Wealth creation - anyone interested?

savingforoz

I agree - many of these freebies are designed to hook you in to expensive (£000s!) 2 day seminars where they "share" their wealth creation tips with you. I won't be going down that route, but am curious to explore some different ones, where my only invetsment is time/petrol.

sukey13

No I am not interested in being conned into expensive seminars or workshops either.

I already detail my property investments (with photos) on my blogs

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I have already started a South West Property Networking Club meet up in Yeovil, Somerset - so you are welcome to come meet property investors and those that want to be there...

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The next one is on 27th March at 7pm at "the Beach Bar Cafe". Angela Bryant will be our guest at that one, she owns 40+ properties and has written a book about how she did it.

I have Cashflow 101 and if there is enough interest could bring that along for people to play. Although it does take a while - bit like monopoly so it may be better to organise a different meet up for that? Or get there alot earlier?

We went full time (my husband and I with a newborn) 3 years ago. We rented out our flat in Kingston Upon Thames at the time and used an advance to purchase a run down house in Somerset for £83000, next door was on the market for £125000 (we knew it was a bargain – but wasn’t ‘til our offer was accepted through estate agents and it was a finance company that was the seller – we knew it was an elusive repossession). We had £15K to do it up and live on and had never owned a credit card!!! 8 months and lots of hard work and living in rubble later, we had spent £14383 on renovations and adding a garage, £11K on living expences, we had quickly got the hang of 0% credit cards and flexible loans! [See https://www.moneysavingexpert.com - however do not spend credit card money on anything other than assets.] We sold and made a large profit (sold for £139950). Everyone had thought we were crazy, especially as my husband had a well paid I.T. job before. I had a good talking to from my mum and dad (even though I was 23 at the time).

Next we bought another flat to rent out, giving us cashflow of £150 a month. Then we bought two grotty badly done flats which used to be a lovely townhouse. We spent £25K doing the place up and adding a garage (on stilts this time!), still currently living in this one and now have another baby. We recently remortgaged to get out loads of “sweat equity” and bought a detached house. We have spent £9K converting it into rooms which are rented out to professionals, they share large communal rooms and is all done up to our council’s HMO recommendations. We applied for planning for what was the large shop attached to the house and are now spending about £20K converting that into further accommodation. We had to sell our original flat to help with funding this. However, that flat was costing us £50 a month but had lots more equity built in it. Once finished and with all rooms rented out this HMO will provide us with £1319 cashflow a month (and that is after all bills, council tax, cleaner, management).

Next we are selling the second flat (just put it on the market, getting rid of the tenants) to help fund any *** deals. Our original £15K investment has now risen to £40K if we sell at the asking price. [8/1/06 - This is now not the plan. We rented out this place again and remortgaged giving us £17,045.17 cash for more deals - more on this later.]

As you can see we didn’t and still don’t have the regular cashflow we need and would like (still working towards that). However, with a mix on BTS, BTL and credit cards/loans, etc it can be done. Just remember you make your money when you buy but you can always add value too. Our original flat, as it was our PPR before we let it out, then we sold it within three years of leaving meant we had no CGT to pay! (http://www.taxationweb/ – a brilliant place to get free answers to all your tax questions!)

Building up your credit cards will instantly provide you with loads more available cash (http://www.moneysavingexpert.co.uk/ is a brilliant site if you haven’t already visited). Also by joint venturing you can use other people’s money and still make money.

Our current strategy is buying to sell and collecting as many no money down properties as possible to rent out. We are currently buying 5 more properties that will give us cash back out and cashflow each month.

Sorry this turned into an essay! Hope some of it is useful.

MORPH3US

Hi all,

I am really interested in this thread and about wealth creation in general although I have no ideas where to start. I will watch this thread with interest.

I have always thought that if a group of people all got together and all put in some money (1000 people all put in £100 etc) then they could buy a run down house for cash, do it up and all make a profit. Might be viable, a very good chance it will get shot down in here, but by putting it out into the open forum its there for discussion.

@ Sukey13 - the garage on stilts sounds interesting, do you have any pics? Also, what is a no money down property?!?

M

MORPH3US

@ Sukey, just looked at your blog - Tower House is beautiful, not sure about some of the bedroom colours though. Do you mind if I ask how much you paid for it - really cheeky I know. The Christmas babes are pretty nice too

savingforoz

Thanks Sukey, although I can't make that date for the next meeting, I will hopefully be able to make it to one of your events soon. Thanks for your helpful and informative post.

Morph3us, all ideas are welcome, that's what this thread is for, so we can bat around some ideas and discuss them and hopefully all help each other.

Anyone had any good/bad experience of stock market investing?

MORPH3US

@ savingforoz,

Who is running this seminar that you are going to?

M

MORPH3US

savingforoz wrote:

Just to throw some ideas into the area that I got from the Money Gym - says there's 4 main ways to wealth creation:
Creating a successful business

I was at a Seminar the other night where the guest speakers were Kate Statham, the Fresh Bed woman off Make Me a Million and Rachel Ellaugh off Dragons Den.

One thing that Kate said was "be prepared to be poor if you want to start your own business" Basically, she was saying that she'd been living off her Visa card for the last year and then despite being on the show, she didn't have anything near £1,000,000 and probably wouldn't for at least the next 3 years!!!

M

tyllwyd

MORPH3US wrote:

One thing that Kate said was "be prepared to be poor if you want to start your own business" Basically, she was saying that she'd been living off her Visa card for the last year and then despite being on the show, she didn't have anything near £1,000,000 and probably wouldn't for at least the next 3 years!!! M

That's something that has struck me about Dragon's Den - if you go in there and say that you want to be able to pay yourself a salary while you build up your business, that is the kiss of death as far as the Dragons are concerned. Same thing in Pay off Your Mortgage in Two Years - in the first year, at least, they all seemed to have spent out money trying to get started, rather than bringing in anything worthwhile.

sukey13

RE: the garage on stilts sounds interesting, do you have any pics? Also, what is a no money down property?!?

Garage is basically built on steels that are raised off the ground. Will ut some pictures on my blog later. You can find that through clicking on my username then looking at my website... seems like I am not allowed to post it.

Even though the property group I run is on someone elses website and I do not charge any money for it/make a profit that link got removed too - Poppycat has it in for me - keep an eye out for that one.

RE: No money down... We are buying some flats at the moment for £100K each. We are using investor finance to buy for cash and remortgage. As they are let out for £650 and £750 and valued at £130K we can get a buy to let remortgage of over £106K. Therefore, even after fees we will have put no money in and will actually get cash out.

Also the properties will then have a mortgage of about £500 per month giving us positive cashflow also.

I didn't think that was possible to do down here in the South but just goes to show.

I watched that Fresh Bed programme on tv and couldn't believe the mess they got into having the affair and everything when they were given such a big opportunity to learn and make money.

sukey13

Re: Sukey, just looked at your blog - Tower House is beautiful, not sure about some of the bedroom colours though. Do you mind if I ask how much you paid for it - really cheeky I know. The Christmas babes are pretty nice too

Yeah the colours are OTT they have got to go. We just got back from making a list of all the work to refurbish the place. We are getting sanders in to do the floors down stairs, neutralising all the colours, calming all the ceilings back down, new carpet, rearranging the kitchen, new worktops/sink, etc, etc...

Well, as you can soon find out on nethouseprices... we paid £249,999 with a profit share with the vendor of 80% to them if it sells above £300K. Therefore, we cannot spend too much on doing it up as we will be eating in to any potential profit. Anyone know of any good painters as we need to draft more in (Dorset area).

P.S. Apparently anyone else could recommend my blogs and that would be OK?