Should you invest locally or away where properties are cheaper?

 

Investing locally VS remotely – the eternal debate.

 

Should you invest remotely where properties are cheaper and returns better, but you will need to travel there sometimes and you don’t know the area that well? Or should you invest locally where you know the area very well, can easily go to viewings to manage your portfolio, but properties can be expensive and returns much lower?

 

I have invested BOTH locally in London and remotely. Let me share the pros and cons of investing locally VS investing away:

 

	Pros	Cons
Investing Locally	-       You know the area and demand well -       Viewing, and travelling is easy -       You can be present and resolve problems quickly -       You can save the management cost by managing yourself.	-       Properties are expensive -       Need to raise larger capital for deposit -       Lower returns -       Larger sum tied in the deals and takes longer to recycle money -       Harder to find discounted properties in London
Investing Remotely	-       Cheaper property -       Higher returns -       Quicker to recycle money out -       Requires less deposit -       Less competitive than cities like London	-       Can’t know the local area as well as if you were there -       Takes time and money to travel there especially during the initial phase before your local team or system is in place -       Less capital appreciation -       Can’t be present during refurbishment

 

So how do you decide which option is more suitable for you?

 

Ultimately it depends on what kind of investor you are and what your end goal is. Both investing locally and away have worked for many successful investors.

 

If you don’t have much capital to start with and feel uncomfortable using hundreds of thousands of pounds on one property (all eggs in one basket) – starting from the North could be the way to go.

 

If you have the money and don’t want to travel, and are willing to wait for longer to find deals but get more cashflow per deal, investing locally in the south could work.

 

Are you still confused? If you need my help, book a free consultation with me HERE. And let’s work out a practical plan for you so you won’t delay your property investing dream even further.

 

So tell me – are you investing locally or remotely?

Emma xx

How Fast Will I Start Making Money In Property?

Let’s be honest. Most of us go into property investing to make money and preserve wealth. We are not getting into it ‘just to learn something’ to prove we are smart enough.

So one question I get asked all the time is ‘How Fast Will I Start Making Money?’

If you have spoken to me or read my articles, you will know that I’m honest and hate to beat around the bush.

But in this case I really can’t give you a straight forward answer because what results people get really do depend on who they are, what effort and money they put in.

Let me give you a few examples.

My best Rent to Rent student got her first deal in 2 weeks! But digging deeper, she has a sales background so naturally she secured more viewings over the phone and was able to build good rapport with the owner and negotiate the right terms.

And some people never got any results! Because they never even took the action to set up a Rent to Rent company! Or they never bothered visiting their potential investing areas for research!

So now you see what I mean – the timeline of someone else seeing the money isn’t going to be YOUR TIMELINE.

But let me give you an idea of what COULD BE a reasonable time frame to see results – if you follow the action points I give you to the letter.

Getting your first Rent to rent deal is completely doable in 3 months, as long as you put in consistent effort.

Finding your first high yielding Buy To Let property is achievable in 6 months.

Please don’t let this time frame frustrate you if you are slower than this. Remember – everyone’s circumstance is different. The key is that YOU ARE MAKING PROGRESS.

But if you feel that you are not making any progress after a while with consistent effort – it always means you have a BARRIER you need to break. Maybe your direction is wrong. Maybe there is a specific skill you need to improve on.

Find out what it is and crack it head on!

If you need any help, give me a shout at any time :)

Emma xx

* Want the step-by-step action points, tools and scripts, to build an extra £2000/month income through property within 6-12 months? – CLICK HERE to book a free strategy session with me.

The Most Important Skill in Property Investing

I talked about the controversy of using sourcing agents in my last email (when you should use one and when you shouldn’t use one). This leads well into today’s topic on the most important skill in property investing.

Sourcing the deal!

Many new investors for one reason and another, are trying everything they can to avoid learning how to source deals themselves.

I understand it’s scary – all those speaking to private vendors/landlords, testing marketing methods, etc. And we are all lazy – and sourcing the deals ourselves is not the easiest route.

I wish I could have people sending me great deals for free all day long. But it doesn’t work that way in reality.

The more experienced I got, the more I realise the importance of being able to source good deals.

When the deal is good, you will not be short of lending (mortgages and private investors), exit strategies, and profits.

If you know how to source good deals, you can not only build a portfolio of your own, but also pass the leads on to earn extra income.

So the best way to learn to source deals?

It’s hard to generalise so pick your strategy first. Then find a reliable, detailed course that has a heavy focus on finding the deals. The course should give you sufficient detailed instructions so that you can take actions immediately.

Then the rest is practice and feedback.

Test the different ways of marketing and negotiation, and find the most suitable ones specific to your investing area and demographic.


To your success!

Emma xx

* Want the step-by-step action points, tools and scripts, to build an extra £2000/month income through property within 6-12 months? – CLICK HERE to book a free strategy session.

Should I use sourcing agents to find property deals?

Many of my new students have asked me this question when they were frustrated by temporary lack of results.

‘Could I just use sourcing agents who will get me the deals and I just pay them a fee?’

My answer to them is always ‘NO’.

Why?

I’m not saying sourcing agents are no good. In fact, it can be a very efficient way of getting new deals. However, my point is that not every investor should be going down this route.

New and inexperienced property investors should learn to analyse deals first or even better they should learn to source deals first before considering using sourcing agents.

There are many sourcing agents out there. Every one of them will claim that they can get you great deals (high return, low risk, heavy discount etc.) Unfortunately some of these deals aren’t what they are claimed to be. Having the ability to tell if the deal is a genuine good deal or just dressed up to be one is crucial.

So when should you use a sourcing agent?

-     You are very clear about your selection criteria and you are only going to pick those that meet your criteria. (For example, you want 3 bedroom terraced houses in xx postcode. You know what the market price is at a standard condition.)

-     You are able to source your own properties (or you have successfully done it yourself before) but you are currently too busy to be doing it yourself.
 

-     The process of taking on the deal is fairly standard and due diligence easily done. For example, a below market value property for sale through a sourcing agent in an area that you know very well could be a valid deal (your solicitor will do the conveyancing for you).
 

And when you shouldn’t use a sourcing agent?

-     You just want certain ‘end goals’ such as return over 8%, 20% market value discount, £2000/month cash flow etc. But you don’t have a clear idea of the type of property you want. In this case, you are more likely to be ‘Sold’ a deal that seem good but with many hidden caveats and small prints.
 

-     Where the terms negotiated form a large part of the deal – such as Rent to rent deals in general. Strategies like Rent to Rent can be highly dependent on the agreement and structure of the deal - unlike Buy to let where the purchasing process and conditions are a bit more standard. The difference between a good and a bad Rent to rent deal is sometimes purely the negotiated terms (and not just the numbers). So a sourced deal with pre-negotiated terms can quite often not meet all your criteria.

I hope that clarifies whether you should use a sourcing agent.

Till next time.
Emma xx

* Want the step-by-step action points, tools and scripts, to build an extra £2000/month income through property within 6-12 months? – CLICK HERE to book a free strategy session with me.

BTL, R2R, HMO, SA - Which property strategy should you choose?

 

Time flies – the first month of 2021 has passed by very quickly.

If you haven’t given up your new year’s resolution of starting property investing this year – I want to congratulate you!

So which strategy have you decided to focus on?

In my last week’s Live Q&A session – I got asked one question, which was very close to my heart 7 years ago, when I first started the property journey.

 

-               -      ‘Which strategy is best for me? BTL, R2R, HMO, SA…?’

 

So maybe you have just figured out what these acronyms mean, and you are starting to wonder which one you should actually pick. Because we all have a busy life and we can’t do everything.

I’m lucky enough to have done all these strategies myself and here’s my honest opinion.

BTL

Buy to let is the most fundamental (and effective) property investing strategy out there. It’s great for people who are new to property and haven’t had much experience. It’s best for those with some money and wanting a good return from their money. Easiest to start with.

R2R

Rent to rent is a strategy that requires a little bit more effort than BTL in terms of managing the property (but with under 5 properties this is negligible). This strategy doesn’t require much money invested. 3-5k is all you need to get started. If you have the skill to negotiate free rent period, you potentially don’t even need that 3-5k. So R2R is great for those who are committed to using property to generate an extra income stream, but don’t have much funds or don’t want to use own funds.

HMO

HMO can generate very good returns and cash flow. But it requires a bit more skills and experience, on managing properties, complying with regulations, and even potentially doing small development work to add value. More risk and capital involved. May not be the easiest strategy for someone completely new to property.

SA

Serviced accommodation is a great strategy for short stay travellers for fun or business. It’s not the best timing for this strategy before the world travelling gets back to pre-COVID level.

 

In summary, these strategies are all great cash flow strategies except that SA is difficult to implement due to COVID. If you are less experienced but have savings, BTL is easy to start with. If you are less experienced but no savings, R2R is the best strategy for you. If you are a bit more skilled, HMO can get you higher returns.

Ultimately it’s up to yourself which strategy you choose. Pick one close to your heart and gut. Also remember that investing in property does require some resources from you – whether it’s your time, money, effort, or skills. Decide on which resource you have and are willing to put in.

 

Keep up with your new year’s resolution!

Emma xx

* Want the step-by-step action points, tools and scripts, to build an extra £2000/month income through property within 6-12 months? – CLICK HERE to book a free strategy session with me.

What You Focus On During The Early Stage of Your Property Business Could Make or Break Your Success

 I notice a common reaction from my new students.

 

They are all super excited about building up a brand – a professionally designed logo, a fancy website, and shiny name cards.

 

They are clearly motivated and eager to start – ONLY THAT these are not the activities you should be focusing on at the start of your property business.

 

Why? These activities don’t directly get you closer to your first deal.

 

I’m not saying a good brand won’t be helpful at all – I’m saying that for many strategies (especially cash flow strategies) – a good brand can come AFTER YOUR FIRST DEAL.

 

If you spend too much time and effort on activities such as websites, name cards, logos etc., you fool yourself into believing that you have been working hard at your business. But in reality some people have not made a single phone call yet to arrange a potential viewing!

 

Remember that viewings turn into offers and deals; Phone calls turn into viewings. And you don’t need websites, logos, name cards to do any of these.

 

The very point I want to make is that you should have a clear idea of WHAT ACTIVITIES you should be focusing on during the early stage of your property business. Choosing the right activities to focus on will preserve your energy, expose you to the essential elements of your business earlier, and get you closer to your first deal earlier.

 

And the more quickly you can get your first deal, the more encouragement and motivation you will get in return, the less likely you will stop doing this business altogether.

 

For example for a Rent To Rent business, you do need to come up with a professional and relevant name for your company, set it up on Companies house, and get the related insurance etc. But other than these, you should go straight into shortlisting properties, making phone calls, and booking viewings.

 

Now I specifically tell my students to NOT build their website, logo, or name cards until they have got their first deal!

6 crucial questions to ask yourself when planning for your property investing in 2021

This is the first month of 2021 – I bet you are as motivated and ready as I am to start the year on a strong beat!

You have probably made your annual plan at work – which seems common sense.

But are you surprised to hear that the majority of people don’t make any annual plan for their personal life? And out of the people who do make an annual plan, few actually stick to it and make it happen?

This is a real shame. It’s a shame that people are at least making some sort of effort to get somewhere at work, but most don’t even bother spending a few hours on planning for their personal life, which ironically they claim is way more important than work.

So now you know the importance of making an annual plan. Let’s get down to the important bits – I want to talk about the 6 crucial questions you should ask yourself while planning for your property investing for 2021 so that you could actually make things happen!


If you give these points a serious thought and come up with a clear answer – you stand a much higher chance of achieving your goals this year.
 

1. What is it that you want out of property?

Do you want to build up a passive income stream so you can leave your day job or simply supplement your current income? Do you simply want better return and leverage for your money? Do you want to build up a portfolio as your pension?
 

2. Cash flow or Capital strategies?

Your answer to the last question will determine what strategies would be the best for you. Cash flow strategies give you recurrent income every single month, so is always a good foundation to have when you start investing in property. And the risks are lower, so better for beginners. Capital strategies give you a lump sum after a period of no income. You may need more experience, knowledge, and a larger risk appetite for capital strategies.

3. What resources do you have?

You should know what you have and what you are good at. Do you have money, or time, or both, or neither? Are you analytical, or people oriented?

4. What is your first milestone/goal?

Set a realistic first goal. Say £1k/month extra income, or £2k/month income, in 6-12 months.

5. Are you really ready and serious about it?

Everyone says yes when I ask them this question. But few mean it. Be honest with yourself. If you are going to invest in property, are you ready to do it for the next 10-20 years? This is a BIG project in life, not just another thing you give a try.

6. What do you still need in order to take your first action point?

Is it knowledge? (Then go find a good course and a good mentor.) Is it money? (Money is hardly ever the real problem. There are many strategies that don’t require initial funds.) Is it getting over the fear? (Every successful investor was once very afraid. If you have everything else, then go for it.) Is it simply a push? (Give me your number and I promise to call you to give you that push you need.)


Let’s not just make another New Year’s resolution. Let’s make a commitment!


Good luck!
Emma xx

* Want the step-by-step action points, tools and scripts, to build an extra £2000/month income through property within 6-12 months? – CLICK HERE to book a free strategy session with me.

Should you use a mortgage broker that doesn’t charge you?

 

Last week we talked about whether you shouldn’t go to high street banks for mortgages, which is a mistake easily made by many first time buyers or new investors.

 

I learned my lessons by paying a high monthly mortgage, as well as suffering from a drop in my credit score. To revisit the original article, click here.

 

And the solution to that problem is to find a mortgage broker.

 

And if you google ‘mortgage broker’, there will be literally hundreds of them coming up in search results. Add the ones, you see across an estate agent window, or heard from a friend….

 

And there is one type that claims that ‘their services don’t cost you anything’. And they tell you that they get their fee from the loan providers not you.

 

Sounds good right?

 

But my experience has told me that the mortgage brokers that charge you tend to provide a better service. Here’re two main reasons why.

 

1.     The brokers that don’t charge you don’t have access to the full market. So chances are you won’t find the best deal.

 

2.     The brokers that don’t charge you don’t have YOUR BEST INTEREST in mind. Their best interest is to find whichever product that gives them the highest commission, not the product that gives you the best rates and loan to value.

 

The mortgage broker fee is typically less than £500, but a good mortgage product could save you thousands of pounds and more.

 

It’s easy to see which is the better option ;p

 

Good luck!

Emma

 

* Want the step-by-step action points, tools and scripts, to build an extra £2000/month income through property within 6-12 months? – CLICK HERE to book a free strategy session.

Why you shouldn’t go to your high street bank for mortgages

 Are you looking to buy your dream home, or your high return investment property before the Stamp duty relief deadline of 31 March 2021?

 

If you are, you are probably looking for the right mortgage for yourself.

 

When I was buying my first property, I went to my local bank which I had been using their current account for 10 years. I also went to the bank next door, and the nearest bank to my office. So I could get a comparison.

 

That sounded reasonable right? – When you are shopping for an important thing, you go around a few shops you trust and compare the prices.

 

How wrong was I! It not only cost me more money every month and it ended up costing my credit score too!

 

Unfortunately that’s what a lot of first time buyers, or new property investors do when they are looking for a mortgage.

 

There are two main reasons why you shouldn’t go to your high street/ most familiar bank for mortgage.

 

1.     You won’t find the best product.

 

There are many mortgage products out there, provided high street banks, special lenders, private finance, etc. You can’t find the best product by just asking for a couple of quotes. And the interest rate could make a big difference sometimes. For example, if you are borrowing 100k at 2.5%, your annual interest is £2500. Whereas if you are borrowing 100k at 3.5%, your annual interest is £3500. That’s £1000 a year, and £30,000 over a 30 year mortgage. And it’s not just the interest rate that can make a difference. How much deposit you need to put down, and other factors can all make one product better or worse than another.

 

2.     It can hurt your credit score, which affect what mortgage you can get

 

By going to different lenders and getting multiple agreement in principles to ‘compare the market’, you can leave too many searches on your credit report. Each time you get an ‘agreement in principle’, you get searched by the underwriter. And when you are searched too frequently over a short period of time, which can affect your credit score. If you don’t have a good credit score, you won’t get good rates so you have to pay more (or not be able to get any mortgage at all). So this is serious business.

 

So what should you do instead?

 

The best way to get the most suitable mortgage for yourself is to find a reliable and capable mortgage broker, who ideally has access to the whole market.

 

They can suggest potential products to you based on your situation, before doing an actual search on you. So you should hopefully get one ‘agreement in principle’ and seal the deal!

 

Stay tuned and we’ll talk a bit more on finding your mortgage broker next week :)

 

Stay warm and safe,

Emma xx

 

* Want the step-by-step action points, tools and scripts, to build an extra £2000/month income through property within 6-12 months? – CLICK HERE to book a free strategy session with me.

2021 is for Cash Flow Strategies!

 2020 has been a really tough year for a lot of people.

Many people lost their jobs, lost businesses, and lost income.

We all hope that 2021 will be better – but do we know for sure?

Covid crisis is still continuing. We are in recession and even more people will lose their jobs and income.

 

Building up an extra income stream is now emergency, rather than contingency.

 

In property investing, one way of categorising various strategies is Cash flow vs Capital strategies.

I have written a blog post on this before. If you want to reread this article, you can find it here.

What I want to say today is that – if you are new to property investing, it might be a good idea to start with Cash Flow Strategies in 2021 as oppose to Capital Strategies.

 

Financial security

-        Having an extra income stream will give you more financial security in times of crisis, for every property investor, new or experienced. However if you have limited experience, having sufficient cash flow coming in every month gives you a solid foundation. On that, you can incorporate capital strategies to give ‘boost’ of income.

Uncertain times and market

-        There is a lot of uncertainty in the property prices in 2021 due to Covid, Brexit after effect, and recession. Capital strategies typically involve some sort of value addition, which typically takes time. And time creates more uncertainty in uncertain times. If property prices start to fall, and you are caught in the middle of a value addition (development) project, the longer you wait the more the end valuation will decrease, and the less your profit margin.

Experience and risk

-        Most people are scared of making investment decisions. And you should be cautious to protect yourself. As a new property investor, there is a lot that you don’t know that you don’t know. So it makes sense to start with simpler more established strategies. These strategies tend to be more cash flow focused, such as But to let, Rent to rent, etc. Even more advanced cash flow strategies such as HMO and Lease Options, can be easier than really advanced capital strategies, with much less risk involved.

 

I hope that helps!

Emma

 

* Want the step-by-step action points, tools and scripts, to build an extra £2000/month income through property within 6-12 months? – CLICK HERE to book a free strategy session.