Robust BTL Strategy required for £1m investment in Scotland

Robust BTL Strategy required for £1m investment in Scotland

11:11 AM, 3rd December 2013, About 10 years ago 33

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Hello everyone.

I hope this finds you all well in the run up to the festive period.

My name is Andrew Hayworth. I’m new to the forum and wanted to introduce myself with a question for you all.

I am in the process of setting up a property investment vehicle, focusing on residential buy-to-lets, with initial capital c.£1m.

Target areas are Edinburgh, Aberdeen, Glasgow, Dundee and Inverness. I know these markets and have an existing contact network of tradesmen established in Edinburgh, Aberdeen and Dundee. I also have a large family network in Inverness who can advise on location, tradesmen and the state of play re the local market and new University opening in 2015.

I currently own 3 residential buy-to-lets in Edinburgh (where I live) so have a base working knowledge of property investment. However, I am looking to identify someone who can advise on the development of a robust investment strategy for a larger portfolio and to help mitigate risk where possible.

I would also be interested to hear from any Scottish members who would be willing to open a dialogue. I’m a young businessman (27) who has benefited greatly from mentoring throughout my career to date. Whilst I have worked in property previously (3 BTL’s and a couple of refurb + sales) I feel that building a relationship with someone more experienced would be invaluable over the coming 12-months.

I should note that I’m not looking to steal too much time. Just some feedback and advice from readers or lunch once a month (on me of course) and the occasional email for questions/sense checking.

Many thanks to everyone in advance.

Have a great Christmas when it comes.

Andrewedinburgh


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Comments

Andrew H

14:15 PM, 11th December 2013, About 10 years ago

Reply to the comment left by "Mark Alexander" at "11/12/2013 - 13:56":

Thanks Mark.

Greatly appreciated.

All the best,

Andrew

Allan Chalmers

14:58 PM, 11th December 2013, About 10 years ago

Reply to the comment left by "Andrew H" at "11/12/2013 - 13:48":

Hi Andrew,

It seems you have had a few replies to process today!

I am based in Inverness also, so if you are in the area in the New Year, I'd also be delighted to meet for a coffee. Whilst I am based in Inverness, I cover the whole of Scotland but am not planning a journey to Edinburgh prior to the festive season.

When looking at a strategy, some investors like to front load with interest only facilities as this then provides business cash flow due to the reduced repayments. C&I facilities are good for the long-term game but your rental income will determine the amount you can borrow (and LTV obv) and this may require larger deposits. These facilities give you the chance to grow your capital over time and further allows you to use the increasing available equity to take other opportunities in the future.

Recently, we had a client that had done just this and had reached their optimum level of 15 props. We then restructured all facilities into one amortising portfolio loan so that when retirement came (20 yrs), he could enjoy the income from the props with minimal monthly cash outgoings.

Lots to decide and perhaps the guys on here can advise on how you should approach that situation.

All the best,

Allan.

Andrew H

20:07 PM, 13th December 2013, About 10 years ago

Reply to the comment left by "Allan Chalmers" at "11/12/2013 - 14:58":

Hi Allan,

Yes, everyone has been great in providing their feedback and comments.

Sounds good. I’ll let you know next time I am planning up and we can grab a coffee/lunch.

Mark, can you please pass my details onto Allan? Many thanks.

All the best,

Andrew

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