Currently sat in my hotel room in London ready for day 2 of a 2-day property crash course with Samuel Leeds. This will be discussed in detail next week.
This week’s topic is going to be around my 4th rental that was purchased at the end of February 2019. My strategy was to buy it BMV (Below Market Value) and then recycle the deposit money or at least some of it.
My Financial advisor (FA) has been dealing with the application to re-mortgage the property and because of the Mortgage company it has been a painful process that has been going on the best part of 8 weeks. I know it’s the mortgage company because I am already dealing with them in trying to get additional borrowing out of my family home.
If successful, I will pull £28,500 out of the family home and if I can get my deposit money out of rental no. 4 (£22,500), I will have approximately £50,000 to secure rental no.5 and possibly rental no.6. More on how I will spend the money next week after I have learned about different property strategies.
The likelihood is that I will resist the sales pitch of getting me to pay £10,000 for 12 months training. If this happens, I will probably end up sticking to the current plan of buying at least one rental per year.
Thankfully, the remortgage is finally progressing in the right direction and the valuation was carried out early last week. The house was purchased for £90,000 so my deposit was £22,500 (25%). To get that money back I would need the valuation to be around £120,000.
Due to the refurbishment work that was carried out in March and April, I was quietly confident of pulling most of my initial deposit money back out.
2 days after the valuation was carried out my FA informed me that the valuation was £122,500. This would allow £25,000 to be pulled put as the new mortgage would be £92,500.
Although I have made mistake after mistake with investments in the past, I feel this is a little turning point.
I know the general theme of this blog to date has been financial mistakes, but my hope is that I will learn from my mistakes (finally) and start heading in the right direction. What I can guarantee is honesty and I will let you know everything I am doing when it comes to money.
The main thing is to raise your awareness. If I make a mistake learn from it. I something goes right then also learn from it.