All posts by Glenn

Danger Ahead For Pension Pot Investors……..

A recent article I had published in Bloomberg.com

Danger Ahead for Pension-Pot Property Investors Warns Property Multi-millionaire Glenn Armstrong

With the April date for people being able to withdraw their pensions drawing close, self-made multi-millionaire property investor Glenn Armstrong is warning people thinking of withdrawing their pensions pots to invest in property that they risk a potential minefield.
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Armstrong, who is a frequent advisor to other property millionaires on ways to improve their investment strategies, said: “Most people assume that you simply buy properties in the same way that you buy your own home – and then get a letting agent to rent them out for you,” says Armstrong. “But if you invest your pension that way you’ll very soon use up your capital and have very little income to show for it.”

to read more click below

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http://www.bloomberg.com/research/markets/news/article.asp?docKey=600-201502020643M2______EUPR_____71e6000003b7f8a6_3600-1

Property Investors – Deal or No Deal?

Recently whilst viewing various properties we came across a property that needed zero work and had the most amazing gardens you could imagine. All cared for by a lady who showed us her beloved well maintained garden. The house was also immaculate and carefully prepared for our visit on the day.

We sat down and had a cup of tea with freshly homemade cake and listened to the lady tell us about how she was born in the very house she was trying to sell. How her father had built the property himself with a builder friend before she was born and she was reluctant to sell to just anyone given all the memories.

This is all very well but we were only interested in buying the property to knock down and build 6 new homes. Like all good property investors we were looking at the numbers and had little emotion until we met the lady.

Unlike the lady who cherished every inch of the property we were trying hard to work out a way of telling her we didn’t really care too much about the state of the property without actually saying that. Should we walk away and simply tell the agent that it wasn’t for us? Should we avoid telling her the truth to make her feel better? How do you tell a lady with her memories that you will knock down her house once planning was approved?

We listened for a little more and then I decided to ask her a question. I asked her if the agents had mentioned that we are investors and that we would not actually live in the property.

To my absolute surprise she said, ‘Oh yes, they told me you are investors and that you would only buy the property if the deal was right and the numbers were right’. She then said, ‘I just wanted to make sure you stayed here long enough to have a good look, that’s why I made you a cake and a cuppa and spent all this time with you, all the others came in and left within 10 minutes’.

Cheeky lady – she was just trying to sell us her home. The emotions are real and the facts are true and we spent almost an hour with her.

We then went on to explain that we could only agree to buying the property if she would agree to delaying completion so we could go and get planning approval. We would need around 12 months on this particular deal to cover any possible appeal process.

The lady asked many questions about how this would work, how it would affect her and after a good hour we were agreed. She was thankful she could spend the next few months saying goodbye to her beloved home for so many years and said she was happy in a way because she knew she would be the last to live there in the house her father built.

It’s important to explain from the outset what you do and why you are looking at the property. If you confuse the vendors, agents or solicitors in any way at all they will out up the blockers and go down the traditional route of simply exchanging contracts and completing in the next 4-6 weeks.

You will not always get the deal you want because what we do is not for everyone but if you want a deal that you have spent a lot of time looking for then you need to be fully equipped with the right information.  

There is always a story in each and every deal and each one is unique – find out the story and you can then work out the best strategy to use. Don’t just go feet first with a strategy that may not fit the property or the needs of the vendor.

I speak to a lot of our students through each week and these challenges come up a lot. Coaching them in what to say increases the chances of success.

To find out what they know and what they learn from our courses why not come and spend a day with us for free.

Go to this link and sign up for the free reports and the full one day new investor course. http://www.glennarmstrong.com/new-investors/

I look forward to seeing you soon

Ashley Banfield

The Property Investors Anti Sell

Dealing with estate agents on a daily basis gives you an insight into a new way of thinking. Estate agents come in all sorts of disguises and can change in an instant if you don’t know how to deal with them nor should I say the words that they speak.

Being sophisticated investors is not always an easy way to make money – yes you will make a lot of money when you find the right deals and when you have an few estate agents that know how to sell your strategies to the vendors.

I have a lot of experience dealing with estate agents and many will actually try to convince the vendor that your offer is not what they want to move forwards with. Solicitors who don’t understand what you do will also try to convince the vendor that this is ‘risky’.

Why?

Because you have not explained well enough what you are trying to achieve with your offer. If the agents or solicitors don’t understand what you do then they will anti sell YOU and YOUR offer.

Example

When you go forwards with a delayed completion offer because you need to lock out the property in order to carry out works or to get planning or for any other reason many agents don’t even know or have never even heard of this. Wow! You may say.

Then you hit another agent with an ‘option’ strategy for similar reasons to those mentioned above and again they will not know what you are talking about.

In defence of the agents and solicitors out there it is your job to educate them from the start and to demonstrate that you are in fact a sophisticated investor. You must understand all factors of property investing if you are going to deal with advanced strategies so you can explain this in as few words as possible to help them understand this.

Direct deals with vendors will be even harder as you are the agent here and you need to educate the vendor and help them understand how you wish to buy.

If you want to go down the traditional route of investing and save up a load of money, buy a house and then save up again this will take a long time to get to your goals. Yes you can do it this way and after a while things start to compound. You will start to gain equity in your properties, re-finance and release money and buy more houses so the need to save becomes less.

Using the advanced strategies that we teach and practise on a daily basis will catapult you to achieving your income goals much more quickly.

Start out by attending my one day new investor day – which is free of charge – and learn how to articulate these advanced strategies so you too can start making the money you deserve.

Please go to this link and check out the next date that suits you and sign up for the free reports. http://www.glennarmstrong.com/new-investors/

I look forward to seeing you soon

Ashley Banfield

New Property Investors – How to get started quickly

I have a pretty heavy work load to say the least – teaching, investing and other ventures I am involved in and just lately there has been a very heavy load where I have had to bite the bullet and actually ask for help in reducing my workload and the need to work smarter but still achieve my goals.

I did what I very rarely do and that is ask for help – yes you will always need help and people are always willing to help when you need and don’t be afraid to ask.

I turned to my wife and asked her if she could help me find new property deals and talk to estate agents. Well for all of you who don’t know my wife she has a comfort zone that she is very comfortable with and this was a big punt on my part.

To my surprise her answer was ‘sure I can do that but you need to show me how and once you have I have full control’.

Right, let’s get started. I showed her my system of finding properties in micro areas around where we live. I gave all the areas and showed her the strategies to use in each one. I then told her what she needs to say to estate agents and what to watch out for. This included the prices they will share with her; both buy prices and sell prices. All are very different to what is reality.

We also discussed negotiating techniques and when to close your mouth and say nothing more. Then there was the discussion on initial excitement and how she would be feeling ecstatic about just making her first offer – and the many counter offers to follow.

In short she was ready to go within a couple of days armed with the minimum knowledge needed to find a deal, make an offer and negotiate based on her exit strategy and what she needed to make at least a £20,000 profit.

Day 3

Vicky asked me to look at a property she had found on Rightmove. It needed some work (total refurb) and was listed at £135,000. We checked the deal calculator which Glenn Armstrong created and did some research on rightmove etc. for sold prices and similar properties for sale in the same area. Turns out we needed to get the property for 125,000 to make our 20k.

Vicky heads off to the agent to have a chat and view the property.

Day 4

Offer of 95k is made by Vicky. It is quickly rejected by the vendor who insists she will not go below 125k.

Great. We just got the vendor down by 10k in one offer. What we did next is put together a good story on why we could not pay 125k for the property – we based this on real values from builders and research in other areas. We then presented this back to the agent with an offer of 105k.

BOOM! Rejected again. The vendor then said that she would go to 115k but would not go below this. We counted with 112,500. A nice number that didn’t seem to rounded up or down.

Vendor rejects again. She will go to 114k best and final.

Day 5

We sit and let the waters settle. Agent tries to get us to cripple by telling us there was a load of interest. Well we spoke to the neighbours and they have not seen anyone else viewing. Hence the vendor now dropping from 135k to 114k. That’s 21k in 2 days of negotiating.

Day 6

No calls from the agent. Mmmm vendor really has made her final counter. Off we go to the property. We speak to the neighbour who has the same property but a small extension added and of course fully refurbished. Vicky does all the talking.

‘How much did you pay for your property?’

‘Oh we paid 236k in March (2014) but the funny thing is the valuation came back at 250k’

Vicky then proceeds to send me a small smirk 🙂

We chat some more and decide that we will now accept the kind offer from the vendor to buy at 114k. Vicky calls the agent and within 2 minutes she has an accepted offer.

After costs she looks to profit anywhere between a minimum of 40k based on a sell price of 200k and upwards to 250k could see a profit of 90k on her first deal.

The deal had all been sourced by her, negotiated with agents and the vendor, builders booked in for final quotes.

Well done Vicky and thank you for helping me reduce my work load and achieve our goals together.

Oh did I mention we have two children under 2 that she also has to manage 🙂

We will be posting the final stages and photos of the refurb as we move along and share the final price we achieve with the profits over the next 6 months.

Vicky has also managed to find 4 other deals in this time that we are also working on which include a BOGOF (buy one get one free) strategy.

If you too want to get started in property investing and learn what Vicky has learnt in the past week book yourself onto our FREE one day course for new investors by going to this link http://www.glennarmstrong.com/new-investors/ and download your free report here http://www.thepropertyinvestorcompany.co.uk/property-investor-newbies/

If you have any questions please let me know email at ashley@glennarmstrong.com

Ashley Banfield

Property Investors Beginner Course for Newbies

Last week we ran another of our beginners classes for newbies who are looking to start a career in property investing or to simply buy properties part time.

The key to all of this however is your actual mind set and what drivers you have in your own life. Many of you tell me that you want to set up your retirement because what you have will not support your lifestyle and you cannot afford to live off the state pension.

You also tell me that you want freedom in your life so you can spend time with loved ones and some just want to travel. There are also some of you who actually love your day job and property is something you always wanted to learn about because your friends all have investment properties.

No matter what your personal reasons for investing time in learning about property are, there is a strategy for each and every one of you. Buying property has changed a lot in the past 7-8 years with many buying the majority of their properties when money was being thrown around by the banks. Those that purchased well still have those properties whilst those that didn’t (the greedy ‘I will buy at any cost”) have had their properties re-possessed.

The single most important action you must take before buying any investment property is to educate yourself on how to. This will ensure you limit your risks and limit your chances of losing hard earned money – or that of your investor/JV.

Educating comes in many forms as listed below;

  1. Google until your heart is content
  2. Read forums and get expert advice from people who really know how to use Google
  3. Read books about property investing
  4. Read blogs
  5. Attend courses
  6. Attend seminars
  7. Attend property meetings
  8. Use a mentor
  9. Watch TV shows
  10. Etc. etc. etc.

I have done all of the above, mostly when I was searching for the answers and ‘how to’. You like me will find your best education in some of the books you read, on blogs, at seminars, classes and with a mentor.

What you will not know is what is actually the right way and a ‘step by step’ process for using one or multiple strategies – this is where you will need the guidance of a mentor who does this on a day to day basis. I learnt from one of the very best in the industry who still trades in property today, buying and selling and renting out both residential and commercial.

Glenn Armstrong has helped and guided me to a property portfolio in both the hard times and less easier times to the point that I actually prefer the tough times because there is much less competition out there trying to buy the same property as me. We have purchased HMO’s, residential, commercial and turned one into the other.

Glenn and I decided to start the beginner’s classes to help you set up your path in the direction to a career in property investing. We offer a full day for no charge at all and help you understand the basics and also give you a taste for the advanced techniques we use on a daily basis. We use actual deals and show you proof of the profits we have achieved in each deal.

We run these for one day out of each month – if you want to attend a day learning the right way start out please email me directly at Ashley@glennarmstrong.com to book your place. We normally run these on a Saturday from 10am until 5pm. You can read more here http://www.thepropertyinvestorcompany.co.uk/property-investor-newbies where you will also get some free reports.

I look forward to seeing you on the day

Ashley Banfield

Create positive cash flow when investing in property

Have you ever heard the phrase cash is king? Well in property investing cash flow is king. We have spoken about flipping property for quick returns and the effort involved in doing so.

Now we need to talk about cash flow which you create each month with rent received. Buy to lets or BTL’s are by far the most popular forms of cash flow and if you can average around £200 per month profit on each single let then you are doing well. This all depends of course on the size of the house and the mortgage payments etc. but let’s work on the average for now.

If you have a day job where you earn circa £35,000 per year then you will be getting a net salary of just over £2,000 per month. In short to replace this you will need at least 15 single lets to cover your salary taking into account any unexpected challenges that may come up.

Finding 15 below market properties with £200 per month cash flow is achievable and you can earn a pretty good income from this.

There are other ways to create cash flow much quicker and I’ll outline a couple for you.

These are examples of what we have done and continue to do today. Real life examples for you to learn and copy.

Rent to Rent is very popular now given the excellent returns and relatively small investment needed to get started.

What is rent to rent? The short version is that you go out and find a ‘primary’ landlord who has a property that they no longer wish to manage and are willing to offer you, the ‘secondary’ landlord a reduced rent per month to take over the property. You then manage and rent out the property yourself and your profit is the difference between what you pay the primary landlord and what you are paid by the tenants.

There are some key points you will need to cover off before committing to such a deal. One of these is that the primary landlord must be able to ‘sublet’ to you and if they have a mortgage this is simple to find out. Is they own it outright then there should be little if any issue with this.

Quick calculation;

Primary rent is £1,200 per month

Property actually rents out at £2,500 per month

Your profit = £1,300 per month.

What you will also need to agree is maintenance. We have agreed with most primary landlords that we will cover all repairs etc. to £100. Anything above is covered by the primary landlord or insurance.

If you had 15 of these properties then your income would be £19,500. Sounds a little better.

Another way to create cash flow is by converting residential properties to commercial properties.

We have done this successfully with residential homes and guest houses.

Example;

Guest house value is £210,000

As an HMO with 8 rooms we can rent this out at £42,000 per annum.

What you need to do is obtain change of use from the council to an HMO. Once you have this then you will need a re-valuation as an HMO. Assuming the HMO is valued at gross rent then you will have a minimum value of £336,000 depending on actual yield and some other factors.

This creates a zero money down deal if you are able to obtain the property with an option.

The numbers;

1 for the option

£350 for the planning

£65 we spent on plans to be drawn. Yes £65.

Survey around £650

All in £1,066.

Annual rent is £42,000 or £3,500 per month

Minus the utilities etc. of around £700 per month

Cash flow = £2,800

Even if you had to mortgage the property at the entire £336,000 it would only be £1,500. This would still create a £1,300 per month cash flow.

15 of these at £2,800 per month would be £42,000 per month.

Which one would you prefer?

Which one would you most like to learn?

If you would like to know the details and learn how to do these deals please contact me at ashley@glennarmstrong.com or join me on my beginners day for property investor newbies which I run twice per month.

There is also a load of free reports available which you can get by clicking on this link http://thepropertyinvestorcompany.co.uk/property-investor-newbies/?

Yours for property profits

Ashley Banfield

“How To Set Up A Successful Business Plan”

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