Tag Archives: BMV

The Property Boom of 2012 landlord's log, UK Property Forum for Buy to Let Landlords

Landlord’s Log, the Personal Blog Of Mark Alexander, the Founder of Property118

** I was so shocked when I received this commentary last weekend that it has taken me until now to decide to post it. The following was sent to me as an email by a person who prefers to remain anonymous for obvious reasons. The commenter has not responded to my numerous emails. Is this a joke? I have decided to share it with you because; frankly I was flabbergasted and wanted to see what you have to say. I’ve decided to give this poster a name and a picture and in a strange sort of way I hope he will be back to entertain us all again with his responses to your comments. The name I’ve given to him (at least I think it’s a him) is “The Banker”. The following is what he had to say …

The Banker

I knew that title would catch your attention.

One mans misfortune is another mans opportunity, mine!

You and your highly leveraged buy to let pals are all like lemmings heading towards a cliff, oblivious of your fate.

Well here I am, to warn you of your fate.

I’m not the only one hoping that the next boom will in fact be an implosion in terms property values, you call it a property crash, it will be the making of the likes of me. The chaps on that House Price Crash forum are doing me a big favour by talking up the next crash. Continue reading The Property Boom of 2012

Keep it Simple – Take Your First Steps in Property by Recycling Your Deposit Latest Articles

At Your Property Network we are often approached by first time property investors who are confused about the best way to set about building a small to medium sized property portfolio. Many have a reasonable amount of capital behind them and can see the very real attractions of long-term investment for capital growth and pension replacement, or a mixed strategy for cash flow in the short to medium term.

Starting out, these potential investors have done whatever any sensible individual would do and have sought to educate themselves about all the available investment strategies. Spending a considerable sum on expensive property courses, and we’re talking thousands, can work out for the driven, financially creative, risk happy punter. However many a first time investor would like to take cautious first steps into what is, without question, the daunting world of property investment. Bombarded with talk of lease options, aggressively marketing for BMV property or hunting down those elusive “motivated sellers” many landlords forget how theoretically straightforward buy-to-let portfolio building can be.

Simply recycle your deposit

This simple, inarguably effective, time proven strategy has been employed by tens of thousands of investors to build cash flow positive portfolios with a view to long-term capital growth and positive short-term cash flow with modest initial capital investment.

At a recent networking event I was having a discussion with a first time attendee who was expressing his frustration at being unsure which guru’s model to follow or which complicated strategy to employ.

Even before I could answer myself one of the most experienced investors in the room lent over and said, “Just recycle your deposit!”

A deceptively simple process, buying, refurbishing, letting and refinancing after six months should be the bread and butter for every serious buy to let investor. Its sounds so simple, but as a strategy it is often ignored, or even worse implemented badly.

The moment you find a potential deal, a clear, defined and tested process should kick in.

  1. Research the area – LHA rates, local employment statistics and recent sold prices should be as high on your list of required information as purchase price
  2. Do your sums – With a target yield in mind work out what you are prepared to pay to get the required return, baring in mind that you need to allow for refurbishment. Check with a surveyor for a post work valuation estimate. If the property doesn’t stack up don’t waste time on trying to work round it, move on to the next deal.
  3. Don’t skimp on the refurb – better finish, better tenants, but make sure every pound you spend translates to built in equity. Aim for 20% built in.
  4. Let – are you prepared to manage your property yourself to maximise your return? Or put it in the hands of professionals for less hassle?
  5. Re-mortgage after six months, leave as little of your own money in the property as possible, get your deposit back and repeat!

Recycling your deposit is a simple process that is so often over looked in the world of property which has become increasingly filled with smoke and mirrors.

Simple does not, however, equate to easy, but implemented effectively, traditional buy to let methods can still realise a more than respectable return from a portfolio built over time with relatively modest initial capital.

At Your Property Network magazine we pride ourselves on sharing the experience of other investors devoid of the myth and mystery of the property game. We run the numbers on real investments to show how successful landlords are creating substantial cash flow positive portfolios to secure their long-term financial future.

Find out more about Your Property Network or Subscribe now.

What does 50 percent BMV mean to you? Latest Articles, Property Investment News, Property Investment Strategies, Property Sales & Sourcing

Something is only worth what the highest bidder is prepared to pay.

If you see something in the sales marked up at 50% off, that’s its value.  The fact it was once priced up at twice the amount it is now is irrelevant.  If you buy that item, that’s its value.  If nobody buys it then it’s still not worth the price on the tag.

If I’m offered a property for a price of £50,000 and I’m provided with a valuation or comparables stating it’s worth £100,000 is it really 50% Below Market value? Continue reading What does 50 percent BMV mean to you?

Mark Alexander’s interview with Paul Spriggins – UK Holiday Lets investor/developer Commercial Finance, Guest Articles, Latest Articles, Property Development, Property Sales & Sourcing

Paul Spriggins

In this interview Paul explains how he develops brick and tile UK holiday park homes, sells them for £71,000, returns investors 10% + per annum and provides 10 year, fixed rate, non-status, non-recourse financing subject to a minimum £20,000 cash deposit.  This is a long interview so make yourself a coffee before reading it! Continue reading Mark Alexander’s interview with Paul Spriggins – UK Holiday Lets investor/developer

Questions to ask a Property Sourcer Latest Articles, Property Investment Strategies, Property Sales & Sourcing

Questions pictureTwo of the UK’s largest buy to let mortgage providers have introduced a criteria not to accept mortgage applications for properties purchased through property sourcers.  This has angered many people who don’t have the time to source properties for themselves or the necessary negotition skills. Continue reading Questions to ask a Property Sourcer

The History of Buy to Let Sale and Rent Back Favourite Articles, Latest Articles, Property Investment Strategies, UK Property Forum for Buy to Let Landlords

Mark AlexanderBy Mark Alexander.

I closed my first Sale and Rent Back, “SARB”, deal in 1990. It wasn’t for me personally though and it wasn’t a property deal either. I had just set up a commercial finance brokerage. At that time we worked from my dining room. One of my first clients was a Norfolk based hire company.

Continue reading The History of Buy to Let Sale and Rent Back

The history of No Money Down and Instant Remortgages since 1992 Favourite Articles, Latest Articles, Property Investment Strategies

Mark AlexanderIt was 1992, we were at the tail of the property crash of the late 80’s and early 90’s. I was still cutting my teeth in the market of providing commercial finance broking facilities to property investors. The phrase buy to let would not be invented for another four years and the internet was in its infancy. Property prices had fallen by 30% and interest rates had soared to 15%.

Continue reading The history of No Money Down and Instant Remortgages since 1992

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