148: Andy Abraham was an active property investor in the USA until a few years before the recession struck. Now he’s back, investing in HMOs in UK as well as growing his single let portfolio.
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Andy has been involved in the property world for almost 20 years now, first in the US through both the bridging company he owned and the development projects he ran including new build houses, apartment blocks, commercial units and affordable housing.
He brought all of this to a close in 2006, but since moving to Manchester he has started to get involved again and as well as growing his single let portfolio, he’s now focussing most of his time on HMOs for both professional and social housing markets.
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Investing Strategies
At a high level, Andy is an HMO property investor (based in Israel, but investing across Manchester). What his typical model involves though is buying below market value deals, using his team and his systems to convert them into high quality boutique HMOs, then selling most of them on to 3rd part investors.
He has around 8-10 projects on the go at any time, has managing agents in place to look after his clients long into the future, and sells them at an average of a 14% gross yield.
This approach allows him to invest in and retain more social housing in his own portfolio. These include homes for ex-offenders, women facing domestic abuse, people with disabilities and so on. He hands them across to local authorities who offer a 5 year guarantee on rents as well as taking care of maintenance and upkeep, which results in around a 9% net yield.
Managing Investments from Overseas
Andy has surrounded himself with a number of key people enabling him to keep growing his business and delivering an increasing number of properties for his investors, whilst spending much of the year between Israel and the USA.
He relies on a building team, local letting agents, and on-the-ground JV partners to keep things on track, and along with his wife he makes regular trips to Manchester to ensure things are progressing as well as they’re being reported and to continue to develop those relationships.
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