“An already experienced property investor before he started working with Alex as he and his father had a portfolio of HMO’s, single lets and Rent To Rents.
On day 1 of my 6 month mentorship programme with Alex, we sat down for a day together in York. Alex started off by helping me get very clear reason on the reason why I wanted to achieve my goals and why I wanted to Alex’s help in achieving them. We then explored what I wanted to achieve by setting income goals and finding out exactly what I needed to grow my business in the future. We then explored how I was going to get there and Alex really helped me to become clear on my strategy and challenge my previous thoughts of what was possible. Alex has a very good way of making you realise your goals are very achievable by setting out a clear path forward. We spent time analysing property deals, looking at floor plans and Alex even pushed me to put an offer on a property right there and then!
Alex challenged the way I am doing and not doing things, and asked lots of questions to help we come up with the ideas myself without him just telling me which really made me think about it in detail. I thoroughly enjoyed my day and came away with a detailed action list to crack on with and a lot of exceptionally useful notes from the day. There’s no doubt I have already got my money’s worth just out of one day so I can’t wait to see how the next 6 months progresses with Alex’s help!
I have purchased 6 houses in the last few months that I wouldn’t have done without Alex’s support. There’s no doubt I got my money’s worth and that’s why I’ve resigned with Alex as my mentor.”
Miles Pattison-Appleton – www.relocation-pa.co.uk
Our thoughts
Miles has substantially grown his owned portfolio and his lettings agency with ease because he doesn’t complicate or over analyse things – he simply follows the PCA processes and systems, and takes action. His business is now hands-free (i.e. he has staff in place to run the business and so only assists at a strategic level) and he just spend 3 months motorbiking throughout South East Asia with his passive income far exceeding his costs of living. He said he only came back because he missed us too much. Bravo Miles!
Purchase + all costs (refurb, finance, purchase costs etc): £318,750
Revaluation post refurbishment: £360,000
Uplift: £41,250 Net Rental Income after all costs and allowances: £964 per month or £11,575 per annum
Disclaimer: We thought long and hard about including a more detailed breakdown of these numbers. If you are already in property, or are from a finance background you might be interested and able to understand them. But if you aren’t then it might well seem complicated and the danger is then that the little voice in your head starts telling you that you won’t be able to succeed. That is absolute RUBBISH! As you can see from our huge number of testimonials people from all walks of life can understand and succeed. We have never had anyone leaving our course without understanding. We are in fact so confident of this that we offer a 100% money back guarantee!
Understanding the Numbers is the 1stof our 7 step process and we spend a lot of time going over it in the course. It’s actually really simple and you’ll pick it up in no time but we need to take you through a process with diagrams and examples that we don’t have the time for here. Having said this, if you want to get a headstart on the course content then if you watch our free training it will start to make more sense.
Detailed Figures – Deal 1 – Hereford Purchase price: £235,000
Deposit: £58,750 Procurement costs: £11,700 (Inc SDLT purchase tax, legals & surveyor etc)
Financing (upon purchase)
Bridging Mortgage : £176,250 (75% LTV)
Bridging loan interest during refurb (@ 1% PCM for 4 months) = £7,050 (Alex sourced this for me)
Build/refurb costs: £65,000
Total initial investment: £318,750
*Post works valuation*
Commercial Valuation: £360,000
New Commercial loan @ 75% of the new improved value: £270,000
Post works Mortgage (£270,000) – Purchase Mortgage (£176,250) = Money left in deal (£48,750)
Monthly Income Calculation
Gross rental income: £3,340
Mortgage: £976.50
Bills: £500
Voids + Maintenance: £334
Letting agent: £334 (Paid to my own agency)
NET RENT PCM £964.50 (£11,574 PA)
ROI: 23.7%
NET RENT PCM incl Agency Fee: £1,298.50
ROI incl Letting Agency fee: 32.0%
Purchase + all costs (refurb, finance, purchase costs etc): £382,968
Revaluation post refurbishment: £400,000
Uplift: £17,032
Net Rental Income after all costs and allowances: £1,699 per month or £20,388 per annum
Detailed Figures – Deal 2 – Hereford
Purchase price: £260,000
Deposit: £65,000
Procurement costs: £13,700 (Inc SDLT)
Initial bridging loan from private investor: £195,000 (75% LTV)
Bridging loan Interest during refurb (@ 1% PCM for 5 months) = £9,750
Build/refurb costs: £92,000
Interest on short term equity funds from investor: £7,518
Total initial investment: £382,968
Commercial Valuation: £400,000
New commercial loan at 85% LTV: £340,000
Money left in deal: £42,968
Gross rental income: £4,100
Mortgage: (£340,000 @ 4.74%) £1,343
Interest paid to equity loan investor on money left in @10%: £358
Bills: £400
Letting agent: £421 (again paid to own agency)
Maintenance & voids: £300
NET RENT PCM £1,278 (£15,336 PA)
ROI: 35.7%
NET RENT PCM incl Agency Fee: £1,699
ROI incl Letting Agency fee: 39.5%