Millionaire Challenge

Kayalana99

10% in 3 years...maybe not in itself, but if they buy it cheap and do a bit of work, then perhaps easily yes?

I heard on grapevine off my Dad that someone buys properties for under market value, re-mortgages them on their actual value in a year and then uses the money from the re-mortgage as the deposit for the next house.

It's quite a nice little system he has going on as he basically can get a new house every year on borrowed money.

I guess what I'm saying is most houses are brought under value (even if it's only by £1k or so) so if you shop around for the right house, sold it in three years then 10% is doable if you know what you're doing.

thegentleway

Hey guys, can I join in with this challenge? It sounds great and exactly what I'm trying to do. Bought run down property to renovate and rent out. Hoping to get it re-mortgage and fund the next one as just described.

droopsnoot

Kayalana99 wrote: »

I heard on grapevine off my Dad that someone buys properties for under market value, re-mortgages them on their actual value in a year and then uses the money from the re-mortgage as the deposit for the next house.

Some years ago I went to one of those "become a property developer" seminars at a local hotel - you know the kind of thing that was popular back then, go to the evening do where they tell you all about how great they are and how you really need their premium weekend seminar for only £2995 if you sign up tonight.


They had a number of their existing investors hanging about to help with the selling process, and that was exactly their process - either buy below market value, or rely on the property going up in value, remortgage, then use the withdrawn equity to buy the next one. Struck me as a bit of a house of cards, and the company concerned ("Inside Track") went bust not long afterwards. I was going to go to the weekend seminar, signed up and paid, but slept on it and got a refund the next day which, to be fair, went through without trouble. There's so much information on the net and many forums for that kind of stuff that it wasn't worth paying them. I often wonder if I'd spent the money, maybe I'd have taken the leap and actually bought one or more BTL by now.

Kayalana99

droopsnoot wrote: »

Some years ago I went to one of those "become a property developer" seminars at a local hotel - you know the kind of thing that was popular back then, go to the evening do where they tell you all about how great they are and how you really need their premium weekend seminar for only £2995 if you sign up tonight.


They had a number of their existing investors hanging about to help with the selling process, and that was exactly their process - either buy below market value, or rely on the property going up in value, remortgage, then use the withdrawn equity to buy the next one. Struck me as a bit of a house of cards, and the company concerned ("Inside Track") went bust not long afterwards. I was going to go to the weekend seminar, signed up and paid, but slept on it and got a refund the next day which, to be fair, went through without trouble. There's so much information on the net and many forums for that kind of stuff that it wasn't worth paying them. I often wonder if I'd spent the money, maybe I'd have taken the leap and actually bought one or more BTL by now.

Most the time these kind of seminars are basically one idea, with a lot of motivation and stories how to do it and some background on how they find the properties.

Perhaps this information is worth £3,000? Maybe. It might save you a lot of time trying to figure it out...but most of the time it's the millionaires telling the wanna be millionaires how they do it and they walk out all inspired but never doing anything about it, if you are in the position to do something do your own research and get started.

I think most of us have a few ideas up our sleeve of how we could make some money but it's just putting it into action, my problem is I just don't have that 10-15k to get started... I thoroughly believe once I have my first house the ball will just keep rolling but my circumstances saving has been difficult.

Now the wedding is more or less out way (money wise) I am hoping I can *finally* start seeing the light and start putting money into investments...my plan for this year has gone haywire due to the wedding and somehow that £950 I had in savings has gone up into air BUT my business is starting to see a decent profit on a month by month basis (not just with the Xmas surge that basically put my business into profit) so fingers crossed...

Unf I am sat up thinking about my previous dilemma, to turn my eBay shop off completely, to put it on 'away' mode so the away date shows when I am back but people can still order.

1) If I turn my shop off 100% and block sales, I lose a week and half worth of sales, plus because I am not in the listings I will drop drastically and it will take time to build my listings back up, so sales will drop in general.

2) I put myself away, I don't get as many sales but enough to keep my place (if not drop a few) until I return...but the downside is I am not here to deal with customers, some don't see the message...possibly bad feedback and bad DSR's which in turn would mean I would also drop places in listing...but I still feel like this is the lesser of two evils...but I would be worrying about my business if left like this.

...on researching most people advise 1 as they say the bad DSR's affect your account for much longer then loss of sales of a week...

Tbh I think option 1 is the better choice and perhaps if I lower my prices again I can climb up a bit faster...it's a shame as my fathers day sales are just hitting though and if I choose option 2 any orders would still be done by fathers day...GAHHH!

Ok I just don't know. :rotfl::eek:

Edit: I am making a fuss over something I shouldn't really aren't I? I just posted this on eBay part of forums and someone said I should turn it off as their are more important things to life...I think I will stick with option one and save myself the worry and deal with the rest later. I suppose holidays are so you can have a break !! I may even just give my Dad control until I am back so I don't even have to deal with messages .

cazmanian_minx

I vote for turn it off, I do if I'm away - sometimes you just need the break. You can put an 'out-of-office' message on your messages as well, it's the option above Shop Holiday Settings, but you can't start it the same calendar day you set it for some reason, so set it up 24 hours before you go.

lessonlearned

BB - prices rising steadily in Derbyshire, although yes the "dogs" do stick. The nice ones do get snapped up, some of the really nice ones are going for more than their asking prices. So I would think 10 per cent over the next three years is probably achievable, assuming no major shocks to the economy.

Kay - re the seminars. Ive been to a couple of freebies, throughly enjoyed them, they do motivate you and give you some ideas, plus you often get to meet really nice like minded people. In fact for any single ladies out there I can throughly recommend them.........:rotfl:
If you get good speakers they can be very interesting and good fun.

When DS2 was down in the dumps, feeling hopeless and spending money he didn't really have, I dragged him off to one. I had been trying to encourage him for months but that seminar did more in 2 hours than I had achieved in nearly 25 years of "encouragement" .;)

He came out of that meeting a changed man and I'm pleased to say he turned over a new leaf and proceeded to get his life in order, hauling himself out of debt, buying a wreck (ok with my help), doing it up etc

He now has goals and ambition and is much more positive in his outlook, focussed and disciplined with his spending. Prior to that he was just drifting and very unhappy stuck in a dead end job. he still has the same job but because he knows it's only temporary and a means to an an end he is actually enjoying the work. He enjoys life more because his attitude has changed. No more woe is me. More a case of ok let's fix this........

I would never pay to go on one of the courses but I would certainly attend any free seminars etc

Re the Ebay conundrum, yes definitely go for option 1 - take a break. Step back from it and clear you head for a week or two. Just enjoy your wedding.......

I hope you have a fabulous day and wish you a long and happy marriage. If you have half as much fun in your marriage as I did with my husband then you wil be a very happy woman.

I realised its nearly 10 months since my husband died. Where does the time go........

Tbh I feel like I've been sleepwalking for the last few months, especially since mums death. The two together were such a double whammy they left me reeling.

Anyway I finally feel that the "grief fog" is lifting and I'm beginning to feel more like my old self.

This week I have been decluttering my own space and tomorrow I start on my parents cottage in earnest. Their little house has now been sold so I need to get cracking.

There is a mountain of stuff to get through, some to keep for sentimental reasons, but most of it has to be disposed of. I know roughly what is of value and what can go to either the charity shop or the tip.

It is So sad to see their home go and the contents scattered like that.
It really feels like the end of an era.

Hey ho, I have to look forwards now, say a final goodbye to the past and start building a new life and get back on track to that £1m...........

I have myself, my boys and any future grandchildren to thnk about. :rotfl:

droopsnoot

Kayalana99 wrote: »

I think most of us have a few ideas up our sleeve of how we could make some money but it's just putting it into action, my problem is I just don't have that 10-15k to get started...

I'm the reverse to be honest, I have no real ideas for anything that I could do that would be worthwhile. It might be that I over-analyse things and that stops me from risking stuff. BTL seems like a big leap for someone who has zero experience, a lot of opportunity to make very expensive wrong decisions. Plenty of people do it successfully, but that old over-analysis jumps in again and plays pictures in my head of houses with sofas and dead horses in the front garden

Karmacat

lessonlearned wrote: »

When DS2 was down in the dumps, feeling hopeless and spending money he didn't really have, I dragged him off to one. I had been trying to encourage him for months but that seminar did more in 2 hours than I had achieved in nearly 25 years of "encouragement" .;)

Wow! Thats really something! To be fair to you and to him, he must have been ready to change. Still brilliant, though

I hope you have a fabulous day and wish you a long and happy marriage. If you have half as much fun in your marriage as I did with my husband then you wil be a very happy woman.

Well said :j and my wishes for your health, wealth and happiness go with you :bdaycake:

I realised its nearly 10 months since my husband died. Where does the time go........

Tbh I feel like I've been sleepwalking for the last few months, especially since mums death. The two together were such a double whammy they left me reeling.

Its run by, and its no time at all, isn't it And now you have all the decluttering to do? My mum's *tried* to declutter her stuff, but to be honest, it's not going well, and whenever the inevitable happens, my sibs and I are going to be left with an absolute mountain to climb :eek: I hope yours goes steadily.

Hey ho, I have to look forwards now, say a final goodbye to the past and start building a new life and get back on track to that £1m...........

I have myself, my boys and any future grandchildren to thnk about. :rotfl:

:j:j:j At leat I have the millionairedom to look forward to :rotfl:

droopsnoot wrote: »

I'm the reverse to be honest, I have no real ideas for anything that I could do that would be worthwhile. It might be that I over-analyse things and that stops me from risking stuff. BTL seems like a big leap for someone who has zero experience, a lot of opportunity to make very expensive wrong decisions. Plenty of people do it successfully, but that old over-analysis jumps in again and plays pictures in my head of houses with sofas and dead horses in the front garden

As one of the ones who made an expensive wrong decision, I sympathise, droopsnoot ... run through these questions for me:
- do you have your own place already? (cos that's a good place to look at your track record etc).
- do you have DIY skills? Can you learn any?
- where *would* you buy? If you don't know, research it - prices vs rents, on rightmove, the local papers, shop windows, anything. Gain knowledge, as well as skills!
- the very smallest properties present the very smallest risk. Is their return on capital worthwhile?
- what about managing a rental? I think it was you said you wouldn't want to do it? So how about handing it over to a managing agent, or do you have a friend who's already doing it, and prepared to do it on a professional basis?
- for complex decisions, I write everything down (over and over!!). How do you make decisions, and are you comfortable with it? You say you overanalyse - do you, really? If you do, where should you stop, in reality, and make a choice?

Just some questions that popped into my head ... hope you don't mind.

Karmacat

And what's happening to the forum? All sorts of things are being timed out ... never had that particular glitch before

lessonlearned

Droopsnout - karma has made some great points about how to,think things through.

I know we've had discussions before about the concept of "risk". It's a difficult one isn't it. One persons "calculated risk" is another persons wild gamble. I think it all boils down to how you feel and only the Individual can know this - it's so very personal.

I am a great one for relying on instinct, putting it indelicately it's just a "gut reaction" - for me it's very visceral. I just "feel" it.

I think a few butterflies in my tummy are fine, in fact I think they are essential because they keep me on my toes and stop me getting complacent. however, If my stomach turns cartwheels at the Mere thought of something then I back away, even if, on paper, everything looks to be ok.

If my head says yes, but my feelings say no then I always listen to my feelings, that inner voice never lets me down. It also works the other way.

I have taken decisions where my head said no, but that little inner voice said it will be ok, just do it, it will be fine. So far it's always been the inner voice that's right, my instincts or gut reactions have never let me down. That's not to say I didn't have a few sleepless nights and a little wobble now and then, but the decisions based on gut feelings were always the best ones.

The very first house I bought looked like financial suicide on paper, but I went ahead. Everyone kept telling me I was crazy. The first few months were beyond tough. That first winter was dire. I lived in one room for three months, no hot water, the downstairs was uninhabitable and the house was freezing.

I barely had enough money for bus fares to work and only just had enough to buy food, but hey I survived.....i rolled up my sleeves and got stuck in. Three years later I sold the house for more than double what I had paid for it.

It was one of the best financial decisions of my life.;)

I chose my husband the same way. On paper he was not a "good bet". He had three girlfriends in tow, no money, was living In rented accommodation, drove a clapped out car. The only thing I could see in his favour was that he clearly had a first class brain, a great personality and everyone adored him.

He turned out to be the best investment I ever made.......:rotfl:

Yes I think it is possible to over analyse things sometimes, but then if you are made that way then you are made that way.

If you need that reassurance then sit down, do your research and then write a list of pros and cons......

If that doesn't work then maybe now and again you should just shut your eyes and jump right in. Maybe!!!!

Sometimes you just have to make a leap of faith.