Mortgage Free - so good they'll do it twice! Wynnvegas aiming for the big house

Tilly_MFW_in_6_YRS

Goodness Billy, I read this before Dropping off to sleep last night and could not formulate a reply, what a day you had. Good luck with all of your projects, I feel quite weary thinking of them all.

B2L looks like it is cracking on apace, and I am sure you will enjoy the volunteering. Great to give something back.

Can't wait to hear progress by Friday !!! at this rate the virtual Billy Street will be up and running.

Good luck with everything.

Best wishes
Tilly and DH:)

wynnvegas

Morning Tilly,

Today is likely to be less manic. I don't think I could do many more days like yesterday! Work and then the financial advisor this evening to set up the offset and get to grips with lending options for the land.

Cheers,

Billy

Tilly_MFW_in_6_YRS

Hi Billy, can't recall you posting which offset you are going with - we are favouring FD right now, but speaking to advisor to see if anything else is more appropriate. Busy morning but then hope to take an hour or so late afternoon to complete mortgage thinking and get application put in.

Best wishes Tilly

wynnvegas

Thanks Tlly,

That's the discussion tonight. Hpefully there is a decent offset without any upfront fees. I'll always resent the £1,000 or so arrangement fee for what is essentially a 15 minute job. I'll let you know what our guy is recommending.

Cheers,

Billy

waughc01

Hi Wynnvegas,
I am bloody knackered after reading what you managed to do in 1 day yesterday, are you sure there are 24 hours in your day. Your heed must have been bursting last night.
Sounds exciting viewing all the btl properties. Remember and keep your renovations plain and simple, nothing fancy, there are plenty of bargains out there when doing up a property and doesn't always have to be new. If the carcuss of kitchen cuboards are in good condition all we do are change the cupboard doors and handles. Some great buys to be found on gumtree and ebay as well. I also drag my poor dad round B&Q so that I get his discount lol.
Good luck with the financial advisor today hope all the number crunching goes well.

wynnvegas

Thanks Waugh,

I honestly can't remember a busier day in my entire life! Do you do the repairs and such yourself or do you have a team of folk that you contract stuff out to? We made the mistake yesterday of guessing something like £5k to fix up the first BTL property. The letting agent said our estimates were so far off the mark it was funny. We'd thought about £1,500 for new carpeting throughout. She said it will be closer to £300. Our £5k was trimmed to a top ceiling of £2k within 10 minutes! Our process will likely be to have an initial visit, take some photos and video of the place, take the home improvement guy round to get a quote for the work that needs doing and then put an offer in taking into account all the costs we'll incur in the journey. Still haven't seen any major issues with the idea of the BTL stuff. Much of tonight's chat will doubtless be about tax as we'll try to limit how much we get hit on that front now and in the future. I've never filled in a self-assessment so I'll need to have a look at what is involved with that.

Currently looking out the most recent payslips and such for us to apply for a mortgage. Wee bit upset that we'll no longer be mortgage free (even if it is 100% offset) but we're speculating to accumulate and the net assets will start taking a major jump in the SOA to compensate my grief!

Cheers,

Billy

abouttimetoo

OMG Billy, it's only about 10 days since I've been on here and I can see i've got 5 pages to catch-up on!!!!!!!!!!!!!

Right, goes to make cup of tea and sit down and catch-up, gawd know's what you've been up to now

abouttimetoo

wynnvegas wrote: »

Best be careful with the innuendo allegations. Tilly might well be back to give you one!

Classic Billy, just classic :rotfl:

wynnvegas wrote: »

Outside work and volunteering, I've had a couple of buy to let meetings in the last couple of days. The first with the letting agent and the second with the financial advisor. Both are extraordinarily gung ho and I can't see any major risk of cracking on with the suggestions they have. I've got a bit of digging to do to firm up the idea but it's quite probable that I could have 5 properties by the end of the year and ten by the end of April and that's without Investor 1 who, against all advice so far, if he does get involved, could double those numbers comfortably. We may have hamstrung ourselves ever so slightly by paying off the mortgage as you seemingly need a residential mortgage to be granted a buy to let mortgage. If that's the case, it may well be worthwhile kicking on and buying The Mother's house from her at this stage. We'd pick it up for £40k and it's worth £120k but there are wide ranging benefits for everyone as we get the house and the equity (and the rent from her two lodgers) and she gets to free up about £600 extra a month, free rent for life and a lot of flexibility in her options going forward. The financial guy said today that, in hindsight, we should have done things a bit differently but that now is the perfect time to jump in and we've obviously put ourselves in a good position to get cracking in a pretty big way. His estimate is that we could pick up 50 properties in 5 years and have half of those paid off in ten. At a best guess, that would give us a £5m property portfolio with £2.5-3m equity in them. Stupid numbers but if it all works out, I'll be dancing!

I know you may have moved away slightly from this thinking since you first posted the above Billy, but you scared me a little bit! I take my hat off to your for your undoubted enthusiam, energy, research and orgnisational skills but this is a very big thing you are planning. Sometimes it's better to go slower to get faster, so that you can learn and improve as you go along. Yo have 10 properties by next year is certainly doable on paper but you don't even know if you will 'like it' and that does matter and there is also a lot of money at stake here.

I understand your thought process and the black art you describe (lol at that BTW) but there will always be properties to by, the only pressure to buy is what you put on yourself IYSWIM. I know you plan to be building up equity this way but how do you plan to release it? Properties don't sell easy or are you planning to just keep borrowing against the equity?

Something else to consider is that I believe most financial companies have their own parameters as to what they consider to be 'normal' BTL portfolios and what the tipping point is in their opionion whereby it becomes more of a commercial venture and at that point they either won't lend more as they view the risk to be too great, or, the T&C's change (prices go up!) when you go over their magical number of properties.

The aim here is to make money and actually get your hands on it. If I can reference shares for a moment, what many people do is just buy them and let them go up and up (if they are lucky) they rarely step back and say right, I've made 20% profit here (insert own number) that's far more than I'd get in the bank, lets topslice that and de-risk the venture. You could try and do this with the BTL's eg. get into a cycle of both buying and selling once you reach a profit point you are happy with. I'm just concerned for you that the property market is less than bouyant (sp?) and not likely to change in the near future and the UK/Euro economy is also struggling. What I'm trying to say I guess is that I'm concerned you are going to end up asset rich but have no real money in you own account to progress your personal dreams for you and Moyra. Right, I'll shut up now, hope you don't take the above the wrong way

wynnvegas wrote: »

Well...

I'm not prone to such internetisms, but, if I were, this would be an OMG moment. However, as I'm not, I'll let the prospective views from the potential Bog House do the talking:

Billy, that looks amazzzzzzzzing! PS, I lurrrve your typo, THE BOG HOUSE, lol, does bog also mean toilet in Scotland? I know you like to refer to your current home as the squalor, but calling the above is toilet is way beyond insulting :rotfl:

Well done you on the volunteering, can't wait to hear more about it

Regards
ATT

wynnvegas

abouttimetoo wrote: »

OMG Billy, it's only about 10 days since I've been on here and I can see i've got 5 pages to catch-up on!!!!!!!!!!!!!

Right, goes to make cup of tea and sit down and catch-up, gawd know's what you've been up to now

Hi ATT,

I worry I've taken up your night with my insanity. Just finished with the Fiancial Advisor so a further ten pages are in the offing. Interesting times indeed!

Cheers,

Billy

wynnvegas

Hi ATT,

As to your second post, I've had to move from the iPad to the laptop to respond more appropriately. For information, you are not helping my efforts to decrease my verbosity! I appreciate you picking up my accuracy - the bog house is certainly a bad effort!

It would appear that, with it being this time of year, we'll be unlikely to close any deals, including our shiny new offset, before the end of 2011. That will ensure that we take things slightly slower than had previously been the potential. We'll kick off with a couple and then see how that's going for a few months. If it all goes swimmingly, we wil hopefully be happy enough to grab a few more. We will, economic recovery notwithstanding, be loooking to pick up the bulk of our places in the next couple of years but there's no need to rush in gung ho.

I think we'll get a feel for the tipping points of verious lenders. It certainly seems a good few are topping out at 3 properties. One thing is for sure, we won't leverage ourselves to a daft level and all the planning to date is geared toward the pessimistic side.

I do appreciate the warning and you'll need to really go some for me to take offence at anything! Most of this seems not to affect to any great extent the money we have coming in so we'll hopefully manage to be both asset rich and relatively ok with regard cashflow as well. I only regret the offset not already being in place but, if that's the biggest mistake we ever make, we'll end up quite pleased with ourselves.

More progress with the volunteering as well to report on.

Cheers,

Billy