Introduction Thread - Sold Biz and want to diversify into property

[Joseph Investing]

Hi Everyone,

Joseph here and I am here to say hi and network with other like-minded investors and business people.

So I just turned 30, I recently sold my e-commerce company for a mid 7 figure and have a pool of cash that I want to start investing with. I own outright my own residential home and am looking to leverage all of this to build a portfolio. I am here to chat with others and learn about some of the directions I could get started with. I have 5 years of experience as an electrician (I can also do a lot of general building, plastering, etc so have a bit of an eye and idea of renovation costs) and have 6 years of online business experience. I've always wanted to do property investments and now is the time for me to get started. I lack knowledge of applicable strategies and finance options (while I have access to capital I want to make it work for me).

Goals: To create a long term, low risk, asset for retirement, while creating income from cashflow. I no longer make a monthly salary due to the sale of co. so I need to replace this eventually. I meet family needs with approx. £5k PCM, which with the interest already being generated is not a lofty target, so the main goal is creating a long term asset and making existing investment pot really work for me.

The areas I am interested in and seeking recommendations on right now are as follows:

• Expanding knowledge and developing an investment strategy to meet my goals by taking at least 2 quality e-learning courses and attend 2 reputable in-person training courses (happy to get recommendations).
• Developing a data-driven process for analysis of property investments.
• Before starting to have a logical plan for tax efficiency and business structure (sole trader, LTD etc?),what makes the most sense when starting out?
• Learn more about finance, mortgages, and loans.

My main knowledge comes in e-commerce, advertising, and business structuring, so if anyone needs help in these fields feel free to bring it up. I advise online strategy for multiple companies and am pretty good at coming up with unconventional and creative ways to market products, courses and drive website traffic. Happy to share knowledge and experience on this subject too.

Feels a bit weird posting this all as an introduction but I really think its a good place to start as my situation is a little different than most. Love to hear any input you guys have on any of the areas I have discussed above OR other areas I might not even have considered.

Thanks

 

[totallyproperty]

Hi Joseph,

welcome to the forum! Great to read such a detailed introduction, I'm sure our members will be able to offer some great guidance

Focusing on the areas you are seeking recommendations on at the moment, I think Property Summits would be an ideal first event for you. It's a one-day property education event hosted by 5 of the biggest names in property (there's a morning session on property development strategy and an afternoon one on setting (and running) your property portfolio as a business - inlcuding the most tax-efficient structures, etc). The event is aimed at those who want to build a sustainable income from property that is set up correctly to pass on to your children in the future, etc. The fact the event is hosted by 5 industry experts, means you'll get a substantial amount of specialist expertise covered. You can read more about the event and download a brochure here: https://propertysummits.com

There are also some free ebooks you can download now from this forum to get you started, one of which is on Passive Income. Take a look here: https://www.propertyforum.com/educationalebooks

You can also book a free 1-2-1 mentorship 'taster' call with Property Forum's CEO, Nicholas Wallwork. Nicholas has over 20 years success as a property developer and investor, and is a renowned For Dummies book author (on property and business topics). Have a read here: https://www.propertyforum.com/nicholas-wallwork-mentorships

We also work with an excellent property finance specialist who I would be very happy to connect you with if you'd like to discuss your options on that front?

Please let me know if you have any questions on anything above

Many thanks,

Kelly

 

[Nicholas Wallwork]

Hi Joseph,

Welcome to the forum! And well done on your current business successes to date, amazing! Property investment also needs to be treated like a full time business and if it is you’ll do very well indeed.

I like the fact you want to educate yourself first as that’s definitely the way to go. There are so many mistakes that can cost hundreds or thousands of you get it wrong from the outside (like S24 tax and whether to buy in a Ltd Co or not etc). Absorb all the free information on forums like this, read all the ebooks and books you can and then progress to more involved courses or mentoring... I call this the education “funnel” and it means you’re ready for each stage and will get the most out of each stage as you progress your knowledge.

You’re in a great position obviously to really leverage and gain great passive income quite quickly. Where in the country do you live and where do you plan on investing?

Kind regards
Nicholas





Sent from my iPhone using Property Forum

 

[PostBrexitInvestor]

Welcome to the forum Joseph,

As Nick suggested, in my experience it is well worth posting on the forum, seeking answers to any questions you may have. You can guarantee that any questions you have in your head have already been asked by somebody else or there is somebody out there with the answers.

I believe that education and research into property investment are as important as property investment itself. You need to be aware of trends, tax changes, rental yields and also ensure that your property investments tie in with your individual financial situation and prospects for the future.

For example, a simple tweak on mortgage funding could literally save you thousands of pounds further down the line - simply by negotiating a better headline rate. You will also find that the use of assets as collateral will give a greater degree of comfort to your lenders which should be reflected in the headline interest rate. Also, debt is something which should be respected but it can certainly prove very effective when it comes to property and leveraging your funds to maximise your returns.

There are a lot of options out there!

 

[Joseph Investing]

Hi everyone, thanks for getting back to me - I am pretty hands-on with our 9-month-old right now so sorry for the slow replies.

@totallyproperty I have booked onto the summit event and will check out all the resources you shared. Appreciate the point in the right direction! In regards to the finance specialist, yes, I would be eager to talk to them. Even at this early stage getting some knowledge of this area would prove really useful. I will definitely get something in the diary with Nicholas too. Thanks for all the information.

@Nicholas Wallwork Yes, I am not moving into this area as a part-time hobbyist for sure. This step is hopefully the last I take in becoming financially secure for the rest of my life. There is also a degree of urgency as with the virus in China I believe it could be a trigger point of the building recession signs, which means potentially a lot of good deals on the market soon.

I plan on investing locally to me, in the southwest. Most likely Gloucester or Cheltenham. A rail link, MetroWest, is being discussed which would allow for 30min commutes to Bristol, I imagine that will dramatically increase housing demand (and prices/rents). There is are also some areas which seem to stack up yield wise offering 3 beds @ around 160-180k with potential rents 700pcm+. Very rough and not particularly well thought out plan, it will evolve as I learn more. I'm taking a long term view generally and feel confident that the southwest is a place that will hold its value for the long term.

@PostBrexitInvestor Sounds like a very balanced viewpoint for getting started in investing. Astute comments about debt and mortgages. I think safely managing debt and using collateral will be an important part of my journey in property, so thanks for getting me thinking about this. I think all of these areas are somewhere I need to focus on and build more knowledge on. A relationship with a good mortgage broker or bank is something I need to start thinking about.

Thanks all, hope you are having a great Tuesday!

 

[FWL]

That is a very interesting point regarding the coronavirus and the potential impact on property markets around the world. This prompts the question, could we see a reduction in Chinese investment in overseas property in the short term? Or is it possible that the coronavirus issue could prompt even greater overseas investment by Chinese investors in the longer term? I would be very interested to hear the views of others.