- Hey.
In this video I'm gonna show you how to grow
a property portfolio using your business.
Let's go.
Hi guys, I'm James Sinclair,
I've built quite a big property portfolio up
and I own quite a few business and I take all of this
knowledge that I've used and implemented in my businesses
to help grow your business in these videos.
If you're interested in business and entrepreneurship,
marketing, getting customers and property,
make sure you hit subscribe and that
little notification bell so the Goddy of YouTube
can let you know when we bring out great new content
to grow your business.
Hey guys, I wanna make this quick video with you today
just to show you how I think businesses,
the fastest way to help you grow your property portfolio.
So let's get into it.
You see, I've just learnt this right,
that it's business first, property second.
If you're serious about growing a property porfolio,
which is a great pension plan for business owners,
it's a great way to invest the profits that you make
out of your business into property so that if you
become ill or if you wanna grow the business again, you can.
And basically, the way I see business is,
is this what I call you're running four companies.
Now I'm just gonna quickly draw this up for you.
It's really easy, you just get a little diagram
and you say company one, two, three and four.
Now company one is the company you are today
and company two is the company you want to be,
company three is a media company and a marketing company
that's basically gonna get customers for this company,
and number four, the fourth company,
is a property investment company and basically
what you want to do is you want to get companies one
and two investing all of their profits into company four.
Now if companies one and two, this is your future company
and this is the company you are today,
need to re-innovate they can then re-leverage back off
of the property companies and they can re-invest,
you know the retail needs to do this right now.
You look at some of the big retail names that need to
re-invest back into their businesses to get them
into being experienced businesses, to move with the times
and companies like Marks & Spencers, Tesco's and Sainsbury's
that own huge property portfolios can go and do that.
That is why property is such an essential part
of the business owner because it gives you this
great insurance policy.
Let's just quickly go back to the,
that's why business first, property second
is so, so important.
You need to use a method of how you can scale
your property portfolio so what I try and do
is focus my efforts on the key metrics that I've got.
I like single buy to lets and I like commercial property
and I like good buy to lets and I like nice,
scrappy commercial properties.
So what I mean by scrappy, I like little units,
I don't like long lease units.
I like little car mechanics, little office blocks,
little things like that that I can put on licenses,
that is my method.
I understand it inside and out and therefore I can scale it.
I also like commercial property where my business
is the tenant of that commercial property.
So we own some day nurseries and some
family entertainment centers, we'll buy the freeholds
and we will be the tenants of those freeholds.
So we've got a method of something we can scale,
something that we can understand.
Once you understand something and you can demonstrate this
to your banking partners and your financiers,
they get behind you much more because when it comes
to lending money it's very simple.
This is the number one thing that banks are looking for.
It's the management.
Everyone thinks it's about security.
Security's number three, but number one,
the bank wants to know that they're going to have
good managers to manage their money that they can then
understand affordability because this is, this is,
when it comes down to affordability it's the management
that's gonna make that affordability happen.
If you've got a business plan, you wanna borrow
a million pounds, you're gonna pay it back over 20 years.
They wanna know, the bank wanna know that the management
are gonna make that affordability happen.
Then it comes down to security.
Everyone thinks it's security first,
well if you look at all of the biggest deals in the city,
venture capitalists, private equity, they're not
going behind security, if they're lending a billion quid
to someone there's not enough security for that,
they're looking at management to make sure the management
can pay back and then they're looking at what security
they can get, if any.
So make sure it's that way round.
Management first.
Make sure you can really demonstrate that you understand
and know your thing inside out.
That's for business and also for your property empire.
I also like to choose a certain location where
I can really understand it and a location that
has great yields, i.e. great cashflow.
I always buy for cashflow and capital growth second.
Cashflow, or rental yield, should always be
your number one focus and what the property might be worth
in the future should be your secondary focus.
Yeah that's important, we wanna know that,
but that could be the markets that shift and change
and make that happen so we always focus on cashflow.
Make sure you focus on the income you get out of a property,
not what the property might be worth in the future.
That's an added bonus, that's the markets that control that,
you control the income.
Next thing, always try and make sure that it makes sense.
That it folds in to a business plan that you've got
for your business, your property business.
Does it make sure that it's below market value
if that's your thing?
Is it in the right location?
Have you got a power team that can go into the property
and actually manage it for you so you don't have to
deal with that?
Also, also really try and think about this.
How can you add value to the property in the future
very easily or straight away?
See, could you buy a property and then there's
building land next to it?
Could you buy a property and chop it up into little units
like I do?
Can you see how you can add value?
So there are some of the top ideas that I do
for when I'm growing my property portfolio.
Hope that's really helped you.
Share some of your ideas with me below
and I'd love to get involved in the comments.
Thanks for watching.
Bye bye.
Thanks for watching the video.
Really hope you enjoyed it to help grow your business.
Don't forget you can watch more of my videos
by clicking here and don't forget to hit subscribe
to the YouTube channel by clicking this button right here.
It gets better than that because you can come and see me
at one of my seminars to help grow your business.
All the details of how you can get to one of those,
for free, is in the video description.