Allow Landlords to evict tenants where there are 14 days rent arrears14:34 PM, 1st October 2020
About 4 weeks ago 97
Are landlord mentoring courses value for money and are many of the property networking meetings we get invited to simply a sales pitch?
When I started investing in property, back in the late 1990’s, there was no such thing as buying below market value (BMV) because the housing market was absolutely booming. Even if you were prepared to pay the FULL asking price for a property – the investor was at risk of being gazumped by a more enthusiastic investor or a first time buyer (anyone remember them?) who would pay OVER the asking price to secure their dream investment/home.
Investors, back in those days, didn’t particularly worry too much about monthly rental income from property because annual capital growth was rampant and in 2002, alone, house prices in my town rose by over 23%. Capital growth of over 9% was the norm – even in the less rampant years.
Instead, we were advised to take a longer term view on a property investment (10years+) and to ensure that the BTL mortgage was covered by 125% of rent so that the overall investment “washed its face” (after costs and voids ). By investing in this way – the long term capital growth would be created at the tenants expense. Interestingly, most banks still use the 125% of rent criteria today when deciding to lend or not.
How times and property investment strategies have changed!
Capital growth is no longer king – I can’t remember the last year that any of my existing investment properties rose in value – and the latest investment strategy seems to be “how to generate passive monthly income from property” so that we can all give up work early.
Have you noticed the number of property investor clubs and property networking events that have suddenly appeared from nowhere? Isn’t it strange how these clubs are facilitated by people claiming to be property investment gurus and how attendees are berated into buying expensive mentoring courses from them (costing thousands of pounds) so that they can learn the secret of becoming a passive property millionaire RODNEY!
I went to a couple of property networking meetings last week and 60% of the presentation material delivered was on why I needed mentoring from their founders! And they charged me £20 to attend each meeting as well!
I am firmly of the belief that if you can’t do it then – you teach it. If these mentors were such successful property investors capable of making millions of pounds passively (RODNEY) then why would they want to share their secret with me and why would they want to spend their evenings non-passively trying to get me to sign up to their expensive mentoring programmes?
Then it occurred to me. Could it be that these gurus have run out of deposit money (for their next property investment) and were they trying to sell me their mentoring courses to fund their next deposit? What do you think? Do these expensive mentoring courses deliver value for money?
Of the many attendees that I met who have attended these type of courses, the consensus was “We didn’t learn anything that we didn’t really already know – but it gave us the focus, confidence and support to invest”.
Is gaining focus and confidence etc. worth thousands of pounds though? Ironically, shouldn’t membership of a property network give its members the focus, confidence and support to invest? Isn’t that the purpose of any network is?
It would seem that many property networks have been created to promote expensive mentoring packages and not, unfortunately, to support their members. I thought I might actually learn something (about investing in property) by attending my local property club – but I obviously need more mentoring – and I feel a right PLONKER now RODNEY.
What’s your experience of mentoring and Property Clubs? Are they good, bad or indifferent? Do they provide inexperienced property investors with valuable information? Have they helped you?
I would love to hear your comments.
Please Log-In OR Become a member to reply to comments or subscribe to new comment notifications.
Our mission is to facilitate the sharing of best practice amongst UK landlords, tenants and letting agentsLearn More