How I BORROW at 7% for BUY-TO-LETS and it WORKS…

In today’s video, we’re diving deep into the world of property investment, where we’ll share our insider secrets on how to successfully borrow at just 7% for your buy-to-let ventures.

If you’ve been itching to start or expand your property portfolio, you won’t want to miss this valuable information! We’ll discuss strategies and methods to secure financing, allowing us to maximize our profits in the buy-to-let market.

Have any questions? I’ll personally respond to any questions in the comments.

👨‍✈️ Portfolio landlord, property investor and mentor (and private pilot) based in Leeds. The channel is aimed at those who are also interested in investing in UK property (especially buy-to-let property) and growing a property portfolio.

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Welcome back to another property pilot video now a question that I get asked a lot is by to let dead marker why are you borrowing money now around seven percent interest rates are so high well if you want to know how the top one percent of investors invest watch this video and in

This video I’ll share with you not only an example of how to invest but we’re going to talk about other really key considerations towards the end of this video so are your content being an average investor who’s probably out the market now who thinks rates are too high

Or do you want to invest like the top one percent if so continue watching by the end of this video it’s my aim that you’ll know how to invest like a pro and invest with confidence for those of you that don’t know me my name’s Marco I’m a portfolio landlord property investor

Developer and mentor and I’m incredibly passionate about helping people invest in property so before we go in and jump into a real world example together and I’ll show you how the top one percent invests I just need to understand and I need to defined to you where we are in

The environment at the present time now you may be watching this video in a couple of years time but this is still applicable there’ll always be times in the economic cycle as we’re in experiencing in 2023 so where are we now and what are people thinking well the

Base rate is 5.25 at the time of recording it may have changed by the time this video is released and a lot of people think that interest rates are high and as I’ve already mentioned in a previous video we as humans think in a relative manner so rates have been so

Low for 15 years well of course they seem high if we compare them to the past 15 years but and here’s the incredible but if you take a long 50-year average the last 50 years in the UK and you look at the base rate I think you’ll find

It’ll be pleasantly surprised anyway but you’ll find these rates are not high they’re around average and just to illustrate this fact I had Andy westerdale on the channel now Andy’s got more property experience than me he started investing in the 1980s and he doesn’t think interest rates are high so

If Andy doesn’t think interest rates are high and he’s got far more more experience than most of us when it comes to property then trust me they are not now at the time of recording you can get by to let limited company mortgages for around seven percent in fact just under

Seven percent and if you can’t make a property deal work at seven percent I’m sorry but I don’t think property is right for you seven percent isn’t that much money to be borrowing in any line of business so you know a lot of businesses would bite off their hand to

Borrow at seven percent so I’m gonna teach you here how we can borrow at seven percent as we can do now or here’s an amazing thing in the future we may be able to borrow for slightly less which means our returns are far greater now the second thing that I don’t

Necessarily agree with is a lot of people that are saying buy to let is dead it’s well and truly dusted well here’s the thing if you’re buying at market value and you’re giving that property to an agent to manage then yes buy to let is pretty much dead because

By the time you’ve paid your agent fees there’s no money left in it for you but here is the magic I’m going to tell you the secret formula on how to invest in property the right way or at least in my opinion the right way and how you can

Really grow your property portfolio in a short time span so what is the solution I hear you’re asking so here is the solution before we go on to the real world example it’s very very simple whenever you are investing in anything there’s a simple Mantra to follow Buy

Low and sell high now the incredible idea when we apply this logic to property is as follows first of all when we say Buy Low well that equates to buy below market value so you know what if the property is worth a hundred thousand pounds we’re not paying a hundred

Thousand pounds for it what’s the point we’ve got no equity we want to be buying that property say for 80 000 pounds so the day we complete we have 20 000 pounds equity in that property that’s number one buy below market value nice and easy to understand right but if we

Take the second half of this Mantra which is you know sell at a high price well do we want to be doing this in property you could quite easily sell at a high price and copy and paste copy and paste but that means you have to buy

Property and sell it to make the money what if you could buy a really good price not sell but get most of the money that you would have got if you saw the property but don’t sell it so what I’m trying to describe to you now is how we

Buy a property below market value don’t sell it but we refinance it or Finance it at a later date pull out some cash from that property and then we’ve got enough cash to either go again or do whatever we want to do with that cash so we don’t actually have to sell the

Property to make the money which is an absolutely incredible thing we don’t have to sell the property at an even bigger bonus is because we haven’t sold the property but we’ve refinanced we’ve pulled money out we don’t pay tax on that until we sell the property so again

That’s another reason why we don’t need to sell the property to profit in buy Select Property or many other property strategies so here’s the part you’ve been asking for here’s the real life world example that I can give to you right here right now and we’re going to

Be ultra conservative with our figures Ultra Ultra conservative and I just want to show you how not necessarily easy that’s not the right word but how you can make lots of money in property when the base rate is relatively High you know five percent plus which means your boring probably somewhere around the

Seven percent Mark there’s still an awful lot of money to be made in property now I don’t teach you know complex Advanced strategies I just teach the very basic simple strategies strategies that have made me hundreds of thousands of pounds and are responsible for me having a multi-million pound

Portfolio this is a real example that is actually for sale as we speak now by the time this video is out I highly doubt this opportunity is still going to be for sale but you never know so this property is based in Sunderland it’s a three-bed Terrace property now we can

Get this for 70 000 pounds okay now the current market value of this property is ninety thousand pounds so you’re getting a 20 000 pounds discount to what the property is worth that’s absolutely great so as soon as we complete on this property we don’t have to do any work

Whatsoever and we’ve got twenty thousand pounds in equity right that’s incredible so that’s number one but number two is there is an opportunity to add value to this property so here’s what I mean it needs about five thousand pounds spending on it a little bit of decorating and literally that is it and

Once we do that we can increase the value to somewhere between 100 and 105 000 pounds in fact there’s a property for sale on the exact same street at 105 000 pounds of what a great comparable right so we buy below market value we’re adding a value only by a small refurb

And lastly number three the absolutely amazing part of this is the yield so this property is vacant at the moment but let’s assume we put five thousand Pounds into it and it looks you know as good as new we’re doing a bit of painting maybe a few carpets and that’s

Literally it so it looks nice and fresh and ready to move in but we can rent this property for about 700 pounds per month now I know people that are renting three beds in this area at 750. again I’m being conservative to make a point here to show that it is possible not

Only is it possible it’s highly profitable so we’re renting this property for 700 pounds per month that’s 8 400 pounds over the year you can work out the yield it’s above 11 it’s an absolutely incredible yield so let’s go over the figures in detail if we were to

Buy this property with a mortgage and pay the going rate now which is just under seven percent are plenty of lenders out there limited company buys let lenders that will give your company money for just shy of seven percent and let’s see how much money we can make of

This deal so follow through with me I’m getting my calculator out now so we can go through the figures in real time so we’re buying this property for 70 000 pounds right and we need to put in a 25 deposit to make this purchase happen so

What is 25 of 70 000 the deposit is 17 and a half thousand pounds that’s what we need for the deposit okay we also need stamp Duty stamp duty is three percent and three percent of seventy thousand pounds is two thousand one hundred pounds we then got our legal and

Mortgage broker fee let’s just combine that together and say 2 000 pounds we also have the refurb which is five thousand pounds so let’s add all of this together and see how much cash we’ve got invested in the deal this figure comes to twenty six thousand six hundred

Pounds so the cash that we need to make this property happen is twenty six thousand six hundred pounds okay let’s remember that figure so let’s come on to how much money this property is going to make because every single one now we know the rent is 700 pounds per month

And that’s a conservative rent but what’s the mortgage cost well we’re borrowing 75 of the purchase price which is 70 000 pounds which is 52 and a half thousand pounds now if we’re borrowing this at seven percent on an interest-only mortgage and yes you can get mortgages just shy of seven percent

So again let’s overestimate our monthly repayment is going to be 306 pounds per month now I’m going to reduce this to 300 pounds per month just to make the math easy and so I can do it all off the top of my head now what else do we need

To deduct well for those that either watch the channel know that I allocate 10 of my rents to things such as voids maintenance Insurance everything that it costs to run that property so 10 of 770 so every single month I’ll put 70 pounds aside and I’ll know by the end of the

Year I pretty much would have spent near enough all of that contingency and just a side note across my whole portfolio every single year I actually understand how much money it costs me to run this run properties and what found is kind of bog standard Freehold property it cost

Me nine percent of the rent to run that property but I find 10 is a nice easy number to attribute and again you’ve got a small contingency in there too so we’ve got our rent 700 pounds per month we’ve got the mortgage 300 pounds per month we’ve got our maintenance and all

Other things 70 pounds per month so once we’ve taken away 370 from our rent we’re left with a monthly rental profit of 330 pounds per month that’s absolutely incredible I thought buy to let was dead was it not if you’re getting a buy Select Property and you’re making over

300 pounds per month on something that you’re just putting in 26 grand for I think that’s an incredible incredible investment and we haven’t even touched upon the equity that we’ve got in the property nor the Capital Growth yet before we even do this let’s work out

Our return on Capital employed so as I mentioned before we’ve got 26 600 pounds of our own cash invested in this property but if we look at how much this property is making us on an annual basis so we take that monthly profit and Times

By 12. it gives gives us with 300 960 pounds per annum which is a very very very healthy profit more or less four thousand pound profits and an absolutely incredible so let’s work out the return on Capital employed and this formula measures our annual return over the cash

We’ve got invested in this deal so we put our annual profits which is more or less four thousand pounds over the cash we’ve got invested in the property which is 26 600 it gives us a return on Capital employed of just below 15 if you want to get technical it’s 14.88 and

Absolutely incredible return but buy selects dead isn’t it I don’t think it is so now that you’re making a 15 return which is absolutely phenomenal and an incredible return just on the rents alone let’s come on to the equity we’ve got in the property and let’s come into

The capsule growth because we haven’t even really touched upon this yet now let’s say we’re buying this property in 2023 and let’s be ultra conservative so we already know the market value once we’ve done the work is somewhere between 100 and 105 000 pounds let’s just call

It a hundred let’s be on the safe side and let’s just say you know what in the next I don’t know five years maybe the property is going to increase in value 20 which again is a very conservative Outlook so we’re going to end up with a property that’s worth 120 000 pounds

Within five years of purchase we purchased the property for seventy thousand pounds and five years later is going to be worth 120 000 pounds so what’s the difference well you’ve got fifty thousand pounds equity in that property fifty thousand pounds that you have made over those five years that’s

Ten thousand pounds per year just on the equity and the increase in value of that property which is absolutely incredible and really once you include this in your figures you’ll return an investment jumps significantly now it won’t take you long at all for this particular property to have earned you more money

Than the cash you’ve invested in the deal so we know we’ve already put in 26 600 pounds we get four thousand pounds more or less per year with the rent absolutely great and we’ve got twenty thousand pounds Equity from purchase and five thousand pounds at least five thousand pounds Equity when we finish

The refurb so we’re got twenty five and four twenty thousand below market value five thousand post works at four thousand per year on the rent well you add that all together that’s twenty nine thousand pounds so if you actually hold and own this property for one year only

You’ve got your money back what an incredible return on investment so that’s how I’m borrowing at seven percent and buy to let still works for me don’t get me wrong this relies on coming across very good deals but if you put in the hard work the time the effort

And energy to generate these deals there’s no reason why you can’t come across those deals too if you do want to come across these deals sign up to our weekly property newsletter every single week we’ve got a property opportunity to purchase and all these properties are below market value we will not post

Anything in the email that is market value so if you want to join the weekly email list first of all it’s absolutely free and everyone gets first access to the deals there is a link in the description on the YouTube video or go to the website which is ms7.uk forward

Slash email so I want to give you two key considerations that makes these figures look far far better than what we’ve already referenced so far really important lessons to think about when analyzing a deal number one there is such a thing as rental inflation where your rents will increase or hopefully

Increase every single year in line with inflation so let’s take the example we just spoke about where we allocated 700 pounds per month to the rent of this property now I’ve already suggested that this is a conservative figure and in fact we could get more than this but as

The years progress as we own this property over the five-year ownership we’re going to be passing small but regular rent increases maybe we’re only passing on a 25 pound rent increase every single year and that absolutely it but this alone again significantly boosts our return on investment that’s

Another way to make buy select work for you don’t just think about the retin this property can achieve now what can the property achieve in rent in year two three four and five the second icing on the cake and the second consideration I want you to think about I can’t

Guarantee this but it may happen is a lot of people are thinking that rates are going going to fall in the five years to come so let’s take this example let’s say you fixed for five years you fixed a mortgage of five years and we know we’re paying what roughly 300

Pounds per month for this particular property well when that five years comes to an end what’s the interest rate going to be well we don’t know but a lot of people think it’s going to be less than what it is today so when you’re coming to refinance this property and if you

Want to keep it that is all of a sudden you could find that your mortgage payment drops maybe it drops from 300 to 250 or maybe even 200. I’ve still got some mortgage where I’m only paying around 100 pounds per month for a property they’re stuck on very very low

Rates don’t get me wrong they’re coming up for expiry soon but rates could fall now if rates fall what happens your profitability increases so if we combine these two considerations together let’s say that our rents increase over time due to rental inflation but also our mortgage costs maybe Falls after five

Years all of a sudden we could be in the scenario where in the previous example we’re making 330 pounds per month we could be making 400 450 pounds per month a single buy to let property so vitalet is not dead and think about the future

If you can get a really good deal agreed now it’s going to look far far better in the future when rents increase when values increase when hopefully fingers crossed I can’t guarantee it lending costs for slightly so there we have it you know exactly how the top one percent

Invests you know how the pros do it it’s simple Buy Low buy below market value now if what I’ve said has resonated with you and you’re looking to grow your property portfolio and potentially take on a mentor someone who’s been there done that and got the T-shirt well book

A call with me I’d absolutely love to help how to do this go to my website www.ms7.uk click on the coaching and mentoring scroll through the bottom and book a call with me I’ve also got a link in the description on this video thank you very much for watching the video I

Really do hope you learned something new if you’ve got something to say or would like to comment you know where to comment below and if you take anything away from this video it’s two things seven percent is fine you can still make money by borrowing at seven percent and

The second thing is just buy below market value please buy below market value all the very best with your property investing day goodbye