Journey in Property Investing

Newsletter May 2021

Journey So Far

Opportunities are like buses

Firstly we wanted to say thank you for being interested enough in our journey.

We also want to inspire others to start their own journeys so we’ll also be sharing how we do things and what systems or apps we use. As you will probably be aware sustainability is a big part of our why so expect a few bits on how we implement sustainable solutions and what the thought process is behind them.

So in we go!

As the title suggests we’ve been lucky enough to secure one property, had another offer accepted and are talking directly to the owner of a small hotel with development potential. Having had no luck for 12 months we feel like this alone is worth a little celebratory dance… 💃

The property we have secured is a fantastic old Victorian 3 bed mid terrace that we are looking to convert into a super spacious 6/7 bed house of multiple occupation with a cinema room. It has a double basement to be converted with potential to develop into the roof under permitted development as well. Talk about go big or go home, this is a significant project but one that we are more than confident of delivering given our background in construction management. In Dubai nothing is small!!! 🗼

We have already had a few issues with the owners solicitor and our own solicitor being a little slow off the mark. However searches are well under way and we’re looking to have the keys in the coming 1-2 weeks. Our Architect is ready to pounce and we have already engaged the local housing standards officer who has bought into the project early which is obviously amazing news.

The second opportunity came through a cheeky 80k offer we made on a single buy to let property that was on the market for 90k. Eventually the agent said 83k would be accepted!! Now there are still a few bits and pieces that we need to check so we’re organising a second viewing just to make sure we’re on point with the numbers.

The last one is a fantastic Victorian hotel that we think would make a great development project. It’s currently 12 en suite rooms and 2 apartments. There is opportunity to develop into the basement as well as add some rooms in the loft not to mention a substantial plot for future development. If the price is right, we’ll be hoping to secure this one subject to planning permission after which the value would have increased and more finance options would be available.

In the News

Earth Day 2021

This month (April) represents a big month for sustainability as we reflect on how our actions impact the plant. Earth Day fell on the 22nd of April and has been running every year since 1970 (you can read about the history if you’re interested here). If there’s something we can all learn it’s that doing something for the good of the planet no matter how small is better than doing nothing. UK records lowest power grid carbon intensity If this is not grounds for celebration I'm not sure what is. We’re going in the right direction. As a country the UK is still way behind the curve of where they should be but getting there!

Brewdog does Sustainability!

This next one is a good news story from one of Phil’s favorite beer companies (he loves a good punk IPA beer…). Brewdog has released their first sustainability report highlighting their plan and carbon reduction strategy (read the full report here). It is certainly comprehensive in our view and we love the statement they are making. “Making sure that we, and future generations have a planet to brew beer, is the single biggest focus of BrewDog, forever.”

Bill Gates’ “How to Avoid a Climate Disaster”

The last bit of news to note is the release of a new book from Bill Gates “How to Avoid a Climate Disaster”. We’ve just finished reading it (or to be more precise, listened to it) and it does provide a great insight into the scale of the problem we face as the human race!!! 52 billion is the number to think about… This is the amount of Co2 in tons that we need to reduce to zero as soon as possible. Having people like Bill Gates trying to solve these problems is significant, however businesses respond to people, it is individuals that will collectively be able to transform the way businesses react to this climate emergency. Here’s a little video from the man himself

Tips & Tricks

Follow Up

One of the most important things that we have found in the current market is to have a very robust follow up procedure. This is how we have had both of our offers accepted. I can’t remember the stats but it is something like a third of all agreed sales fall through for one reason or another. Just being front and centre of the agents mind is critical (they will not phone you, you have to contact them). For this we use a simple online tool called Asana. It’s simple and easy to use, we plan both the properties and agents in a workflow and it notifies us when to call a particular agent about a particular property. Usually we will follow up on sale progressions every month or 6 weeks.

Know your Investment Area

This seems obvious but it is vital when assessing the different deals that come onto our table. Some people use their experience and knowledge of the area, some use a map and mark up different streets and significant areas directly on the map. There are plenty of paid for tools for this, however we have found the best tool to be Google My Maps. You have so much flexibility to enter all sorts of data very quickly onto the map using spreadsheets. For example we used the HMO register to have all HMO locations plotted on to the map so at the click of an icon we can see details of the actual HMO. Below is an example of our My Map that we have built for our investment area. Start your own Google My Map.

Reviews

We seem to have ingested so much content from some really great sources it’s difficult to filter down to just few however there are some standout ones to talk about.

1. Seaspiracy

Having heard mixed reviews we decided to give it a go!! It was certainly not an easy to watch, motivational documentary. In fact it was tough to come away from it feeling positive about the future of humanity at all. However there are some really pressing issues that were being raised and it was useful to put the plastic pollution into context. We can help but feel some of the communication style in the programme was designed to be controversial. The need to “police” the seas has always been a difficult prospect, however with advances in technology let's hope it won't be long before a satellite system will be put in place to track what happens on our waters. The Canadian government has just announced this as their main strategy to combat illegal fishing in their waters (Link to the announcement)... Let’s hope it is a success so others can follow

2. Climate Champions Podcast - S1 E7 with Harry Paticas

We’ve just started listening to this podcast and this episode really resonated with us. Not only have they come from a background in building and architecture but they are now using their skills as a force for good. In setting up RAFT they are inspiring local children through practical engaging activities on the importance of sustainable retrofit schemes in existing buildings. This is alongside a full retrofit scheme in the schools to transition them into more efficient, healthier places for our younger generation to develop. What an inspiration and we hope more people feel empowered as a result! We’ll certainly be following their journey and initiative.