“You are the ROOT of your financial success or failure.  If you work on the roots, the ‘FRUITS’ will take care of themselves”.

APOLOGIES! I’ve been missing in action recently and its not because I’ve been pre-occupied watching England play in the WORLD CUP 🙂  I want to share an EXCITING DEAL we have just signed.  You may recall in my first blog, I talked about how I am on track to reach and EXCEED my FINANCIAL OPULENCE GOALS OF £10,000 net profit a month.

Well, I am happy to announce that this 1 property will be giving us £10,500 gross income for August (net earnings are broken down below).   As such, I scrap my notion of being able to reach financial independence in 3 months.  This deal demonstrates that it is possible to become FINANCIALLY INDEPENDENT in 1 MONTH with just 1 PROPERTY and this is how I did it.

I was put in touch with a landlord who owns a MAGNIFICENT 4 bedroom house in central Cambridge and also has a self contained basement studio.  This property is right by the PUNTS in Cambridge so it is as CENTRAL as you can get.  I received a call last week from a big Middle Eastern Family who was after a property for 1 month in August in central Cambridge, which after a DISCOUNT, we agreed to a daily rate £350.  As a result, we signed a contract with the landlord to allow us to run his house as a SERVICED ACCOMMODATION (‘SA’) for 3 years at a fixed guaranteed rent.  Our GROSS turnover from this property for August will be £10,500 and our NET profit (after deduction of rent, utility bills, initial start up costs spread over 3 years) comes up to approximately £7,000 net profits in our FIRST MONTH of operating the Property.  On top, our lovely landlord will also be giving us a 3 month rental free period (so in reality, our net profits should be EVEN HIGHER!).

This is an AMAZING DEAL and if I had known in January, what I know now, I would have started with a bigger property.  However, it is SAFER and a necessity to learn as you go and work on the smaller deals until you have tested and built up your brand, team, operation and management system, business model and reputation.  I currently make all my net profits in the UK off properties I do not own myself.  As I don’t own these properties, I cannot take advantage of any capital gains made on the properties or re-finance on them to extract money out.  Therefore, that is MORE REASON why these properties needs to perform as a CASH COWS with 10 UDDERS every month 🙂

agriculture animal cattle close up

Our company specialises in providing high-end BESPOKE SERVICED ACCOMMODATION for short and long term rentals.  I actually fell into this INDUSTRY by mistake and was able to readapt our business model quickly.  My initial property strategy was to make a good profit margin by renting bespoke rooms out on a monthly basis in a shared house to working professionals.   This is more popularly know as HMO’S (House in Multiple Occupation).  Whilst we do have 1 house which operates under this business model and is generating a bit over £800 net profits/month and that’s pretty fantastic, the ROI from SA’s are just INCREDIBLE and we can make our initial investment back from the FIRST or SECOND MONTH of operating.

I often get asked the question about where I find these properties, indeed one of my cousins today likened this to “trying to find a unicorn”.  I would say, just GET YOURSELF OUT THERE and tell people what you do.  I have found that MOST BUSINESS OWNERS own a few properties and that would be a good place to start building up a relationship.  The only time I was actively looking for properties was in January and February.  I currently no longer go out actively searching for properties, but people come to me. I don’t take on every property either – I need to analyse the location, business potential and whether the landlord and I would have a fruitful long term relationship.   I don’t like going through agencies as I don’t see the need to pay additional agency fees, administration fees and a deposit, since we also invest into the PROPERTY.

So what’s next for the rest of the year?  Well, we have a family property which has currently been stripped to the BONE and will turn into 5 bed HMO by the end of July 2018 (hopefully).  I will make a VLOG about this so you can see what the renovation process looks like.  We will be purchasing some properties for the rest of this year to redevelop, renovate, run as a SA and possibly refinance.  Next year we are building some blocks of flats as a family, so lots of EXCITING CONTENT to share.

Peace Out xoxoxo