I went to a property event this week where people bothered to turn up. It was at the Jury’s Inn Hotel, in Middlesrough and was a ‘Legacy Education’ seminar. The event was 2-hours long and was held by Robert Tuck (a property investor from London).
It was a free event and I was aloud to bring along a guest. I rocked up with Mr Hardy who is a friend from work (rare to be honest as most people at work are colleagues). Mr Hardy has been reading some of the self-development books I have and like me, is open minded and not overly happy with what he is getting out of work.
To be honest the e-mail’s I had received about the event illustrated Robert Kiyosaki with a picture of his book so I was expecting to meet Mr Kiyosaki. Just a case of me (again) not doing my research. This wasn’t an issue as Mr Tuck was like a stand-up comedian and we got a lot out of the seminar.
Although I have been a landlord for around 17 years, I have been clueless and this has been highlighted this year after reading several books on property. This realization was compounded last night as I learned some more useful information.
From earning £6.14 an hour at his local golf course in 2010, Mr Tuck is now a full-time property investor and is now able to play on golf courses all over the world. This was all from an interest in self-development and reading a copy of ‘Rich Dad Poor Dad’ (Robert Kiyosaki). It is from self-education not the education system that this Cockney Geezer has achieved his financial freedom (passive income exceeds personal expenses).
Old way: school, college, University, Job, House, Pension, retire. Or as Mr Tuck said, “work 40 hours per week, for 40 years of your life, then retire and get 40% of your income.” Personally, if I am out of work for 3 months or more, I am fucked.
New way: self-education, books, podcasts, youtube, seminars, strategy, action, multiple streams of income. This way if I lose my primary source of income (my job) I am not fucked.
Let us look at how many people as a percentage own 1 or more properties in the UK:
- 1-3 properties – 91%
- 4-5 properties – 6% (Me)
- 6-10 properties – 2%
- 10+ properties – 1%
Mr Tuck then talked about what the 1% (of property investors) do. They don’t even use their own money. They use other people’s money. They focus on a strategy. They get very good at one strategy (e.g. Buy-to-let) and then move on to another strategy.
Some of the strategies he briefly talked about:
- Joint venture partners
- Angel investors
- Equity release from the house you live in
- Bridging loans
- Credit card
- Buy to sell – flips
- Houses of multiple occupancy (HMOs)
There were more strategies and he gave us some case studies of his properties that he bought using these strategies. I am currently doing strategy 3) as I look to buy my 5th rental.
The 1% ers do their research (something I can improve on) and invest in the right area. They get BMV (Below Market Value) discount when buying. They have a strong power team in that area (Accountant, Solicitor, Financial advisor, Estate agents, Builders etc). This power team means the houses work for them and not the other way around. If for example there is renovation work to be done, they delegate it.
The 2 hours flew in and I was happy I decided to get myself to my first ever seminar. The only part I wasn’t overly comfortable with was when I had to find someone I didn’t know and introduce myself and tell them why I was at the seminar. This is just because I am a shy person. But fuck it, even if I go bright red and come across as awkward, I’m up for anything as I attempt to get my own financial freedom.
I come away with some useful knowledge and am very motivated to know more. I am now very excited to get to my next seminar in London. This is a Property Investors Crash Course over 2 days with Samuel Leeds at the end of October.
My current strategy is Buy one rental per year (Buy-to-let). I am open-minded though and I have a feeling that with a bit more knowledge, I will be able to buy more properties per year through my new property business ‘DUFF PROPERTIES LTD’.