It’s a Funny Old Game…

Inspiring Words

Post Of The Month From www.tycoons-forum.com

A Warm Welcome To Our Latest Tycoon Community Members!

build and what's going on with that. Well, right now we're working on the exterior design with my architect. We have thought about the inside too, in terms of general layout and room sizes.

This design will be presented to a planning officer at the local council who will tell us if what we are proposing is broadly acceptable or not. If she is happy that we are headed in the right direction, then we will proceed with detailed drawings and a formal submission of a planning application.

As soon as we are clear where we are with planning, I will put lots of pictures here for you to look at.

As I have mentioned in previous posts the doom and gloom in the property world is a godsend for self builders like me. Not only can we now get great plots of land at bargain prices but we also save up to 30% on the build cost too. On a project like mine that represents a saving of over £100,000!

On the plot itself I have recently had the electricity supply cut off and the electricity meter taken out. To do this I had to contact my supplier for the meter and the network who control the cables underground. I had left the electricity on because I figured we might need it for small jobs that might need doing at the property. I then decided having a live connection at a derelict property would present a possible hazard so I decided to get it completely cut off.

I’m still there everyday checking on things and enjoying the countryside. In fact I recently purchased a mountain bike for the purpose of cycling over there with my dog Bruce from where I live now (about a mile away).

I always take a packed lunch with me (one for him one for me) which we

2. READY MADE DEAL – 20% Below Market Value, Sunderland, 17k Equity

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• Germany tops European property prospects http://tinyurl.com/5jorfx
• End of property slump in sight, say experts http://tinyurl.com/6cffbf
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• Britain is becoming a nation of renters
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prompt with rental payments so far? Can you count on him or her to be reliable and trustworthy in payments and in keeping the property in good condition?

Question Six: Does your rental income comfortably cover your expenses?

Question Seven: Is the property situated within close proximity to a major employment area?

Question Eight: Do you have enough money in contingency in case a major repair need arises?

Question Nine: Can you still hold on to your investment if the property fails to rise in value in the next five years?

If you answer yes to most of these questions, then you have made a good purchase. Now all you have to do is to maintain the property and make sure that it is tenanted as much of the time as possible. The key to keeping those vacant months to a minimum is to foster a good relationship with your tenant. Be a hands-on landlord and save some money by doing the property management yourself rather than hiring a professional letting agent if at all possible.

If your answers have revealed an alarming number of no’s, it might be time to rethink this investment. Is your property worth the time and effort? You could end

pandering attorneys and handlers that really took advantage of his condition. But I still found a way to bond with him, calm him down, get out of a lawsuit and actually win his trust. But WOW when he was off his meds he would scream at the top of his lungs ala RAIN MAN in the airport, then stone faced say "I'm hungry, wanna get some pizza??" "Know where I can find a hooker?" Then two minutes later be ranting about how the world was a giant conspiracy!! Wow!

Well we did manage to close, but with one wonderful little extra incident. At the closing table he believed that his attorney was overcharging him and got

2. Go figure. Looking at houses and shopping around may be exciting, but remember that your ultimate goal is to make a profit. No matter how beautiful a house may be, if it is priced too expensively, it just will not work. Make sure that the price is not only an amount that you can afford, but that you can still make a profit from.

When it comes to letting out the property, ensure that the rental income covers your mortgage payments and still gives you a profit. A good rule of thumb is to keep rental income at 125% of mortgage repayments. When it comes to buyto- let investments, make sure that you have enough funds to cover void periods and repairs.

3. Look around. Property is one of the biggest purchases you will make in your life. Take your time and look at as many options as you can before zeroing in on a purchase. Fall in love with the deal, not with the property. Remember that this is an investment that you are making. Your goal is to make a good investment.

• Demand is weak with the balance of surveyors reporting new buyer enquiries still well into negative territory.
• However, there has been a noticeable improvement in the trend with 35% more Chartered Surveyors reporting a fall in buyer enquires compared to 50% in May and 69% in April.
• Surveyors report that some buy-to-let investors are entering the market to take advantage of rising rents and equally that 'predatory buyers' are looking to bargain for reductions in a falling market.
• The lack of new instructions to sell property continues to provide a layer of support to the market.
• Large numbers of distress sales (either repossessions or sales from those attempting to avoid the repossession process) have not taken place and the employment picture has not deteriorated to a degree where repossession levels have started to accelerate.

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Property investors often say to me “Deep, how can I make my existing property portfolio more profitable?”

It’s a tricky one and there is no ‘one size fits all’ answer. Let’s look at a few options:

1. Increase your rents – a good strategy but not always possible especially when the market is very competitive (in fact you may have to lower your rents in some cases to get your properties rented quickly)

2. Try to find new more profitable uses for your property – a classic example would be taking a large 6 bedroom detached house and turning it into 3 self contained flats. This strategy can only be applied in certain situations of course.

3. Assuming the property is financed with a loan an investor could renegotiate financing terms or refinance with a different mortgage lender. There are some great rates out there at the moment so this is a viable option that I will focus on in this article.

Let’s look at an example of how a property investor might go about making her property portfolio much more profitable by taking the refinance route…

She is paying £600 per month a mortgage interest on a property which earns her £800 per month in rent. That’s £200 per month (gross) that she gets to keep each month. She has an average level of equity in the property.

If she could refinance the debt and reduce her mortgage interest payment from £600 to £500 per month then let’s look at the figures now.

Her gross profit each month has leapt from £200 to £300 – that’s an increase of 50%. Keeping everything else equal, let’s assume she has 20 of these properties. That would mean her gross income shooting up from £4,000 per month to £6,000 per month!

That’s a £2,000 increase in her monthly income for nothing more than speaking to an honest independent mortgage broker and filling out some forms.

Let’s look at another example. A property investor owns £1m of property with loans of £500,000 secured against the portfolio. The total rental income is £80,000 per year. Mortgage interest payments are £35,000 per year.

By simply refinancing the £1m property portfolio up to 80% of current market value he ends up with £300,000 in cash (£800,000 - £500,000) that he can use to purchase more properties. His interest payments rise to £56,000 which are covered by the £80,000 in rental income coming in.

Overly simplistic examples perhaps but I’m sure you get the idea.

This approach doesn’t just work for BTL investors either. It can be applied to whole raft of property investments including renovation projects, redevelopments, land acquisitions, conversions, buy to sell properties, commercial property investments and even second home investments.

Get A Trained Professional
To Help You

Hitting the web and choosing a mortgage product from one of the many of lenders out there can be headache. For a start you will not be able to access many of the ‘special’ products that lenders reserve for brokers. Why? Because they have buying power that you as an individual will not benefit from.

You will also waste valuable time chasing people you do not have much influence with. For example, I’ve just raised £980k from Lloyds TSB for a development project I’m working on. My broker called the bank every other day to answer their questions and chase the application. Then more questions and more chasing followed by bankers taking holidays followed by a few more questions and so on…

After all that you’d expect them to have an offer for me within a few weeks wouldn’t you? The mortgage offer took the bank THREE MONTHS to get out to me! And in that time my mortgage broker had invested many hours either on the phone, sorting out forms himself or discussing things with me.

He is not paid a penny unless the mortgage goes through so why would I want to waste my time chasing everything when he can do it all for me?

What Should You Watch Out For?

Be VERY wary of mortgage products with the very lowest rates. Some deals appear very attractive until you read the fine print where you will not only find hefty arrangement fees (sometimes

added to the loan but repayable by you eventually remember) you may also be forced to pay substantial redemption penalties if you repay the loan early. This is fine if you want to be tied in for a while but make sure you are aware of the flexibility you have given up.

An independent properly qualified mortgage broker can you lead to the best deal.

How Do I Find A
Good Mortgage Broker?

We have several quality mortgage brokers on our Tycoons forum website or if you prefer you can drop me a line via
broker@property-finance.com or call our office on 0121 702 1414 and I’ll give you the number for the team of mortgage brokers who handle all my business.

They will call you back and talk you through the hottest deals on the market. More importantly they will take all the hassle and trouble out of finding the best buy to let mortgage product for you.

Getting The Very Best Deal

It’s important that you secure the very best terms on offer. My team will show you how to structure your application in order to do this. They will search the market for the most appropriate deals that will allow you to reduce your monthly repayments and/or raise extra cash you can use to buy more properties or do whatever else you want to do with it.

They can help fund HMO properties (licensed or unlicensed), ex council properties, commercial properties, flats above shops, studio flats, bedsits and part commercial part residential properties. Tenant types include students, DSS, companies, housing associations and councils.

No matter where you are in the property business – established or just starting out drop them a line and see what your options are. Drop me a line via
broker@property-finance.com or call our office on 0121 702 1414 and I’ll give you the number for the team of mortgage brokers who handle all my business.

If you have any queries whatsoever about the Tycoons community you can contact our support department for help. Our "Tycoons Team" are responsible for this role. You can find them by going to www.TheTycoonMethod.com. Scroll down the page until you see the "Forum Feedback And Queries" section. Feel free to post any query or feedback for us in there. To help you find our Tycoons Team I have listed their profiles for you below.

Please feel free to contact them anytime for any help you may need, to make new contacts or if you see any opportunities to work together.

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Profile: Bhupinder Sohanpal
I am a young, enthusiastic lawyer who has worked for one of London's top five law firms.  I am currently on sabbatical to do a postgraduate course (PhD) and learn the art of property of entrepreneurship.

Through my study and application of the law I have acquired the ability to be discerning, clear thinking, logical and of common sensical mind.  These are qualities which are transferable in any business venture. 

I have excellent research skills together with sound commercial nous and a strong sense of integrity.

As well as adopting the role of Member Satisfaction Manager, and as a newcomer myself to property, I am happy to be a mutual point of contact for all those new comers for whom things may seem a little daunting.  Together we can share the experience of realizing our aspirations.

Due to my insatiable appetite to learn and implement I am  also willing to help an experienced investor and or developer with any suitable tasks. 

Further, I am keen to help look for properties on behalf of investors in West/SW London.

Passions that stir my heart are mountaineering,

the great outdoors, poetry and literature, environment and service to make this planet a better place.

I feel privileged to have this opportunity to learn, work and help on the Tycoons Forum.

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Profile: Leslie Parr

Hi my name is Leslie Parr. We have three grown-up children two lads & a girl and two beautiful grandchildren. We have recently celebrated our 25th Wedding anniversary. We went to Deep’s Spanish retreat for the celebrations.

I worked in the Chemical industry on 12 hour shifts for 24 years. When I was made redundant at Christmas 2006, I joined Deep’s forum after searching for information about buying investment property. I had never heard of BMVs before I sat reading the forum for about 4 weeks before I posted.

I wanted to know as much as I could so I would not make a fool of myself when posting questions. I have met Deep twice (very down to earth guy). I received a call from a forum member who asked if I could view a property for them in my area we had a good chat. Since then we have done a few JVs we are waiting to complete on two properties in Wales. We are in the process of setting up a meeting with a landlord who is selling a property portfolio of 35 houses. If we succeed with the negotiations we will have purchased around 40 Properties in the span of twelve months. This is a whole new world for me and I learn something new every day. This is the best property forum that I have been a member of and 99% of the members will help you move forward to achieve your dreams and goals. The amount of information and help you receive far outweighs any membership fee. If any tycoon team Member can be of any help to any new members please

just ask. Don't sit there like I did for a month. Read as much as you can on the forum as 90% of your questions have already been asked, just search for the answers. They are there.

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Profile: Tee Bodani

Like many of you, I have Deep to thank for opening my eyes to the world of BMV property investing some time ago and I have never looked back since. I have a Finance & Marketing background having previously held Financial Analyst positions for companies such as Coca-Cola and the BBC. However, my true calling was always that of an entrepreneur and I have run numerous successful businesses for more than a decade.

As a property investor, I have developed a special interest in Creative Finance & Legal methods to acquire property and I'm also very passionate about inspiring and helping people to achieve significant wealth using property as the investment vehicle. It's great to be part of this community of like minded investors and I look forward to working with some of you. Please feel free to contact me if I can help you in any way. 

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Profile: Juswant & Sylvia Rai

Hi everyone, we are Juswant and Sylvia Rai aka Mr. and Mrs. Rai. We'll keep it short, but once Sylvia gets going...! Our background is 20 years working in IT (Juswant) and 15 years in Finance (Sylvia). When we met three years ago we realized very quickly that we had a common interest - Property!

Continued on next page…

After years of watching other people get wealthy from investing in property, we decided we wanted a piece of the action, too! During our research on the Internet for better ways of buying property, Deep and his No Money Down methods jumped out at us.

We dived in head first, started attending Property Networking events and joined Deep on his forum - and what a goldmine of information! We were warmly welcomed by all and information was freely available for anyone that asked. This forum has grown and evolved into a much bigger place but the spirit has remained. We have made many great 'virtual' friends that have translated into 'real-world' friends, colleagues and contacts. At the last Property Investors show, we helped a good friend of ours on his stand for 3 days and with our real names and pictures on the forum, many people recognized us and stopped to chat.

Going from a J.O.B to Property Investor has been an interesting & challenging journey for us. We have had help from many people often with no expectation of anything in return. It was in this spirit that we launched our own meeting in Berkshire to enable many liked minded people to meet, connect, learn and prosper. From there we personally know of a few JVs that have come together, including 2 of ours and our own property investing business took an unexpected turn and has proved very lucrative for us.

If any member of the tycoon team needs help please do ask. One thing we have learned is that without the selfless help of the many others via the forum and the many networking events we have attended, we would not have achieved everything that we have so quickly. Mix and converse with like minded people, they will raise your game and hold you to a higher standard that you thought yourself possible. We wish you all the best in your endeavors. We are here to help so please do ask and stay in touch.

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Profile:  Chris Bannocks

In A nutshell:
Chris spends his days running a business for Reuters in Canary Wharf and is building his property portfolio with his partner Adria. She has recently left her job as an Estate agent and they are setting up a sales, lettings and property management firm and growing their portfolio from the 5 UK properties and 2 overseas properties they currently have to 10 properties overall by the end of this year and 22 properties by the end of 2008.  Chris is interested in hearing from people who need low cost property management and wish to JV or pass on leads in Nottingham, Derby, Essex or East London.  He is also looking for investors interested in working with him and Adria whilst they build their portfolio and property developers interested in Agents to sell their properties in the UK and abroad.  Chris is about to embark on an MBA at Cranfield so is a very busy man and helps out on the forum conducting member of the month interviews and is currently working on the Vadesha properties podcast, coming to you soon!

Chris can be contacted at chris@fastproperty.net and Adria can be contacted at Adria@fastproperty.net
or direct on  08000 789391 or 08000 789381

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Profile: Pankaj Shukla

Pankaj passionately believes that property is one of the few investment vehicles that make people genuinely rich over time. Since BMV route allows the transfer of real Wealth in the direction of an investor,  Pankaj decided to put his consulting career on hold to build his property portfolio. He is excited to be working with so many multi-talented individuals on this forum, as well as with Paramdeep and the rest of his Tycoon team behind the scenes.

Pankaj has worked as a consultant for large organizations, and in various industries including media, online marketing and IT, among others. But he remains an entrepreneur at heart, and ever willing to help others with his experience and contacts.

He may even help you develop a business idea, if you have one, especially if it involves marketing to online audiences.

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Profile: Parmdeep Vadesha

Parmdeep has been described by some as the UK’s ‘bargain property wizard’ after having introduced over 60,000 UK property investors to proven techniques they can use to find distressed sellers of cheap properties and how to buy these below market value bargain properties using little or none of their own money.

Parmdeep owns and manages his own property portfolio across the Midlands including a block of twenty four apartments that he built from scratch.

He runs several other successful property businesses one of which finds distressed sellers of bargain properties for his newsletter subscribers, negotiates below market value prices and passes these ‘ready made’ deals on to his newsletter subscribers.

Parmdeep also runs a financing business that helps his Property Tycoons newsletter subscribers purchase properties no money down using 100% bank financing. He helps around four newsletter subscribers every week to purchase bargain properties using 100% financing to make his subscribers over £60,000 per week in profits.

This continual sharing of the latest techniques has helped transform many of Parmdeep’s newsletter readers into financially free property millionaires.