Low maintenance businesses?
Discussion
JapanRed said:
Can’t help with suggestions but can confirm being a landlord doesn’t run itself, even if letting agents manage the properties. I’ve a few properties now and there is a time element that needs spending on it on a monthly basis.
Well you know what I mean. There will always be the need for some input, which is why I said minimal. A few hours a week isn't so bad - I can do that along side my day job.Loan money to a trusted property investor for a fixed % that is used to dealing with private funds. Don't jump into bed with the first guy you meet, get to know them, get testimonials.
I borrow money from friends, business partners and everyday people who have the money but not enough time or inclination to do it themselves and just want steady income or a better return than they can get in the bank.
All the economic indicators are pointing to the next couple of years being very lucrative from a property investor's point of view
I borrow money from friends, business partners and everyday people who have the money but not enough time or inclination to do it themselves and just want steady income or a better return than they can get in the bank.
All the economic indicators are pointing to the next couple of years being very lucrative from a property investor's point of view
*Fletch* said:
Loan money to a trusted property investor for a fixed % that is used to dealing with private funds. Don't jump into bed with the first guy you meet, get to know them, get testimonials.
I borrow money from friends, business partners and everyday people who have the money but not enough time or inclination to do it themselves and just want steady income or a better return than they can get in the bank.
All the economic indicators are pointing to the next couple of years being very lucrative from a property investor's point of view
What ROI do you achieve?I borrow money from friends, business partners and everyday people who have the money but not enough time or inclination to do it themselves and just want steady income or a better return than they can get in the bank.
All the economic indicators are pointing to the next couple of years being very lucrative from a property investor's point of view
pteron said:
What ROI do you achieve?
Depends entirely on the project and whether you are leveraged or not. (Our strategy is to hold for the long term and use mortgages to amplify gains)For ourselves cashflow-wise typically we wouldn't buy anything with less than 10% gross for single lets, for mini HMOs 20% gross.
Return on capital employed when leveraged from 25% up to infinite return - (none of our own money left in the deal)
Sourcing wise (we match to the customer's criteria - some want steady yield in a good area for capital appreciation - some want high monthly cashflow and capital growth is a secondary concern). Some want to use leverage, some don't so ROI in that situation obviously varies hugely.
spikeyhead said:
Would you mind expanding on how you think property investment in a falling market is going to be very lucrative.
There are quite a lot of headwinds facing vendors selling their houses in the short term:- Finance is more expensive weighing on buyers' decision to move
- Energy, fuel ,food, personal debt/car finance costs have increased massively killing family budgets - many people don't want to risk moving to a bigger * house with more bills
- Recessions tend to mean job losses and so people are wary of taking on more debt.
- Quantitative tightening is on the horizon (if the Bank of England have the balls to go through with it)
- Landlords are facing crippling EPC regulations
- Problem tenants are becoming more difficult to evict legally.
- Higher taxes from the 'Conservatives' - frozen tax thresholds and increased Corp tax
With lower demand comes slower growth in house prices which means fewer people refinancing every few years to pull out cash and spend in the economy on a new car or a new kitchen for example. This obviously becomes a feedback loop where there is less spending, which translates into job losses.
All IMO of course!
When you are holding for the long term (20 years plus) and buying from motivated sellers on an island with limited housing stock, NIMBYs and mass immigration that is why I believe the next two years will the best to buy property in a long time.
Remember buy for cash flow and potential to add value to the property as capital growth is never guaranteed!
Edited by *Fletch* on Wednesday 23 November 12:20
goldar said:
I'm looking to put some money into a business. I'd preferably like something that runs itself or requires little management. Other than being a landlord, is there any such thing, or am I dreaming?
Not trying to be funny, but you can of course buy shares in lots of businesses on e.g. AIM/LSE... easy to invest, and they usually don't require any management. What other criteria do you have?*Fletch* said:
Loan money to a trusted property investor for a fixed % that is used to dealing with private funds. Don't jump into bed with the first guy you meet, get to know them, get testimonials.
I borrow money from friends, business partners and everyday people who have the money but not enough time or inclination to do it themselves and just want steady income or a better return than they can get in the bank.
All the economic indicators are pointing to the next couple of years being very lucrative from a property investor's point of view
This can really work. Some friends are property traders always in need of £000,000s , they give their investors a good ROI and I occasionally bridge finance them for a month. £20k for a month, get £21k back etc etcI borrow money from friends, business partners and everyday people who have the money but not enough time or inclination to do it themselves and just want steady income or a better return than they can get in the bank.
All the economic indicators are pointing to the next couple of years being very lucrative from a property investor's point of view
Obviously need to do your due diligence on the individuals…..
jonamv8 said:
This can really work. Some friends are property traders always in need of £000,000s , they give their investors a good ROI and I occasionally bridge finance them for a month. £20k for a month, get £21k back etc etc
Obviously need to do your due diligence on the individuals…..
I agree, every property investor runs out of their own money eventually so making use of other people's money is key to scaling up to do more deals. As long as the agreement is documented in a contract beforehand both parties know the outcome and the possible exits from the deal and what happens if something goes wrong it can work really well.Obviously need to do your due diligence on the individuals…..
biggiles said:
goldar said:
I'm looking to put some money into a business. I'd preferably like something that runs itself or requires little management. Other than being a landlord, is there any such thing, or am I dreaming?
Not trying to be funny, but you can of course buy shares in lots of businesses on e.g. AIM/LSE... easy to invest, and they usually don't require any management. What other criteria do you have?'Little management'.
Once everything is running, does 15 minutes at the end of each business week qualify as little management?
That is all you need, to be able to keep up to date with progress.
I think more people prefer property investment, because it is something they feel more familiar with and have probably witnessed their own main residence incease in value.
Acquiring part ownership of businesses through buying shares, is probably seen as complicated and involving confusing jargon.
Newspaper headlines about stock market crashes must be off putting. People might not realise though, that those are sometimes the ideal opportunities to buy into good businesses at lower prices. A reduced price, can equal higher income.
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