If you’ve been with me for a while you’ll know that my property investing strategy is built around buying a property as cheaply as I can, then adding value, and then refinancing.
If I’ve done my due diligence properly, and the figures stack as they should, then the result is I can get a whole load of money back out of the deal which I can use to go again and buy another property and repeat the process.
That’s how I’ve built a sizeable portfolio.
That’s how many of my peers and students have accumulated their portfolios.
The concept is simple, and it does work, but it takes a little bit of effort.
I believe that one of the (many) keys to property success is using your financial resources as effectively and efficiently as possible. And recycling as much cash as you is a key part of that.
By the way, going off a tangent, I saw this weekend that Paragon, a large UK buy to let lender, are bringing back 80% LTV mortgages. How cool is that? Very cool if you want to get the maximum amount of money out of a property.
And Precise do an 80% LTV mortgage, and Kent Reliance do an 80% and an 85% LTV mortgage (and I expect there are others as well).
(By the way, if you want help financing your deals I’m very happy to recommend my broker – please email me firstname.lastname@example.org and I’ll introduce you).
My preferred way of adding value is a simple refurb, but whilst I had a few days R&R in a holiday cottage in west Wales in June, I saw a really good example of how value can be increased by turning a kitchen into a bedroom.
An extra room but with no extra floor area.
I won’t say any more now, it’s all in the video, other than this simple change to layout means the owner can massively increase the returns from their short-term holiday letting (what we could also call Serviced Accommodation) business.
But this would work equally well for buy to lets and even flips.
Here’s to successful property investing.
Peter Jones B.Sc FRICS
Chartered Surveyor, author and property investor
PS. By the way, I’ve rewritten and updated my best-selling e-book, The Successful Property Investor’s Strategy Workshop, which is an account of how I put together my multi-property portfolio, starting from scratch and with no money of my own, and how you can do the same.
For more details please go to: