I can see how this can add up quickly. People interested in doing this should also keep in mind it’s not always smooth going. You had sick builders in the beginning if I recall that caused delays, then their was the planning commission delays, and let’s not forget the squatter. You have to be very determined and persistent for this kind of thing and I thank you for sharing all of it, warts and all.
Wow!! When you were going through the break down it was maddening 😳🙀. I would have been like Ok you sort that out and I will just sit over here until it's time to decorate 😁
Congratulations. To keep more money, why not start your own property management company. Manage your own, plus other people's property for a fee as well. Additional "side" income from real estate. Buy, renovate, refinance and repeat. (BRRR). Great job guys. Wedding happening soon.
Hey Doug, I did think about that but I’m all honesty, question for myself is do I really want the additional headache all the time when things go wrong. My goal is to have time freedom so it doesn’t really align. However never say never. Thanks for watching, AK
Thanks for the expense/profit breakdown at the end. You're really making a business out of this, as you pointed out a single property won't provide a proper income while there's still a mortgage.
I'm so excited for you guys, It only gets better. We usually keep around 22 properties and they rent for around $2,000 a piece. We try to buy one or two a year and flip one or two a year. Financial freedom is lovely.
That sounds amazing. I’m hoping to get multiple rental properties in the future. Any tips for a complete beginner who’s looking to get into property investing
More of these vids would be fab. Perhaps one more recent showing the impact this economic mess we’re in has had. Would love to do something like this - where did you guys receive the training etc?
Hi Louise, thank you for the feedback! Yes to those video ideas, we shall try to film those. The company we received mentoring from is no longer around, unfortunately. If you did want to explore any 1-1 mentorship please feel free to check out the link in the description or drop us an email! ak@propertycouple.co.uk
How about something on the upcoming EPC regulation changes for landlords? I work in commercial property but am aware of that coming in for private resi
Hiya A.K and Lia, I enjoyed the way you showed us how to break things down when buying a House Of Multiple Occupancy, I think you would have to be self employed to start a venture like this, hopefully you won't get anymore skip rats, GET YOUR HOUSES FULL AS SOON AS POSSIBLE ON COMPLETION, this is Choppy in Whitehaven, Cumbria, England
The key thing to remember when defining hard assets (property in particular) is that what defines it is a LIMITED supply, we cannot create more natural gold on this earth, we cannot create more space on this earth, we cannot add more time to our lives. The assets are limited, and thus their value is FIXED. Investing into hard assets is low risk, but also low reward in the short-term. The most successful players in the fixed assets game will have a detailed long-term plan of where and when they want to be throughout the span of their investment timeframe. When it comes to hard assets, patience is the greatest virtue, and if you are patient, you will often reap the greatest rewards.
It’s not as simple as that. You can’t work out tax based on one single property across a portfolio. You also haven’t taken into account the money pulled out at refinance. It’s closer to 4 years to break even.
Very interesting. I’m surprised how inexpensive the entire project ie. Purchase, renovations and monthly cost. We have quotes for a kitchen and one bath renovation here in Florida over $40,000! You have done so well! Great job guys!!!!! ~Cara 😊
I watch a show from the UK called "Can't Pay, We'll Take it Away.". There's been a number of times where renters done so much damage to the property and the evictions there is crazy and so expensive and a very long process and I feel horrible for the owners because they didn't do anything wrong. Then when you guys had the squatters, I couldn't help but think about that show. It's an older show. It's on UA-cam. That's how I watched it
Just wondering, do you run IRR calculations on your properties? Recognize you re-value and refi and thus secure additional financing for the next property (which allows you to grow and cash flow more while also increasing your leverage). I am generally wondering how the actual return on rental properties compares to a government bond or S&P500 index, both completely passive investments with effectively 0 risk/effort
We always run a ROI calculation on anything we look at. This obviously depends on a few factors (eg what we secure the property at, what we refinance at and what net rent we achieve). In terms of comparison vs bonds / S&P500, personally I think it's always good to have different eggs in different baskets, for want of a better word. I feel with property, it can be very hands on at times, and this puts people off. Hence why our investors invest in the business and we do all the work.
Tgank you for the vid. So, what about the principal? Or you just want to pay interest only all the time? Would be great if you could explain that part a bit more❤
I’m in St Helens, next to Liverpool and Im very committed to do the same thing you guys did in this video, BUT… HMO is not a popular concept around here, but there is a nice hospital next to me so, the area where you did in the video, was it not popular to HMOs too?
Just wondering, have you ever considered investing in a small block of flats, or as they are referred in the U.S., an apartment complex or building? Where I live (Detroit Michigan area) are 4-plexes and small 6-8 unit apartment buildings that my friend found as sound investments.
I don't yet own a buy to let. I flipped my first property in Scotland last year and will probably keep doing that at the moment. Just a few questions and I don't mean them to be negative, just curious. The re-evaluation at less than what you spent is something i find difficult to understand. Why buy a huge asset that isn't at least worth a minimum of 20% over the total cost? Also, at £750pm net profit ( i assume its net after LL insurance etc)is what we get in Scotland on a 2 bed flat that costs £65k+ and we have no ground fees or leasehold here. You could have bought 2 flats bringing in £1500pm+ without all the monthly utility bills etc but granted, probably with less capital appreciation unless this is what you're counting on as a main part of your strategy? Great video and loved the numbers :)
Hi there, exciting that you flipped your first property! In terms of the revaluation. Usually you are aiming for it to be more than the cost of the property. But, its not always more than what you spent as you said. No one is in control of the back end valuation and all you can do is do your research as best you can. In terms of the numbers you mention in Scotland, we picked an area that worked for us in both location and return on time invested. Thanks for watching :)
Amazing video, just subbed. Can you tell me what sort of interest rate is typical to pay to your private investors? I can't find this information anywhere. Thanks in advance!
Wow! What level of training did you have before starting off on your property journey. I know you've mentioned a course that you did, but did you two have a mentor or anything? Did you do this part time along side your other jobs?? Keep it up!
We did multiple courses in specific strategies and we did have a coach and a mentor. AK was doing this at the same time as his 9-5 job which is why we needed to be very intentional with our week and how we planned it.
Hi Jay. We are considering opening up more into the details, as we are finding more people seem to find this valuable. We are going to discuss and rethink some content in the coming months.
We have paid more than £6k on our latest one David. These are usually off market deals secured by sourcing agents that take a fee. As long as you understand the numbers and it works, we see no issue with it.
@@PropertyCouple I'm not criticising you just not something I would consider. Could you do a video on sourcing property using your method as opposed to RightMove (apologies if you have already done such a video only subscribed today)
Well done for being open, you seem a nice couple. This does illustrate why the current mortgage crisis screws this buy to let model and unfortunately the buck often stops with the renters. 3.59% mortgage is doable - 6+% the landlords start to cry foul and ‘we can’t afford this’ - despite the fact that many have been taking large monthly profits for the last decade and own the property. It’s great until things go wrong, exacerbated by a govt that doesn’t give a toss about the poor person at the bottom of the chain… the renter. As I say, appreciate your honesty and well presented video. Caveat emptor! And the government should be doing so much more to tackle the housing crisis! 300,000 new homes commitment has been watered down massively. They haven’t given a toss about those needed a roof, now I suspect, they are also not giving much of a toss about those small, independent landlords.
Thanks, appreciate it. Current interest rates definitely has made it very difficult with the traditional BTL model I agree. Ultimately there will always be demand for rentals, either through situation and or by choice. They estimate in the next 5 years over 250k landlords will exit their BTL properties. Which when you think of it is not ideal because it reduces rental stock, and for people who need to rent could be an issue. The EPC regs coming in will also hammer landlords forcing many to sell leaving big funds and corporate companies to buy up stock. Thanks, AK
Very interesting - You two are real go-getters! I'm amazed at how much you've accomplished and at how knowledgeable you both are.
Aww thanks Beth! means a lot. Hope you are really well. Sending you love!
A+ video. Following you from the beginning of your investment journey.
Thanks so much!
The transformation is phenomenal and looks like you paid so much more! Beautiful job you two!
Thanks so much! 😊
I can see how this can add up quickly. People interested in doing this should also keep in mind it’s not always smooth going. You had sick builders in the beginning if I recall that caused delays, then their was the planning commission delays, and let’s not forget the squatter. You have to be very determined and persistent for this kind of thing and I thank you for sharing all of it, warts and all.
Yes well remembered Rod and we agree. It’s becoming less and less appealing for people now I feel.
Wow!! When you were going through the break down it was maddening 😳🙀. I would have been like Ok you sort that out and I will just sit over here until it's time to decorate 😁
Haha it’s harder work than people thing Karen
Great video!! Very helpful, would love to see more! 😊 thank you!
Love these videos breaking it down guys!
Which area?
Congratulations. To keep more money, why not start your own property management company. Manage your own, plus other people's property for a fee as well. Additional "side" income from real estate. Buy, renovate, refinance and repeat. (BRRR). Great job guys. Wedding happening soon.
Hey Doug, I did think about that but I’m all honesty, question for myself is do I really want the additional headache all the time when things go wrong. My goal is to have time freedom so it doesn’t really align. However never say never. Thanks for watching, AK
Love what you created and yes please,,,,many more videos with numbers. That is helpful and interesting.
Great job Ach and Lia, really important financial information and really interesting. Thank you for sharing, please continue.
Excellent video! Thanks for sharing the numbers it is very useful for someone like me trying to get my head around it. All
Glad it was helpful!
OMG guys this is REALLY cool what you're doing. Make more vids!!! I'm interested in this process!
Very interesting. Lots of info. Found this very helpful. Glad you shared the details. Love your channel! Thanks! L&C 👍😘❤️🇬🇧
Thanks Tek. Appreciate it.
That is awesome. I know your renters are so happy with the quality and care that you take with your properties. Much success.
Thanks Mark.
Thanks for the expense/profit breakdown at the end. You're really making a business out of this, as you pointed out a single property won't provide a proper income while there's still a mortgage.
Guys this is amazing. I love the route you have taken! Do would love to know how much percentage you own of the property with your investors also.
I'm so excited for you guys, It only gets better. We usually keep around 22 properties and they rent for around $2,000 a piece. We try to buy one or two a year and flip one or two a year. Financial freedom is lovely.
That is awesome!
That sounds amazing. I’m hoping to get multiple rental properties in the future. Any tips for a complete beginner who’s looking to get into property investing
This was so insightful. Would love to see more of this
Great content as usual. Thanks 😊👍
This is exactly the type of video I needed to see… much thanks 😊
Perfect!
Excellent channel, love the transparency.
Glad you enjoy it!
I was really excited to watch this video. Well done, you two! I remember when you first bought it. Much love from Jean xo
Thank you as always Jean x
More of these vids would be fab. Perhaps one more recent showing the impact this economic mess we’re in has had. Would love to do something like this - where did you guys receive the training etc?
Hi Louise, thank you for the feedback! Yes to those video ideas, we shall try to film those. The company we received mentoring from is no longer around, unfortunately. If you did want to explore any 1-1 mentorship please feel free to check out the link in the description or drop us an email! ak@propertycouple.co.uk
Absolutely. From this video all is well with the buy to let/ landlord market which I am sure discourages government help in the sector
How about something on the upcoming EPC regulation changes for landlords? I work in commercial property but am aware of that coming in for private resi
Inspired. Thanks for the video. :)
Glad it was helpful! Check in tomorrow 8pm uk for an educational live event on how to find an investment property.
Great video. Great energy!
Thanks so much!
Hiya A.K and Lia, I enjoyed the way you showed us how to break things down when buying a House Of Multiple Occupancy, I think you would have to be self employed to start a venture like this, hopefully you won't get anymore skip rats, GET YOUR HOUSES FULL AS SOON AS POSSIBLE ON COMPLETION, this is Choppy in Whitehaven, Cumbria, England
Hey Choppy, AK wasn’t self employed when we started, why do you think that? Will do our best to get things full asap.
Great video, and amazing breakdown. Clear and concise!!
more of these videos in the current market would be even better.
Thanks for this. Yes happy to do that.
5:50 have you included property taxes, insurance, & maintenance/repair in your costs?
No because it’s complex. This is the sort of think I’m happy to mentor people on though. AK
thank you for sharing guys
Thanks for watching!
Well done!
The key thing to remember when defining hard assets (property in particular) is that what defines it is a LIMITED supply, we cannot create more natural gold on this earth, we cannot create more space on this earth, we cannot add more time to our lives.
The assets are limited, and thus their value is FIXED. Investing into hard assets is low risk, but also low reward in the short-term. The most successful players in the fixed assets game will have a detailed long-term plan of where and when they want to be throughout the span of their investment timeframe. When it comes to hard assets, patience is the greatest virtue, and if you are patient, you will often reap the greatest rewards.
Thank you for this comment. Appreciate the thoughts and very much agree. Do you guys have a website?
Spent total of £165.5k approx.
Every year get £20.3k approx after tax.
Will take 8 years approx to break even.
Am i correct with my above figures??
It’s not as simple as that. You can’t work out tax based on one single property across a portfolio. You also haven’t taken into account the money pulled out at refinance. It’s closer to 4 years to break even.
great sharing👍
Thank you! Cheers!
Very interesting. I’m surprised how inexpensive the entire project ie. Purchase, renovations and monthly cost. We have quotes for a kitchen and one bath renovation here in Florida over $40,000! You have done so well! Great job guys!!!!! ~Cara 😊
Thanks Cara appreciate it.
I watch a show from the UK called "Can't Pay, We'll Take it Away.". There's been a number of times where renters done so much damage to the property and the evictions there is crazy and so expensive and a very long process and I feel horrible for the owners because they didn't do anything wrong. Then when you guys had the squatters, I couldn't help but think about that show. It's an older show. It's on UA-cam. That's how I watched it
Yeah Angel, Cant pay we'll take it away is a good programme
Yes we have watched it. Sometimes what they show is absolutely crazy.
Very nice
How does private finance work?
Hi
loved the video!
Would you have separate gas/electric meters for each tenant or one main meter for the house?
Hey, there is one single meter for the property. However offering rent without bills for HMO’s are becoming more common at the moment.
Hi nice video thanks. How do you guys run and setup your company? LLP LTD?
We may cover this in a video.
Just wondering, do you run IRR calculations on your properties? Recognize you re-value and refi and thus secure additional financing for the next property (which allows you to grow and cash flow more while also increasing your leverage). I am generally wondering how the actual return on rental properties compares to a government bond or S&P500 index, both completely passive investments with effectively 0 risk/effort
We always run a ROI calculation on anything we look at. This obviously depends on a few factors (eg what we secure the property at, what we refinance at and what net rent we achieve). In terms of comparison vs bonds / S&P500, personally I think it's always good to have different eggs in different baskets, for want of a better word. I feel with property, it can be very hands on at times, and this puts people off. Hence why our investors invest in the business and we do all the work.
Great videos guys. Can I ask how does the investor end up receiving his full loan back?
Tgank you for the vid. So, what about the principal? Or you just want to pay interest only all the time?
Would be great if you could explain that part a bit more❤
We want to focus on cashflow for the immediate term. Longer term we can look to pay down the balance to further increase the cashflow on the property.
I’m in St Helens, next to Liverpool and Im very committed to do the same thing you guys did in this video, BUT… HMO is not a popular concept around here, but there is a nice hospital next to me so, the area where you did in the video, was it not popular to HMOs too?
It's growing in popularity for HMO's for sure.
Just wondering, have you ever considered investing in a small block of flats, or as they are referred in the U.S., an apartment complex or building? Where I live (Detroit Michigan area) are 4-plexes and small 6-8 unit apartment buildings that my friend found as sound investments.
Maybe one day.…
How did you pay for stamp duty when you were first time buyers?
Because we purchased it as a limited company, not in our personal names.
I don't yet own a buy to let. I flipped my first property in Scotland last year and will probably keep doing that at the moment.
Just a few questions and I don't mean them to be negative, just curious.
The re-evaluation at less than what you spent is something i find difficult to understand. Why buy a huge asset that isn't at least worth a minimum of 20% over the total cost? Also, at £750pm net profit ( i assume its net after LL insurance etc)is what we get in Scotland on a 2 bed flat that costs £65k+ and we have no ground fees or leasehold here. You could have bought 2 flats bringing in £1500pm+ without all the monthly utility bills etc but granted, probably with less capital appreciation unless this is what you're counting on as a main part of your strategy?
Great video and loved the numbers :)
Hi there, exciting that you flipped your first property!
In terms of the revaluation. Usually you are aiming for it to be more than the cost of the property. But, its not always more than what you spent as you said. No one is in control of the back end valuation and all you can do is do your research as best you can. In terms of the numbers you mention in Scotland, we picked an area that worked for us in both location and return on time invested. Thanks for watching :)
Amazing video, just subbed. Can you tell me what sort of interest rate is typical to pay to your private investors? I can't find this information anywhere. Thanks in advance!
You could start by asking them what % interest they would like. It’s got to be a win win deal between you both 👍
Wow! What level of training did you have before starting off on your property journey. I know you've mentioned a course that you did, but did you two have a mentor or anything? Did you do this part time along side your other jobs?? Keep it up!
We did multiple courses in specific strategies and we did have a coach and a mentor. AK was doing this at the same time as his 9-5 job which is why we needed to be very intentional with our week and how we planned it.
Are you comfortable sharing how you managed to secure the private loan? Would love to go down this route.
Hi Jay. We are considering opening up more into the details, as we are finding more people seem to find this valuable. We are going to discuss and rethink some content in the coming months.
£6000 sourcing fee - what was that exactly? Would you pay that type of fee again?
We have paid more than £6k on our latest one David. These are usually off market deals secured by sourcing agents that take a fee. As long as you understand the numbers and it works, we see no issue with it.
@@PropertyCouple I'm not criticising you just not something I would consider. Could you do a video on sourcing property using your method as opposed to RightMove (apologies if you have already done such a video only subscribed today)
It costed you 165 incl refurb and fees in total and valuation is 160 so, you made a loss technically?
No. We are not flipping it. It’s BRRR.
Nice
I'm confused. So if it's a 5 bedroom, and each tenant only pays $450/mth? You said it would $600/mth before reno.
They get £400 per unit/bedroom in the house. Before they would only get £600 for the whole home.
Correct, the whole house would rent for that not each unit
Can you share sourcer details?
Hi Mike - what sort of thing are you looking for?
Yank here. What does HMO stand for? Here it means Health Maintenance Organization - lol !!
House of multiple occupancy - in other words, a home with multiple households / people in.
What area did you buy in?
West Midlands
What r your plans when interest rates hit 8% + ?
Take less profit. Everyone else gets paid, investors and banks…. 😂
gorgeous wife you have🥰🥰
Why didn’t you do this as a limited company?
We did.
Did you need planning permission to get these conversions done
❤️❤️❤️
How is this a job?
How is that a real question?
Rent seekers
Scent litres, bent bleepers….
@@PropertyCouple if you diddn't think plain fact was an insult it wouldn't need a quip to deflect. Jus think bout it
Well done for being open, you seem a nice couple. This does illustrate why the current mortgage crisis screws this buy to let model and unfortunately the buck often stops with the renters. 3.59% mortgage is doable - 6+% the landlords start to cry foul and ‘we can’t afford this’ - despite the fact that many have been taking large monthly profits for the last decade and own the property. It’s great until things go wrong, exacerbated by a govt that doesn’t give a toss about the poor person at the bottom of the chain… the renter. As I say, appreciate your honesty and well presented video. Caveat emptor!
And the government should be doing so much more to tackle the housing crisis! 300,000 new homes commitment has been watered down massively. They haven’t given a toss about those needed a roof, now I suspect, they are also not giving much of a toss about those small, independent landlords.
Thanks, appreciate it.
Current interest rates definitely has made it very difficult with the traditional BTL model I agree. Ultimately there will always be demand for rentals, either through situation and or by choice. They estimate in the next 5 years over 250k landlords will exit their BTL properties. Which when you think of it is not ideal because it reduces rental stock, and for people who need to rent could be an issue. The EPC regs coming in will also hammer landlords forcing many to sell leaving big funds and corporate companies to buy up stock.
Thanks,
AK
💞 "promo sm"