Show Me The Money

By Matthew Moody | Property Investing

I love this clip and I think anybody serious about property should love it too.

After all, what is anybody in property investing for – unless they want a little piece of the pie.

We don’t go through all the heartache, the blood, the sweat, the tears, the disgruntled tenant, the broken toilet, the boiler and central heating going on a saturday night in december, the kitchen flooding, the non-paying obtuse tenant, the tax return, the worry, the stress, I could go on and on and on…

No, we don’t go through all of this for the good of our health.

We do it so that one day we can see the money (cashflow) coming trickling through, then roaring through.

Of course, if you have HMO’s, you’re pretty much going to see this roaring cashflow straight away – but always remember to keep some in reserve for a rainy day (!).

Enjoy this classic clip and make sure that you ask somebody everyday to “show me the money”.

HMO Management Service

By Matthew Moody | HMOs

If you've been struggling to find a reliable letting agent who can let our your property for you, then help may be at hand.

My main portfolio company, Stanford Knights Letting has been managing properties for years and due to recent staff hires, we are now expanding our services further in:

  • Northampton
  • Huntingdon
  • Bedford

I asked our Portfolio Director to put together a few words on why you should consider us for your letting needs and you can read what she has to say below.

If you are interested in our management services, then please contact me for a quick no obligation quote on what we can do for you.

WE ARE THE HMO MANAGEMENT EXPERTS

Why not let us manage your property and give yourself a break!

Do you find your rental properties time consuming to manage?

Do you find dealing with tenant issues a large weight on your shoulders?

Won’t it be great just to be paid from your property with none of the hassle?

Well help is at hand, we can do all this for you!

Stanford Knights Letting has years of experience renting property and is an expert in the HMO field and have a lot of experience with single lets.

We will offer a service second to none for you and your tenants.

We offer a full property management or lead generation service.

The full property management service covers everything from dressing rooms ready for new tenants to taking action when there are rent arrears or other discrepancies.

Why not hand all the hassle over to us and just take the profit?

Alternatively why not use our lead generation service.

Our skilled and very experienced team will advertise you property and daily search our numerous advertisers for leads matching your specifications.

Our managers will qualify these leads to ensure they match the specification provided by you.

You cannot go wrong with this amazing offer; why not contact us today?

Matthew and his team from Stanford Knights Letting has been managing my properties for a couple of years now. Before Matthew came on board my property business had become a second job, and I had little time for my family or myself. Now I have more time at my disposal as Matthew and his team provide a brilliant service, always ready to go the extra mile in taking care of my business. My rental voids have gone down, and the rent is paid on time ! I would highly recommend Stanford Knights Letting if you are looking for a team that will look after your property and your tenants giving you peace of mind and freedom !

Sunita Koshal
Financial Analyst

Is No Money Down Dead?

By Matthew Moody | Property Investing

Provocative?  Crazy?  True?  False?  Not sure?

Let me tell you – the landscape for property investing has changed beyond all recognition in the last 8 years.  Back then, anybody with a pulse could roll along, choose a nice cashback deal, find a liberal lender, buy the property and get a nice cheque in return.

Never mind that:

 ·         The cash was a loan! 

 ·         The property did not cashflow and every month needed supporting

 ·         The cash had already been spent on a holiday to Benidorm! 

 ·         Often, the proper due diligence was not done and the investor ended up with a real dog!

This wasn’t and isn’t property investing – its property speculation or worse – gambling.

 
 

I was at a launch event when I got talking with Martyn Roberts (BBC’s “Homes Under The Hammer” property expert) who was telling me about investors he meets on his programme who ignore his advice and still buy a dud.  Martyn is a professional investor and has been involved in hundreds of property sales – why would you not take his advice?  The guy that bought a bungalow £50,000 over market value at auction thinking it was a house didn’t and now has a problem.  And Martin even advised him not to buy this but he did – and thinks he got a good deal.  Another guy wanted to buy a property for his son, so he turned up to an auction, bought something and then found out that because there is a big difference between an N1 and an N2 postcode (or may’be it was somewhere else in London – I forget), he had paid £50,000 more than he should have done!  That coupled to the fact that his son didn’t want to live there made it a bad deal – or did it?  Nope, the buyer thought he had got a good deal and was going to refurbish it and then try to sell it….  Wonders never cease.

Don’t get me wrong; you can still invest in property and release capital – but you need to have a plan to utilise this money correctly.  On a daily basis, I see so-called deals with discounts of 30%, 35% or even 40% off what – a list price, a real price or a RICS valuation?

Given that surveyors have been instructed to down-value by 10% in the general market, any so-called discount needs to take this off right away.  And if its a private sale, surveyors are viewing these with a great deal of suspicion and down-valuing these as well by 10-20%!

But what about the experts who help us?

People are chasing a dream which property gurus seems content to sell you but are they truly walking the walk or just talking the talk?

Does anybody tell you what to do with the property once you’ve bought it…?

The time for amateur investors chasing no-money-down deals is over. 

Just look at what’s happening with the government schemes for landlord registration, more red-tape and regulations, tighter control over lending and requirements for landlords to attend training and certification – where are you going to position yourself to succeed in the future and who are you going to associate with?

The questions you need to ask yourself are:

 ·         What is my primary aim and objectives for my business?

OK, so you know you’re in property but what is your ultimate primary aim?  Do you want to be the next Donald Trump?  Do you want to live in an island in the Carribean (incidentally, anybody see that one in Montserrett for sale for $400,000 last night?).  May’be you want to earn enough to pay for the kids schooling?  May’be you want to retire to the south of france in 10 years time and run a guest-house!  I don’t know what you want but you need to start here.

·         What skills and experience do I need?

This is going to be really useful for you when approaching banks, joint venture partners and other industry professionals.  Get your CV in order so that you understand it, create a biography if it makes sense for you and then start identifying how to use this past experience in your property business. 

·         What core competencies should a property investor have – and how do I rate myself against them?

 

·         How am I managing my time?

Lots and lots.  We’ve identified at least 20 key skills that you’ll need as a property investor.  These range from financial management to selling to marketing.  Some can be outsourced, some can be shared but you need to understand what your KEY skills are and how these compliment the people you are working with.

Big one this!  You need to do a time and motion study for the next 7 days, cluster your time into sections such as negotiating deals, researching deals, portfolio management, marketing, family time, watching tv etc.  Then tot it up and look at the percentages – there’s a fine line between what you think you’re doing and what you should be doing.

·         What is my current situation – and what are my future goals?

The main one to start focusing your mind right now!  Look at where you are today from a portfolio value and cashflow perspective.  Then look at where you want to get to and how you can break this down?  It helps if you split it into categories such as single let, HMO’s, land, development etc.

What if you need more help!?

It’s my mission to bring the worlds of business and property together and help investors everywhere to build a profitable property business.  As part of our service, we can provide a Strategic Needs Analysis review of your current business to help you understand where you need to change and where the quick-wins as well as the more mid-to-long-term strategic objectives lay.

If you want to be part of a business-minded community that just happens to be in property, then make sure you keep an eye out for our new HMO100 Mastermind £=mm2 coming soon..

Is the LHA Allowance stopping you renting HMO’s to the less well-off?

By Matthew Moody | Property Investing

This is just a quick one as I only just saw this but there’s an online petition being put together to complain about the current state of the Local Housing Allowance and its impact upon both tenants and landlords.

Fancy renting out to a person receiving LHA only for them NOT to pay you?  I didn’t think so.

For the full details of the petition, take a look here:

http://landlordsactiongroup.blogspot.com/

Even Shelter are getting in on the act so watch this spare and lets see if anything is changed?

After having 4 tenants now go through LHA, I can say that I’m not impressed and as ALL of them have been late in paying, I’ve had to revert to getting the rent paid directly to me.  Had they had done this in the first place, we’d all have been better off.

The war of the HMO’s – and “Friends” really do happen

By Matthew Moody | HMOs

I was pleasantly surprised recently to come across a great article written by a guy who’s actually lived in a HMO, perhaps still does and was extolling the virtues of responsible HMO development and planning.

Normally most of the mail I get about HMO’s is negative and so I thought that I would share this piece with you and let the Badger make his point.

http://www.thebadgeronline.co.uk/comment/war-against-the-hmos/#comment-2339

Coming out next week, the next vLOG – can’t wait to share with you all the news.

If you haven’t signed up for my 10-part ecourse, then go across to the top right and sign up right now.  Its a no-nonsense 10-part course to get you started with building your own HMO business – and I get loads of positive comments about it.

HMO Plan launched in Belfast

By Matthew Moody | Property Investing

Short-sighted government ministers have launched a plan to limit HMO’s to 10% in most of Belfast and up to 30% in certain concentrated areas.

Rather than addressing the issues over why HMO’s are situated in the areas they are found; they are tackling the apparent endemic social issues over-spilling from HMO’s through a new planning regime.

The largest indication that points towards the fact that people are actually CHOOSING to live in HMO’s lies in note 3 to the editors:

“Lifestyle choice and increases in house prices have led to a significant increase in multiple occupation. It tends to occur in larger and older properties closer to the city, eg South Belfast. Students, young singles and migrant workers are attracted to this market.”

So why not work with landlords to provide BETTER quality accomodation, self-regulation and clearer guidelines upfront then manage it through a bureacratic planning regime that could end up decreasing the value of HMO’s – and making them even MORE difficult to secure finance on?

HMO Regulations Are Here To Stay – So Why Are Landlords Still Ignoring Them?

By Matthew Moody | HMO Regulations

The Housing Act was passed in 2004.  The updates which affect HMO’s were passed in 2005.  They came into effect in 2006.

So why, 3 years on are there still landlords out there who are deliberately circumventing the law – and avoiding their legal responsibilities not just to the local authorities but to their paying tenants and customers?

I receive a lot of daily updates on the HMO market and some of what I read drives me from sadness to despair to shame to anger – knowing that these unscrupulous landlords are adding fuel to the media storm and public perception that already exists out there – that most landlords are unfeeling capitalist plunderers treating tenants like a meal ticket and providing them with unfit accomodation.

Now I and you both know that this is not true.  A professional landlord is a member of a national professional landlord organization, a professional landlord has systems and checks in place, a professional landlord has maintenance schedules that they follow to keep their property in top condition – and a professional landlord cares about the service they provide – because it provides him with shelter, food and water to live the life he or she seeks to live.

Its time to kick out the slum landlords, time to stand up and be counted as professionals – so next time you hear anybody slating off the landlord community, just step in with a few words of advice and examples of your own showing that we are providing a good and necessary service to the local community.

And in regards to HMO regulations where we started.  Well, they are there for a reason.  We may not like them, we may not agree with all of them but its the cost of running your business.

These are just two examples of dozens I could share with you but I hope you get the message.

The time for providing ill-suited, unhabitable accomodation with poor standards of cleanliness and structure have to end.  HMO regulations are there to protect and ensure that a consistent standard of accomodation is provided nationwide and its about time landlords woke up to this – it’s nothing personal, this is business.

New HMO Expert podcast now out

By Matthew Moody | Property Investing

This is a great little podcast I recorded in December which somehow got lost on my hard-drive.

Ignoring the finance section (well at least the lenders who were still lending at the time) the rest of the podcast is still bang up-to-date and you can use all the other tactics here today.

I cover:

  • finance
  • rent-to-rent options
  • updates to HMO regulations
  • why accredition is good for you

Hope you enjoy – leave me a comment please 🙂

[audio:http://www.yourhmoexpert.com/wp-audio/Your%20HMO%20Expert%20Podcast%20121008.mp3]