How to Start Property Business in UK

GG – Are you unsure of where and how to build a property business? As a brand new property investor, I’ve been researching and learning for over two years to really understand the  world of property investing. 

The power of property investing only truly hit me when I bought my own the first residential flat which is in east London. 

Now rents in east London for a room can be around a thousand pound a month and all of a sudden after making an extra 12 000 pound a year through rental income and then also benefiting from the capital appreciation on the entire mortgage. 

that’s when I really started to understand and realize the power and potential that property has and what I’m sharing with you today is the kind of article

I wish I watched it when I was first starting out if you’re new here my name’s matt I work for a bank by the day I invest in property on the side and I simplify insights on property productivity and tech if you haven’t already please consider subscribing to the channel for loads more articles on property and don’t forget to hit the like button my property goals focus on three different phases now ultimately.

I would love to get into HMOs and also a mixture of development projects as well whether that’s from scratch or commercial conversions but the reality is to get the best mortgage rates you need experience because lenders look at risk and credit risk scoring so the more risk that you can mitigate by saying yes I’ve got this experience here I’ve got that experience there that will unlock better mortgage rates and better loan to value mortgages for you and your business.

so what I need to do first is focus on flips to then get access to development finance later down the line and I also need to buy to let experience to get better hmo mortgages therefore for me, phase one is all about flips to build my capital and then keeping some buy to lets which then opens up my potential in terms of HMO mortgages.

when it comes down to it there are two ways to start a property business the first is the part-timer who might have one or two buy-to-let properties and they want to keep it for 30 40 years and then reap the benefits of that when they’re ready to retire the second is somebody who wants to create a fulfilling and successful.

Property business with a focus on cash flow to replace their normal day job and then focus on building capital through development projects or expanding their portfolios wider. 

so i’ve put together eight crucial things that you should consider when starting a brand new property business the first before deciding anything is actually sitting down and understanding what are your long-term goals and what do you want out of a property business.

 if you’ve got a fulfilling career or a business that you already own that takes up a lot of your time then building a full-time property business might not be the top of your priority list whereas on the other hand you might want to quit your normal day job and actually build a full-time property business.

therefore you need to focus on bigger strategies and building up cash flow and building up capital which leads me nicely onto my second point which strategies are best for you typically you can categorize property strategies into two camps one is capital growth and the other is cash flow.

there are loads of different property strategies out there from the very simple to the very complex i actually have a article explaining the top five basic property investing strategies that you can check out by clicking the link here in the corner.

typically a lot of new investors get started in buy to let property it’s very simple it requires low capital up front and the mistakes that you could make there aren’t as bad as making it on a large scale development project for example most people get started this way by using their existing savings or they might pull out existing equity out of their own home typically depending on the price of the house you can get started in mind to let property investing from as little as 15 to 20 000 pounds maybe.

however there is a world well beyond buy to let property investing you can look at hmos which is a house of multiple occupancy otherwise known as co-living where you have students and you’re working professionals living together and they rent the house out by the room.

there are also loads of other strategies including conversions whether that’s from commercials residential or you can look at development for example where that’s building houses completely from scratch thirdly how much time do you have available now this fits in really well to point one and you need to really get a grasp on is this something that i want to build full time.

therefore i have a lot of time to devote to it or actually have you got a very busy lifestyle that you’re not willing to give up and you just want something on the side because that’ll really make a difference if you’re investing in properties that are three four hours away and there’s a problem that’s going to be one hell of a drive whereas.

 if you’re investing in a local area then that means that if there’s a problem it’s going to be a lot easier to get to on the other hand if you’re investing far away and actually working on a full-time business then you could spend your long weekends up in that chosen town or city and working on your property investment strategy one thing to consider is that if you do have buy to let properties or you’re flipping properties that are two three four hours away then having a solid agent or a builder is really going to help you and pay dividends here fourth is build your knowledge through podcasts articles books and online resources there is loads of information out there to get started without paying thousands of pounds on property courses and education.

 i highly recommend rob and rob who run propertyhub and they have a fantastic podcast every single week with loads of great information there’s also inside property investing run by mike and victoria stenhouse again they have loads of incredible information one thing you shouldn’t do as a brand new investor is spend all of your money on training and education unfortunately property is one of those industries similar to forex and trading where it’s tarnished by this huge get rich quick scheme type training courses and you’ll see tons of areas advertising academies and crash courses and guru training courses all the rest of it stay away from those because you’ll learn so much more from just putting your money into a small buy to that property and learning that way then you’re willing to stuff your hotel room the next part is really getting to grips with your target investment area now if it’s not your own local home town.

then what you won’t have is knowledge of what are the best streets in the areas where do the families typically live where are the young professionals in there and also where are the areas to avoid and by getting a grasp of this you’ll have a really good knowledge of roughly what kind of price to pay for a property depending on which street it sits on by knowing your area inside out this is how you can mitigate potential risks around buying the wrong house on the wrong street now having lived in london for just over five years now there’s a thing in london where one street can be perfectly nice and pleasant and very safe to walk down and then the street next to it is the complete opposite contrast so really getting a feel for that can really help you one tip is to go down to your target area at night and get a feel for what the streets feel like at night under street lamps this is where you’ll quickly realize that some areas are a little bit more dodgy and some areas are a lot nicer and that’s going to help you pinpoint where to buy your first property six is speak to registered professionals and understand whether you should be buying within a limited company or whether.

 you should be buying within your own personal name i see so many brand new investors who asked the big question how much should my first property be and it really depends yes how much you have saved but also have you got an emergency fund and everything around your own personal finances the best way to truly understand how much a bank is going to loan you then the best thing to do is speak to a mortgage broker and also speak to an accountant as well to understand how you should set the structure up your accountant will be best able to advise you on whether you should be working within a limited company or in your own name and your broker will also help understand how much you can afford and get agreement in principles from lenders so that when you’re making offers on properties you know how much you can afford and how much you’ll be accepted for on a buy to let mortgage number seven is understanding your numbers now by this point you should have an understanding of how much you can afford you already have a safety net in place as well in case you lost your job or something went wrong and now the next part is really understanding how to work out things like return on investment and yield i have another article on this and i’ll stick a link in the description so you can check that one out if you can quickly and easily understand whether a property is going to be profitable or not and that’s really going to be crucial to ensure that you’re not buying a property at the wrong price

for example if you buy a property that is worth say a hundred thousand pounds and you know that it needs about twenty thousand pounds of refurbishment to bring it up to standard if properties on that street are selling at donut value for a hundred thousand pound then there’s no way you’re going to make any profit or additional money on that property a really important phrase that you can remember is that you make most of your money when you buy not when you sell.

this means if you buy the property at the right price then the profit should already be locked in number eight is getting out there and actually doing it it’s so easy to get wrapped into all of the online courses and watch youtube articles on property forever but until you actually get out there and start viewing properties and making offers you’re not going to have an offer accepted.

now i’m a massive hypocrite on this point because it’s been such a long time for me in the making on the researching and learning and really getting to grips with property investing as an industry and i’m now in a position where i have cash ready to go with sat in a bank account i have a property structure set up but that’s taken me a year and a half and now kobet is getting in the way just a little bit and stopping me from going up north and buying the first buy to let property so believe me when i say this that getting started is the hardest part so the reality is the sooner you get out there and start the sooner.

you’ll start seeing results and having some good luck i hope you found that useful if you haven’t already please consider subscribing to the channel for loads more property articles if you haven’t already feel free to click this one just here and you’ll see loads more articles from me thanks for watching and i’ll see you in my next article