Building Your Own Teams

If you’re being smart with property investment, you need to have your own fully trained people around you. I’m currently trying to buy Below Market Value properties. There are three ways of making money with property: when you buy it, when you rent it and when you refinance it. The two latter are normal and easy. The first is a little trickier.
One way is to take bridging finance, buy one day and then refinance, remortgage the next day. There are companies who will set this up for you. However, I have the urge to do it myself and set a slightly different pattern.
I’m negotiating a drawdownable amount form the bank. I buy, as normal, with an 85% loan-to-value mortgage. I have a floating agreed amount of about £45,000 which I use for a deposit. The first mortgage is a slightly expensive one, with no penalties. As soon as the place is tenanted, I remortgage for the full value. I’m aiming to buy enough below value each time, that I’m making £3,000 to £4,000 after paying all the costs – solicitors, stamp duty if needed, voids and any refurbishment costs. £2,000 then goes into my own residential flexible mortgage, and can be taken out again for the next loan, thereby reducing the amount I need to borrow. £1,000 goes into the emergency pot. This can cover voids and if not needed for void, goes towards the tax bill. £1,000 goes towards paying my own personal debts. I’m determined to pay off my own mortgage and personal debts in three years. Eventually, I’d actually have enough in my personal flexible mortgage fund to pay outright, giving myself a bridging loan overnight. The day my husband and I retire, I stop borrowing the mortgage back. But by then ….
Detailed business plan to follow….
Now, I already have one solicitor who understands the process. I have two very bright young men, an estate agent and financial advisor who are beginning to understand.