The fact is the quicker your development is up and running the quicker you can get cash flowing into your business. Personally I think the key to buy to let is building your portfolio slowly to give it firm foundations. Once the first buy to let is paid off you have more equity to play with and maybe look to grow a little quicker.
However, always ensure that you have decent headroom between your financial liabilities and your income.
Give yourself some long term income and capital growth with the buy to let side, and then renovate and resell properties where you see the opportunities.
You seem to be in quite a unique position with your skills, finance and experience. If possible a mix of the two would work best - the BTL investments would give you solid long term rental income, while you could also pick and choose your times to get involved in the revamp market. Many people fail because when looking to revamp and sell on they are at the beck and call of the markets, if they turn down they might be left with a property for a while. If your investment pool is large enough I would look to take in BTL and flipping investment strategies - especially with the skills and experience you have to hand. Hi Derek I am also in a very similar position, have a flat which is on the market to be rented, but looking to get onto more properties, I have identified a few areas to invest in, the only problem is travelling to see these properties with my full time job. Maybe in the early days it might pay to stay local and then when your business grows and becomes fulltime, you will have the time to look further afield? The last thing you want to do is stretch yourself and end up in a situation where your full time work is suffering as I presume this is your bread and butter income at the moment? There is nothing wrong in focusing on local markets in the early days - better to make any mistakes closer to home (so hopefully they can be rectified) than hundreds or even thousands of miles away.
As long as you learn by your mistakes there is not really a problem making them - its people who make the same mistakes time after time who should be concerned.
The best bit of advice I could give would be to take at least a couple of years to find your feet in the property market before you start looking outside of your comfort zone. On paper property investment is simple but in practice there is a lot more to consider than many people appreciate. It will depend on your personal situation as to whether a company might be the best route for you. I think a company is the best option if you are looking to grow the business to a decent size as there are a number of tax benefits which are not available to those investing in their own name. However, your financial advisor should be able to help you - if you have the right personal advisor they are worth their weight in gold in the long term. I have looked into hotels, guesthouses and lodges and from what I can see the location of the property is the key to any successful investment. There seems to be a move towards self catering lodges which would cut down on a significant amount of expenditure but hotels and guesthouses seem fairly high maintenance to me.
We run a hybrid model like an apart-hotel and keep costs to a minimum by having an onsite manager running the place and living there. So the trick is to keep hotels and guesthouses small and a manageable size to maximise occupancy levels and have an onsite manager to look after everything. I own part of two hotels, and yes there is a lot of money to be made in hotels. These are both multi million dollar commercial properties with international brands. Normal investors can get involved in these types of deals the way that I did, by way of a syndication. I am not sure if it works in anything below 50 rooms. Expectation is to benefit primarily from the cashflow, with the potential of capital appreciation through improvements, lower operating costs with improved management team in place, etc. I once read something from one of the large hotel companies that suggested it was getting tougher to make money in the industry and the main kicker was to increase brand awareness, improve services and then sell after significant capital appreciation.
Not sure how true this is or whether it relates to all sized guesthouses and hotels. Seems it is all about branding for the larger players? I once read something from one of the large hotel companies that suggested it was getting tougher to make money in the industry and the main kicker was to increase brand awareness, improve services and then sell after significant capital appreciation. Not sure how true this is or whether it relates to all sized guesthouses and hotels.
Seems it is all about branding for the larger players? My guess is that the large hotel operator that you quoted operates primarily in only the largest metropolitan cities, where competition is the highest and operating margins are the lowest. That type of competition in markets that are already operating at extremely thin margins can result in success or failure of the entire venture. One of the many reasons why I enjoy this forum - sharing knowledge and ideas, and meeting like minded colleagues outside of the US. I once read something from one of the large hotel companies that suggested it was getting tougher to make money in the industry and the main kicker was to increase brand awareness, improve services and then sell after significant capital appreciation. Not sure how true this is or whether it relates to all sized guesthouses and hotels.
Seems it is all about branding for the larger players? For the larger name brand hotels, the brand itself is very important. Along with the brand comes a franchise system and integrated reservation system that makes it hard for non franchised hotel properties to compete. There is still space for smaller non branded hotels but they need to look for areas on the fringes and niche markets where they can thrive. I have a friend who owns a smaller hotel in a small town, near an eco tourism site. He does quite well, but he needed hotel experience to be able to survive. He had already run a franchised hotel and he adapted their operating procedures to maximize his profits. It is economies of scale which make it work for the big players - like you say, the smaller players need to think on their feet and there is no room for mistakes. What I mean by this is a lot or land property that has seen issues with flooding or foundation shifts.
There are many lots out there that seem to be easily rebuilt if you have the money to correct the issues, but is it worth it? Most people will be put off so should get it for a discounted price and be able to build in a safety margin... Loads of ways to deal with flooding look at holland.
As a lot of the knowledge on fluid dunamics has advanced in the last twenty years thanks to cheap graphics card and AI advances.
Need to price as a knockdown and rebuild job though as too expensive to retrofit. Note this is for rivers and sea flooding not surface water flooding which has a different geophysical effect and method.
However, fortune does favour the brave Well not in South Holland which is below sea level anyway. You probably would not go to your usual rub off the mill provider. I believe 500 is considered the maximum attainable (although we already have computers that can read brain waves and a supercomputer that holds the same amount of memory as a human brain.
There is actually work now on uploading a small nematode brain I to computer hardware.
So at this rate 100 years is potentially enough for everyone to become robots which mucks up the figures. Mucks up the human race never mind your figures lol Artificial Intelligence is coming on in leaps and bounds now and there are AI systems out there wihich can teach themselves - scary stuff! The idea of creating a property investment joint-venture sounds great in principle but what is it like in practice? I would be interested to hear from anybody who has created a joint-venture with a previously unknown party. In my experience of JVs, even when meeting someone new, JVs happen when you really do know them and what they want from the JV. JVs are fantastic ways to ramp up your journey as we all need help in some form at some time, whether that be expertise, money or just support.
All I find is a lot of fakers, they are not prepared to show the money or the properties where theu jave expirences.
Maybe there should be a specific section for forum members looking to put together joint venture partnerships? In order to keep the quality of applicants high perhaps a private, members only sector might be useful? Maybe there should be a specific section for forum members looking to put together joint venture partnerships? In order to keep the quality of applicants high perhaps a private, members only sector might be useful? I think to keep the quality high you need some kind of vetting, not just private members.
Otherwise you just degenerate like Facebook groups. Anyone can say yes to do you have the money but not everyone can put it in escrow. Some very interesting ideas there - tricky vetting those who have time and effort to offer, the funding and escrow part I get as well as the whole concept. I know your willing to spend time and effort nmb because you have sent 992 messages. A whole meetup side is useless withoug them and just quickly degenerates. I have not found a partner and might put the project on the backburner for a few months. However I have decided to go with recommendations for the moment, from people I know and trust.
There is no fool proof way but if they are good enough to deal with my savvy investment friends then that goes a long way towards me trusting them. However, there also has to be some chemistry, you need to be able to get on with your JV partners. Thanks long term investor unfortunately that requires knowing someone. For those of us without the networks this is not viable.
I am currently looking to purchase a small property in Wales to be held at a property auction in February 2018, I have read through all of the legal documentation and would be a cash buyer. I think this shows one thing, regulations are different between different areas of the UK. I have been looking at property auctions and trying to understand how these work and have some questions.
Is it as simple as the owner needs capital, or does it get more complex than this?
Properties can go to auction for a variety of reasons such as the need to get capital asap and mortgage companies simply getting rid of properties they have inherited through default. The guide price and the actual sale price will depend upon the property, area and demand on the day. I dont think there is any meaningful average figure here. Main risks: You might find hidden issues when you gain entry to the property. Potential local authority planning application issues if you need to make major changes to the property.
Very often they are priced very cheaply for a reason - ensure you do your research. Those who think they can just turn up at a property auction, make a bid and walk away with the deal of a lifetime will be in for a shock.
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