Andreas Panayiotou was one of the more prominent buy to let legends. He made his money by purchasing redundant buildings and converting into flats. At one point prior to the 2007 crash he had over 8000 units. I always look to learn and model our business after successful investors.
I have read extensively on Andreas Panayiotou. I wanted to share what I have learned and what I share with my JV partners and colleagues.
1. Under leverage and be always diligent.
2. LTV not more than 50-55%.
3. Look to create value on a property. This could be adding a loft, changing use from commercial to residential or even knocking down and rebuild a higher density ( building flats)
4. Look for consistent returns minimal of 10-12%
5. Capital Appreciation is a gift- It is not what makes the deal
6. Plan for higher interest rates- They will go up at some point and as in 1994 they spiked.
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