crash course was due to start on Thursday the 24th of October and I
arrived in London on Wednesday evening. I arrived late on and crashed in my
digs at around 2230.
B+B was a shit hole and not the 4* that I was expecting. But I wasn’t here for
luxuries I was here to learn and determine what my next move in property was.
woke up on Thursday feeling a bit shitty as a little bit of man flu was
starting to kick in. According to the website, day 1 was from 0900 to 2300 so
this 1st day was going to be long. Day 2 was a little less and was
due to finish by 1700.
things first we were straight into mindset.
you do anything is how you do everything.”
is stronger than willpower.”
formulas not feelings.”
definition of greed is having a gift and not sharing it.”
nothing control everything.”
I hadn’t heard before from the books I had read and the videos I had watched.
The bonus this time on this day was that I got to jump around, clap, dance and
high five with 600 strangers. Not to mention go around and meet total strangers
and discuss our backgrounds in property. Not my cup of tea at all.
of the reason I was here was to get outside of my comfort zone and I was 100%
outside of my little comfort zone. I was also hoping for a big kick up the ass
and that these 2 days would give me that kick and help me to push on in
property. One way or the other, I would know what direction I would be going
I was now aware of all the calculations needed when buying properties, I was
happy to go over them again. We basically focused on ROI (Return on investment)
as this is the most important calculation as it looks at the total money you
invest into a property.
2 figures you need for this calculation are total investment and yearly profit.
Total investment is your deposit (normally 25%) + Tax and legal (normally 4% of
purchase price). Profit pcm is rent – (Mortgage + Management + Maintenance).
Profit per year is profit pcm x 12. Let’s look at an example to illustrate:
- Total investment = 50k + 8k (deposit + 4% for tax and legal)
- Rent = £800pcm
- Mortgage = 3% of £150k =
£4500 for year, therefore 4500/12= £375pcm
- Mortgage + Management +
Maintenance = 375 + 80 + 80 = £535
- Therefore profit = 800 –
535 = £265pcm
- Profit for the year = 265 x 12 = £3180
- ROI = 3180 / 58,000 = 0.054 X 100 = 5.4% ROI
isn’t a brilliant ROI, but it is still better than the less than 1% you would
be getting in high street bank.
we started to work in teams in the afternoon, I enjoyed it. The aim of the game
was to use the calculations we had learned and find a suitable property with a
high ROI and the course hosts were saying 20% were achievable figures. We were
to work in teams of 3 and go on rightmove, do our due diligence and find a
property at or around 20% ROI.
diligence was getting rammed down our throats and was worthwhile to be honest
as it enables you to de-risk when purchasing a house. Basically, are you
getting the house for a reasonable price and what is the realistic rent that
can be achieved.
were told that the first thing we needed to know was the full address including
the postcode. There are a few sneaky ways of getting this and looking for the
house number from the pictures is one of them. Another is to compare broadband
for the property you are looking at and it will give you the post code – very
at the value of the property on Mouseprice.com (I can only do this with the
property’s post code) and this will give you an accurate value based on
properties currently for sale and properties sold on same street or similar.
You can also go on rightmove and see what’s selling on same street or similar
properties within ¼ of a mile. Then carry out same search but select sold and
see what similar houses have been selling for. This was useful for me and I
will use these techniques for rental no.5.
enable me to get an accurate ROI calculation, I also needed to know the rent on
any prospective property, and we were taught a few techniques to do so.
you call the estate agent, explain that you are an investor and one of your
questions would be to ask for the achievable rent. At this stage, we were only
looking at traditional buy-to-let’s. We now have a good idea of the rent we can
expect to receive.
we were told to go on rightmove and look for what is up for rent within ¼ of a
mile and focus on similar properties. Finally, look at what has already been
rented in this area. Again, look for a similar size property close to the
address. For this search, look at openrent.co.uk and you should have a very
accurate rental figure.
us look at what our team managed to find using our new skills (due diligence
and ROI calculations):
Bed terraced house in Oldham – £64,950
- We found the exact post
code and were able to clarify that it was worth around 62k and the rent would
- Total investment = £15.5k
(25% of 62k) + 2.5k (tax and legal) = £18k
- Profit pcm = £450 –
(Mortgage + Management + Maintenance) = 450 – 206 = £244, Therefore profit per
year = 244 x 12 = £2928
- ROI = £2928 (Yearly
profit) / £18,000 (Total investment) = 16%
this point I have added to my buy-to-let knowledge, but I am mainly at this mad
crash course (full of lunatics jumping up and down and high fiving each other)
to learn creative strategies and determine whether they are for me or not. For
me this is the point when the course goes South.
sole purpose of the rest of the course is to (aggressively) sell the 600 strong
crowd on the £18,000 (+VAT) advanced training. Wait, no, they go over all the
benefits of the training (we will all become financially free etc etc), then at
the end of the pitch they hit us with a big discount of £6,000. So, if we go to
the back of the room (NOW!) we can get the training for an absolute bargain of
£12,000. Thanks, but no thanks. That is almost half of the deposit for rental
only that, they have their successful students trying to sell us additional
courses. As soon as they started aggressively selling the training courses my
inner skeptic (rightly or wrongly) kicked right in. Then they had their
multi-multi-multi-multi millionaire guest speaker back on stage for more
jumping around, high fiving and talking about mindset / brain washing (the 600 strong
crowd into paying for the training). Fuck me, what even is a
multi-multi-multi-multi millionaire ????
goes on until 1930 then we have an hour break for food. That’s when my night
really goes South. I find a local pub as I can’t face anymore property talk
with loads of strangers (I know my dark cloud is starting to kick in, but I was
tired and had severe man flu).
order a burger and pint and start watching the Europa league game. The game was
ok and I’m able to switch off for a while. My burger comes and I devour it as
it’s been hours without food. Towards the end of the burger I realise it is
bloody and barely cooked. I don’t even complain. Not only that, the greed kicks
in and I even finish it – bad move!
2030 I am back in the conference room for the final push of the day. It is hard
work staying focused for the last few hours, but I stay until the end. Despite
feeling a bit shitty and being irritated by the aggressive sales pitch, I have
mainly enjoyed day 1. Hard graft because of the amount to take in but I feel it
has been worthwhile.
after 2300 I am back in the digs and straight on the toilet as I am not feeling
too clever. I manage to fall asleep, but I am back up at 0200 tossing and
turning and feeling horrendous. By 0300 I am throwing the burger up and it is
coming out of my nose and mouth. This lasts about half an hour.
plan is to get up and get home as I don’t want to be spewing in front of 600
0700 I have had few hours sleep and my stomach as settled so I’m going in for
day 2. I might have severe man flu,
but I need to man up.
2 is all about no money down deals. I find it interesting and the way they use
rightmove and various other sites is impressive.
touch on the best areas to invest in. They go into rent to rent, HMO’s, lease
option agreement’s and serviced accommodation. They even contact a landlord and
start the process of securing a deal. The deal is an apartment in Northern
Ireland and my inner sceptic thinks it’s just for show and that the deal won’t
are were you rent out each room and this is normally around £400pcm. This is
lucrative and you can get up to £1600pcm in rent for the 4 rooms (£800 profit
after all costs are considered). Lease option agreement is basically where you
rent a property from a landlord for a long period (3-5 years normally) and have
the option of purchase at the end of the agreement.
accommodation is like a mini hotel where you rent your apartment or rooms out
per night. It is all meant to be automated through certain sites and you
arrange regular cleaners. My inner sceptic can’t see how this strategy is
automated and thinks it would be very hands on. Although I am not quite ready
for this strategy, it is something I may re-visit further down the line. This
sounds lucrative but the whole renting an apartment to rent out as serviced
accommodation is screaming complications (with leases and mortgage companies).
type of no deal down requires compliance to ensure it is legal. Let us look at
the example below to demonstrate R2R (rent to rent) which is a popular no money
R2R Case study
- Search for 2
bed-apartment in popular city like York
- The idea is to offer the
landlord 3-5 years guaranteed rent
- If it is up for £900 pcm
you offer them £800 pcm and in theory, they are happy because they are getting
guaranteed rent for a long period – the inner sceptic is not convinced
- Once you have secured the
deal (this is subject to having all the correct legal documentation in-place)
you then rent it out as serviced accommodation and make up to £3000 pcm in
profit after all costs – the inner sceptic is not convinced
- The plan is to get to the
viewing, build rapport with the landlord, then explain about exactly what your
plans are regarding serviced accommodation
- They even go through what
to say to the landlord in the initial conversation, “I’m not going to be
renting it out myself, it will be a corporate let… I can do Friday or Saturday
when is best for you? This alternative close (averting attention away from the
fact your not renting it out) is a sneaky way of getting to the viewing and
fully explaining the serviced accommodation plans
what I am getting taught, the no money down (HMO, Serviced accommodation etc)
strategies don’t really appeal to me at this stage. I can only see issues and
complications with mortgage companies and other key stakeholders (e.g. the
leaseholder of a block of apartments would need to sign off on your serviced
for it, there is another sales pitch coming. To get fully trained up on HMO’s I
can enroll onto the HMO bootcamp for £2995 + VAT. Not only that, I can get
myself on the Serviced Accommodation University for the fuck all price of £3995
+VAT. I haven’t got it written down, but another course thrown in is the
legalities (as they call it) including all the templates and agreements for the
no money down deals. I would like to have a little look at this out of
interest, but it is another £2,000 I haven’t got.
is a grand total of £10,388 for 3 days of training. But wait. If you go to the
back of the room (Now!) you can get all that training for just £2,000. Again, I
am going to resist as my inner sceptic is warning me against these courses. Not
only that but they are getting aggressive with the sales pitch now and it is
getting right on my tits. It is time to vacate.
1330 there is a break for lunch, and this is my time to exit the building. I
leave and make my way to the train station.
back on the 2-day seminar / property crash course, I am glad I went. Doing a
seminar had been on my radar for a while and I had finally been to one. I did
learn a lot of useful information that will help me going forward with
property. I now know that my current strategy of buying one house per year is
what suits me for the time being.
I met some nice people on the course, I didn’t meet any contacts who I will
stay in contact with and that was part of the reason I went. It might have been
the man flu, it might have been the fact the course was relentless – I just
couldn’t bring myself to mingle at the intervals. I needed a break from the
property talk if anything.
I will do is continue to learn about property. If I see a book that looks up my
street, I will read it and I will continue to read property blogs, so I am up
to date with the UK property market.
PIN (Property Investors Network) meetings also interest me. There are a few
local to me in Middlesbrough and Darlington and this will be ideal in
comparison to getting to London. I think I could manage once a month, and this
will only add to my property knowledge.
2-day course didn’t quite turn out as I’d hoped. I was hoping that the creative
strategies would inspire me to reach my FI (Financial Independence) early and
would really push me on. Shit happens and I will push on with my
self-development. If anything, it has given me some clarity and helped me to
fully realise what works for me with property.