We Fail 90% of the Time and yet we are successful property investors

 

How the heck can that be? I will share with you my and my JV partners secret. We are not afraid to have consistent viewings through out the week and we make many offers. 90% of those offers are rejected…However you just need one good one every now and then. For example, last month we had an offered accepted in Worsely on a large house in which we will have 5 en suites. We exchanged yesterday at 84,000. The cheapest property ( if there were any for sale- which they weren’t) was 115,000. Ok…this is Manchester not London. But the key is we made so many offers in the end of July and August. Most were rejected. On this property…will layout the numbers

Purchase 84,000

Stamp 2520

Legal 1,000

Refurb 5 en suites 50,000

 

total cost approx 137,520

Rent En suite bad day 475- possibly 595

average guess estimate 500 to be on the lowside

Gross rents 2500X12=30,000…however will probably higher

This property will be a Professional HMO that we would look to sell anywhere between 8-10 times income or 12%-16%

Due the math

Cost approx 240,000

Potential sale 320,000….for my family and my JV partners

The only way this is possible is to get out, make many offers, do not get discouraged…surround yourself with the right building team, solicitor, architect and JV partners.