Thank you Paddy! 😃🙏

Thanks Ricky, glad it was useful 🔥

Thanks for watching Alex. No mention of tax, it was a basic example with £24k as the goal income. Much like when someone says “I earn a £24k salary in their job” which a is before tax amount. People don’t go to their mates, I earn “£20k after tax”, they talk pre tax figures. If £24k isn’t enough for your living in this example, then best to increase it 👍🏻 Agreed that over leveraging is definitely a riskier strategy - worth checking out some of my other videos where I state interest rates will rise, and that I stress test every properties rent 🙂

🔥👌👌

Thanks Paul! 🤝

Good question Lee, and whilst I can’t give financial advice ;) I believe in momentum. So if you like and work well with that family member, then it might be worth exploring that purchase together .. rather than waiting a couple of extra years! 🙂

@@JustinWilkins thats great i will deffo look into it justin and congratulations on your bungalow kind Regards Lee

Nice work Jack! A goal for me is to definitely increase size of project that I am working on in order to find properties that cashflow £350-£400 pcm, so great work setting yourself that criteria! And obviously incredible work achieving financial freedom! Keep going 100%

This guy's portfolio must be in Scotland!

@@housinauthority5258 😭😭 deffo, in the past year house prices have gone up like crazy, 80K Deals don’t exist anymore… unicorns

No luckily not. Still 3% 👍🏻

Yes it’s a fair point - the realities of property is that is a great asset class. It produces Cashflow and capital appreciation… but it’s not a get rich quick scheme. Takes time to build it up!

👍🏻👍🏻

You’ll have to watch my videos to find out 😉 haha I’ve not yet bought from auction, although it’s something I’m heavily learning about at the moment.

Great work Matthew! 👏👏

Was just an example 🙂👍🏻

Returns yes, Cashflow possibly not 🙂

😂 hope that’s a good thing!

@@JustinWilkins Of course it is! Makes you human and relatable, keep up the great work👍

@@ameenr9129 haha thanks mate! 👏 glad to hear that’s coming through, slowly getting more familiar with being on camera 😂

Interesting to hear your thoughts, thanks! Although I’ve done the math, and these refinance figures do work - it’s not reliant on the value going up with the market, but that is an added bonus if that happens. I haven’t assumed any markets going up, as I agree that’s a dangerous game to plan. Markets done continually rise. This was purely a video to show the capital that’s maybe needed to build a portfolio, not to confused people with BRR calculations - well that was the intention anyway! 🙂🤝

@@JustinWilkins thanks for the response. So would you advise to always renovate the property as I have found that by simply fitting new bathroom and or kitchen new carpets etc when comes to remortgaging the property the valuer doesnt really take this into account as much as was invested in doing the refurbishments. They often just look at bricks and mortar

Congrats! That’s an incredible achievement 👏 keep pushing, no doubt you’ll hit number 12 in the near future!

Yes Lewis! 2022 is the year 😃👏 Haha well I’m aware now - so make sure you comment and keep me posted on how you get on!

Hey Ryan, Thanks for watching mate! Here are my personal opinions on these two points: 1) capital appreciation on these areas have out performed the rest of the UK for the last 2 years. My concern is more if it will last, or if it will drop down at all in the future. B) I agree the profit per month is low, which in my opinion is why there is safety in numbers. A portfolio of 10 is better than 1 in my opinion (obvious I guess). Would you agree?

Playing devils advocate, the higher value properties don't provide proportionally the same level of rent and therefore cashflow ROI is lower. If something goes wrong e.g. new roof then you're even more exposed as that will cost more than a standard 2 up 2 down property. Appreciate that captial appreciation is where the win is here potentially so both have their advantages and disadvantages. Also (I know Justin does this) when doing a BRR then the place is in a good state meaning that maintenance issues should be few and far inbetween :)

@@pepeyogan1 really solid points, missed these in my comment above. Particularly the post refurb maintenance - which if done right, should in theory mean there’s less maintenance for the first few years! 🙂

@@pepeyogan1 the cost of a roof and boiler etc will be roughly the same. The expensive property is not necessarily a larger property. It’s more the area it’s in.

@@joey-pn3xe Ok in that case you're probably looking at less monthly cashflow with (at best case) the same level of expenses.

Thanks! 👌 glad it was helpful mate !!

Up norf

Hi Sam - BRR could be bridging, cash, private investor funds … lots of different options. The purpose of this video was to illustrate the amount of capital you might need (in approximate terms) to build a portfolio of say 8 BTLs.

If you are employed on PAYE then probably 3 months, or 3-6 months. From my experience anyway 🙂👍🏻

@@JustinWilkins If i bought a house outright and earned income from it, how many months/years do you think I would need for proof of income? Appreciate you taking the time out of your day to reply mate

There are some providers who accept minimal income and only calculate based off the economics of the b2l

Thanks very much! Glad it was helpful 😁

Hahaha one castle 🏰 👌

Flips are great for building capital! Although could be a harder strategy over the upcoming couple of years

Hey Sebastian, thanks for watching. Glad they’ve been helpful! These figures were more for example purposes, but I’ve recently been to view several houses in the £60-70k region. I’m trying to switch focus to slightly higher priced properties myself. And the idea is just do the same method but with a higher value property - you just have to make sure there’s more profit in the deal to pull out as much money as poss at the end! 🙂

@@JustinWilkins What do you think that sweet spot of BTL is price wise? Obviously you can buy lower value homes, but more often than not they are in more dilapidated areas where capital appreciation wont be anywhere near as strong as other locations. Whats the price range/value of houses you see as a good balance between appreciation and cashflow?

@@teawrecks5070 Middlesbrough or Burnley

@@ameenr9129 man said Burnley 🤣🤣🤣 its a shithole

@@jahanghir528 yeah and sadly their are places like Liverpool where you can’t even get a cheap house anymore .. Burnley is shit so is Liverpool. All northern towns are like this

Hi Paul, Sadly not, I do have to travel for my investments, as I live on the south coast and like you property prices are crazy high! So I travel up to northern cities and areas 👍🏻

Fairly yes. Liverpool area. Lots of areas around the North West, Yorkshire area and North East contain properties in that value 🙂👍🏻

Thank you! I have been thinking about BTL for a while and trying to find out more, properties around me are way out of my budget. I going think further afield may help me out. I’ll check out Liverpool and around Yorkshire 👍🏽

😂😂 I never get bored of you commenting! I wait for it every week :)

Agreed, being safe and playing the long game is never a bad idea … however, providing you don’t overleverage your properties after this initial refinance, and you keep cash reserves from your rent, then you should be able to weather the storm! The last crash was particularly bad due to the fact that a lot of landlords bought properties with 0% deposits - now the standard is 25% in order to hedge against market adjustments 🙂 I do like to look at both sides of this, and I partially agree with both.

@@JustinWilkins the next financial and property crash will make 2008 one look like a baby , the economy is screwed with MMT , mass money printing and covid .... If you analyse the data( most or all of )the EU hasn't recovered from the last recession yet. With unemployment high and both private and government debt at ridiculous levels

Cheers Christopher 🤝

Cheers really appreciate it 🥂

North East or West 🙂

@@JustinWilkins thanks for the reply, cant even get a 1 bed flat near me for that 😒

Cheers Joel 🤝

🤝🤝

Cheers Sean! I do love to bring out the whiteboard :D

To maximise profits, probably development deals. However, they have a higher barrier to entry and knowledge requirement, they also are likely to have a higher level of risk. So hard to compare these strategies like for like :)

@@JustinWilkins Absolutely 👍👍

Hey James, thanks for watching and sharing your thoughts on the video. This video was an overview of capital required to get started. I said at the beginning assume all properties earn £250 profit per month when you rent them out 🤷🏻‍♂️… the math is on that … I wasn’t going in depth on interest payments, insurance, managing agents and other costs. Hope you enjoyed the video anyway, and maybe some of my other videos will cover your concerns regarding how much properties profit 👍🏻

Good so far thanks, still early days but everything is in place to make 2022 a big one 😁🤞

Very valid points Andrew! Stress testing the Cashflow from properties at higher interest rates is really important too! BRR is a fantastic strategy to grow a portfolio and efficiently used money. But knowledge and experience is crucial. Markets always cycle, and in the good times we forget the bad times! This video is by no means made to promote get rich quick, it’s to show how much capital you’d need to potentially build a portfolio. Turnkey vs BRR.

Great points! Definitely some takeaways for people to think about from what you’ve said. Personally whether I’m looking at deals at £50k or £150k - if it’s a BRR that I can refinance most the money out of, then I’m just going to buy it 🙂👍🏻

Hi Charley, thanks for watching. Yes it’s possible to your first buy-to-let without experience or knowledge, but can be a bit more risky. Spending time researching and doing viewing trips can really help increase your knowledge and confidence. Then it’s just a case of being strict on your numbers when making offers 🙂 I’ve just had a refinance come back - £20k pulled out. And I’m waiting on another one right now too 🙂

@@JustinWilkins Hey Justin, I guess it helps with a local network who can help connect with the right brokers etc too. I did a course last year to establish a network of local investors who are active in the market so that will help when pursuing a BTL. I know I want to do it its just a question of WHEN. Do you think the sooner the better for doing a refi? Cheers!

Hi Lee, 25% of the new deposit is still being left in, but enough profit has been created to pull out a large percentage of the funds used. There is a link in the video to, another video I’ve created where I share how to do these calculations 👌

Nice one Joshua! I don’t have an exact video about this, but a Ltd company structure is probably the best way to go - I’d recommend speaking to an accountant for advice on how to structure and set it up!

Be very careful before deciding upon using a ltd company. Double taxation from Corp tax and divis is expensive. Corp tax rates are going up as well (admittedly you'll be below that threshold for now). Mortgage rates are quite a bit higher than in personal name and suck out most of the benefit. The only real positive of ltd co comes if you don't need to take any money out of the company and want to reinvest it all. Then you're only paying Corp tax.

@@ChrisLee-yr7tz il somewhat agree with Chris here. Really important that you get this correct. However, there are a lot of benefits to positioning your business as a Ltd company. It’s best when you continue to reinvest the profits, but I’ve found it tax efficient to take payments. The difficult comes if you try to pay yourself a wage, alongside earning another salary. Best advice is to not listen to either of us and speak with an accountant 😂

@@JustinWilkins lol. Speak for yourself...I am one..🤪🤪...although I haven't worked as one for a long time... I have property in my personal name and in my ltd company and still...the jury is out on the best structure.

@@ChrisLee-yr7tz hahaha my bad! Big assumption on my behalf lol. Interesting to hear you have some in your personal name - but goes to show its individual to peoples situations :)

Cheers Jim! 100,000 properties might be a bit to manage 😂 but absolutely agree, taking big action and having clear goals is so important! Thanks for watching 🙂🤝

😂😂 Your math were a bit off. How many properties did you manage to acquire at the end? 99990?

@@tetiraelian Enough to retire financially free (Top 1% in the UK) so did alright in the end.

@@FifePropertiesTV Well done.

Great suggestion, thanks Matthew! 🤝

Couldn't agree more. For someone starting out with very little capital better to jump on the low margin band wagon that not, and at least get some experience, but do so with your eyes open. The buy to let market become more rewarding and less stress free I find the higher up the value chain you can work yourself towards. If your saving plans allow you to maybe to buy in a better area by delaying for a few months then that might be a better deployment for your capital than buying the cheapest property you can find in the cheapest area.

Haha 👏 il be aiming for that 10/10 next time! 😂 but yes great points and whilst perhaps obvious for some, it’s not for everyone!

Yes I believe so, but it can be quite difficult and take a long amount of time after. And also a decent few years or rebuilding your credit history. Worth checking with a mortgage broker!

Correct(ish). Not avoiding it, but it’s a more efficient way to structure paying tax for my business 👍🏻

@@JustinWilkins Thank you mate

Unless you’re earning in the higher tax bracket and not planning on owning more than 6 properties it’s not worth it. Interest rates are higher and only saving 2% tax which won’t be much with a few properties. I have to interject as a long term landlord that many people don’t realise it’s not good just for the tax efficiency.

Same here! Everyone is different and has different goals... but starting with the goal to add £300-£500 to your income per month is a great achievement, then you can add from there!

@@JustinWilkins just needing to somehow find 20-30 grand 🤣 currently doing myself an adult apprenticeship at 24 is a bit rough

Hey Jeff - tax on what? I didn’t cover anything relating to tax 🙂 and you don’t get taxed on a refinance

@@JustinWilkins tax on income from the rental ?

@@cccggg2600 depends on your structure

@@cccggg2600 20% of your profit if you're a lower rate taxpayer.

Usually 6 months plus, but it can be done prior to 6 months with certain lenders.

😂😂 haha not quite. Small 2 bed terraced properties in northern cities. It’s very achievable - I own a few and have sourced a few to other investors.

Interesting and great point of view! I believe with these types of property it is better to aim to buy a few properties quite quickly, as having 1 or 2 can be inefficient if a expense comes up (like you mentioned). However, I personally believe someone is better off trying to find a middle market. Maybe the £100,000-£150,000 market where a £400 profit per month is achieveable in some areas … for a lot of investors London is almost unachieveable 🙂

True there but it depends really on the area and how long it takes you on saving up that deposit for that property. As Justin said with mid priced properties it can take less time to save up. Sadly with me for example I started an apprenticeship and my first source of income. I'm earning near half that from the £30k example in the video. If I save my income and try invest or buy and sell in the meantime I hope to save £30k by the end of this year. Even then that might not be enough for most places in the south of England. Another thing I'd look at is building up equity on a cheaper house which you can draw out in future to later invest that on another property 👍

@@JustinWilkins gr8 point! basically cheep areas are a game of scale.. expensive areas are a game of quality. it is still critical to find good tenants that will live in your btls as if it would be their own house

London is very high end mate and out of a lot of peoples reach

My comment was addressed more towards those that may have the option at looking at slightly higher value properties. I realise that for many starting out anything above 60K it outside of their reach. But you need to go into it with open eyes and expect that for any given year until you scale up, there is a good chance you will be much less than you expect. If you are lucky you end up with a good tenant but even with good tenants things do and will go wrong. Hopefully if your initial refurb addresses most issues you will have less unexpected issues. Properties at the very low end of the house price market are usually priced so because 1. It needs major refurb 2. It is an area that may not be the most appealing and therefore may not attract the model tenant that you are looking for. With low margins there is much less of a safety net for things to go wrong. However, despite all over that, given the likely hood of high inflation eating into savings and also increasing house prices and rents, I'd say for someone with little capital, it is probably better to give these low value projects a go. Even if its just to gain experience in the buy to let world. You'll have plenty of years ahead to move onto bigger and better property projects.

For a personal property purchase, I believe there probably is. Most recently in the news there’s a lender that does 7x salary!!! But they do tie you into a long fixed mortgage. The majority of lenders sit between 4-4.75 x I believe 👍🏻 Obviously for buy-to-let is doesn’t relate so much to salary and how many times x they offer

Ok great cheers 👍

😴 this model has nothing to do with tax. If the amount of salary I showed isn’t enough for you - then increase the amount of houses you need to buy. People overcomplicate tax, and it’s really not that difficult. Just like when you work a job and pay tax at the end of the month 👍🏻 Thanks for watching anyway, hope you managed to find some value apart from thst

You have 25% deposit in each at least, plus the monthly Cashflow to keep you going through the hard times 👍🏻

When there are hard times you have negative equity, higher interest rates, and may have to lower rents to fight for tenants. Reminds me of 2006/7 before the crash. I held onto my properties in Leicester and Northampton, but made losses for many years and have only now come back to profit overall. Capital appreciation is mediocre, and inflation / maint costs are high. Property is long term investments, but I would invest my money with Vanguard, AJ Bell or similar, or a venture capital trust with higher yields. The maths here just does not work out. One call out for maint is around £80, and thats before any work is done. £250 per month profit is a dream assuming u buy the property in good order with no major maint issues. High risk, low yield at the moment with inflation heading one way. Don’t risk the negative equity and risk of owning multiple properties.It will be a heavy and stressful burden for you and your families.

Some do yes. There’s plenty of lenders that are happy over 6, but they start to review your Cashflow in more detail 👍🏻 End of the day, banks want to lend money to make money. Aslong as it’s safe and low risk

Hahaha the hair part made me laugh! 😂👌 … can confirm I’m not dodgy lol. In answers to the other part - buy-to-let investors most frequently use interest only mortgages, meaning monthly payments are usual in the region of £140-£170 for an £80k house. Rents are usually £550-£600 in the area I invest in. It’s very achievable, I have done this and also sourced these types of property for other investors 😃

@@JustinWilkins So you are getting a 100% interest only mortgage? Your risk with a large portfolio is if several properties are empty. But i guess this is unlikely. So you are getting 600/month on an 80K house? Thats a 9% yield, where is this? Which part of the UK? I am not aware of such high yields. Or are you saying you bought this house for 80K..but now maybe its worth 200K and you are getting 600/month rent?

@@paulbrown5839 no 100% interest only mortgages are very dangerous. They haven’t existed since the crash in 2008, so it’s a is a good thing that they don’t exist any longer. The properties I’ve bought so far are worth around £85k and in Liverpool - the yields are around 9-10%. But as you can imagine, they come with slightly more risk than your average £200k house 🙂

@@JustinWilkins I see. I was told some parts of Stoke also pay good yields for 1/2 bed flats, but as you said- you have increased risk. Are you managing the properties yourself or someone does it for you? If you get a bad tenant, are you planning to go there and evict them yourself?

@@paulbrown5839 hi Paul, yes I’ve heard Stoke is a good investment area too, but no experience there myself. Re management, I have a managing agent that helps me collect rent, arrange any maintenance and in the event someone doesn’t leave, help with evictions. I’ve been lucky and has great tenants so far, but I’m fully aware that I could have a bad experience at some point 🙂

Correct! Sorry if that wasn’t explained enough. So that’s the amount of money you’ll be leaving that property after your refinance!

True, but that’s why those they do it are eventually successful. Nothing worth having comes easy 🙂

😂😂 you might want to recheck your figures on this! It’s 3% per additional purchase - so like £1-2k for these value purchases, not £8k each. Thanks for watching anyway!

@@JustinWilkins I’m pretty sure it’s 3% for the first £125k then 5% of the remaining £75k I know, I had to pay it last year when I added my 4th to my portfolio. Your vid was ok apart from that but the budget was a bit close for comfort. I’m not making a living from mine they are instead of a pension.

Purchase price Rate Up to £125,000 3% Over £125,000 to £250,000 5% Over £250,000 to £925,000 8% Over £925,000 to £1.5 million 13% Over £1.5 million 15%

Total £200,000 £125,000 at 3% = £3750 £75,000 at 5%=£3750 Add them together £7500 in stamp duty would be the exact amount on a £200k property in the U.K.

My bad I didn’t realise your purchase price was 80k that’s cheap! The average price in the U.K. is around £250k

👌👌 less properties. Less potential maintenance or refurbs (in theory) 😂

@@JustinWilkins Very interesting...versus 2 large student houses for example. I'd be very interested to see how it would work with..lets say, a four bedroom house in Liverpool. 4 students. Simple clean fit out. Laminate floors. Durable. 4 rooms rented...4-500 quid a month. Surely student houses are a good investment? I know they can get damaged but apparently its not as bad as you think. I'm from Brighton by the way and have a property on a student street. Great video's Justin.

Brentwood is very expensive, if you are abroad why not invest up north?

@@georgeb7641 it’s out of my area

@@smartfrogeducation4134 you're not even in the country lmao the whole of the UK is out of your area

@@georgeb7641 LOOL

??? 🤣

How'd u get started? And how did u find the capital +when did u start?

Sorry to say that im just exceptionally lucky! I was given £250,000 as an inheritance some years ago and ive just used that to slowly build to the portfolio i have today. Never done any BRR stuff as i never had the connections and tradesman i could trust to do the job for me. I've just bought basically ready to go properties and kept it plain and vanilla!

@@teawrecks5070 wow thats gr8 man good 4 u and 250k inheritance is a pretty big chunk. Ur family did well for u 👍🏼. Any advice on a teen trying 2 get there first property? Saving for the initial down payment rn

Haha 😂 I do rate Jamie’s videos a lot. And I’ve always loved simple BTL, seems most hands off for my remote investing 🙂 congrats on building up that portfolio

Regardless of whether it was lucky or not, great work investing it and not blowing it like some would have!

Thanks for watching (and changing your name after commenting) - got to hide that identity 😉 Not unrealistic figures as I’ve both purchased and sourced these types of property. Whilst I agree I didn’t mention tax, and that should be accounted for… when you hear people talk about their jobs or salaries, you don’t hear them say “I earn £24k after tax”. They say “I earn a £30k salary”. So if it’s not clear to anyone watching (which I think it clearly is…) if £24,000 isn’t enough to meet your needs once tax is taken off - I would set your aims higher. Maybe £30,000 or £40,000 😂👍🏻 Also agree that student HMOs are a good strategy for cash flow, most experience and knowledgeable HMO investors that I speak with have several single let properties as these are a really good foundation to a portfolio. I think being negative about other peoples strategies or views is a really interesting character trait. 🤔 Anyway thanks for watching, and i genuinely do always read the comments and take on board feedback, so thanks 👍🏻

Or just do what the bad boys do bunk beds in a room change X amount and fuck them all haha

Agreed, always better to build in more equity if possible. However, do remember this method still leaves in 25% deposit. Comparing that to the previous crash where people purchased properties with 0% and 5% deposits … we are far better protected now that 25% deposits are required!

@@JustinWilkins it only leaves 25% deposit on the final property, the other 7 were refinanced to over 90% in your example

@@ianjackson88 no they all had 25% left after refinance 🙂

Haha you should really spend some time looking before commenting 😂

😴 same comment, different day. Thanks for watching Kyle but at no point did I mention i was going to discuss tax. People massively overthink tax in property - speak with an accountant, get advice on whether should buy in your personal name or Ltd company … and then do you own math. If the income amount I was giving in this video isn’t enough for you - definitely worth aiming for a higher amount 👍🏻

👍🏻

😂😂

Thanks Nancy, I don't disagree. I don't suggest buying low for the sake of it - I recommend buying below £80k and then driving the above £80k by refurbishing and adding value. Thanks for sharing your advice, good to hear from someone with a portfolio!