Property developers and landlords business??

Discussion in 'General Business Forum' started by pdhmobile, Aug 13, 2019.

  1. pdhmobile

    pdhmobile UKBF Contributor Free Member

    63 1
    Hello all

    A bit of advice,

    A local property ' millionaire' is running a free day training course and has YouTube videos on how to become a property tycoon like him. The basics are ,

    1. Set up a limited company
    2. Buy a property for at least 20% below market value
    3. Get a year long interest only mortgage
    4. After the 1st year, remortgage, take out the equity in the property to fund your next one and then repeat steps 2 and 3 and then the chain of events starts again.
    5. Before you know it you have several properties, houses or commercial and you are on your way to been a 'property millionaire'.

    What do you experienced people out there think of this??
    It's one of those, sounds to good to be true situations ,
     
    Posted: Aug 13, 2019 By: pdhmobile Member since: Jan 7, 2011
    #1
  2. Gordon - Commercial Finance

    Gordon - Commercial Finance UKBF Ace Free Member

    1,447 371
    Really you need to get the places for 25% below market value for it to be workable.
    If it sounds too good to be true, then it probably is. In reality, deals where you can get somewhere even 20% below market value come along once in a blue moon. Its nowhere near as simple as they make out. Why do you think they spend so much time and effort promoting their training courses? Because that's where they make their money. If they can convince you to sign up off the back of the free training course, where you will find out the "inside info", then they've done their job.

    Skip the training course, save your money, and do it anyway. You've got the basics. Just hunt for the deal.

    I would also suggest using a 6 month bridging loan as well, as properties which sell for 20% below market value tend to be un-mortgageable.

    Then you can remortgage or sell after doing some work and increasing the value.
     
    Posted: Aug 13, 2019 By: Gordon - Commercial Finance Member since: Jun 26, 2017
    #2
  3. intheTRADE

    intheTRADE UKBF Contributor Free Member

    74 12
    These 'property guru' types are popping up all over the place and the majority of them don't own any sort of property.

    Not saying that this is the case with this guy but I would be wary of what his up sell after the free training is. Some sort of very expensive mentoring programme which will see you paying a huge amount to him to help you through everything would be my guess.
     
    Posted: Aug 13, 2019 By: intheTRADE Member since: Apr 14, 2019
    #3
  4. Mark T Jones

    Mark T Jones UKBF Big Shot Full Member

    3,266 952
    You ‘just’ buy below market price

    ‘You ‘just’ get a long, interest only mortgage

    You ‘just’ benefit from guaranteed property appreciation

    Here’s my FREE guide to becoming a millionaire in any business

    You ‘just’ find lots of customers who are prepared to pay top dollar for your stuff
     
    Posted: Aug 13, 2019 By: Mark T Jones Member since: Nov 4, 2015
    #4
  5. Maxwell83

    Maxwell83 UKBF Regular Free Member

    569 133
    If you can get almost ANYTHING for 20% less than your competitors on a regular, repeatable basis, you can become a millionaire.

    The theory is sound - but it relies on the stars aligning every time. In practice though... well thats a totally different story.
     
    Posted: Aug 13, 2019 By: Maxwell83 Member since: Aug 4, 2012
    #5
  6. Noah

    Noah UKBF Ace Free Member

    1,199 298
    Errr.... Is this also assuming 100% loan-to-value? That might be another wee piggie in the oinkment.
     
    Posted: Aug 13, 2019 By: Noah Member since: Sep 1, 2009
    #6
  7. Mark T Jones

    Mark T Jones UKBF Big Shot Full Member

    3,266 952
    'Top slice millionaires'

    Property owners who can verify a net worth of £1 million, but who will be bankrupt if prices move by 10% or more
     
    Posted: Aug 13, 2019 By: Mark T Jones Member since: Nov 4, 2015
    #7
  8. AllUpHere

    AllUpHere UKBF Ace Free Member

    2,999 1,068
    It's the same with any expert. Ask yourself why they are bothering to sell their ideas to the competition.
    I have a sideline for which I charge between 2 and 3.5 k per day. I could teach someone how to do it if they came and worked with me for a few weeks. Chances of me actually teaching anyone else how to milk my cash cow are absolutely 0 though.
     
    Posted: Aug 13, 2019 By: AllUpHere Member since: Jun 30, 2014
    #8
  9. crackerjackcommerce

    crackerjackcommerce UKBF Contributor Free Member

    38 0
    Good responses on this. We sell products online and are always looking to buy a product at a lowest cost, as said above, if you can source 20%-25% cheaper on a regular basis then this has a huge positive to your bottom line profit providing you don't slash your sale price to off-set it.

    In the ecommerce world I see loads of adverts on youtube for starting up a dropshipping business and making millions. At the Spring Fair last time I saw expert speakers telling people how to sell online and by default advertising their services.

    As said above, often it is the person making money on telling you 'how to do it' not actually doing it - their great tempting marketing gets you to buy their course and they are profiting from this, not from actually doing what they tell you to do. With that said, there will be some who do have the knowledge and experience and can make valid points so it is worth exploring.

    For me, I would do my own research and run my own numbers.

    At the moment in the UK houses prices are stalling so what would happen if you end up in negative equity? Does being a ltd company provide protection against this?!

    Good luck with it if you decide to do it!
     
    Posted: Aug 16, 2019 By: crackerjackcommerce Member since: Aug 1, 2019
    #9