The Wilsons - 875 buy to let property empire

mewbie_2

ad9898 wrote: »

I think we will be hearing from the Wilsons in the next 3 months..... bust.

That, if it happens, will be significant busting of the BTL dream. They have been a symbol of the possibility of mewing your way to a fortune, possibly even more so than InsideTrack. If the Wilson's fail I think that will be the end of the BTL idea for a generation.

er. apart from !!!!!! of course.

meester

Ian_Griffiths_Halifax wrote: »

:rotfl: What's he been doing to upset the racing elite? Don't tell me he's been buying up all the stables and renting them out.

He ran useless slow horses that were a menace to others in prestigious races in order to get he and his ghastly wife into the Owners Enclosures.

ad9898_3

mewbie wrote: »

That, if it happens, will be significant busting of the BTL dream. They have been a symbol of the possibility of mewing your way to a fortune, possibly even more so than InsideTrack. If the Wilson's fail I think that will be the end of the BTL idea for a generation.

er. apart from !!!!!! of course.

Lets hope so hey.

meester

baileysbattlebus wrote: »

The Wilsons are interesting - 910 properties and if they are all occupied and only make £10 proft a week each the income from that would be

£9k per week
£39k per month
£473k per year
Even if half of them were empty - which I doubt - it's still very nice.

Er, if half of them were empty, they'd be going bust in 2 weeks flat.

The point is if you only make £10 a week profit, than that probably represents something like £160 income, £150 expenses (mortgage and maintenace). If that was the case, then less than 93.75% occupancy would mean a loss-making endeavour.

If HALF of them were empty on that basis, they'd be losing 150 * 455 on half, and making 10 * 455 = £63,700 per week loss = £3,312,400 per year.

Cashflow is king TBH, and the issues are going to be that there entire portfolio is interest-only for tax reasons. Those 4.5% rates are going to go up to around 7% unless they have better than 75% overall LTV, and given that they were only claiming to have 65% LTV at the peak, based on their own ridiculous claims of house prices rising at 15% per year forever, they clearly do not have that much equity, given that 3-bed boxes in some slummy part of Kent must have fallen 20% already.

4.5% to 7% represents a 40% increase in mortgage costs, and a likely 35%+ increase on their overall cost base.

With rents falling across the country, income will be dropping, and bankruptcy beckons - they are unlikely to make it through 2009.

bubblesmoney

making some assumptions here.

if they bought 900 houses at an average price of 150k and assuming that portfolio has decreased in value by 15% this year then the average valuation would be 127500

if they had 65% equity at the peak then the most likely will have a lesser equity unless they had other savings that theyhave used now to have a bigger equity to get better interest rates on mortgages

for a 150k house on average they would have equity worth 52500 in it. so they needed approx 100000k mortgage on each house at the peak on interest only basis. now if the hous valuation has fallen to 127500 since theirs was an interest only mortgage they will still owe 100k on each property. so their effective LTV would be 78.43%. i cant seem to find any deal on moneysupermarket for a BTL for more than 75%LTV

so to find the xtra 3.43% they would need to cough up £3,442,500 from their other savings to even get a mortgage or they will switch to the higher svr lending rate and their slide begins even if they have a 10£ loss per each property. even if the transaction costs for each mortgage are taken at 500£ (including fees and valuation), that would add another 459,000 that would need to be coughed up taking the extra money needed to 4million to even get a new mortgage deal otherwise they get stuck with higher svr rates

at 6% rates (BTL rates available on moneysupermarket) they would need 5.4million in mortgage interest a year !!! on 900 properties if i got my numbers right. that comes to about 6000 in annual profit that is needed from each property to breakeven. thats 500 per month from each and every property out of the 900 properties. thats excluding letting agents and repair bills and other employee costs needed to manage that empire. looks like they have a very tight budget on this and things might go belly up on this empire even if things go a little wrong. they can still do it depending on how much they are getting in average rent for the 900 properties minus expenses.

PasturesNew

When these boys go down the tubes, there'll have to be a special team set up to manage the portfolio. It wouldn't be reasonable or sensible to turf out 900 tenants and chuck 900 houses in an auction.

There'd need to be a strategy of winding them down.

teabelly

If they do get into trouble then the lender will just repossess quietly without a court order. Some portfolio owners that have got into trouble have basically had the lender pass on their entire portfolio to another investor that can prove they have enough capital. I'd assume they'd do the same with the Wilson's empire assuming they can find anyone daft enough to take on their loss making enterprise.

fc123

MissMoneypenny wrote: »

I wondered about which subject she would lecture on:-

"Judith was recently appointed as visiting Professor in Entrepreneurship at Imperial College, London University of Greenwich, and lectures there from time to time."



http://www.gullands.com/news/view/129/Buy-to-Let-millionaires-Choose-Gullands

Oh, perleeese...this will drive me to light up a sneaky B + H.

Zandoni

Trouble with the Wilsons is that they do not ever give the full story. Every time you read something about them their portfolio has increased, it's now 900, but then you read this

The Wilsons say they own around 200 two and three-bedroom houses in the Ashford area – many of them in Park Farm.

So where are the other 700. I know he owns a few big ones in Boughton Monchelsea and the surrounding area, but it doesn't add up.

http://www.yourashford.co.uk/kent-news/We-will-not-flood-market-vows-millionaire-landlord-newsinkent17025.aspx?news=local

Pobby

Well if the Wilsons do sell up in bulk I guess they will have to rename that website

https://www.yourcrashford.co.uk