Jim Haliburton's Top Tips

Cash Flow - I was tempted to make this the only tip, perhaps because when I was writing it I was going through one of my regular cash flow crises, so important is it. Unless you can pay the interest and bills in operating your business then you will go bust. It is essential that you have sufficient reserves to ensure any expected contingency can be met.

Three months running costs and mortgage payments is considered prudent. I am the wrong person to give this advice as if I had three months reserves I would buy more property! By reserves I do not mean cash in the bank, I mean available credit lines, for example, credit cards, bank overdrafts etc.

Preserve your Capital – Once you have done your capital you limit your ability to buy more property to buying below market value (BMV) and you will have to spend out for bridging finance. Preserving your capital does not mean always having to buy BMV though this is a useful strategy. Too many people think they must only buy BMV without considering the alternatives. This often prevents them from buying because they cannot find a BMV property or buying unsuitable properties just because they are BMV. In a rising market all properties bought today will be BMV in a short while. This is a novel way of looking at it. I believe it is better to buy the best type of property and if property is rising at 10% pa which is about the average rate of property inflation, then in three years you will be able to release sufficient capital to start over again. OK, if you only want to buy a property every three years but if you consider I have known people to have spent longer trying to find their first BMV property. To start with this may work out because by the time you have bought, prepared and got to grips with operating your first property the best part of a year will have passed and you will need time to find your next property.

The other alternatives are to buy property to which you can add value by renovating, improving, extending or turn into a HMO and valuing it on income. See my book ‘How to Become a Multimillionaire HMO Landlord’ for more on valuing on yield. www.justdoproperty.co.uk/education/training-courses#jim

Maximise your Credit – Obtain as many credit facilities as you possibly can. Credit cards are amongst the best forms of credit you can have, they cost nothing while they are not being used or to obtain. Many offer low cost or free balance transfers which are useful to use when you need them. The second most useful form of credit are bank overdrafts, again you can get some which cost nothing to open and have an overdraft facility. Of less use but still worth having are credit accounts with suppliers. Do not forget private lenders, people who have surplus cash who are are looking for a better rate of interest than they get from the bank or may be interested in a joint venture.

Always ask for finance – Getting finance is not easy especially if you are buying unusual properties or want to multi let the properties. Attend property shows and events and if a lender or mortgage broker is there talk to them, explain your requirements and see if they can help. I have by chance come across very useful lenders by that means. Do not rely totally on mortgage brokers, they rarely cover the whole market.

Do not expect logical behavior from anyone in the buy to let market e.g. lenders, valuers, regulators, Local Authorities, courts, tenants etc. Just accept what is and get on with it – With lenders I have given up trying to understand them. One lender will be exiting the market but will not tell you so you waste time and money applying for non available finance while two more will be charging in with a shed load of money. Valuers can be difficult . I have strongly disagreed with some valuers over a property values or more often rental income. I have 540 units of accommodation yet I am told I cannot get the rent level I do and have been getting for years!

However, my greatest frustration is reserved for the regulators, Local Authorities and courts for their bias against Landlords for their hypocrisy. They have little excuse the evidence is clear that what they are doing is wrong and reducing the supply of accommodation yet for reasons beyond me, they ignore good sense and create and often zealously enforce counterproductive legislation.

Understand your market then trust your instincts – Once you know what you are doing take very little notice of what others say and just get on with it. There is so much conflicting information out there, you just have to trust yourself to make the right decision. Be very cynical of those giving advice. Ask what do they know about the subject and be even more careful if their advice results in a profit for them. The difficulty with this one is when do you understand the market? The wise are always open to new ideas yet are prepared to stand by their own opinion. Decisions in this business can make or lose substantial sums of money and are not easy to unwind.

A house is like a dog, for life! I have never bought and sold a bad deal and got my money back, never mind at a profit and what I mean by a bad deal is a property I originally bought to let and when it did not let well or had problems, I tried to sell. In fact I end up keeping some as the gradual loss per year was far less than the capital loss from a quick sale and guess what, after a few years the loss making property turned into a nice little earner. Property is like that.

Go for Quality – From experience I usually find the better the accommodation the more rent achieved and the quicker it lets. As a rough guide I would guess estimate money spent on improving my units of accommodation produce at least a 20 to 50% return i.e. the cost of improvement pays for itself in two to five years. New build property always lets better than old but demand and location is crucial.

Avoid Officialdom – Wherever possible keep your properties away from your Local Authority, never give them the address of your property. Most Local Authority Officials will just heap pointless expensive standards upon you and so increase your costs for few tangible benefits.

I, and many other Landlords, can give countless examples of useless and often contradictory changes imposed by Local Authority officials. I wouldn’t mind if they targeted the bad landlords but they rarely do, it is the landlords they know about, normally the better ones who voluntarily come forward they heap pointless standards on while saying they have no manpower to be able to find the bad landlords.

I still do not understand why a tenant will take or stay in a poor quality property when in many areas there is an over supply of rented property.

I am not advocating unsafe or badly maintained property, any professional landlord will ensure their property is sound and safe but the excess standards heaped upon landlord which neither the tenant or the landlord want or need.

Try it and see – Where to buy and what to charge is often down to try it and see. Yes, town centres are usually popular but what about out of the way places? I have tried some odd areas and have been surprised that I have managed to let the property. If demand is good I buy another property in the same area and keep acquiring until demand slows down.

What to charge is neigh on impossible to ascertain. I charge what I guess tenants will pay and if demand is good keeping putting the rent up. In London I have found landlords charging £600pw for studios but they call them ‘Short stay hotels’. Previously they had been charging about £180pw for the same thing. Rents are often determined by what people earn and a rough guide is one third of your tenants take home pay is the maximum you can charge.

What type of tenants you get is down to area, how quickly you want to let and how selective you are. All the professional letting agents will only let to people who can be credit checked and if you do the same then join the queue. If you are prepared to be more flexible then you will have more tenants to choose from and fewer voids but maybe more bad debts but bad debts is more often a product of poor management.

I am not advocating you buy a property and then try it and see but if you already own a property or have bought a property at well below market price then what have you got to lose by seeing if it will let but your overdraft! Consider multi lets, they bring in on average three times the income that a single let does so it often makes the extra effort worth while. Multi letting is not that difficult to do, see my book ‘How to Become a Multimillionaire HMO Landlord’ – www.justdoproperty.co.uk/education/training-courses#jim

The tenant – Treat the tenant with respect, be friendly, give them, within reason, what they want. Regularly ask them if they have any problems with the property and be prompt in getting the problems fixed and check it has been done.

Do not believe a tenant’s excuse for non- payment of the rent, it is almost always a lie or they do not intend to pay, take immediate action.

Do not expect anything in return and you will not be disappointed. Try and become detached and philosophical. The injustices and crap that landlords have to put up with can screw you up, just be grateful the tenant pays their rent.

If you would like to ask Jim a question click here

On Tuesday I was very pleased to be presenting at the march Peterborough Property Investors Group (www.petpig.org), having been invited by Yvonne Emery (www.yvonneemerycoaching.co.uk) and John McKay (http://www.greatbizop.co.uk/) .

I had been asked to come along and provide a walkthrough of www.justdoproperty.co.uk so that the members of the group would get an overview of what we have available and how they can use the site. The evening was superb and the members of the group very friendly and welcoming, it was nice to have such a positive response and very useful feedback.

In preparation for the evening I also produced a YouTube video covering my presentation so you can take a look for yourself:

N.B: There is a quick intro to the site here if you are short on time: http://www.youtube.com/watch?v=hJh3rjncxCM

Also presenting were Yvonne Emery who gave a great overview of Property Options (see Mark Jackson’s blog for an overview of options), and Charlie Robinson from www.dpsp.co.uk.

Charlie Robinson – Debt and Property Scheme Plus (DPSP)

Charlie’s presentation was enlightening. Like most people I have seen the various debt management companies advertising on the television and the press, but it was great to hear how DPSP is different. Their ethos seems to be firmly on putting the client’s needs first with an aim to get their client debt free within 12 months – something it seems other companies do not.

DPSP has some great tools and services that can really help both the investor and their clients. An example she walked through was very similar to one we had last year. The discount was good and the vendor was very happy with the offer. However it turned out that there were secured loans not declared which meant the deal just did not stack up.

If we had known about DPSP then! Charlie’s example showed that they could have helped the client, who was getting repossessed, in ways to manage or mitigate that debt to their best interests. The end effect would have also made the deal work out. So a win win for the investor and client.

The remainder of Charlie’s presentation was extremely interesting and enlightening and showed how DPSP can:

• help you as an investor if you are in debt
• help your clients if they are in debt
• allow you to offer a service others don’t, by using DPSP as a part of your own company, therefore stand out and maximise your leads
• claim back money from numerous loans/mortgages that you have had due to mis-selling, mis-administration or mis-calculation.

DPSP offer a FREE financial review to everyone via their website: www.dpsp.co.uk

Maria Davies - Island Destinations for Investments

There’s a saying that goes “Where there’s water, there’s wealth” which is why I am a great fan of island destinations for investment purposes. You immediately have the supply/demand issue on your side as there’s a limit to the amount of land available for building. Due to the geographical layout of some islands, the available building land could be in even shorter supply.

One place where there’s plenty of water and plenty of islands is the Caribbean. Visitors who’ve been before will have their favourite amongst the islands and many are stunningly beautiful. Of course, when we’re looking at the best place for investment, there are many other things to consider including:

• Ease of reaching the destination: Given that most tourists will travel from the US and Europe, how easy is it for travellers to reach the location and are there direct flights?
• Standard of available accommodations: Tourists with money (the type we, as investors, hope to attract to our investment property) expect a high standard of accommodation on holiday, particularly when booking for a location that’s billed as a luxury destination
• Variety of activities: It stands to reason that the more a destination can offer, the more there will be something for everyone
• Political environment: The last thing you want is to own investment property in an area where the locals might stage a coup at any moment or where political events could conspire to wipe out your investment (I always avoided a purchase in Northern Cyprus for exactly this reason, even though the North is prettier than the south, where I own property)
• Safety issues/Crime: How safe is the location for tourists? Crime and poverty go hand-in-hand. Add into this mix luxury hotels and wealthy tourists and you can guess the outcome
• Environmental considerations: Is the weather an attraction? Are there downsides to this such as a short tourism season or dangers such as hurricanes?
• Finance Issues: How do prices compare with similar destinations? What rental returns can you expect? What are the average occupancy rates? Does your chosen location/resort/property have what it takes to beat the average?

Once we have our checklist, we can start evaluating, but even after deciding to look at the Caribbean, which of the many beautiful islands do we then select?

One island that certainly ticks all the boxes for me is romantic St Lucia, described in brochure terms as “a luxuriant tropical island indented with sandy coves exploding out of the surrounding crystalline waters in a volcanic heap.” I couldn’t have said it better myself.

Not only is the island small (remember supply & demand) at just 27 miles x 14 miles, it is volcanic and mountainous with National Rainforest that is protected by the Government covering more than one-tenth of the landmass. The island is distinctive amongst Caribbean islands as it is home to the Pitons, arguably the Caribbean’s most distinctive landmarks.

Ease of Travel

Several major airlines have direct flights to St Lucia’s international airport on the southern tip of the island, with the number of flights increasing gradually. We all know that airlines don’t plan to fly empty planes so we can piggy-back on the research the major airlines have carried out that tells them it’s worthwhile increasing flights.

In addition, St Lucia welcomes many cruise ship visitors. Indeed, it would be unthinkable to cruise the Caribbean and miss out St Lucia. Whilst this doesn’t necessarily help us to fill our investment rental property, it does confirm the island’s pulling power. As a regular cruiser myself, I’m well aware that we will always aim to return for a “proper” holiday to the destinations we find the most enchanting.

Standard of Accommodations

Standards are high in order to meet the high expectations of tourists, many of whom visit to marry or are on honeymoon but there is variety in both type and price of accommodation. This avoids the snobbery factor that exists on some other islands where gated resorts are the order of the day breeding resentment amongst locals.

Variety of Activities

There really is “something for everyone.” I’m not just talking about the usual water sport activities, although there is that, including fabulous diving. The rainforest offers wonders for nature lovers who can walk, trek on horseback and even take an aerial trip through the branches!

St Lucia’s wildlife is a big attraction, particularly whale, turtle and bird watching and many visit just to catch sight of the world famous St Lucia parrot.

Due to St Lucia’s rich history – the island was fought over by the French and the British for many years – there’s plenty to see in the way of architecture and militia, plantations and fishing villages.

Stable Political Environment

There are no worries from St Lucia on this score. I’ve met several officials from St Lucia, including the Prime Minister. They all appreciate the importance of tourism to the island, coupled with the need to avoid the dangers of over-build which would upset the ecosystem of the compact island.

The island has an efficient legal system based on British common law with an independent judiciary conducting fair public trials. The government implements penalties for corruption through the judicial system which is generally considered to run efficienctly.

St Lucia is ranked as the 25th most free economy in the world in 2010 and scores above the world average in seven economic freedoms including business freedom, freedom from corruption, and monetary freedom. The entrepreneurial environment is efficient and transparent, and efforts to eliminate price controls have encouraged economic growth. The financial sector has generally weathered the global financial crisis.

Safety

St Lucian children enjoy free and compulsory education between the ages of 5 & 15, so literacy is very common. The island also has a university. Generally, the standard of living is good and people tend to be content. Tourists are welcomed and treated respectfully. The World Bank’s tip to buy here has been, in large part, due to St Lucia’s low crime rate.

Environmental Considerations

The island was severely affected by Hurricane Allen in 1980, which caused tourism to drop, but St Lucia has generally had fewer hurricanes than most other Caribbean islands.

Being such a lush island is as a result of rainfall and there is a rainy season from end of May to November. However, it’s certainly not a constant downpour and there’s actually little variation in temperatures throughout the year.

Events are organized to increase visitors during these months, for example, there is a world famous Jazz Festival in May and the carnival in June and July.

Finance – Purchase & Rental Figures

St Lucia has a high probability of price appreciation over the next ten years as prices are currently 40%-60% below those of Barbados although the island has many of the same advantages as Barbados, without the traffic jams (and without Simon Cowell!).

The World Bank has placed St Lucia in the top 30 countries in the world in which to invest. St Lucia is the only Caricom country to make the top 30, beating both Barbados and Antigua.

Add to all this an average 8-9 hours of sunshine every day and it’s easy to see why St Lucia has been a luxury holiday destination for decades which means you’re buying into an already established market. There’s no need for you to buy and pray that your destination will be marketed well in order to create a demand. There’s already a demand and it’s going nowhere.

The individual figures will be specific to whatever investment you select and this is where your further research comes in. The key, now, is to select the right location and to buy at the right time, and this depends upon what you’re looking for in terms of return.

If St Lucia sounds like a destination you’d like to include in your portfolio, as I have done, below are two potential opportunities for you.

Are you looking for long-term income with personal holiday usage or do you want a fixed lump sum return with a closed exit period? Currently, I’m dealing with both. If you’d like to know more about either opportunity, just click the appropriate link below and I’ll get more information to you.

Opportunity 1: Fixed Lump Sum Return

This is where you invest in a fund with a guaranteed bank coupon. Your investment is made purely for the large returns as the plots will be sold to end users who wish to have the luxury villas built by the developer. Features are:

• GUARANTEED 8% per annum return on investment PLUS 50% of net profits from sale and development of the villas:
• Secured against prime beachfront resort land within World Heritage Site;
• Full planning permission for the construction of a 4,575 sq ft four-bedroom luxury villa. Closed end fund with 3 year exit strategy;
• Total projected returns at 175% of equity invested from development and sale of land and coupon;
• Iconic luxury development adjoining proposed 5 star resort;
• Custodian services by Jersey Trust;
• Listing on Channel Islands stock exchange;
• Tax efficient structure through Jersey and BVI;
• Fund audited by Grant Thornton;
• Minimum investment from US$25,000;
• Suitable for SIPP investment.

Opportunity 2 : Ongoing Rental Returns

Here, you choose to invest primarily for rental income, although great capital appreciation is also expected. Features:

• Prices genuinely 40-50%+ below comparable resort properties
• 100% finance available with a reservation fee of only £1,000 which is fully refundable if you (or we) are unable to raise you the necessary finance
• Prestigious, big name golf resort;
• 5 star fully managed, meaning hands off investment for you;
• 10% to 20% annual returns on completion;
• Suitable for SIPP investment.

Email maria@justdoproperty.co.uk for more information about the 2 opportunities.

If you would like to ask Maria a question click here

Mark Jackson's Top Tips

1. Have the right attitude – and keep it:

Develop a successful attitude by actively creating a positive mindset, working on your self-control, becoming more disciplined, focused, and by learning from your mistakes. Crowd out weeds of doubt and inactivity with action and expectant belief.  Cultivate the mind and create an orchard. You can do this by reading both property investment related books and self-development books like Feel the Fear and Do it Anyway and Eat That Frog!. Be sure to put some time aside for yourself every day – just thirty minutes is a good start – and focus on what you want to achieve and how you are achieving it. Write your goals down and put them where you can see them. The time I give myself every day acts like a keel which keeps the yacht stable when the sea swells get rough.

2. Network for success:

A sponge absorbs whatever surrounds it. When you associate with like-minded people your growth and progress skyrockets.  Embers glow and warm only when they are together, take one away and it soon cools and dies. Simon Zutshi’s PIN networking events are the biggest in the UK and offer you a chance to learn from speakers’ presentations as well as meet people you will connect with.  Is it wise to take the person sitting next to you on as your mentor if they’re just starting out in property investing? Perhaps not, but meeting such people is powerful, enriching and through networking you can grow together and share your learning.

3. Learn from the experts:

If you want to be successful then get the right training!  This is true for any field, not just property investment. Learn from the best by spending time with somebody who is a specialist in your chosen field, even shadowing them as they go about their daily business. You will also learn much faster through experience when you’re associating and joint venturing with somebody who is already successful. Consider getting a coach who will be able to answer all your questions, or investing in a good course.  Always ensure your mentor is an investor who is actually doing deals in the UK and not just teaching theory.

4. Take it one step at a time:

This might sound like a contradiction to my earlier point, but be careful where you spend your money. It’s tempting to spend thousands of pounds on courses and seminars (and there are many people who would happily relieve you of your hard earned cash) which could be better spent investing in property. Many courses give information that is too advanced for a beginner investor’s needs, so be selective.  Cool your engines and do one course at a time, implementing what you learn and only allowing yourself further learning when you start making money from the new skills and techniques already gained. Make sure the presenter has a track record of successful deals, as well as being a great teacher.

5. Enjoy the journey:

You will make mistakes, everybody does. An expert is someone who has made all the mistakes in a narrow field.  Learn to laugh about them, to know that it is acceptable to make mistakes – that’s how we learn.  Just enjoy the amazing journey that is property investment! Isn’t that, after all, what this is all about?

If you would like to ask Mark a question click here

Martin Roberts

The intention for properties that are being put up for auction is that they are sold on the day of the auction. That’s one of the great things about buying (or selling) a property at auction – there’s no long, drawn out sales process – instead the property is sold to the person offering the highest bid on the day.

However, not all properties are sold in this way – and it is very common that during an auction where any number of properties may be up for grabs that a percentage of them do not get sold. There are a number of different reasons for this:

1. The property is withdrawn from the auction after the catalogue has been printed (there could be any number of reasons for this including the vendor accepting a pre-auction offer – see below)

2. The bidding on a property doesn’t reach its reserve price. This is a limit set by the vendor to say what is the absolute minimum amount that he would sell the property for. The auctioneer is unable to sell the property for less than the Reserve Price, irrespective of the level of interest and number of bids.

If you have set your sights on a property that is destined for the auction, then the most obvious thing to do is to go along to the auction itself and bid on it. However, you may also want to consider other ways to buy.

Pre-auction offers

On the basis that you do want to buy the property, you may want to see if the vendor will accept a pre-auction offer from you. This would mean you putting in an offer on the property, just like you would if the property were advertised for sale through an Estate Agent in the conventional way. The vendor will be able to consider your offer and if he decides to accept it, you would proceed with the purchase and sale just as if you had placed the highest bid at the auction i.e. you will still need to complete within the normal 28 days. The result would be that the property would be withdrawn from the Auction itself.

Be aware, however, that many vendors will not want to go down this route – and the closer you are to the auction day, the greater the chances of them  preferring to wait and see what happens at auction – and who can blame them? If there is more than one person interested in the property, they stand the chance of the property being subject to a bidding war and achieving a far higher price than the guide price. Of course, it could go the other way and you could end up paying more than you would if you attended the auction. It’s a gamble.

Whether or not a vendor will accept a pre-auction offer depend very much on their situation and circumstances. Local authorities, housing associations, mortgage lenders and other government bodies won’t accept pre-auction offers. Neither will certain individuals or businesses by receivers or trustees. They are usually bound to demonstrate that they are aiming to achieve the highest possible price in a fair and open way – and taking the property to auction allows them to do this.

You are more likely to have a pre-auction offer accepted if the vendor is a private individual, a small to medium sized landlord or a small developer.

Post-auction offers

If a property does not sell at the auction, it is worth approaching the auctioneer directly afterwards to make an offer. If the seller is an individual in the room and the property failed to reach the reserve price, the vendor will have had their expectations of the property’s value re-adjusted. They may now be more open to accept a lower offer. Alternatively, if there are properties that do not sell that you haven’t particularly researched, you could ask for a list of unsold lots from the auctioneer and then carry out the necessary checks and put in an offer a few days later. Once again, the vendor will be in weaker position following the auction and may be more receptive to your approach.

Be aware that like Pre-Auction offers, if your offer is accepted you would be expected to proceed with the sale as if you had placed the winning bid i.e. you would need to pay the deposit immediately and complete within the normal 28 days.

If you would like to ask Martin a question click here

The RICS Housing Market Survey (aka House Price Balance) announced today was down 14% from January’s survey, but “the net price balance remains comfortably in positive territory” at 17%.

In plain English this means that 17% of surveyors responding to the survey reported increasing rather than declining prices

January had reported a fall in interest in the housing market and the February survey shows a return:

“There was a resumption of interest in the housing market following the fall that took place in January, which was due partly to the extreme weather conditions during that month and the reversion back to the previous stamp duty regime,” said Rics spokesman Jeremy Leaf.

New instructions were considerably higher at 15% as opposed -5% in January, and new buyer enquiries also rose to 7% (from -20%). Although this increase has yet to be translated into actual transactions, it is likely therefore that an increase in supply will slow the overall house price increase seen in 2009.

“The magnitude of the gains going forward is likely to continue to ease, reflecting the fact that new supply coming on to the market is starting to outstrip fresh demand.”

“Activity is expected to rise over the coming months after the recent lull with surveyors also anticipating that prices will continue to edge upwards,” said Mr Leaf.

For more information visit: news.bbc.co.uk/1/hi/business/8555681.stm or www.rics.org/site/download_feed.aspx?fileID=6068&fileExtension=PDF (pdf file)

Yvonne Emery

How to choose the right investment strategy for YOU.

Let’s get right down to business this time and make some constructive decisions.  Lots of questions, but what comes out of this is a way forward that you know you will take.

This month we are going to explore how you can choose a strategy that works for you and make it happen.

What are you trying to achieve?

• Enough income to replace your current income
• An extra £1,000 per month would be great
• Cash-flow of £200 gross from each property
• Cash-flow of £500 plus from each property
• Easy property that doesn’t need any work
• Property that needs general tidy up
• Property that needs complete renovation – kitchen, bathroom etc.
• Pension replacement income
• A different lifestyle – income to allow you a few luxuries
• The option to retire early

You’ll think of many more, and I’m asking so that you will then have a solid reason for making the investments, and have a clearer view of the type of property that will help you achieve this.

If you were going to make a difference to your life over the next 6 to 12 months what would help you do that?  Would an extra £1,000 per month on top of your wages help?  Perhaps it doesn’t matter about the income, as long as you change your job.  Do the kids want to pursue expensive hobbies which cost £100 per month, or more?  Would you like to be able to fund that Gym membership?

Why are you trying to achieve this?

If you can’t answer this simple question – ‘why?’ then the goal is probably not motivating enough for you.  The main reason we don’t ‘Just Do It’ is that we are not challenged or interested enough in what we are trying to achieve.  We constantly try to block our own progress either because of a fear of failure or a fear of success.  Yes, would you believe that a significant proportion of us stop that success subconsciously.

What is your financial situation? – be honest with yourself.

• Significant equity in your own home
• No equity in your own home
• Savings of £50k or more
• Savings – max £20k
• Somewhere in between
• Absolutely no money to invest
• Able to get a mortgage based on income over £25k
• Self-certificated income so mortgage is more of a challenge
• No savings, no possibility of a mortgage

The biggest difference for people in the strategy they choose to pursue is their current financial situation.  Whichever situation you are in then you will need other people to help you and finding them can be your greatest achievement to date.

Time and Experience

• Are you time rich and cash poor?
• Are you cash rich and time poor?
• Do you have lots of experience?
• Are you just starting out?
• Are you working full time?
• How flexible is your working week?
• Are you able to keep an eye on the deal provider’s messages?
• Do you know how to do the due diligence quickly?

Have you been investing in property for years and now you’ve run out of funds, or are you just starting out and need other people’s trained eye to find you the property you require?

Find people you can team up with, even if it’s to encourage you to keep going.  You will find all the knowledge you need on this site and there are many others to look at if you are researching a particular strategy.

If you don’t know, or you don’t have time – find someone who does.

We’re not very good at delegating generally, but the better you can get at this then the more you will be able to leverage other people’s time, experience and money (and we’re all after ways to use other people’s money).

Personality

Personality plays a big factor in the way we choose to invest and even the way we dream our goals.  You need to get familiar with your own personality, make friends with it and realise your strengths and limitations.

Come and hear me speak at one of the networking events to find out more specifically about your personality and how it affects the way you choose to invest. www.YvonneEmeryCoaching.co.uk/events

The more reserved you are the more likely you are to choose an anonymous way of investing – getting others to do the deal making and negotiating with motivated sellers.  This might cost more money but will save you the stress of following up leads generated by flyers.  You might be enticed by the easiness of communicating by flyer and web advertising, but you will find yourself hesitating because you have no way of dealing with the calls this might generate.

Those who have more extrovert personalities, will be great at having the conversation with the motivated seller, putting them at ease and building rapport, but you might struggle with the dedication required for leafleting your area.  You might also be happy to chat but worry about having enough information to be able to explain the detail to the seller.

In reality we all need other people to have input into our system, whichever we choose, so that we can use our skills to best advantage and fill the gaps with other people’s input.

What are the strategies that suit you?

• Buying deals provided by Below Market Value sourcing companies
• Leafleting to find your own leads for distressed/motivated sellers
• Picking one area and one type of property and repeating a system
• Buying deals across the UK as long as the cash-flow is good
• Buy, renovate and sell (works best in a growing market)
• Buy low and re-mortgage to release the cash
• Buy no money down
• Purchase Options, Lease Options, Sandwich Options (no mortgage required)
• Joint ventures

You can find information on all of these on the mentor sections of Just Do Property.

Most people wouldn’t get out of bed for an extra £200 per month.

Remember that for each property that cash-flows at £200 per month, that’s £2,400 per annum and £24,000 over 10 years.

£200 is not just for Christmas, but it’s for the rest of your life.

When will you start?

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Yvonne

If you would like to discuss personal coaching/mentoring with Yvonne then as a Just Do It member you can get 20% off.  Phone Yvonne: 0845 094 6628 she can help you leap over your barriers.

If you would like to ask Yvonne a question click here

Causes of Dampness

Dampness in a property is one of the main causes of rapid deterioration and all efforts must be made to find the cause or causes of the dampness and eliminating it. For the residents of a damp house, all kinds of health problems will arise, as well as the massive expense if left for too long.

One broken roof tile costing a pound or two, if left unattended over several seasons will cause hundred of pounds worth of damage to walls and ceilings.

There are five main ways in which a property may become damp. The following are the main causes.

• Leaking roof or gutters
• Rising Dampness from the ground
• Porous Brickwork or Stonework
• Internal leaks in the plumbing system
• Local flooding

Leaking Roof or Gutters

Tell tale signs within the building will be damp patches or areas of mould on upstairs ceilings or walls. If a gutter is blocked with leaves or moss, for example, the water will overflow down the external walls. If the walls are porous, the water will penetrate the wall.

An external visual inspection will show if any slates or roof tiles are broken or missing. In some cases the ridge tiles may have broken or blown off in a gale leaving it wide open for rain to enter.

An internal inspection of the roof is necessary, if it can be arranged. There is usually a trap door leading to the roof space, and a detailed inspection should be carried out. Check if there are any places where the daylight is showing through. If daylight can get through, so can rain. A careful diagram should be made so the holes can be related to the exterior and to identify broken slates or tiles.

Flashing (the sealing around a chimney stack or roof light) can be defective. Originally it would have been lead sheet, or for cheaper constructions, possibly zinc sheets.

Often a fillet of cement is used to make the joint between the roof slates or tiles and the chimney brickwork. This cracks within a short time and allows damp penetration.

If there are any doubts about the soundness of the gutters and down pipes, I strongly suggest that they are all replaced. The cost is inexpensive and trying to repair old gutters and down pipes is a pointless and futile exercise.

Rising Dampness

There are several causes of dampness rising from the ground.

One of the commonest is where the property has a wooden floor suspended on joists. There should be good air circulation under the floor by means of airbricks or gratings. These allow a flow of air through the under floor space. Upon inspection, one finds that the airbricks have become blocked with dirt. Even worse in some cases, garden soil is heaped up against them.

Without this air circulation, condensation and moisture from the ground will quickly affect the property. In older properties particularly, there may be no over-site concrete, i.e. concrete covering the bare earth under the floors.

This rising damp causes patches of discolouration to appear at low level on the ground floor walls and if untreated will cause the plaster to decay, and the ends of the floor joists to rot. The skirting boards will show signs of wet rot and start to decay if the dampness is not controlled.

In addition, the damp proof course (usually shortened to DPC) may be ineffective. In older buildings those of cheaper construction often relied on the density of the bricks at ground level to act as a moisture resistant barrier or damp proof course. In better building construction a slate course was built in at ground floor joist level.

A bad case of rising damp

Technical stuff: According to Building Regulations, the DPC should be installed at 150mm (6 inches) above the outside ground level. If the floor is a suspended wooden floor, the bottom of the joists should be laid on this. The DPC must cover the full width of the masonry leaf and project 5 mm beyond any external face.

More recently, bituminous felt was used as a damp proof course. The bituminous felt often deteriorated and allowed moisture to pass upwards into the upper wall.

This is known as ‘bridging’ of the damp course.

The remedy here is to install a new damp course along the area that is affected by rising damp and is fully discussed in detail later in the course.

The present method is to use heavy quality polythene strip.

Porous Brickwork or Stonework

Brick or stone walls can deteriorate over the years and brick particularly can become porous. Added to this, the cement between the bricks, the pointing, can decay and even fall out, allowing dampness from driving rain to enter the building. Creepers such as ivy may be present and the roots may open the brickwork sufficiently to allow water ingress.

An inspection should be made of the condition of the brickwork and of the pointing, particularly if there are otherwise unexplained wet patches on the walls. Defective chimneystacks are notorious for allowing damp to enter the building. Damp patches can appear on the wall above the fireplace. Because of the difficulty of accessing chimneystacks, the pointing is often neglected until the problem has become serious.

Leaks in the plumbing system

Upstairs bathrooms can become defective and a minor leak in a waste pipe for instance can, over time, develop a substantial amount of dampness. This is often not noticed until it becomes serious.

Careful investigation is the only answer for tracing these causes of dampness.

A bad case of mould caused by porous walls. It can be treated fairly easily, but is a danger to health if untreated

Local Flooding

The cause of the flooding is usually generally easy to discover, but it is important to make sure that everything has been dried out thoroughly after a flood. Both wet and dry rot can be started by saturation of a floor or wall.

An idyllic spot near to a brook, but this brook can become a raging torrent at certain times of the year and the cottages on the right are flooded.

Therefore dampness should be tackled as soon as it appears, the longer it is left the more expensive will be the remedies.

If you would like to ask Dennis a question click here

I must admit the map on screen is really difficult to look at, and at the moment it’s a bit scary as I don’t really know what I’m doing!! However I’m working my way through module 1 now. 

There are accompanying videos with module 1.  Just beware as I’ve had to watch them in windows media player and not quick time that it recommended.  It took me a while as I had to call in the help of my husband, Alec, who’s a technical whiz!  But that’s all sorted and I can watch the videos now.  I’m sure it’ll be easy for most people to watch the videos.

I went on to watch the Google Earth video and Lyndon was pointing out all the possible development sites in his area, which is West Houghton in Bolton.  There’s only 25,000 people live there, but so many land buying opportunities!  It’s very exciting to see all the possibilities in such a small area.

I called in to Lyndon’s fortnightly teleconference, where you can ask him whatever questions you like about Land Finding. I must admit this course is amazing value when you get support like that.

Out and about today with my 2 young children and I spotted a couple of sites that could be possibilities.  It’s exciting as I’ve not even completed module 1 and I only have a small amount of knowledge but it opens your mind to know a bit more about what you’re looking for.

I think I’m hooked!

Click on the link below for Lyndon’s excellent 60+ page free Land Finding report.

Land Finder Free Report

The Bank of England (BoE) decides to keep the Interest Rate at 0.5% and maintain the size of the asset puchase programme (Quantitative Easing).

Both moves where widely expected by financial analysts and the media.

The rate dropped down to the record low of 0.5% almost exactly 1 year ago on 5 March 2009 along with the introduction of the aset purchase scheme which was subsequently increased in value.

The minutes of the meeting will be published at 9.30am on Wednesday 17 March.

For more details view: http://www.bankofengland.co.uk/publications/news/2010/022.htm