General (main property discussion here) - biggest success stories from property?

guys,

i am interested if anyone out there has any stories about those who have done incredibly well from property over the last years?

tom

Hi Tom

I think it comes down to what you're tracking against.

The property market has done so well over past 5 years. I think a fund manager would only count success as beating the braoader market. This would have meant being very mobile within the regions, switching from SE to the North at the right time, etc. You could beat equities, bonds, cash, say, by doing very little except buying any property 3 years ago!

I see loads of ads for "property millionaire in 6 months", etc. I'm sure many have made it. Whether these conditions will continue is the big Question :)

Come on, own up you property tycoons!

Will

I started with 50k 4 years ago investing in NE & NW. Portfolio of £5m now with £2m debt thanks to the 'mortgage boys'.

I'm happy and got a Lambo in the drive!

The Daddy

Now then D.L,

I'd love to know how you got such a big portfolio so quick. I've just started really, I've got 3 properties and I'm sourcing 3 more in Scotland at the moment. I'm hoping to have 10 by the end of the year. Its going to be a struggle though I think.

I'm looking at properties to give me an income, so I can buggar off to Thailand and live. So I'm looking at the lower end of the scale, ie. high yielding property. Has your portfolio been put together buying properties at the other end of the scale, off plan?

Its great to hear more and more people are doing well in property, I just wished I hadn't spent 9 years in the RAF pi##ing my money up the wall.Ah well, I had a laugh I suppose!

Laters

Simon

simon, i think you have chosen a wise strategy - buying yield. for what it's worth im not a fan of 'off-plan' at the moment as not proven rental and more then often over-priced. guess that's why i like this website.

d.l., you have done well. how have you done this? we'd all like you to spill the beans!

tom

Also with off-plan, you usually find at least half the units are going to investors, hence increase in supply of rentable properties comes onine all at the same time, not helping you let out at the beginning.

John

Yeah, I have just recently completed on an off plan deal, it has risen in price which is good but the rental is not good enough to allow me to keep it without putting my own money in to subsidise it. In a way I wished I hadnt bought it, but I will have made a nice profit on it in six months, thats if I can sell it that is! Now, I want rid to use the money for further purchases up north!

How are you guys developing your portfolios? Are you going for high yielding places too?

Simon

No wonder they call you 'Daddy' Longlegs. I have a vision of a chest-wigged, Aviator-sporting yellow Lambo-driving fella.

You sure are the Daddy if your claims are honest.

Having started 4 years ago in NE & NW you were certainly in the right place at the right time. Do you invest anywhere else?

I also imagine you invested in a dodgy property investment course... maybe you RUN one and have the flashy (if somewhat tacky) smile of Mr Whitney?!

Timing was good. Will not deny that but as they say 'Who dares wins' and 'Got to be in it to win'.

My strategy was simple. Buy income not promise. some tries to sell you a 4% income property on the basis of capital growth i will tell them where to stick it it!! Offer me 14% and I will bite their arm off and any growth is a bonus!!

I have benefited from an up market. Now I will look at various strategies in the property market. There is money to be made everywhere.

Do your homework and be bold.

The Daddy

Have to say Mr 'Daddy' seems to have excelled himself - well done must have been hard work and long hours too.

I was also fortunate to get into the market 4yrs ago but was 20k in debt from a start up biz that wasn't performing.

I had a 30k facility on credit cards 20k already used. Took out a 125% mortgage ie bought for 100k and arranged a mortgage for 125k thus giving me 25k in the bank also borrowed 10k from my parents(they have been very supportive).

Then made a stupid mistake and maybe without it would be somewhere nearer Mr 'Daddy's' situation. Bought a property abroad that was a holiday home - used all the money I'd worked hard to obtain, then couldn't buy anything for 1.5yrs.

By the time I raised more money and sold the holiday home , I had a bit of pent up lack of buying in me - so about 2-2.5 yrs ago went a little buying mad.

used high gearing , remortgaged property as soon as any equity was there to be used. Did the odd joint venture, my time and builders and experience , other peoples money.

the cut a long and boring storey short after a bit of hard work and stress on cash flow - just about to sell my portfolio for 4mill with 3mill of mortgages and about 150k of debts to pay off on sale.

Also managed to hook up with a venture capital company that over the course of the year will release about 5mill of play money for me/my company to manage.

feel free to message me / ask questions

regards Andrew Peers - developer / investor / mortgage broker / financier andrewpfs@aol.com

sounds like you have done nicely as well andrew. which areas have you focused on?

tom

Thanks to be honest I focused on buying cheap and and property that I could use high gearing(bought a few new builds when banks allowed gifted deposit). Location really lead me by this rule I used. Always tried to buy 15% below its true value so could remortgage and re use the money again.

Hence ended up spreading myself out a bit. a few properties in home counties where I'm from - 20 or so in Manchester (14 in the city, 6 on the outskirts)as it was booming 2-2.5yrs ago. a few in wales(swansea,port talbot and colwyn bay) and the odd property in london.

regards Andrew

Andrew

I am a developer / landlord with a good portfolio. I am interested in your venture capital idea. Using my own money for 15% deposits, doing up, then re mortgaging takes time and lots of smiling at surveyors!

Venture Capital is my idea of heaven. With a proven track record how / who could I approach and say, “Nice to meet you I need 5mil, don’t worry you’ll get it all back one day!"

September 1999 i was skint not a penny i got a Princes Trust loan of £1,500 to start a mortgage business that has gone from strength to strength over the years.

I now own 18 properties worth over 1.5 million with a property debt of 600K. Not as good as D.L. But not forgetting i have no education at all and spent most of my youth in care the Cemaps (mortgage exams)were the first ever exams that i took seriously. i have just had a landlords property portfollio database built just for landlords so if any one is interested in it then drop me a line.

Most of the houses i have renovated then remortgaged to buy more the first i brought for 30K and then renovated it and had it valued at 60K so pulling my 30K out and some for the next one.

Good luck all

Alex

alex@oakhillmortgages.co.uk

p.s.My annual income from these houses is 32K per annum.

Good for you Alex. I like to see it when someone does not come from a privileged background and have still managed to make it.

I am thinking of getting my FPC`s and CeMAP. Aren't these being changed this year?

Also you say that you have your own business do you work by yourself?

Congrats Alex - I always had a mortgage brokering biz in the background too - still do(started that in 2000).

why not use some of the equity to make more money, possibly change strategy slightly to combat market conditions.

Fred - feel free to drop me a email, I should be able to help re venture capital money.

regards Andrewpfs@aol.com

Daddys back!! Sorry guys and gals been up North for a few days!

Gave the beast a real run up the M1 but got a ticket for my fun! Oh well ... I told the coppers they were just jealous of the machine. Bit harsh but no doubt true.

Anyway, I bought a couple of terraced props near Sunderland. Hopefully they will be nice little earners.

The Daddy

Hi Frank, yes the Cemaps will be changing this year possibly for the worst. If your going to do it then do it now don't worry about failure as this only occures once you have given up. I have my own brokerage in Stoke-on-Trent called Oakhill Mortgage Services Ltd i trade from the high street and do have staff my web site is www.refusedamortgage.co.uk specialising in difficult cases. If you need any help with mortgages then please feel free to drop me a line i can get 90% buy to lets but please don't shout it out as they are not easy and every time i mention i get flooded with calls.

Yours

Alex Oakhill Mortgage Services Ltd

Hi Alex,

Do you also do mortgages for expats? I'm always on the lookout for a good mortgage broker. Someone who can deal with people abroad with little fuss.

What is the minimum amount for the 90% mortgage? I'm looking at properties between £30000 and £40000 each. Is this too small a loan to be taken out by you?

I'd be interested in any deals you my have for expats.

Cheers

Simon

Hi Simon,

ex pats are quite easy as more and more lenders cater for them now unlike a few years ago. Ex-pats cannot get 90% buy to let as the 90% buy to let is actually done on a next move deal so you are saying that your going to live in the property. Now if you use the right lenders they will allow you to convert this to a buy to let within weeks of taking the mortgage out with no extra deposit. Thats the 90% buy to let. A good tip for an ex-pat is to try and keep some UK residency at your parents house get them to put you on the voters that way it will be easier to get mortgages as you just go self cert developer living with your parents.

Alex oakhillmortgages.co.uk 08000 192255

i liked this post so i am going to re-start it.

any new stories?

tom

I read the article recently about the Wilsons in Kent that have built a portfolio of over 600 in just a few years and have made it into the Rich List. Interesting.

Anyone else see this and have any thoughts?

FS

Apparently they only look for a £10 pw +ve cashflow on each property.

This concerncs me because surely they must be effected by interest rates unless every deal they do is with a fixed mortgage?

Russell

£10 pw!!!

Perhaps the math work if you are investing in £30k terraced houses but that just doesn't work in Kent.

Interest rates move 1-2% and they will be hitting the bank's 'Most Wanted' list!

The Daddy