We have covered in the past an interview with Fergus Wilson the King of buy-to-let giving his tips on how to turn a few buy-to-lets into a vast lettings empire.
Paragon Mortgages reported recently in their quarterly survey that 21% of landlords were planning to buy more buy-to-let properties indicating a decided appetite for landlords to increase their portfolio size.
So you still want to build a buy-to-let empire. What are the secrets? Firstly have a look at the 3 pillars of buy-to-let. You need to get organised if you are looking at scaling up your lettings business so have a look at our FREE property management software. But above everything else in the current climate it's access to finance that is going to enable you to expand and grow your property empire. Without the finance landlords can't do the deals to make their lettings business grow. Property Hawk Mortgages has been set up especially to target the needs of landlords and buy-to-let landlords. So why not register to day and start talking to real buy-to-let finance experts to make your buy-to-let empire become a reality.
Finally one other thing. To build a portfolio you will need patience. Rome wasn't built in a day and neither will your buy-to-let empire be. Good luck and happy investing.
Property Hawk Mortgages - investing expertise
What a misleading article. Nothing about how to actually build said empire, eg via refurb and remortgage or new build etc...
ReplyDeleteNot only misleading, but not really true.
ReplyDeleteI am INCREDIBLY disorganised and have downloaded your property management software, but never used it.
Yet I have a property empire such that I will never in my lifetime spend all the equity I've built up.
I agree that you need access to finance, although to purchase my first 3 properties I worked all the hours there are and paid cash.
The essential ingredient to me is to be PASSIONATE in what you do.You need to spend time watching the market so that when a bargain comes up you recognise the potential and snap it up before anyone else. It's no good following other people's success - you're just left with the crumbs.
The fact that I have houses with no mortgage means I can instantly buy the unmortgageable bargains by getting finance on the decent houses I already have. This gives me another edge and makes me essentially a cash buyer.
But probably the greatest key to success is that generally you'll get 50% more return on 2 small houses than one big one. So many people go for prestigious properties and that's not where the money is. You get less return on them and when you want to sell them they take more selling as they are out of the realm of the first time buyer.
Following on from that I agree with the 2 smaller properties creating more rental. Also with recent benefit changes the DHSS brigade are facing difficulties even looking at properties never mind aquiring them.
ReplyDeleteSo buying property in less desirable areas at low prices and letting to those who have nowhere to go does pay off. I would however recommend getting a guarantor now with this type of tenant.
The second point about building up equity that you could never spend in a lifetime is true. Most landlords do not have an exit strategy and Ive found myself disposing of property with carefull consideration to falling income on rents coupled with possible capital gains in an equation that means I get rid of tenants I would like to keep in favour of saving tax.
Some very useful comments. I'm not sure that those investing in prime central London property where values and rents have soared. According to Acadametrics House Price Index they are up over 40% in some London Boroughs over the last 5 years would necessarily agree that buying cheap property is the best housing investment strategy. What this fact does highlight is that there is more than one route to building a property empire and I would agree that 'passion' for achieving your goal is probably the most important single aspect.
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