Wealth Building with UK Residential Properties

Wealth Building with UK Residential Properties

There are those with egos that think bigger is better. However I want to share my personal journey. Actually it is a marathon of challenges as well as a wealth building strategy. This real estate wealth building strategy resolves around mostly small moderate priced residential real estate via family lets & HMO properties.

I contributed to my family’s wealth via residential real estate in the following ways. None of them were rocket science…but simply overcoming consistent issues….being focused and not giving up…keeping leverage very low if at all.

1. I owned a bridging company in which we lent funds on moderate residential real estate. I used our own family money plus JVd with various high net worth individuals in order to grow the business. This was a very basic and simple approach. We were not a big company with employees…just me…an internet connection…2 inspectors..and a tremendous amount of drive doing almost 30 million a year in loans.
2. I rehabbed moderate priced residential properties. They were done to a high standard and sold off.
3. I rehabbed moderate priced residential properties and kept them for rental income.
4. I JVd with my investors on projects in which I needed their knowledge or money to do.

Again all of these strategies can be done anywhere in the UK. No major education…common sense…learning about costs of refurbishment….buying under valued. …using low leverage…if at all…learning about planning permission….building regs….and permitted development.

All processes were systematized in these residential properties. It might sound trite…but it was real and did not encompass rocket science knowledge. Now I read about so many new strategies. Many times…less is more. You do not have to reinvent the wheel.

I have added to my list of how to create wealth via HMO properties. We did not have these in the US. I get a greater return than simply renting to a family. There are pundits who state that HMOs are a thing of the past and too much competition. I beg to differ as our Social Housing HMOs are and have been 100% occupied without any issues for years. Tenants prefer to live in HMOs in which the owner does not live in the property. Most of our competitors in the area, look to provide inferior quality & furnishings. Our Professional HMOs we do them to a high standard, thus the tenants want to rent & stay. The concept of an en suite is synonymous to a mini studio. This gives them their privacy and they stay longer. We do not charge the lowest…actually we are quite high but we provide value for our tenants. More so, part of our strategy is to sell some of these HMO properties in order to buy more and not have to jump through the banks hoops.

I have been a full-time investor for 22 years. I’ve flipped properties, rented them, financed them, and everything in between. While all of the real estate tools I’ve used are helpful, my favorite wealth-builder is still the small, simple, residential rental property.

Always the question…How do I start? I am not a guru…but again…Not rocket science…

Live frugally whilst earning money with your day jobs so that you can save as much cash as possible for buying investment property. Go to Pin meetings. Read and get educated. Believe you can and surround yourself with people who have.