Where are the UK’s BTL Hot Spots? LIVE Webinar

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Live hello YouTube We’re not in we we’re not in where there we are oh okay make a list yeah make it so you need to get 50 people in a week and we need to check what’s in the waiting room what shows up in the waiting room I want

To change that and make it better because it’s the waiting room anytime anyone does a zoom call with me so it needs to be flexible for both yeah can we look at that after maybe maybe it’s time for webinar s what do you think yeah yeah here they come to anybody

On YouTube how do we change that so we can see do that YouTube and a couple of people on Facebook YouTube if um so the webinar starting now if anybody just let me rearrange this I can’t do two things at once I hi everybody we will be getting going

Shortly there we go that’s nice faces that um we’re live on um YouTube and Facebook if anybody wants to get into the webinar you’re welcome welcome to stay where you are and listen on on on the platform uh you won’t get the slides you’ll just get the audio you won’t get

The visual if you want the slides and there’s a couple of downloads you might want uh throughout the webinar click on YouTube the last uh video Facebook the last post if you click on it you can join the webinar which I’m looking at now so you’re just seeing us live

Streamed in the in the studio looking at the uh our screen if you want what we’re seeing and the downloads click on the links join us on the webinar hello hello hello hello to everybody on the webinar there’s still quite a few people joining good to see you uh camera’s on let’s see

Your faces how you looking this morning hey hi Colin a Colin yeah oh yes H Dino up there we’ve got some of our team on the call today going introdu you to them in a bit I can see a few other family faces hey M I spoke to you this week how you

Doing um fantastic So today we’re going to be talking about biet hotpots and we going to get going shortly there’s always a few late comers so let’s just give them a minute just to get let them in Lauren will be looking after that there’ll be some messages in the group

Chat throughout the call if you got any questions for the end section the Q&A that we always do a Q&A at the end if you got any questions that you want us to answer today pop them in the group chat we’ll read them out and we’ll

Answer them um don’t be shy and we won’t make you put your mic on and talk to everybody we’ll just read your question now um so um shall we get going get going right there’s the title where are the UK’s bolet hotspots um so put a little little um tagline under there who

Will wait to be telling you where any of these hot spots are I think um there’s not many things that I’m very good at this is one of the things I can boast I’m quite good at finding the right spots buying the right houses um since I started buying houses nearly 20 years

Ago um either for myself or for clients we we’ve bought over 1,200 houses and I think that every single one of them was a good deal was in a buy to that Hotpot um interestingly it is it will hope you’ll find it interesting it’s interesting to

Me um what was a hot spot 20 years ago maybe you might say Obviously um isn’t a hot spot now so that the uh the the subject of the webinar is going to be you what what worked in the past it’s not just where the hot spots now it’s

What worked in the past and why why why is it moved on where are we now and maybe even a little bit where are we going to see ourselves in the future um so Adams and we’ll put a few Shameless plugs in there of course yeah I mean um

Just a little bit about us we’re forth landlord.com we’re a letting agent we”re always going to point that out because unless we do some people think you know who are these guys are they selling an education course what’s the catch there’s no no catch whatsoever we

Stick all this stuff out there for free um we are a letting agent and we know that if we keep doing this um over and over and over again about 5% of anybody that’s on a call we end up doing business with at some point so that’s

Reason do it if you want the 95% sit back get it all for free if you want of the 5% speak to Adam and we’d love to do business with you but there’s no other no other agenda other than that um we’re letting agency we manage properties we

Rent them out we fix the Leaky Taps we rerent them out we do the contract Trel we do all those things um so once we have you found a landlord that needs that help or sourced a property that’s how we’re building a lettings business we don’t advertise on the back of a bus

Or in a magazine or anywhere else um we’ve even stopped putting flag Boards out now we’re 100% on the Internet it’s social media word of mouth and then people come and meet us on our webinar indeed famous for two things um the first thing is something that I know

That every landlord needs uh we call it the one paid Land one paid landlord business plan it’s something that we developed um coming from a place as I’m a landlord myself I’m founder of for landlord.com and all honestly I before I had this plan I didn’t do a very good

Job of being a landlord and I think lots of landlords are in that position where do you start um this is a plan and appreciate just a little graphic on the screen but it’s a conversation that we’d have with you day one it might take two

Minutes or two hours and we can just keep having it’s a running track even to be where you start can be where are you now put that into the plan and optimize everything yeah it just makes sure you have the right the right conversations and prompts to it’s a running track we

Will always go around those five spokes figure out where you are now where you want to be and we will help you get there unlike any other letting agent I’ve ever seen we will get involved in the nitty-gritty and you know some if you need a solicitor or an accountant or

Somebody to sort out your section 24 tax somebody to fix a NY tap some need to write you a board report um whatever it is some need to um help you write down your goals and help you achieve you know work work celebrate when you achieve we

Will help you with all those things unlike any of the L the second thing we’re famous for is being the UK’s number one property sourcer here’s your man shame this plug if you want a property sourced then Adam is your man um we’ve like I said over 12200 houses

Now we operate in that’s why we’re doing the webinar um most I’m sure there’s some undiscovered um of the UK’s vitet hotpots um and we’re going to talk about that today first slide and I’ll get it down this is all our opinion um I think it that’s worth noting there yeah it’s

True you might have a different opinion challenge us test us on why we think what we think and um yeah put us to the test we like like that kind of um conversation stick your your uh um thoughts in the chat and I know that what we’re going to talk about today has

Worked well and served me personally well and our clients over the last decade or so I think we’re pretty good at identifying hot spots so take it away Adam what’s what’s the first thing we want to talk about I think the first thing we said we were going to talk

About um and I’m actually going to introduce you to some of my team in a minute as well but it we touch very quickly on where we don’t source and why um the areas that have have been and gone that passed where don’t get the yield anymore we perhaps in some of

These areas we did invest in the past um for example we don’t touch London we we’re based in Nottingham we cover the Midlands in the north of England um you don’t get the returns in London anymore the year um some people say they invest in London for Capital Growth we get

Capital Growth in all the areas we invest so we’re not we’re fine with that we don’t invest in the big shiny cities Manchester leads parts of Liverpool um parts of Nottingham where where we’re based um parts of Sheffield where they were hot spots they’re just

Not anymore we can do better we can get a better return for our money and we can get a better bump of Capital Growth on buying the the houses cheap doing a renovation like we used to in the shiny parts of Nottingham um and then we’re

Going to talk about where we do sour and white the hot spots um and I have a team of renovation sorry sourcing and renovation managers two are on the call I can see Dean there his his his name is Hull he covers our Hull area um being sourced and renovated nearly 100 houses

In that area and that’s an area we love we’ve got David on the call he looks like he’s in his van he’s based near Newcastle and he covers around the tin area um and we’ve got a few other areas to talk about as well um should we talk

About what is a hot spot um how you it so I think we we’re going to build it up we’re going to talk about the areas you don’t saw so some of this is it’s all opinion like we said but I we get asked this a lot you know where

Where where where to invest and I think the first thing that Adam’s got his on his list there is where don’t we invest and as soon as you’ve rule out certain areas then you could all things being equal and they’re not say I’ll invest everywhere else yeah yeah so the areas

That we don’t invest in um broadly speaking if you look at anywhere whether it’s a city or anywhere so London Nottingham Liverpool wherever we wouldn’t invest in the most expensive areas in an area so if you want to tag um areas with a one to 10 let’s say

Um use the Monopoly board Old Kent Road is a is a a one and mayare is a 10 yeah P’s to the millionaires row I mean you can’t buy anything on on theen road now for 100 million quid but you know um it’s it’s that probably but something

The way hotpots disappear but you can see what we say so it’s the Bronx to Manhattan it’s whatever to favorite it’s whatever so almost always if you’re an investor looking for the kind of yields that we want like what we call Commercial yields you know anywhere from

8 to 12% you’re going to be looking at the twos 3es and fours on that scale you wouldn’t look at the ones probably because that’s the Bron it’s route the hous is on fire there’s cars burning in the street you know it’s a bit too edgy um you’ve always got to be

On the lookout for the areas that is there are a oneand that are next to a two and a three or surrounded by and they they’re coming up that’s part of what we do we’ll come on to that later as well um but as soon as you get past

Maybe areas four five six then you you’re not getting those commercial gals that we’re looking for um they’re the areas where you aspire to live that’s now it’s also if you have got and we have clients like this and if you are a client who wants

Us to Source a property and you want us to Source a half million pound for bed detached in West Bridford we’ll find it for you no problem at all but make sure it’s a deal and a bargain and if you’ve got some money you just want to lead sat

There that might be an option but I’ll be honest most most people who come with that as a almost a requirement or thought it doesn’t take long into the conversation where a tiny bit of Education of you you know what you could instead of buy that house you could buy

Two or three over there and then the questions will come into your mind well are they rentable do they go in in value the tenant type going to be okay the answer to all this stuff and we’re not going to go into this too much detail today the the fears that a landlord

Would have about going down the scale you know tenant type how quickly they’ll rent how much they’ll go up in value of the typical three they’re not just ill founded but often work opposite So Adam kind of alludes to it we we will get on

To what what is a hot spot why the cheaper stuff goes up in value quicker and you can instinctively know that a £50,000 house can go to a 100,000 house a lot lot quicker than a half house can go to people say like so many I wish I

Bought houses around there back then yeah yeah so what we said there is we’re discounting the really really cheap stuff and we’re discounting the not even really expensive stuff but the stuff that goes out of that slightly you probably say the lower 30th percentile um of the the 100% scale you

Know um and and and and you pick any area that’s roughly where you’re going to want to be and then you can apply the same logic to the country so you could say okay in in an area sorry in the country um where is the most expensive um the capital

Growths happened whatever some people and this is a word I’ve heard was um goldplated I want goldplated yields now that always brings the alarm a couple guys they might not use the word goldplated but they will say I want to be in Manchester Nottingham comes up we’re in Nottingham they name the cities

They know and if you just apply that 1 to 10 logic you’re already in the seven eights and nines um you’re paying a premium because um the perceived it’s in a a big city now I think the hotpots are linked to those areas so let’s say you

Say Nottingham I might say Manfield sure you nor North and you might where’s Mansfield that’s kind of the point um I looked once I forgotten I think it’s the 15th biggest city or town or something like that it’s Big Town yeah so it’s not it’s not somewhere you might be forgiven for not

Knowing EXA exactly and there’s so many places like that but actually it’s got a great big dual Carriage R running straight if you drive around it oh yeah there’s tens of thousands of the people live and work around here um so there needs to be that logic that uh that gets

Manchester no but the smaller towns in Lancashire yes um Sheffield no but the smaller towns in South Yorkshire yes same as that yeah and and on throughout the country um so we we’re sort of Hing in there you can see we’ve got an idea

Of in any area we want to be picking in the threes and the fours we’ve discounted you City Center Flats in Manchester for example that in our opinion um and of course some people buy City Center Flats in Manchester for an acceptable in their opinion 5% yield but

I don’t believe they’re going to be go up in value I think they net um yield after um service charge and what not is going to be affected turn turn arounds all so we we Define a hot really in our opinion is somewhere that the mainstream media and aren’t talking

About really we we want we like that we don’t want everyone to be talking about where we’re buying because then it’ll make it harder for us to find the deals um but we still have data that we rely on and we share with our clients to show that the areas where

We do buy and the houses that we buy the properties that we Source um there’s good comparables there’s good rental demand you can see what’s is going to be worth um do you want to talk about more about what’s work well in the past or should you just talk about what’s working well

Now well let’s let’s sort of translate this to um I’ve got I’ve got two more two more things to mention there but yeah let’s go on to that there so what we’re going to talk about now is what’s worked about in the past so we have made a

Habit of buying the right house in the right area at the right time for the right price doing the right things with it and holding it for a length of time and has worked so there’s no two ways about it has worked I think there’s two

More things you need to layer on May maybe three um we talked about 1 to 10 in a area 1 to 10 throughout the country so you’re picking in the right Regional area and then you narrow it down to the right area within the the region you then got to pick the right

Property type and this might be one or two points it’s not probably you’re in the right area you’re in the area where these houses are prevalent if you are in an area 3 four or five it is probably full of two and three bedroom houses

Yeah um but just in case there is a five-bedroom house there that’s not what we looking for um so the property type we’re looking for is generally speaking a bit cheaper and a bit smaller than the house that you probably live in but because of course the rent versus what

You pay for it makes sure you’re yield is right you’re already in the right area of the country you’re in the right um area in the region you’re on the right Street and you’re buying the right size house to mean that that is an investable thing you are not buying a

Five-bedroom Mansion for half million pound in even the right area in the right region and expecting it to yield 10% it’s very unlikely to happen so that’s that’s that then the other bit to the property type is something that you can regenerate in some way something you can add value to

Now this may or may not be of interest to you some people completely turns them off if you say to Adam I really want you to Source me a house but I don’t want a renovation we can do that but if you are prepared to add something to the

Property in some way you will be well served simple as that um so if you can fit in your kitchen your bathroom you know that a builder near you somewhere buys a house does it up and sells it on for a profit if you can work that mechanism into your property portfolio

Your your your growth of a buy delect portfolio you buy something that’s a b rundown you do it up but instead of selling it you manage to keep that what would be a profit as Equity put it Expos your deposit you will definitely grow your um portfolio quicker now the extent

To how much you can do that depends on the kind of house you find the area the price your budget you know houses that need big Renovations need big budgets you can’t mortgage a renovation it’s up um if you’re buying a really cheap house we’ll probably come on to this a bit

Later but it’s always worth noting this one down I believe that some of the really cheaper houses are the ones that going to get the biggest Capital Growth and when we come along to the hot spots we’re going to try and differentiate between let’s say for the South stuff

And for the north stuff just going to get that they’re going to get the biggest tenant demand as well true but don’t forget when you’re spending 15,000 on a renovation on a £50,000 house that’s a significant percentage of the valuation a boiler can or a central heated installation can

Cost 10% of the value of a sh house which is which Cuts both you might feel a bit nervous about that but it’s also it’s like well that’s ridiculous I me if even in the cheapest areas where we’re buying a 50 60 70,000 house David Wilson homes are putting a 200,000 house up

Next door or a mile away or whatever and that just all feeds into the local economy Dean and H he saying agreed a 50 Grand this week um and then leaving on to it talk about areas again just before we talk about what work well in the past and the

All these things layer on this is what’s worked well in the past um an area of regeneration um something that’s going on in the area that is going to bring the prices up and um yeah in in Northampton it happened for me it was it was regenerated um in Nottingham it

Happened so it’s happening again putting all these things together you know area so we were in Nottingham we were in the right place in Nottingham we were buying two and three bedroom houses for the right price in Nottingham that all needed a bit of work and then when you

Were to look around Nottingham generally there was cranes and things going on and we had loads of regeneration and then when you were to look locally on the streets where we were buying you could see rundown houses boarded up I bought a whole street 22 houses that were all

Boarded up and that takes a bit of balls to be honest cuz it looked in some ways actually it was a little bit less cuz it was the whole street some I bought some clients bought some so at least you know you in control yeah probably it was

Probably ballsier to buy a house on a street of 10 that were all boarded up and we did that you know um and I would say that in my 1 to 10 there’ have been twos and maybe you’re not comfortable with twos um and it did take an extra

Year or so for them to come good but they came good there were probably someone my I mean you buying a house for 38 to £52,000 in Nottingham I can tell you now they’re all worth 250 Grand at least um 12 years ago 10 years ago so do the

Maths it’s you wish you’d have bought as many of those as possible totally um so yeah that’s what’s worked well in the past finding the right areas in the country the right place in the area the right house at the right price regenerating the house in an area that’s

Regenerating in a city that’s regenerating or Town that’s regenerating so that’s the that’s the layers to it um the bad news is Nottingham has run out much it’s there’s still some cheaper houses in N but they’re just in little parts of the city you would want to buy

It yeah um we can do better we can be better elsewhere we absolutely and um what we what we’re going to get on to now is what work might work well in the future yeah um what and what’s working well right now as well yeah now would

You want to do the slide with with the numbers I think that’s instructional for the youan I was going to say so we’ve got our team of guys are sourcing and renovation managers they’re actively sourcing and renovating houses every day of every month for our clients um we’re

Should we list those areas we told people on it bring it up so this is some data some live data from zupa um and it coincides with a number of areas where we operate um we have teams in harleypool midle for Sunderland in North Lincolnshire in barnesley in hul in stoon Trent in

Newcastle and deline we have um we can source and renovate property notum St and Mansville these are the highest yielding areas in England right now and we’re we’re not sourcing and renovating there by fluke and come in across this data and going oh well you we’re there

For a reason um there’s a reason why Dean and Hull done nearly 100 properties for our clients you know there’s a reason why we’ve sourced and renovated over what 250300 houses in the last couple of years Alone um we’re in these areas um our sources are like Wilder

Beasts they have to find the watering hole and so that list there is not something we look at we’re putting it there for you guys we don’t need to look at that if you take that approach that I talked about about the area so the country the region the right type of

Area in the region the right Street the right property you get yourself all the way down by the time you’re in the right area you can do better than those numbers cuz those numbers there just general they’re just general numbers for that area once you got past Yorkshire in

The Humber well is it that a bit of hle or that bit of gria is it that street you can beat those numbers by a long long long way and then buy the house even cheaper than that their average data on Z yes correct so if you’re

Looking at six and 7% thinking well that’s not brilliant we’re buying the house for a lot less that’s that’s every that does include the five bed detached house in there that does include that we want it includes that includes how houses that aren’t um renting for the highest amount then includes houses

Aren’t at the highest level standard all of ours are cuz we renovate them to that standard and we get the highest rent possible so yeah we can do that’s just average we’re better than average there’s one important fact about um this and and this is why we don’t look at

These lists is because these lists are completely nothing useless to you because they’re out of date that list tells you what has happened last year or the year before even last year yeah done so if it was reported last year that happened last year now when did you have

To have bought that house to take advantage of that last year um a year a year ago so if we were to wait for this list to come out it it would have say notom it it would have said we got to be in the right

Areas this is it doesn’t say notom it but there are plenty of lists that do um good news for you Colin because you bought an um so yeah it’s historical and the trick is to beat the numbers by buying the right property but look at it ahead

And you can’t go on the data we are it’s absolutely no coincidence our sources are in the areas where they’re in because they’ve looked at the other areas and it didn’t work um so yeah what what might work in the future that you want to map up yeah so this is

A map that um we put together it looks a bit um but it looks very pretty luren thank you um might look a little bit simplistic but we want to get down to detail and are you going to put the link in yeah so put the link in once we

Finished talking about it but um these here so the whole of the UK this is broadly speaking where we’re buying I say there’s nothing absolutely um in in none of the other areas there might be and I would say that somewhere in the middle there it disappears there might

Be need to be another little spot there but it’s the red hotpots that we’ve identified where we’re active I did love to find a couple more and maybe there are a couple more pins to put down but what we’re going to do is when you uh

Get this as a map you can click on each of the red hot spots and we’re going to it will bring up a case sty of an actual property that we bought and all the numbers we’ve only got a half an hour we half an hour left you know 55 minute

Webinar including Q&A so to go through 10 different houses in in the in the the time we’re going to be B born you C and you might not be interested but if you are you can click on there and actually see what properties work so come talk

Talk us through the areas they are the areas where we’re active now so we have teams in East Midlands that source and renovate we have teams in stoon Trent in South in middlesbor Hull North Lincolnshire in South Shields or Newcastle sundland area in each of those areas I have a person a

A sourcing and renovation manager as I said David and Dina on the call today um they can find your house manage your renovation on it if required and then have us manage the the lettings of it um I’d like to talk about what defines a

Hotspot so how we Define it and how the media defines it I think so these are our hotpots these are where active we’ve chosen specifically to be there we haven’t done it because the property section of the Guardian said it was a hot spot because you can go on some of the sort

Of news the times or wherever they’ll tell you Bristol or um where the average house price is 180 Grand or something or 200 probably more than that 200 and something and it’s a hot spot because a year ago it the average price there was 200

Um we don’t want to be in that part of the market um we want to be buying cheap houses renovating them refinancing them and watching them double in value in five years and then in 10 years um if it’s being spoken about in more of the mainstream as a hot spot it’s happened

More or less notum still gets mentioned now um as a great area for buet investment because they’ll look at one of those tables like those yield tables and go look at that wow um and then I say no you don’t want buy net so a house that we bought in

Nottingam 5 years ago for 85 Grand that needed 20 spending on it is worth in good condition 170 to 180 Grand now I’ve seen that with houses I own um to buy that house run down now is about 130 to 140k the renovation slightly more you’re

Not going to get the returns that you can if you can buy two houses heartley PO with that money or two houses in Hull it’s just not worth it that area is moved on that’s why it’s being spoken about in the mainstream as a hot spot because they’re looking at the the sort

Of yeah the past data the success we we’re getting in there ahead of that and then going oh great they’re talking about now see we knew we were doing the right thing um I think that’s for us what we would Define as a Hots spot um

And that’s why we have our teams in those areas um do you I don’t know what do you want to talk about next do you want to talk about how we actually go about that I think so yeah s and then I’ve got those things afterwards those those four bits

There but let’s talk about the actual process you know um what these guys actually what what does a property sourcer do and how do they Source property better than someone sitting on their computer every night looking at right move right um so for example take Dean on the call there Hull

Um Dean Source nearly 100 properties for us and need’ sourced many many more before we’d even met him because he’s been doing it for a long time which means Dean has a lot of um there he is De you’re spotlighted hey um he’s got fantastic relationships

With the local estate agents in his area they all know him by name they will phone him up when they know they’ve got houses coming on the market he can walk into every estate agent with the the latest client that we did a call with a

Client this week he’s got aov for funds he wants two properties we’ve sourced in one you you viewing another one on Monday or Tuesday you can walk into every estate agent in your area with a proof of funds for that client and saying right look I’ve got this what

Have you got for me who they going to pick up the phone to on Wednesday after meeting him on Monday they’re going to ringe absolutely do you know what I mean and that’s what the beauty of having these guys David as well up in South so you’re all coming on guys that’s

Andy well give Andy can you hear us Andy you’re there anyway and Jamie as well Jamie there the beauty of it is it’s having their relationships and having the the the relationships with with Builders um and suppliers so you can get a renovation done to the price you cost

It for 3 months earlier when you viewed it or two months earlier or 6 weeks earlier when you viewed it um having the renovation done efficiently on time and on budget and then the right tenant moving in which is what which is what our company does um yeah you I’m finding

Interest in there guys apart from you do know you must be sitting there with your feet up yeah all and about aren’t you you’re all out and about Jamie’s doing viewings told me because Jamie’s Jamie’s got a HMO and a single to to find Andy’s got a single to find Dave’s got orders

Coming his way and Dean’s already working Dean’s got his feet up because he’s already bed um took seriously it’s called a hot spot I mean how many people do you think want want a hot a hot house in a hot spot how do you how do you get a hot

House in a hot spot you you wear out your Sho leather looking for it it’s not easy you know you identify this hot spot and um yeah you’re in a que and I’ve got to say guys you you you all do great you find the houses when when they come in

But there are other people that don’t just just don’t unmute Dean go on Dean because Dean’s not going to have any background noise in his can you unmute yourself if we request it Dean this is this is it remember can there you go just just tell really briefly the

House we found this week for that client how did how did you get that well it was still good contacts of mine and this house is actually was offered to me because of I’m well known it was offered to me off market so I managed to get into the house prior to

Going on to the market agreed a price with the the vendor and obviously then we offered it out to a client that you got Adam where you know on a on a b of order yeah so we we jumped on a zoom meeting with him and we went through

Everything and he basically I know he did you need could go ahead until the following mon but basically to go ahead to yes I’ll have it now he’d been on one of these webinars of the week then he booked a call with me I talked to him

Through our process and how it works we looked at all his requirements he completed the B to order form and then I it really looked like everything matched to to hook him up with you and you found him his first house I want to know right

Or the tell these guys you priced that renovation up at 22,2 quid I think it was something like that that’s right why are you so confident that you can price it up to £ 22,2 and not 22 Grand or 23 or 22 and a half and why are you confident that in 6

To S weeks 6 to8 weeks with expect that self complete that you’re going to get away for that the renovation with the greatest respect to you and I’ve been doing it a lot I think you were still in Napp when IED doing this that’s why I got into that I’ve

Never ever G over budget yet in all the all the N of houses have done for you haven’t you haven’t and that’s you know that’s it it’s experience you can’t buy it we can’t you can actually oh oh no you can’t just there you go yeah um we like to

Make the process we just like to make the process easy don’t we you know from from saucing to buying to renovating it to renting it you know you you’ve got a wello machine you two and uh it works well does I get I get a lot of positive

Feedback from all of our clients very good cool thanks cheers okay um David what are you buying up there the moment what you what you doing what you’re out and about at you have to you have to unmute yourself cuz he Frozen no [ __ ] we got five minutes well you

You’re fulfilling an order at the moment so just going through what you know Adam’s talking about the process and this isn’t just about you getting insight into what property investor doing right now finding these houses it’s not just about us fulfilling orders um go then David what what are you up to

Today still muted you’re still you’re still muted you have to ask him to unmute I did yeah all right yeah yeah yeah we can have a good day yeah just coming away from but yeah I mean we you know we’re getting order through the minute um we just sa the great uh property

Inum uh which we purchased for £47,000 uh the renovation cost will be round about 2324 Grand uh with a resellable value of about 115 120,000 yeah yeah what that rent what what’s the rent on that one sorry what’s the rent rent level the rent on that the rent on that one will

Be around about 650 to 700 yeah really really strong really strong really strong yields and we try to aim for 6 to 12% yields and very often um it’s double digit yeah very often yeah lovely thanks David Cheers Cheers Andy you there you got to unmute yourself hey Andy you right well still

Can’t hear you I can’t hear you must maybe your earphones we’re good at sourcing and renovating property with rubish attack let’s go to Jamie while Andy Jamie we’re we’re going to come to you Andy if you just unmute yourself and start talking it’s like a really rubbish

Midm morning TV show it is yeah who’d watch this right Jamie Jamie now then more importantly just ignore everybody else on there have you sort that HMO out yet because we’ve got an order bur in our hly with client is chomping like this mon to Nature REM you sorted it

Yeah I’m ready to go believe we’re going to jump on a call with the vendor as soon as possible really good cuz yeah yeah I mean there’s some pressure now bus is it what your place order we got to fulfill it so the guys are out there hunting around Jam’s

In Stoke where are you now are you on the way to view that single now yes I’m doing a single but before I go to there I’m on the way to the deal that completed last week I’m going to meet B the kitchen fit there

Because I want I think there can be the boiler can be moved the kitchen have a new boiler so I think go somewhere else and make more space in the kitchen so just want meet him there for that nice good good awesome okay well I I’ve just

Noticed you’re driving I’m going to mute you stop it yeah stop it crash live on a bloody webinar go um Andy did you did you figure it out no you didn’t Andy’s busy you busy don’t know speak Andy come here you hey there you are nice one what you to Andy where you

Where you go where you off to we can hear you speak Str struggling string to hear to be honest we can hear you we can hear you all right he can’t hear us we’ll come back to you mate we come back to you right cool okay so look

We don’t normally get to do that but that was just a nice way of introducing you guys to a few more people only ever seen me in justess getting sick of us um have we got any questions in the chat if we haven’t please feel free keep them in

Any question doesn’t matter no there’s no difficult question no silly one please please please pop your questions in there um oh God voice um well keep getting your questions in um what want to talk about now some of the um the extra layers that are going to

Help you buy the houses and feel confident to buy the houses in these hotpots because as we went through the list first thing the way I feel it it works and um you might feel the same thing it’s when we’re talking about the UK I’m saying pick your region then we

Talk about the region pick your area your area pick your house type pick a house that’s maybe going to need a bit of work etc etc one of the things I’m very well aware of and Adam is too is when you speak to a client that’s maybe just thought about buying in bu

Toet over you know fancifully in the last couple of years in the same way as they might talk about buying stocks and shares or putting some money into an I so they’re not really property people if you like that those poor people on the screen there have been buying properties

For years and this comes naturally to us but we know that when we speak to somebody who’s fresh to it every time I come down that stage UK don’t buy in London Buy in these Regional areas don’t buy in Nottingham Buy in Mansville don’t buy that street Buy in this street don’t

Buy that house buy this crappy little house we’re getting further and further away from something that you are you are probably naturally comfortable with yeah oh that’s 100% so we’re going um you not London regions not the shiny bit of the region the outlier not that shiny Street

In the five-bedroom house this three bedroom one in a level four house you want me to buy one my shutters on it I thought something else well right so we were chatting with a guy this week who who’s put an order in Jamie sorting a house and he he turned one down because

In his opinion the comparables weren there now we put together a comparable report you using right move plus which is the surveyor tool of right move okay and um we would never try and say agree a house if it didn’t have some data to back up the end value and end rental and

He even though there was a house that had sold in November on the same street for roughly the amount that we think this one would be worth he turned it down because he cast his net on his comps about 2 miles right and found a house that was

Bigger that sold for the same amount uh and he said if that house is 85 M and I found one that’s 125 m 2 miles away that also sold for 135 and he turned it down and then we looked at it and on the photos it actually didn’t look horrendous it looks

All right um an estate agent will usually good one will list any house with the photos will look quite good the reality is that slightly bigger house that’s sold for the same price as what we thought this one would be worth needed money spending needed a lot of

Money um and so it’s it’s really difficult well that’s why I need the expert to go find it yeah sat from your armchair look I think it’s almost impossible the last few how the first few houses I bought in Nottingham I never would have bought them had I not

Been working inside this business because I wouldn’t have seen the potential that probably even though I’m from not you think they might have been too scared yeah or I’m not confident it’ll be worth that but I got you bought one on that road about two months earlier so I just I just copied

You um but no that it’s really hard sometimes to even when you’re looking at the data in front of you that we’ve put together the same way it’s available to even still have the confidence to say okay I get it um yeah yeah that makes sense but you need that local knowledge

On it it’s nextra layer yeah I think you can always find a reason to buy something or a reason not to buy something if you’re roughly in the ballpark you probably are yeah you probably are um what I was going to talk about was you know as I’m doing my

Narrowing down to that particular Street and we know that some clients will look out and go what the heck you know and that’s fine you know we Source anything you want maybe maybe you want um a house in Nottingham Shire versus a house in yeah we couldn’t buy a house in

Not for much less than 100 Grand let’s say yeah um but the guys on the screen there you can only buy a 50 or 60 grand house some of them could buy 4 grand house you know and you you take your pick you take your pick but as long as

You’re somewhere in the ballpark you’re somewhere in the ballpark um the questions that will go through your mind the reasons not to buy that kind of house um I think well there’s a couple one is capital appreciation you think that a house that’s 50 or £60,000

Will I will always be wor £50 660,000 nothing is further from the truth it’s definitely true that they can languish for a while the Northeast has been typical of that for for for 10 years almost um and it still isn’t some pick the bits that it’s not absolutely there are still something in

London that don’t go up well you said some of my Northampton stuff hasn’t gone up for 10 years yeah but it had it had gone up since the price you bought it for hasn’t it so the um uh the the Hotpot are where we would say this was a

Hot spot we have never bought a house in one of those areas that hasn’t doubled in value in 5 years and I think that’s 4050 grand house we’ve never B A 4050 60,000 house that hasn’t gone to 100 to 150 in about five years that’s a big

Deal so I’ve got data to back up that oh yeah if you say really really the house I bought in 2017 was refinanced last year for 160 and5 it’s nearly double pretty um when you get that map all the case studies some of them aren’t 5 years old yet

Might be getting there but we’ve got case studies older all you going to do is go on land registry I’ve got a spreadsheet of all my properties and the stuff I bought 10 years ago yeah that um 30 some bars and um I bought

It 10 11 12 14 years ago it was it was a six Monon refinance a 2year fix a 5year fix and then I didn’t refinance last year because so I’m just coming into it a bit late it’s it I think it’s worth 200 Grand you know that’s that’s a big

Chunk it’s G from 50 Grand to 200 in that that period of time so that’s that’s what a hot spot can do so in terms of your capital appreciation I think you’re going to get better capital appreciation in the hot spots versus that goldplated yeah London Manchester Nottingham whatever it is where let’s

Face it the Capal appr that bump has already gone why does the bump happen um more people could afford a £50,000 house than any other head type of house you know um think about the more rents are affordable rents are affordable affordable um it’s not just £50,000 house isn’t just affordable um £100,000

House is almost equally affordable I know that sounds a bit silly because it’s double but you you you think about the money in your pocket after the average salary if you’re paying a mortgage on a 50 grand house or 00,000 house it’s very very very doesn’t really make much difference particular the two

Income owners in the in house you know um and yeah those areas once they go over and this is why they can languish for quite a while once an area goes over about 50 or 60 or 75 they they different thresholds ,000 in average value they tend to pop because they become more

Mortgageable um people like us get no noticed them I mean we weren’t up in the Northeast while they were all sat there at 50 and nothing was moving and then when they started to creep that’s where the wave is and I I just guarantee can’t say guarantee you know mean I’m I’m I’m

Put my own money where my mouth is they are going to go they’re just going to go because we’ve seen it happen in all the other hot spots and you know performance we’ve seen the Regeneration that’s well aren’t we so when we went to Harley pool

We saw what’s going on there you can see what’s going to be happening there in the next 10 years when we first went to state with Jamie you could buy a house for £35,000 in Stoke and well you can’t we can’t see you on the screen anymore

Jamie because you’ve gone on to the the other view but you know 60 70 is is your minimum now so they are still there so capital appreciation one of the things you’re thinking these hot spots look good but are they ever going to go up in value the yield might look good um

Initially but you know no part of the word hot is the capital appreciation as well it’s not just that they’re going to yield well we think they the capital capital appreciation goes up a lot as well the next thing that on your mind is the tenant type if you’re buying a cheap

House um it’s all very good saying that I can R it out for £650 a month David um but what’s my tenant type can I really rent it out for that and will the tenant be a good quality tenant will they pay on time will they trash the house all

Those things the the the two fears of a landlord getting the rent and 10 and look after the house um in our experience there is no difference whatsoever between a rent at 650 and a rent at ,000 2,000 in terms of the the quality of the tenant so long as the

House that you present to the street is decent and safe you can’t put them into a you know a horrible damp rat infested house they won’t treat it right and you have a problem ten always say the same thing if you supply a a nice house and it’s decent and safe

And it meets all the requirements you put a 10 in there nine times out of 10 then we look after it um I’ve got I’ve got plenty of bad stories of bad tenants in expensive rental houses um and arguably not arua it is it’s a bigger

Risk having a tenant in a 2000 I’ve got I’ve got um a house that remember that one I was going to move into yeah so it was it’s a little flip and I was going to be in it whil you renovated when I renovated this house and then decided it

Was too far away so I still own it and I can tell you now the worktop in that house cost more than a deposit that kitchen so risk is biger isn’t it um yeah we did a test of that kitchen in that house and the worktop

Costs a lot more than the rental deposit I’ve got so if that tenant doesn’t pay or breaks something you know it’s a much much bigger risk in much bigger in a more expensive house when I rent out a you know £100,000 house um I’ve got maybe a 700 800 rent

Deposit well you the caret are pretty cheap I can I can clean it up red a few put new carpets in for only rent property to working people they have to pass affordability check go through referencing landlord referencing credit check employment referencing yeah going down a slight Rabbit Hole there actually

The the the main news is tenants don’t generally trash the house and they do generally pay their rent and they don’t you can ensure against it the types of houses that we buy in the areas that we buy are 60 to 75% of the population live in those sorts of

Areas um actually very almost none of our clients do so there will be alien world worlds to you and we we get that you know when when a client starts to look around area two three or four um there will be scruffy houses on the street there will be um you know an

Empty shop over the road or you know a car wash an old petrol station there’s a car wash quarter of a mile away all that kind of stuff I I love I remember buying on the Carlton Road in um Nottingham and saying to client we looked out and it was a deric wasteland

Over the road I went isn’t that brilliant he went what there’s a little there now how long do you think that’s going to be d wasand a year two years 3 years in the end it was 3 years there a there’s a little there it’s all beautiful trees there another like IG shop

Opposite as well so you look at something you think say you buy a house it’s all boarded up next door and you think well I’m buying it for this price is worth it right now and as soon as that guy fixes his house next door mine

Will be worth just a little bit more so yeah um other thing um would be uh managing a renovation from afar well finding the property you know these hot spots are look on the map they might be 200 mil away 300 M away from you then renovating it from afar and then

Managing it from afar they’re the three things now I don’t think that’s going to be easy for most people um that’s why we’re in business doing what it is that we do I wouldn’t drive to the Northeast and try and find a house um renovate it and

Then then rent it out if you get the right team it can be as easy and seamless as Ren renovating and renting something just down the road and I prove it every day I mean if I if I buy a house in Mansfield I could drive to it

See it renovate it see a tenant the same thing if I do something in great at Manchester I can’t I can’t do all those things I do both and my actions are exactly the same same i’ write a few emails and send it off and I get a

Statement back at the end of the month I bought houses in Mansfield recently and houses in Northeast Northwest East recently and um I’ve seen neither of them Tom Tom Show like nearly all of our clients I an argue with that isn’t one of mine it was was one of my I’ve just

Completely forgotten I bought it picture most of our clients rarely ever go I mean some do and we encourage it if they want to and we’ve met Cent our guys meet the clients and they talk through the renovation and after the renovation so a lot of people don’t know they don’t but

I think yeah don’t I wouldn’t want to overemphasize that I think what I know Adam we as a company only want to deal with the wrong word we we want to have engaged clients yeah this idea that you can be hands off and hands free

It’s a fact you can but you do need to understand what you’re getting into go into your eyes wide open understand the risks that onepage business plan that Adam goes through um we we we pepper in there a few things what could go wrong are you comfortable with that um you

Know you’ve done a renovation on the property um you didn’t don’t always do the roof or whatever and then the roof blows off the next week what you’re okay with that you know you know how you got the right insurance policy we’ll we’ll put as much stuff round as possible to

Make you very well prepared um but there’s some work there’s some risk nothing comes easy or all for free and um yeah you can definitely do it from a laptop 300 miles away as I’ve just described um but just because you’re that it doesn’t doesn’t totally insulate

You from it you’ve got to be you got to be a landlord um I like the word landlord rather than investor the idea of just being an investor and dealing with it like stocks and shares or buying gold bars gold bars don’t have plumbing problems there’s an element of um

Operational noisiness that you’ve got to deal with and then get the right team involved and it’s it’s totally totally doable don’t let that put you off um but just be aware of it and Adam would make sure we have that as a conversation right Q&A and I know we’ got question

Come to the end now um thanks for being on the call for the last best part of the last hour um I did notice a couple of questions pop in you know um yeah there’s the first one there what’s a ballp part figure for a three bed house

To invest um I flip that on its head um the average deal that we do you need about the minimum you need is about 90 grand 85 to 90k to buy a house renovate it and pay all the associated fees the ballp part figure for a three-bedroom house is slightly

Different in each area of course um 80 grand maybe as an average but um it would it would have to just sort of bow down into the areas that you’d be interested in investing in to be honest um but I would say if you got anywhere

From 85 to 100K that is enough for us to find a house for you help you buy it in cash help you renovate it and then help you refinance it and manage the tenant as well um next one down apologies oh you do that we discuss hmos

On the one to one we mainly talk about bolets so um as opposed to houses and multiple occupation um right okay yeah so yeah you need a lot more if you’re going to buy a h Mo and then renovate that you’re going to need it 200k plus MH um they are good

Value in the similar areas yeah um you’re going to refinance them out and tie up a bit more money you’re going to tie up about three times the amount of money in a HMO after refinance you’re going to cash flow about three times the amount um we do we we’ve converted more

Than 5060 hmos 50 60 properties into hmos we do do them we have a process we manage them Jam Jam’s doing Jam sing one now in Stoke On’s done one yeah Dean well they’ve got Artic four in Hall so it’s more tricky we’ve done loads in in Derby and Nottingham um

So we can talk about HMO that’s fine yeah and anybody else and housing multiple occupation we do when we’re having a webinar like this it’s not that we’re just focusing on b x it’s we’re focusing on you the two or three bedroom house because otherwise we’d Deep dive

Into it but yeah we can put an HMO together very as easily as we can um a single there’s some good reasons for it when you go through the one page business plan it would tell you what you should buy um I think every landlord um every landlord should know that it’s an

Option and know how to put it into their portfolio if they can I put them in because if you’re trying to get leverage trying to remortgage it gets to a point where an HMO can rebalance your your yield calculation for the L so it’s quite useful for that true uh that one

There years good question from a new what are your expert opinions on buying Flats with longer leases versus freeold also any thoughts on buying a new devel ver yeah I’ve got a thought on that I wouldn’t go near it uh anything leas hold I wouldn’t touch anything with uh service charges I

Would stay far away from it’s possible my you ask for my opinion um I’ve got an extra opinion on that thoughts on buy new developments versus old personally I would say a new build flat or house will sell for more than what it’s really worth and I would

Always prefer to buy something older and make it nice do it up and add the value myself personally yeah there’s a potential not right now there really isn’t right now but at some point in the market cycle of buying Off plan and getting something cheaper and it goes up

In value because you bought it off plan that that has happened in the past um just be aware because well the the classic example for me all sticks out there there’s a building in the middle of Northampton where it was bought off plan some people did really well they bought them for you

Know 120 Grand and at the peak they’re worth 200 but they’re all worth 60 now so you yeah yeah 60 Grand and the swimming pool underneath is now um closed down and boarded over it’s like yeah it can it can go wrong the thing about buying in a block of flats is

You’re not in control you there’s you know in that situation there was 200 other lease holders and if they went bust and handed their keys back they’re not paying the service charge you can go go down really quickly maybe it’s a different thing if there’s one front

Door and six Flats might a different thing but the service charge again can go up and down in a bust period Flats go up and so go down first and come back up again first so actually buy flat after can work if you’re going to flip it but

That service charge is just a killer and and if other people aren’t paying it then either the building’s going down in disrepair and your rent going down you’re getting problems or you’re paying double to pay up for everybody else um the one thing I would add about the

Leasehold 900 plus years uh there are houses in um Yorkshire that are that are Le sold but then they are you’re on gr correct um so that’s a different thing it’s you that’s own it’s a virtual freeold what you’re what we’re trying to differentiate between is a

Flat leasehold there’s no such thing as a a freehold flat but what we do find sometimes is a street in a old mining town or a steel town and there are 999 year leases quite often the free holder bugged off in 1952 or whatever that’s a very standard thing and people are used

To buying those they movable you have to get dity for them um them then do use brid do you use bridging secure all our houses okay so um we don’t secure your house um we help you buy it and you say a gr we say a gr for you um some of our

Clients have used bridging in the past to help buy the house um most buy it in cash because bridging is expensive but if it’s um a means to an end you can we can uh help recommend put someone in touch who can help you recommend a brid

Product it’s been done um Rob says are you counting the refurb fees Etc in the value increase or just in yeah I can’t have it all I’m talking about the purchase price and then four or five years later that’s doubled in value yeah if you wanted to add in all your fees

And all your renovation you’re asking a lot there oh yeah to dou to double but you know we’ve baked into Equity at the start and yeah in that time it will go up um next one there this is a very important Point how much should we expect to pay a

Management company like yours hey good question I should just look at this right now they say the answer is uh should say 10 to 12% yeah for that now we we’re redoing all our fee schedule all of our Lads are going to receive um an email um we’ll make you a video about

It um we’re going to we’re simplifying it we’ve we’ve we’ve taken on board feedback from clients we we’re introducing a new fee schedule for landlords um very soon tiered you can almost pick and choose and make your own that’s the key to it um but yeah 10 to

12% the the answer there is there’s more work that needs doing that you we’re at pains in our new free schedule and I think we’ve missed a trick recently where we’ve added extra things that we do and we haven’t explained yeah what they what they are and why they’re

Useful and what we’re then doing is say and you don’t have to have them if you don’t want I really think you should separating it all out one of the fees U one of the the what you call the pillars the levels is 22% and people go what actually we

Worked out 22% is the best value one because it includes guaranteed rent which is always about 4% on top of your rent so um yeah and maintenance things and all the compliance check see it includes a lot of stuff um so yeah just the the headline number 10 to

12% is is about right now yep uh there’s another question how does your deal work in and out I’m not really sure I can probably have a guess of what that means do you buy from all so two two different questions how does it work in and out so

How do you get in how do you get out um you if we’re talking about sourcing property which I guess is what you’re talking about um those guys that came on the screen earlier they are property sources so the process is after this call there’s a link you going to put a l

So there be a link you click it you go to our website you can click get you get on a zoom call and Adam takes an order he says what do you want where do you want it how much you got there’s a there’s a panel of checklist it’s all

Written down that’s your order taken the order goes to those guys you have a call with those guys with Adam so all three of you discuss right this is the order I’m going out Monday morning to find it I’ll check in with you every day this

Week maybe by WhatsApp and we’ll have a zoom call again on Thursday whatever it is until I found your a house uh once you found a house you buy it you instruct the sisters you buy the house yourself in your own name um the person who you on the call the sorcer they’re

Sourcers and renovation managers so if there’s any Works needed they’ll do the work get it compliant get it rented out then it goes over to the property management Hub um you own it at that point so it’s just a normal you just feel like a landlord with a letting

Agent at that point it’s all all the rents coming in you get a statement and then to get out which I guess is usually some of our clients keep it in cash yeah Stone it true um or to get out refinance six to 12 months later you put a

Refinance in there I think that’s what that meant auctions no I haven’t told you I I sold a house yesterday yeah day before Wednesday I completely forgot about it there we go yeah um so I sold a house at auction and I would never buy a

House at auction but the fact that I had sell one at auction I got I got 10 G more than I think it was worth an auction I don’t remember you bought it yeah cool just scroll down Jess on the CH by my first by to currently sheer

Area and do what do you suggest to do for my next move after fin I hope to pull a lot around book a call yeah I was going to say do it exactly sounds a bit personal book a call in my diary have a chat yeah but I’d say do exact the same

Thing again if you manag to do all that if you managed to buy it you’ve renovated it you rented it and you’re going to refinance it and you’re going to Hope out pull some money out of refinance and it all worked i’ hope if think you might pull out more than that

But let’s let’s have a chat um do it again thank you for I’m just getting start in this space love to chat with people experience what’s the best why they not buy auction they’re too expensive sorry car I didn’t explain they’re too expensive so I there’s a group of property investors

Landlords in uh in Noam they’re all on a WhatsApp two or three different WhatsApp groups and um yeah I don’t people haven’t bought at auction serious investors for over a decade now I remember the last time I actually seriously thought about it and I did all that work go view it work out

What I’d pay for it you know here’s the comps here’s my here’s my uh cost of cost of works and the fact that I was there doing it that must been it was quite a while ago CU you Julie or whoever would have do it now um I never

Even got my hand up in the air never even put my hand up so the bidding started higher than the absolute maximum I would pay and it just kept going and going and going um it’s why these hot spot so the hot spot we talk about we’re

Very you know micro into the last 20 quid in Dean’s case yeah but if you’re sat in an armchair and it’s all online now which was brilliant for me the guy that bought the house off me yesterday was living in London and it was £17,000 nothing honestly to that guy sat

On his laptop buying in London on online whether it was a 97 or 107 whatever to him I’m sure and that’s what happened um you pay by 10 27 on it nice um we don’t get it there any questions no no no thank you everyone for joining nice to see some familiar

Faces again too um feel free to fcking call and have a chat with me and um look forward to seeing some of you next week maybe cool what is next week’s one good question what’s our webinar property or buy to ah Flip Flip or develop to R Buy buy to or

Flipping why why flipping a house is a stupid idea is that it’s called right cheers have a nice afternoon bye thanks everyone cool bye to Facebook is this Facebook yeah sorry