188 - £100k PA Cashflow From One Deal
In this Deals, Deals, Deals Podcast Series, we go Behind the Scenes on some of the UK’s most Creative, Lucrative and Award-Winning Deals 🤩 In this latest DEALS DEALS DEALS Podcast, our host Mark Barrett introduces Tom Appleton who recently joined the Property Board and they discuss Tom’s background as a footballer and then, after an injury, as a coach in Los Angeles. With Christmas, the season of giving, coming up we cover two great types of deals: structuring a deal to buy five HMOs buying three 4-bed HMO in Leeds Article 4 area, and then adding value using Permitted Development by converting them to 6-beds Permitted Development is a strategy that Daniel Hill has been advising for a while to those on Property Entrepreneur and this is a textbook example of it being executed. The first deal we explore is how Tom found an opportunity to buy an HMO and then how he went on to offer to buy four more from the same landlord using creative terms. Tom shares all his tips and tricks on negotiating these deals and how to structure it. He bought the first well below the market value and then paid £25,000 to secure the other four and used vendor financing to make over £100,000 profit a year. Second, we cover Tom’s strategy of buying a four bed HMO in the Article 4 area where the Permitted Development for converting a house to a house share has been removed. We discuss three deals he agreed in the last eight weeks, how he adds value with an extra two bedrooms and the approximate costs incurred. This increases the rents and the value resulting in either very little or none of his own money left in the deal. Headline figures: Portfolio Deal - Portfolio of 5 HMO’s and 32 rooms - BMV purchase agreed on one - Lease Option agreement on the other 4 - 5 Year term - Agreed total price just over £2 million - £25k option fee paid - New Gross revenue = £19,180pcm - Generating profits of around £8.5k a month - New GDV after renovations on all properties £2.5million The 3x 4-bed to 6-bed HMO Conversions: - Purchase price - £240,000 - Renovation approx - £70,000 - New value - £450,000 - Rents - £3,500-£3,700 pcm - Purchase price - £225,000 - Renovation approx - £80,000 - New value - £450,000 - Rents - £3,500-£3,700 pcm - Purchase price - £290,000 - Renovation approx - £85,000 - New value - £500,000 - Rents - £3,500-£3,700 pcm Want to contact Mark or his guests? www.thepropertybrokerage.co.uk mark@thepropertybrokerage.co.uk Tom Appleton Contact details- tom.appleton01@gmail.com Instagram- @tomappleton10 Facebook - Tom Appleton LinkedIn - Tom Appleton Want to learn more? Want to know the ONLY 5 PROBLEMS you need to overcome to become a High Net Worth Property Entrepreneur making 6 and 7 figure annual profits? Click here now to download our FREE PDF report Daniel Hill's brand new, first-ever published book Karma Credits: The Universal Law of Wealth, Health and Happiness can be purchased on Amazon. Click here now to purchase a copy. If you’ve not already joined the 10.5k Property Entrepreneurs for FREE in the Property Entrepreneur Facebook Group, click here to join now: The Property Entrepreneurs Community If you're listening to this podcast but have not yet subscribed, click the subscribe button to listen to what Daniel and other industry leading guests have to say on a weekly basis on all things business, investment property and lifestyle: The Official Property Entrepreneur Podcast Keep up to date with Daniel’s unique and proven Blueprints by subscribing to The Blueprint YouTube Channel now Follow Daniel on Social: Instagram: @propertyentrepreneur_ Facebook: @PropertyEntrepreneurOfficial LinkedIn: @propertyentrepreneur