Just Do It! December 2009

The philosophy of getting to the heart of the property world sits at the centre of Just Do Property and I will endeavour to help you each month to get straight to the main issues you face as an investor – whether you are just starting or whether you have been investing for some time.

Try asking yourself the following questions:

• What do I want to achieve?
• By when do I want to achieve this?
• Why do I want this now?
• How am I going to achieve this? – break each part down into   small pieces
• What other information do I need to have or be clear on to make this target easier to reach?

The more specific you are about each element of your goal the more likely you are to keep on track and be successful.

We tend to overestimate what we can achieve in a short period of time, and to underestimate what we can do over the period of a year or so.  This is because it feels like a big mountain to climb when you start out.

Let’s face it we’re all different and so you might like all the details, and then some more details depending on the answers before you make your decision.  In contrast you might not be interested in the detail, just the cash-flow, which means you’ll take a good deal because it looks good and then work out what to do with it.

If you do like the detail then in order to make the most of buying deals that other people have sourced for you then you need to have:

a)    A very specific crib sheet of how to do your due diligence fast (it doesn’t need to take more than 20 minutes when you know what you’re doing).

b)    You need to have a clear understanding of what your break-even point is.  Do you absolutely need to have £200 gross per month or would £150 be enough.

c)    Where exactly are you going to buy, and what is the furthest away from your home are you are prepared to buy?

There will be many more questions you want answered so that you are ready to agree to a deal quickly.  Make sure your list is as comprehensive as possible, and where possible give this list to the deal providers that are looking for property for you – this is usually available where a membership fee is required to have access to the properties.

If you’re much more of a jump in and do it person then why not consider partnering up with someone who is going to check the details for you.  This may slow the process down a little, but will avoid costly mistakes in the long run.

It’s great that you are prepared to take the next deal, but it never hurts to make sure that you have thought through your criteria before you start.  The more detail you have about the type of houses, cash-flow or equity that you require from a property purchase the stronger your portfolio will be.

What are the biggest issues that you face when thinking about buying that next property or negotiating your first lease option?

• I don’t understand the finance systems.
• Where am I going to get the deposit from?
• Should I take the deal if it’s less than 25% BMV?
• I live in an expensive area but I’m not confident of managing properties in another area.

There are so many ways of buying property these days that it can be overwhelming.  One system will feel like it’s in your comfort zone, but this isn’t necessarily the quickest or best way to accumulate the portfolio you really want.

Start with those comfortable purchases (probably the 2 and 3 bed houses or flats) and then move on to those which will support the income you want more quickly (multi-lets and even HMO’s).

Finance training is available so book yourself on a course that will show you how the systems work so that you can be satisfied you understand fully what is going on, the documentation needed and how you are going to use that system.

One of the biggest tips is that you don’t have to do everything yourself.  If you would be more confident working with someone who would help with the figures then buddy up with them.  You will probably be able to help them by finding great deals.  Share the workload, not only does this make it easier for you to build your portfolio, it makes it more fun too.

Whatever it is that’s stopping you or holding you back then check out the Just Do It mentors sections – get on the right training courses – or get someone to show you the way you like to learn so that you can take giant leaps forward.

You only have to do a little a day towards your goals to achieve more than you ever expected you would.

Happy investing
Yvonne

If you would like to discuss personal coaching/mentoring with Yvonne then as a Just Do It member you can get 20% off.  Phone Yvonne: 0845 094 6628 she can help you leap over your barriers.

Yvonne Recommends…

• High Flyers Network.com
• Just Do Property.com
• Your Property Network Magazine
• Peterborough Property Investors Group

High Flyers Network.com

By becoming a registered user of High Flyers Network.com you will get access to:

* Videos of the Property Experts Coaching
* Ask the Property Experts any Question
* Calendar of UK Property Networking Meets
* Watch Videos of the Property Meetings
* Access to Property Discussion Forum
* Smart Money Making Tips for property
* Creative Property Strategies
* Top Property Headlines
* Advertise your Services & Products Free
* Learn how to Network Effectively Online
* Upload your Business Card for Free
* Members Directory

Just Do Property.com

The Just Do Property information portal will be launching January 18th.

Dynamic husband and wife team Julie and Alec Hanson from Manchester, UK are passionate about property – development, investment and portfolio planning. However, when they started out in the property game they both agreed that the one thing that would have fast tracked their business and learning would have been a one stop online portal where they could access advice, support, ideas and products on how to build a property portfolio. Along with access to online mentors and the opportunity to connect with both novice and accomplished property entrepreneurs.

Surprisingly, this did not exist. So they created it!

JustDoProperty.com is like having your very own virtual assistant collating all the relevant and current information already on the internet and filtering it into an easy to use format. Membership is free and additional services are being developed all the time to ensure that you Just Do … Property as opposed to spending endless hours surfing, browsing and researching online.

Your Property Network Magazine

Your Property Network is the UK’s fastest growing publication for active property investors and is delivered to your doorstep every month.

Each edition of YPN covers all aspects of property investment from buy-to-let, refurb and rennovation, buy-to-sell and development and gives you advice and information about what is happening in the UK property Market right now.

Every month YPN readers make many of thousands of pounds through property investment using strategies, tips and contacts that are right here every month in Your Property Network magazine.

You can learn from other investor’s experience to like informed, profitable decisions in property investment. Your Property Network – educating you in everything property related.

To Subscribe to Your Property Network Magazine please click here

Read more

Oh my goodness, there are too many different ways to invest. Where do I start…?

Yvonne Emery has a totally unique approach to properrty investment using coaching techniques to make sure you actually succeed in your goals however you choose to approach them.  She has been investing since 1997 and has prospered through many different economic climates and systems of investing.  Now she challenges you to succeed in property investment with a personal approach and simple explanations of the systems available in today’s property world.

If you’re looking for a very personal approach then try one of Yvonne’s small group sessions which gives you group support as well as individual 1-1 time in each session.  Yvonne also provides back up support between sessions.

If you live further away and want to use 1-1 coaching by phone then you will make real progress by setting and achieving goals that are actually attainable in the short term instead of having to hope that you’ll reach your long term goals some time in the future.

Read my free Special Report to find out how to get the confidence to invest the way you want to and buy that next property.

Save time and money in your quest for that investment system that suits your personality and your pocket with Yvonne’s investment mentoring.

Successful Strategy and Goal Setting for 2010

Self Development Culture

The current culture is to invest in ourselves through personal development. We attend the seminars, read the books, learn online or through virtual learning CD’s – all of these are great, but have we actually put any of this into practice?

Research carried out in the US shows that those who write down their goals are far more likely to achieve them. The biggest surprise is that the 3% who wrote down their goals, planed out how they were going to achieve them, and reviewed them regularly were earning in excess of all the other 97% put together. Are you willing to be in that 3%?

I challenge you in 2010 to achieve more than the next step in your progress towards financial independence, and to know categorically how you are going to get there – you’ll just have to follow these easy steps to success.

Motivation, Vision and Goal Setting

Goal setting, and writing down what you want to achieve is not enough on it’s own, which is why we all have enormous to-do lists that grow from week to week instead of shrinking. One reason for this is that we get straight into the action mode and we forget to ask ourselves why we are doing the actions in the first place. The other reason is that we are so busy analysing and delving into the detail and research that we forget to take action. So how do we overcome these prevention tactics?

First of all you need to ask yourself what you are hoping to achieve. Write down all the things you want to achieve, reach for the skies and put onto paper all the goals that you are dreaming of, hoping for and would like to have achieved in the future. Are they work related, property related or fun related? Whichever category they fall into they are all great for spurring us on to achievement. When you have your list, put a ‘£’ sign by all the items that will make you money, put a ‘☺’ by those which will bring fun and happiness into your life and put a ‘’ by those which fall into both these categories.

For each item, starting with those marked with a ‘’ write yourself some specific details of WHY you want to achieve these things. The reason for this is that if you don’t know why you want them you are less likely to stretch yourself to achieve them when the going gets tough.

The vision is the ‘what’ you want, the motivation is the ‘why’ and the goal setting is just the action plan. So if you don’t want to set yourself goals because it just means more work that you feel you ‘should’ get on with, follow this process and you will find your ‘to-do’ list becomes a ‘can’t-wait-to-get-on-with-it’ list.

Successful Strategy Your Way

Who are you comparing yourself to? When you go to the seminars and see very successful people trading their wares and telling you all their success stories are you inspired or overwhelmed, or both? There is no way that we are going to achieve what they have in the way they have achieved it, but what we can do is to use their know-how, their knowledge and their systems. Work out what it is that you want to achieve and put the action steps into place to achieve it. That in essence is how we set our strategy. We are not in competition with anyone, but we are in charge of our own destiny. That means that only we can take action towards our ultimate goals, but we may as well use other people’s success to get us there quicker.

Mind your own business

Are you so elated when you get home from one of the seminars that you are desperate to share it with everyone? This is a common reaction to anything that fires us up, but have you noticed what happens when you do this? The other person hasn’t been in the same place as you and isn’t ready for the information. They haven’t learned HOW to do what you are suggesting so it causes them stress. They have no pegs on which to hang the information you are giving them, so they back off. They start to find all the faults with the system and whilst you know how to counter their arguments, they are really not ready to listen. The effect is that they end up pouring cold water on your enthusiasm so your motivation and drive starts to dwindle.

So what should you do to counter this dampening effect and maintain your motivation? You should ‘mind your own business’. Keep this to yourself and find suitable times to introduce the ideas slowly. Remember – other people have not been in the same place, they do not have the same knowledge right now, and that is why you are ready to take action and they aren’t.

Are you stopping your own success?

When we listen to the experts they make it sound so easy don’t they. They are at the end of their success story looking back, and they have left out the details of the obstacles they faced. But what really stops us is that they have opened up a way to be really successful and when we step out and start to take action, because some of the potential obstacles have been taken away for us, we end up running before we can walk. There are so many potential options for creating wealth or reaching our goals that we become frightened of the potential achievement. How are we going to control all the interest we create by advertising for BMV property? How are we going to buy all the property that we make offers on? What happens if…..?

In order to control this fear of success, we need to understand that we don’t have to do it all ourselves, that if we are bombarded with deals then we will fix that problem when we get there, but most importantly we need to attach a ‘good’ feeling to this potential success instead of the ‘constriction’ we feel that prevents us moving forward. Imagine that you have had enormous success and you are coping well with it. You have put in place measures to deal with it, and you have found some great people to delegate some of the admin to who can help you at very little cost.

Success reaps financial rewards, and when you get there, a small payment for admin help will be nothing in comparison to the income you can generate when you let yourself go and give yourself permission to achieve your true potential.

Is your world still flat?

12 years ago when we wanted to change our first mortgage to a Buy-to-Let they were brand new and most banks weren’t offering them, no money down deals were unheard of and as for one-day bridging and re-mortgage, well people would have thought we were mad. Now we find that some of these mortgage deals have been withdrawn and the idea of rent and buy back and other options stand in their place as the next new idea.

What new deals and strategies will emerge over the next few years that wil give us even more evidence that the world is round?

I still have clients who tell me “cash back is a thing of the past” or “no money down isn’t possible” and on the very next call I speak to a client who is doing both regularly.

What is it that you believe can’t be done? What would happen if you borrowed someone else’s experience and you believed it was possible?

The answer is that you would soon find a way to do the ‘impossible’. Use a new belief system, use other people’s experiences, use whatever it takes to imagine your new world and to make it a reality.

Having a coach to work with you to set great goals and strategy and to challenge any negative beliefs you may have helps you to leap up the steps of financial progression.

Financial progression is the path we take through stability, security and independence to Financial Freedom. Yvonne will be teaching the secrets of moving through these steps on her 7 steps to Financial Freedom seminars.

Wherever you start off there are always new paths to take. The trick is in identifying the route that works for you, your circumstances, your personality and your skill-set. The best bit is that you can change your mindset to boost your confidence and achieve financial progression faster and embrace the round world.

The Mount Everest Effect

If you have set yourself a goal that is significant and is going to stretch your abilities and your intellect then you will at some point come across the Mount Everest Effect.

You start by looking at the goal and realising it is too big for you to tackle. The action you need to take is prevented by the height of the mountain you will have to climb to get there. So how do you overcome this?

First of all you need to break the journey down. Have you got all the tools and information you need? What would be the first step? Where is base camp? How many camps do you need to aim for on the way up the mountain?

What you will find is that over the last few years you have been doing the preparation and you may even have passed the first few steps along the way. In which case, make sure you look back down the mountain and see how far you have come. Wow! – this can be really empowering when you realise that you are not in fact at the bottom of the slope, but you are already part way towards your ultimate goal. When you are part way up, the summit is no longer as far away, and there are not as many camps before the top as you started off with. Make sure your sights are set on the next camp, and not the summit or you are likely to become overwhelmed again.

One step at a time, a clear route map and the detail of what you need to do to achieve the next steps are the keys to success.

When you write your goals, don’t simply write out a to-do list, make sure you know the task, the detail of how you are going to achieve it and put a date alongside each detail so that you know what you have to achieve and by when. If you just stick to the to-do list, then you might eventually achieve your goals but you will find yourself drifting. Make sure you have set some deadlines, make yourself accountable to yourself, or someone else and then you will achieve your goals more quickly than you would otherwise.

Make 2010 your most successful year yet by following these steps and you’ll be looking back this time next year with such a feeling of achievement just because you took the time to set your goals, understand your motivation and create a vision that is yours to achieve. This will be your ultimate success strategy.

Published in Landlord Zone Newsletter – December 2008
By Yvonne Emery

7 Steps to Recruiting Your Next Property

Often when we start something new we assume that we know nothing and have to start from the beginning, but that’s just our perception of the situation. Whatever we decide to do, we take with us the resources and experience of all the other areas of our lives.

Many successful business people who come to me for coaching presume that they don’t know how to succeed in property, but I know they do, and I’ll tell you how they know and how you know too.

Have you ever applied for a job? Perhaps you’ve even been involved in the process of recruiting staff into your team or business. Whichever way, you know how successful companies go about employing the best staff to help them to move towards their ultimate goals.

The secret to having a successful portfolio is to understand the process of recruiting property to work for you so that you can move towards your ultimate goal too. It sounds easy, and I’ll show you just how easy it can be.

1. Assess what you want to achieve – set your vision and work out whether you want capital growth, cash back, cash flow, pension security or financial freedom. Look at the first year and consider what you want to achieve, and then write it down.
2. Write the job specification – What characteristics, skills and attributes would you like your ‘candidates’ or houses to have. Perhaps you are good at renovation, so you might want your house or flat to be in disrepair. It might be that you want to buy at a specific percentage below market value – what is that percentage? Write yourself a detailed list of all the aspects that you are looking for both essential and preferable. Consider which locations are going to work, how easy they will be to rent or sell and what type of people they will attract?
3. Every good company has more than one role, so it may be that you need to write two or three different specifications to meet all your requirements. It’s always a good idea to build your portfolio from several different types of property so that you are more easily able to ride out the storms of market changes.
4. Now that you know the type of candidates that you want in your business you can start the process of recruiting suitable applicants. Whether you prefer to search the web, ask Estate Agents, get leads and deals from property clubs or use your local contacts, both you and they know which properties will work successfully for you.
5. When you have narrowed the field down to appropriate properties you can check them rigorously against your specifications and you will know very quickly if they are worth interviewing or not. You will also know your best sources.
6. When you interview each property you will be looking to match the job specification again, and this time you will get a feel for the advantages that a property can provide for you. There may be extra features that the agent has failed to mention, both positive and negative, and that will help you to narrow the field even further.
7. Finally, you will know by now which properties you will want to make an offer on. You will also know the return you will get for each property if your offer is accepted. As with all businesses the fit needs to be good for you, and that is why you will pass over some, and yet other people will invest in them. If you are clear on what you want to offer, and how that property can help your portfolio then you are far more likely to make appropriate offers and not waste time chasing ‘interesting’ deals because you know absolutely whether or not a particular property fits in your portfolio.

As you repeat this method of recruiting houses you will find that each time the process becomes easier, more successful and you will find yourself working smarter rather than harder.

The benefits to you are that you understand why you need to buy the next property, for which role you are recruiting it, and what your returns will be.

Whatever the market is doing, you are still in control of the properties you are purchasing as you know the outcome you will get from each one.

The consequences of not having specific criteria for each purchase is that you end up with a real motley crew of properties and you’ll have no idea what they are providing for you.

To make a real success of property investing you will need to find your system of recruitment and refine the process so that you recruit the right property each time.

Your Dream Home – imagine your future

Everyone has moments when they are relaxing when they allow themselves to imagine their dream situation. That might be cruising in the med, visiting a country that has stirred their interest or living a different life to the one they now have. Whichever it is for you, I’m going to challenge you and ask if it’s going to continue to be a dream or are you going to turn those imaginings into reality?

By taking time to consider what it is we want in life we build up a picture that matches up to the expectations we have. Unfortunately those images are quickly wiped away by our negative thoughts, or those of our family and friends. No-one means to pour cold water on your ideals, but we are very easily manipulated by our desire to do what other people want us to so that we fit in with the crowd.

Ask yourself what your dreams are and have a pad ready to capture all the things you come up with. You will end up with a very detailed picture of the place you want to live both in respect of region or country and the type of property you would like.

This is where it gets interesting… If you truly want that lifestyle and the house you dream of owning in the future, then tell yourself it’s possible and start working towards it.

1. Is your career on the right track? Do you have the potential for promotion within the company you currently work for, or not. If not then how could you go about looking for another job in the same, or even a different industry. We haven’t had very high pay increases year on year for some time, and now even bonus payments are being reduced. The quickest way to increase your income is to find the promotion you want in another organization.
2. Have you got the charisma to find a better paid job? If you are finding that promotion is eluding you and you are telling yourself you are going to have to stick it out because you need the pension and the benefits, then you may need to ask a few questions to find out what you specifically have to do to be considered for the next level. Who are the key stakeholders that you will have to impress in order to be recognized and noticed? What about your delegation and time management skills – do they need working on? If you are being let down in this area by your own knowledge and techniques (or the bosses think you are lacking in this are) then it’s relatively simple to change the way you are working.
3. Are your finances in order? Have you seriously worked through the process of gaining Financial Stability and Security? Look under ‘investment strategy’ on www.YvonneEmeryCoaching.co.uk for further information on the 4 steps of financial progression.
4. When you have taken the necessary steps to put yourself in a financially stable position and you are ready to invest in property then there are a number of ways to invest over a period of time that you choose to get yourself to where you want to be and in possession of that dream home. You can build your portfolio alongside your job, investing any extra income that you are generating. You can also build income from the investments you make either in property, stocks and shares, businesses or internet business.
5. Living in your dream home may be achieved by saving, increasing your income and then retiring, or going to work overseas. However if you have the UK in mind one of the cheapest ways of having the house of your dreams is to build it yourself. I can hear some people gasping in horror, but in actual fact this is easier and cheaper than you imagine. If you buy yourself a copy of Homebuilding and Renovating Magazine you will see that you can buy any style of property you choose directly from a specialist provider and they will actually provide the team to build it too.
6. It’s the land which costs most of the money and plots can be found on plotfinder and various other websites. In fact there is also a National Homebuilding Centre in Swindon which specializes in homebuilds. Propeties can be bought for as little as £60k but if you want something a little more substantial then you can choose your own style.

Anything is possible if you put your mind to it, and if you think it isn’t possible then it is likely that you’re either not at the stage of financial security or you haven’t got all the information which will help you to accomplish your aim.

If you want to find out more about property investing then please contact us for an individual consultation. We don’t sell property, but we do create personalized investment strategies and help you through the process of buying your first or your next investment property.

If you want promotion at work and are looking for quick ways to enhance your skills then check out the Mindset Mentor and ask us about our coaching programs that will help you increase your job potential and gain the charisma you need to get noticed.

Successful Strategies Despite Market Trends

The best way to get ahead in property investments is by setting strategies and making sure you have achievable goals along the way. However, the way that is best for you will change over time, so you need to review your strategy on a regular basis to keep up with the changing market. Building successful strategies will help you succeed whatever the property market is doing.

Do you have a clear and specific strategy or system?  The word strategy can either ignite our imaginations or fill us with fear.  Most investors find the next ‘bargain’ and invest.  The successful investor starts by working out what they want to achieve from the investment.  Whatever your motivation for investing – passive income, capital growth or an alternative pension – make sure you understand why you are parting with your money.  You are the author of your own investment portfolio and you can adapt the way you invest whenever you like.  Even if you are using someone else’s system to purchase property you need to ask yourself what your required outcome is.

If I had started out with written goals and a strategy I would have progressed far more rapidly with my investments and understood my required outcomes.  Now that I have applied coaching techniques and worked out my own strategies I am more focussed and have specific targets to aim for on a monthly basis.  Often we put off writing things down, believing that having them in our heads is sufficient.  But just putting our goals on paper makes them more concrete and increases our chance of success.

• So how do you set strategy?  Ask yourself the following questions:
• What do I want to achieve through investing in property?
• Why is this important to me?
• How am I going to achieve this? i.e. What shall I invest in and when?

If you are working towards financial freedom, then be very specific about how much passive income you will need to replace your existing income.  Instead of having a goal to own 10 more properties by 31st December 2008, write down how much passive income you want to achieve by the same date and work out HOW you are going to achieve that.  Write down the type of property you will need to purchase and how many you will require.

Turn your back on negative press and focus on your strategy.  If a property gives you the return on investment you require, it fits your strategy.  If it doesn’t contribute to what you want to achieve, then it’s not for you.  When you rely on your own experiences and strategy then you will really know whether a property is worth investing in or not.

(Yvonne Emery December 2007)

Local Housing Allowance Tenants

One of the largest groups of tenants are those who receive Local Housing allowance from the Government because they would be unable to meet rent payments without this assistance.

There is a growing need for this type of rental property and the Local Authorities are coming to private sector Landlords to fulfil the demand for flats because they simply can’t meet the demand with their own properties alone.

The new regulations which give greater control to the tenants by paying them instead of the Landlord makes the tenant responsible for paying their rent each month. Not such an attractive prospect for the Landlord.

What’s the idea behind the change from paying the Landlord to paying the tenant? The Government is trying to encourage individuals to fend for themselves. They are being trained in money management, social skills and tenancy issues. Helping them to become independent leads to long term benefits for the individual and the communities in which they live.

The Government is guaranteeing to continue supporting these tenants and to provide direct Liaison with Private Sector Landlords to ensure that this system works.

When you consider that rents might be delayed because of a time lag in the tenants receiving payment from the Authorities and that they have a history that hangs over them of money issues and a lack of some social skills they won’t automatically seem as attractive as professional tenants. However there is a far greater demand for these 1 and 2 bed flats, which means more tenants available and as we know this is a numbers game.

As a Landlord you may feel reluctant to rent to this sector, however if you take up or continue to rent to this sector then you would be provided with a Liaison officer and training which help Landlords understand the system and how to manage their relationships both with the tenants and their Local Authority.

There are voluntary organisations who act as Management Agency and Letting Services for this rental sector, such as CARE. There is a guaranteed rent band so that the tenant is not fighting for the lowest rent, and they don’t deduct a commission charge. You will also have a choice as to the property you provide relevant to the amount of rent you can charge. The tenant has the opportunity to keep any allowance which exceeds the rental payment or to add to the amount if they want a more expensive flat. From a Landlord’s perspective it might be prudent to have properties to rent that are within the allowance amount so as not to invite the possibility of the tenant not having enough money to pay on time.

The tenants still need to provide references but it is still crucial for the Landlord to get a copy of the agreement and the references from the letting agency. You should also phone the referee and check if there is any further information that they would like to add that they were not prepared to write down.

There are certain Local Authorities who will lease properties directly from Landlords which would give a more secure method of renting to this sector, and this would also bypass the situation of the Local Housing Allowance being paid to the tenant as your agreement would then be with the Local Authority rather than the individual.

Most importantly of all you should be aware of your intentions with your properties. Are you looking for capital growth, do you want cashflow and passive income, or are you just renting out a couple of properties to cover a pensions shortfall? The answers to these questions will help you to decide whether the properties you need to rent that have been purchased (or that you will purchase) in areas suitable for this rental sector will provide you with the outcome you want. They may be cheaper, and the rents may stack up, but in the long term do you have the time to manage them, do you need to have fewer lower mortgage properties that bring in higher cashflow each month or are you stuck behind a desk and need the easy option of renting out properties with less hassle and possibly lower yields? The choice is yours, but before you make any decision as to whether you are in or out on these deals make sure you have worked out your own motivation for renting in this sector.

The motivation of the tenants is also an important factor in making these rentals work for you. The more motivated the tenant to achieve freedom and independence the better their relationship with you and their ability to pay on time. Do some homework and find out how they are motivated. What incentives will work for them?

We are all motivated by two factors. Firstly we like to have a positive to work towards and if we know the result of our hard work or sacrifices then we have a positive goal to work towards. If you are giving a reward for swift payment for example then you will need to make the reward in a timely fashion, otherwise the joy in receiving it is diminished. Secondly we are motivated negatively by realising the consequences of not achieving something. Some tenants will be sufficiently motivated by the threat of eviction that they will pay up on time. For others there may be other negative motivation steered by what will happen if they fail to pay or cause damage to property. If you can make these consequences and rewards clear in your agreement with them, or using a separate document, then your chances of success with them is far higher.

At the end of the day you need to feel some affinity with your tenants, so if you really perceive the worst in any tenant coming from the LHA sector then find another group to rent to. LHA tenants won’t suit you, and you won’t suit them.

If you can perceive the good in them and start positively as you mean to go on, then you will easily override all the issues that are thrown at you and will find this a rewarding sector to have both your houses and tenants working for you.

So how do you decide if renting to this group of tenants is for you or not?

Let’s assume that you’re interested but can foresee some problems:

• The tenant won’t pay you at all
• The tenant won’t pay you on time
• This type of tenant wrecks property
• Evicting bad tenants is difficult
• You don’t want the hassle of having to collect the rents yourself

Then consider the following:

• Treat the tenant with respect and help them to take responsibility for their own rents. This will be new to them, so they may need some incentive such as free pizza vouchers or cinema tickets in return for paying on time.

• Get all the help you can from the LHA as they are providing courses on how best to engage with tenants. They’re paying your mortgage after all.

• Keep the communication channels open – it’s always the same with building any relationship. Help them to feel empowered, not embarrassed.

• Use a 3rd party for rent collection. There are several organisations that will do this for you, or you could use software to flag up who has paid and who hasn’t.

• Act swiftly and be firm. Don’t let two weeks go past and then chase up the non-payment. The tenant will know that it’s not critical to you and won’t feel the need to pay on time.

• Set up your contract with them clearly so that they understand the consequences of non-payment and late-payment.

If you want to find out more about how to overcome issues that arise from an emotional perspective as well as a practical one, then call me on 0845 094 6628 to discuss how coaching can strengthen your negotiating skills and your confidence in dealing with difficult situations. Log onto my website: www.YvonneEmeryCoaching to request my Free Special Report.

Multi Let and HMO Strategy

The cash flow is higher than for a Buy to Let property but is it really worth all the hassle of dealing with several tenants who don’t like each other?

When we hear the words Multi Let and HMO we conjure up for ourselves an image of when we were students, having to slum it in digs that we could only just afford. The idea of having to settle quarrels between tenants who haven’t kept the place tidy or taken someone else’s food from the fridge late at night doesn’t sound like much fun.

But it doesn’t have to be like that in the current climate. It is now possible to cater for a much more mature tenant with more sophisticated tastes and higher income. There are many more professionals who are either working away from home during the week, or who find themselves on their own suddenly who are prepared to pay for a better standard of living in the right property.

So it has to be our duty to supply the right properties for these new clients and the best way to do that is to move your property up the chain towards the standard of a hotel room.

This is how it works:

If you purchase a Buy to Let with a mortgage of around £80k at 6% then you will need to clear £400 each month just to break even. I’ve used 6% so that you know the numbers stack up even if the interest rates go back up again sooner than you planned on.

If you purchase a 6 bed HMO with a mortgage of around £150k at 6% then you will need to clear £750 per month to break even. If you divide that by the 6 tenants then it’s only £125 per month or about £31.25 per week.

Of course you wouldn’t dream of charging as little as £31.25 per week, so you can very quickly scale up your income from the property. Let’s just say that you charge £75 per week or £300 per month then your income would be £1800 which leaves you £1,050 clear.

The more likely scenario is that the rent, outside London would be £90 to £110 per week for an HMO with a shower and kitchen. So, taking the lower figure of £90 per week (monthly figure of £390) for 6 people then your income would be £2,340. This would leave you £1,590 per month (£19,080 per annum).

Rentals on HMO’s in London would be around £250 per week, but the purchase price of the property and therefore the mortgage will also be much higher.

You will also have to consider other costs against that income such as insurance, Gas, Electricity, Water and TV. With a Buy to Let then you would probably cover the insurance but not the other bills. However with an HMO then you would probably cover these other bills in the rental figure.

The more facilities you have the more the tenant is likely to pay. In order to move your rooms up the scale you can consider the following:

1. Even for Buy to Lets with one or two people sharing you can offer a cleaner and gardener, which keeps your property up to scratch and allows you to charge more as well as stand out from the other rental properties on offer.
2. You can add a shower room or en-suite to the room which gives the tenant independence and also adds value to your property. (Be aware that if they become classed as self contained then you may need to have planning permission.
3. If there is room, or you are able to refurbish the property to house as many as possible then by changing some of the interior walls you may be able to turn the rooms into self-contained bedsits. Adding a mini kitchenette really gives the tenant a home from home and brings the rental value to its top performance potential.
4. Stage the room as a hotel room, there is little communal area required in the property so that you can utilize all the space and the individuals can come and go as they please and be as sociable or unsociable with the other tenants as they want.
5. If you really want to up the ante and stage them for a very high spec then you will probably want to add broadband access and plasma screen TV.

One drawback with Multi-Lets and HMO’s is that so far Agents don’t have a great reputation for managing them. This is beginning to change so if you can find a good agent to manage the property then snap them up quickly.

If you are managing the property yourself, then with Multi-Lets and HMO’s it is a good idea to be within sensible driving distance so that you can react quickly to any issues that arise.

If you’re looking for increased cash-flow with a small number of properties then this investment strategy works really well. Make sure your numbers stack up and there are lots of facilities nearby that will support the rental market, such as Hospitals, Universities (Phd students are funded) or Large corporations who ship people in from overseas to support specific projects.

So, is it really worth the hassle? You decide if this needs to be part of your strategy or not.

Seriously Motivated Landlords

Many strategies these days involve purchasing properties from Motivated Sellers in order to buy property below the real market value.  The potential Landlord makes sure to check their reason for selling, that they are in danger of having their property repossessed and that they are able and willing to move quickly.  The seller knows exactly why they are selling, and that’s the reason they are motivated.

So, in order to be a Seriously Motivated Landlord you will need to know exactly why you are investing in property, why that specific type of property and why that strategy works at this particular time.  Motivation comes from knowing why you are doing something, and the clearer you are about why then the more motivated you will be.

We don’t often take time to consider our actions.  We know that adding property to our portfolios is going to increase our net worth overall, and we aim for the type of property that brings in a monthly income, but that doesn’t really answer the question of why we are investing.

What are your reasons? Make a list of them and put the list somewhere prominent, like on the fridge door.  Remind yourself constantly of the reasons behind your investments in order to stay motivated and focused.

Reasons don’t have to be positive. You can just as easily be motivated by what you don’t want as what you do want.  For example, you may not want to live in the poverty that your parents had to when they retired, or you may not want to be still paying off your mortgage when you retire.

Positive motivation works for most of us. You may just want to provide your family with a holiday every year, or buy the fast sports car.  You may want an alternative pension, financial or mortgage freedom, a University property for your children or just funding their education.

Do you want a particular style of living, financial security or the freedom to leave your job?

Whatever you want to achieve in 3, 5 or even 10 years’ time, make yourself a list of the benefits you will get as a result of making these investments.  Then make yourself a list of the consequences of not investing.  Which list provides your greatest motivation?

There is very little point in accumulating property for the sake of it.  It’s not going to make you happier, or give you the lifestyle you desire unless you plan your investments to match these reasons for investing.  Without understanding your reasons, you may find that it becomes a burden, a chore or even a frustration.  You won’t concentrate on filling the voids, or collecting the rents because you have lost the focus on why you are investing.

If you know WHY you are investing then it is 10 times easier to work out HOW and WHEN you are going to invest and that keeps you motivated.  Try it and see how you become a Seriously Motivated Landlord.

Kick-start your motivation yet again and propel yourself forward to greater achievements – come along to the Landlord Show and hear how to advance your portfolio through coaching.

(Yvonne Emery – March 2008)

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