking in case there was something else I was missing. Thanks again
Are these on interest only or repayment mortgages ?
Interest only mortgages
Hi Justin thanks for sharing. Have you found repair and maintenance costs eat into your profits quite a bit so far?
Yes it has on one of my properties in particular, but comes down to the condition it’s bought it / or refurbed too. I’d highly recommend only buying turnkey buy-to-lets that require minimal maintenance, or getting BRR properties that you can completely refurb throughout and replace everything from new! 🙂
Hi Justin would you be kind enough to attach a copy of Excel spreadsheet like the one you have, thank you, please your assistance would be very much appreciated, thank you
Lol before the video I got an advertisement saying property investors online are talking 💩. Harsh ad lol.
One thing I would say all these vids make no sense. Like if you aren't working you can't get a mortgage to buy more places etc. So I'm guessing it's parents money. So ultimately it doesn't help normal people to see these. Sharing profits in an environment where I see many people struggling to pay rent etc. Just my take.
Have you thought about renting them out yourself to cut out the middle man?
Also the profit you have what cash input is that based on if you get me? How much cash have you put into the houses to get that return?
Finally good luck building a few houses up.
Never used any of my parents money, that’s usually a jealous comment/assumption but I don’t get that feeling with this comment.
If you watch my previous videos, you’ll quickly see that I’ve fucking worried my bollocks off for over a decade to build up money and be able to leave my job and work for myself.
As for sharing my small profit margins when people are struggling with finances - appreciate its not ideal, but these videos are made for and targeted at other investors that want to create a better life for themselves. Instead of just going through life, or relying on the government I’m trying to show others that the average person can invest and make money! It doesn’t have to be the pension funds, or already rich people that make money. So I’d argue that I’m doing a service!
I’ve thought about not using a managing agent, but I like the hands off nature of the way I invest. As for cash in vs the money I make, I use a strategy called buy refurbish refinance which allows me to release most of my capital from the properties and make a high % ROI 🙂
Cheers for watching and sharing your thoughts 🤝
@@JustinWilkins ahh good work 👏 that's impressive and kudos to you. I know it's impossible to get onto that ladder without real hard work or help and just guessed with so many you had help.
Of course I don't mean any insult and congrats on what you did so far so relatively quickly. My friend has a couple of places and rents them himself but does seem to get into issues of people not paying so maybe while we are in a cost crisis its better to have someone manage all that for the cut. Also I guess as you scale up it would become harder to manage yourself. I invest in stocks as you can use a smaller initial pot but I was interested to see what the relative return on money was percentage wise at this early stage. The great advantage you have is being able to potentially sell them at retirement for lump sums or comfortably live off the income.
I bet leaving work was the best feeling ever! 😌 you got a follow from me anyhow and thanks for taking the time to reply