housing boom or will you go bust?

Housing Boom or will you go Bust?

How to pick the money making strategy that is right for you

www.TheSourcersApprentice.com

What IF …….?

You heard something that will make you money?You learned something new that changed your business?You thought about something in a new way as a result of being here today?


What is informing your choices?


Property News - What do you see?

Headlines of interest

rates rises

Rental shortages, Property shortages, rental increases, plenty of property?


Do you feel like your life is a roller coaster inside of a maze,Do you hope it’s a phase?Spending way more than you save?

Tiny Tempeh - Tsunami

What’s going in your head


Do you feel like a room without a roof,Is happiness your truthDo you know what happiness is to youAnd is that what you want to do?Pharrell Williams -

Happy

Or


HAPPY


2013-14Tripled my business turnover

The Sourcers Apprentice

The Property Sourcers

Quadrupled income, became limited company and VAT registered!

Named Telegraphs Top Most Influential People in Property


My underlying beliefs


This evening I will cover How to avoid the hype

How to pick the best money making strategy for you

How many properties do you need to be free

How much is it costing you to invest in property

How much are you realistically making


The Business of Investing successFinancial Market

• Interest rates

• House prices

• Availability ££

Your Objectiv

es

• Life style• Time• Income

Strategy

• How much time

• Money in and money out

• Knowledge


Financial Market

Interest rates and AffordabilityUp but WHENBuyers and renters

House prices Confidence in the market - without prices running awayDo I sell nowCan I afford to buy

Ignore the HYPE ! Availability of £££

Lender confidenceGovernment schemes


Your Objectives

How much money do you need a month? How much profit will each of your properties

ACTUALLY generate?

Do the maths …… How many houses to you need to cover the

basics? How many to feel secure How many to feel free

How many houses do you need?


Will your strategy get you there?

What strategy are you following? Why? For what purpose?

When do you get paid?

What are the risks to your income?

Strategy


What strategy are you following?

Lease optionsFlipsBuy to letHMOsBuy and splitAssisted salesAdverse possession ……………..what else?

Strategy


Capital Growth

Cashflow

High cashflow andPotential for capital growth

Low/No cashflow andPotential for capital growth

High cashflow andNo capital growth

Analysing the right strategyWhen do you get paid?


What are the risks to your income?

The J Curve - More £££ into the business than out of the business for years until finally you make a profit?

When will you make money? How much will you make? Is it worth it?

Strategy


What costs are involved in buying and selling?

How much cash do you need?


Cost to flip 25% Purchase Price Mortgage payments – or bridging Cost of refurbishment Contingence Insurance Estate agent fees Stamp duty? Solicitor fees in and out

Strategy

How much do you want to make?


Cost to flipStrategy

How much do you want to make?

25% deposit on £100,000 25,000.00 8 months mortgage 2,028.64 8 months insurance 200.00 Solicitor, broker, survey 2,540.00 solicitor to sell 1,000.00 1% EA fees 1,500.00 Contingency 2,750.00 Refurb 20,000.00

55,018.64

Double your money? £150,000


Strategy

London 13.3%Increased to 17%South East 6%Increased to 8%Wales and NW 2.2-2.6%East Anglia 1.6%

What are REAL values in your area?


StrategyOriginal value

100,000.00

Inflation @ 8% 8,000.00

Value of a new bathroom

2,880.00 2.88

Value of a new kitchen 4,600.00 4.6

Valued added through redecoration & carpets

3,500.00

Fixing damp 3,500.00

Paint the outside 3,500.00 25,980.00

New price 125,980.00 0.43

How much time did it take? 10 months

Your time ? 1 day per week? 40 days

You lost £4,038.64. and earned no wages

You could have had £750 per month cashflow and kept the asset!

What will you make?


What about London!A Property in Wiltshire

Current purchase price £210,000 within 15 miles Two bed semi Chippenham Three Bed house Chippenham Most of Swindon

What value can you add?

Strategy


Original value 210,000.00

Inflation @ 8% outside LONDON

16,800.00

Value of a new bathroom 7,200.00

Value of a new kitchen 11,500.00

Valued added through redec 3,500.00

Fixing damp 3,500.00

Paint the outside 3,500.00 46000.00

New price 256,000.00

StrategyWhat will you make?

25% deposit on £210,000 52,500.00 8 months mortgage 4,494.00 8 months insurance 280.00 Solicitor, broker, survey 2,390.00 solicitor to sell 1,000.00 1% EA fees & stamp duty 7,700.00 Contingency 4,000.00 Refurb 20,000.00

92,364.00

Sell at £249,864.00Repay mortgage £157,500.00Repay cash £92,364.00Profit ………....…………..…..£0! for TEN months effort


Affordability

Who will buy from you What can they afford to borrow First time buyer market

Couple earning £25,000 and £30,000 Joint multipliers subject to checking

4.5 x joints or 5 times joint

Investor market? Stamp duty thresholds?


Deal Analysis Workshop DVD

Free voucher worth £100


This evening I covered Why you need to avoid the hype

What is the best money making strategy for you

How many properties do you need to be free

What it is costing you to invest in property

What you are really making from property


What IF …….?

You heard something that will make you money?You learned something new that changed your business?You thought about something in a new way as a result of being here today?


Free Gift for everyone in the room

www.TheSourcersApprentice.com/White-Paper


Next Steps – leave your card• Want a copy of the slides

• If you are interested in staying connected - register for our free newsletter

• Further training and support – Books, DVD, Coaching and mentoring – Come and see us


Deal Analysis Workshop DVD

Free voucher worth £100


Free Gift – for the first 10 replies

Free twenty minute Micro Strategy Session with Vicki

How many properties do you already have? How much money do you need to make from property in

the next twelve months ? How much money do you have to get you started? What help do you think you need? What is your phone number?

Email your answers to these questions to [email protected]

For More Information please contact:

E: [email protected]: [email protected]

P: 07795 492001

housing boom or will you go bust?

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