The Virtu Blog Series

A Series where we take knowledge, perspective and advise from some of the best property investors and community, to bring direct to you!⠀

Samuel Leeds

Episode 1: January 2022: Talking about Investment Strategies in 2022

International Speaker, two-times best selling author, and leading property investor Samuel Leeds chats with us around investment strategies for 2022.

⭐ £10,000 – This much money will not go very far, so Samuel would would get a 3 rent to SA where he could run a rent-to-rent business and achieve £500-£1000 per unit per month, this approach does require more hands on.⠀

⭐ £50,000 – Samuel would buy a 3 or 4 bed house with a couple reception rooms, which could be converted into ensuite bedrooms, and rent out as a multi let (HMO) He would buy in an area which will soon have Article 4 applied, which would give grandfather rights and help rocket the value ready for the refinance.⠀

⭐ £100,000 – Buy, Refurbish, Refinance! Samuel would buy a big house, potentially with structural issues which could be purchased as a cash only bargain. He would use bridging finance to refurbish, then refinance at its true value, pull out money, rinse and repeat.

James Armstrong

Episode 2: February 2022: Talking about Common issues in property and how to overcome

Award winning property Investor, developer, and educator James Armstrong, with a portfolio worth £50 million chats about how he is sourcing deals in 2022 and how to prepare for issues you may face when finding those deals.

With property stock low he understands margins are going to take a hit, with an expectation of 10% less profit on flips but stresses demand for HMOs are on the rise. His advice for low stock issues is to take a look at new areas and be creative in methods of purchase.

James states the 3 common issues he faces when acquiring a property:

1️⃣ Build costs due to lack of materials post covid

James has found he has had to add 20% to his construction costs post covid. He uses this number to make sure his bottom-line costs are accurate before going in for a deal. He stressed the fact that if you have any quotes from builders over 12 months old go out and acquire new ones as it important to keep you with construction market movements.

2️⃣ Vetting Vendors

It is important when buying to make sure you as the buyer make it clear to the vendor you are purchasing this deal on the basis that it will complete by a certain number of days. This put the onus on the vendor to prioritise their team as result your time scales are met.

3️⃣ Overshooting Revaluation

There is a big difference between what you would get if you went to market and what a valuer would give you. This is because a valuer does not value a house the way an emotional buyer would. Overshooting your valuations before a project begins can bring big problems later down the road. Be conservative with your numbers and always look for comparables.