Samuel: Hello, how's it going guys?
Chris: Good thank you, yourself?
Samuel: Really good. So it's Chris and Poppy, right?
Chris: It is, yeah.
Samuel: Excellent. So I've seen your question, you've said that you are living in Australia,
have been doing for the last six years?
Chris: Yeah.
Samuel: You're wanting to move back to England and build a portfolio, so what do you want
from me?
Chris: At the moment we're waiting for citizenship here in Australia-
Samuel: Yeah.
Chris: ... so that's going to hopefully come through by March of next year and then as
soon as we get that we want to come back.
Samuel: Okay.
Chris: So I guess that the thing that we want to know is, we really want to get started
from here because by the time we get back we want to ... like ideally we want to be
financially able to continue to carry on with what we want to do.
Samuel: Yeah.
Chris: So not to start with, not to replace income but just to be able to pay for everyday
things if that makes sense. So we basically want to know how we can get started from here.
Samuel: Yeah sure.
Chris: Without being on the ground being able to look round places, that sort of thing.
Samuel: Okay. So you're wanting to invest? Are you wanting to, sort of, build a traditional
buy-to-let portfolio or are you wanting to do sort of clever, creative things like lease
options and stuff like that or are you literally just wanting to put your money into an English
portfolio so that when you come to England you've got some cash flow coming in?
Chris: No well we actually, we want to do ... like we followed all the things, the processes
that you've done and that's the sort of stuff that we want to do. We want to go down that
road.
Poppy: To make sure we've got enough income and the best return on our investment we can
get really with what we've got.
Samuel: Yeah. Why don't you tell me your strategy then, the thing that you're thinking to do
and then I'll see if I can, you know, see any problems with that or challenges of that.
I mean, have you got any challenges? I mean, what is it that you're wanting to do, what's
your plan?
Poppy: We've got a couple of options, we've got £60,000 in a savings account in England
at the moment and, obviously, with watching all of your stuff and we've kind of realised
that that's not the way to go. And so we're either looking at investing that in ... try
spreading it out as much as possible but we've also ... my Mum has 1.8 in her property at
the moment which she owns and she's struggling with cash flow at the moment. So we were thinking
of potentially setting up a limited company which would help us get a mortgage as well.
And then her potentially financing some of her property and whether that would be more
beneficial using some of that money as well as our 60,000 or whether we can just do it
with that 60,000 cash that we've got.
Samuel: Okay, that makes sense. So have you currently got any properties at all? Do you
own any houses in England or Australia?
Chris: No we don't.
Samuel: Would you be able to get a mortgage? If you wanted ... say for instance you wanted
to use that £60,000 to put down as a deposit on a nice big HMO or something, would you
be able to do that or do you not know?
Chris: Yes we can, yeah.
Poppy: Yeah, through Mum as a mortgage host, yes.
Samuel: Okay, so your Mum would be a mortgage host?
Poppy: Yes.
Samuel: Oh that's cool. Alright cool. So you've got £60,000 that you're ready to invest in
England, you've also got a lot of equity that your Mum's got which you can potentially do
as a joint venture so what's your problem then? What's your challenge?
Chris: Well I guess our big challenge is our education and knowing where to start, what's
the ... where do we ... the strategy. So, like, we want to do the course and stuff when
we come back and we want to get a mentor and we've been speaking to a number of people
and watching YouTube clips and that sort of stuff but we ... yeah, we just ...
Poppy: We just can't get back to England for the course, for you course and we would just
love a mentor so we don't jump in and do the wrong thing and then lose that, the savings.
Samuel: Yeah, yeah. I mean you definitely don't want to invest into something stupid,
you want to make sure that you invest it well. I mean my thoughts would probably be you're
going to be coming back to England, you said after March next year, right?
Poppy: Yes.
Samuel: Okay cool. So what I would probably be thinking is it would make sense to try
and invest that £60,000 really well into something really profitable and then use that
as, like, an earn the right proof type of thing to then be able to prove to yourselves
and also to prove to your Mum what you can do. And then once you've done that, capitalise
on the money that your Mum's got and do the same strategy that you did with the £60,000
if that makes sense?
Poppy: Yeah. But would you suggest maybe a sourcer? 'Cause obviously we're not in the
country to come to the training.
Samuel: Yeah. I probably would. I'd probably say that ... I mean you want to be clear on
your strategy still but, I mean, I would probably be looking with ... if you've got £60,000
... does your Mum own any house in England?
Poppy: Yeah, just that property.
Samuel: Does she own buy-to-let property as well?
Chris: No.
Samuel: So she just owns a residential?
Poppy: Yes.
Samuel: Okay, so you need to find out, if your Mum's happy to be a mortgage host for
you that's great, you want to find out what type of mortgage your Mum can get because
it might be that your Mum can get a mortgage but she can't get a HMO mortgage or she can't,
you know, there might be ... there's different types of mortgages. But I think probably what
I would be wanting to do, I understand that, you know, you want to get mentored and all
that kind of stuff but at the same time, if you're not going to be in the country for
another sort of, you know, six, 12 months potentially you want to ... when you come
to England, you said you wanted to be earning, you know, 27k and then you want to push that
up to 80k. So I would be thinking, if I was you, I ... I mean the money in the bank is,
as you know, it's shrinking. So just sat there doing nothing, that's not good. At the same
time you don't want to rush in and buy something stupid. I would probably work with a really
good trusted sourcer. I mean, you know, we've got people on our books that we use to invest
your £60,000 into a really good profitable ... maybe like a six bed HMO in a really good
area-
Poppy: Okay.
Samuel: ... that might give you a profit of between 1000 and 2000 pounds per month.
Poppy: Okay.
Samuel: Something like that. And then once you've got the money coming in and it's all
completed and it's working, that might take ... that could take a few months because things
in property do take a while, but while that's ... when it's all kicking in and it's happening,
then show your Mum what it's done, "Hey Mum, this is the property that I've bought, this
is the strategy that we used" and then, you know, raise some equity from what your Mum's
got and do it again. You find the properties, you use your knowledge and your contacts but
your Mum puts the money in and you can go 50/50 on the profits. How much equity would
your Mum be prepared to work with you on?
Poppy: She's probably about a million.
Samuel: A million. Okay, well with a million pounds you can do some really serious damage.
I mean we could be talking about doing development, buying land, building properties from scratch
and then re-financing them, pulling all our money ... all kinds of crazy stuff. I mean,
which should be extremely profitable. What's your long term goal? What are you wanting
to achieve through property?
Poppy: I guess, Chris ... we're in the country 'cause he does geology so he works away on
a mine site all the time and we never get to see each other, so the ideal situation
is that we can both live near our families and stuff back in England and not be away
from each other all the time. So we just would really like to have money coming in every
month, really, that we can still be together.
Samuel: So do you need a certain level of income before you come back to England?
Poppy: Yes, ideally-
Samuel: How much do you need?
Poppy: Just for like, maybe 27 a year we've kind of worked out to be minimum.
Samuel: Okay.
Chris: Yeah I think that's what we've ... salaries aside, that's what we've calculated will be
living costs.
Samuel: Yeah, sure. And if you came to England would your only source of income be property
or would you have another source at all?
Chris: It would be our only source, that's why we kind of wanted to start now so that
we hit the ground running when we get back.
Samuel: Yeah, yeah, yeah.
Chris: Is that doable?
Samuel: Yeah, it's very doable. I'm just thinking it depends on your strategy. So to invest
your 60 grand, I mean to make £27,000 cash flow from the back of investing 60 grand,
that's going to be very tough going because that's almost 50% return on investment that
you'd need. So, I mean, you could come to England tomorrow and make 27 grand a month
from scratch by just getting one rent-to-rent deal or sourcing a deal a month and passing
it on to somebody. So there's lots and lots of different things that you can do, I'm just
thinking, with your situation, I'm trying to think what the best strategy would be for
you if that makes sense?
Poppy: Yeah, definitely.
Chris: Yeah. I mean the other thing is, like, obviously we're not going to need that money
straight away as soon as we get back. That's just what we feel by the time that we settle
in and get ourselves a house ... like when we move back we're going to be probably living
with family and stuff so it's not going to be like we need that money straight away.
So it's not going to be urgent urgent, but that's just what we've worked out we'll need
when we're living as a couple sort of thing.
Samuel: Yeah, yeah, yeah. I understand. And that's like, that'll cover your basic costs
to live a normal basic life and then obviously you'll just want to build on that, right?
Poppy: Yeah, definitely.
Samuel: Yeah, yeah, yeah. That makes ... so in that case you could do the strategy of
that then, you could invest the 60 grand now, get an income, I don't think you'd be hitting
27k a year but it might be ... it could be maybe 20. And then you come to live in England
and then you could, then, do a combination of ... I mean if you've paid ... the cool
thing is, if you've paid someone to source you a property, you then not only get the
property but you also get a lot of knowledge as well from it. So by the time you come to
England, you know, you've got the property but you've also ... you can duplicate that
and do it again and again.
Poppy: Yeah. But would you suggest buying a house outright for like, 60, or would you
suggest getting a mortgage on it? Like a big HMO? Or, you know.
Samuel: Well I think definitely the latter because if you bought a house for cash for
60 grand the rent that you're going to get on that, even if you're lucky, a 60 grand
house they're maybe going to give you 500, 550 pounds a month. And then you're going
to have to pay for someone to manage the property, you're going to be left with, you know, like
three, four hundred pounds a month cash flow which is only going to be ... what, like five
grand a year or something, tops. Whereas if you invest, if you put that down as a deposit
and get your Mum to be a mortgage host, you could buy a big six bed HMO in the centre
of Birmingham or something and then you could make a 1,000 or 1,500 or even more profit
each month as opposed to a few hundred pounds. So, you know, you're leveraging your money.
Poppy: Yeah. And HMO or something like service accommodation too.
Samuel: I mean, yeah, serviced accommodation could be ... is very profitable. I mean, again,
I think HMO for your first ... I think for your first investment HMO might be a little
bit safer than serviced accommodation because it's a very, very tried and tested market
and things. So I'd probably ... with 60 grand you're going to have ... not only could you
buy a HMO you're probably going to have money left over as well because that ... you know,
you're only really going to need like 40 grand for a HMO. So you could do a HMO and then
keep some money as cushion so that when you come to England you've still got, like, maybe
15, 20 grand in the bank which you could then use for rent-to-rent, you could use for educating
yourself, you could use for paying more sourcer fees.
Samuel: I think if I was you, my plan would be to invest £40,000 into a HMO and I'd pay
a sourcer to do it. I'd leave maybe £15,000 in the bank, I'd come to England next year
with 15 grand and then with that £15,000 you can then use that for whatever strategy
tickles your fancy, you can use it to begin to build a little rent-to-rent portfolio.
Where abouts in England are you going to be?
Poppy: In the North East, in Newcastle.
Samuel: Newcastle, ah interesting. Newcastle's an awesome area. There's some really good
investment opportunities in Newcastle. I'd probably to come to England, you may as well
go full time in property because you've got the time and you enjoy property, you've got
one house giving you an income. Just go crazy, go full time in property. Come to Newcastle,
go networking, go to training programmes, find some rent-to-rents in Newcastle, use
that 15 grand to go crazy for a few months just educating yourself and doing rent-to-rents
and also to live off a little bit. And then, three months after you've come to England,
hopefully you'll have a couple of rent-to-rent deals, you'll know the market, you'll have
educated yourself, you'll have one nice big HMO giving you a decent income. And at that
point in time you'll be in a position where you've got a million pounds equity from your
Mum that you can do some really cool stuff with. I think that would be where I would
be wanting to go.
Poppy: Okay, that's amazing. And so if we went with a sourcer, with your company, would
you ... would we just go with whatever area you would recommend-
Samuel: No.
Poppy: Or would we find someone in the North East who's-
Samuel: Get someone ... get the sourcer to find something in Newcastle.
Poppy: Okay. And do your company do that? Like, would we be able to say Newcastle or-
?
Samuel: Yeah, I mean better sourced, I would recommend. I don't personally get involved
in the sourcing side of things but we've got a company that will be able to sort that for
you and find something in Newcastle no problem.
Poppy: Oh amazing.
Samuel: So the point of ... the kind of action points then for you guys is going to be, number
one, find out what kind of mortgage your Mum can get, can she get a HMO mortgage? So she
needs to speak to a mortgage broker.
Poppy: Okay.
Samuel: Number two, you need to speak to a sourcer who can get you a nice, big HMO in
Newcastle.
Poppy: Yeah, like a five bedroom kind of thing?
Samuel: Yeah at least five, six, yeah, yeah, totally. And then number three, get your ass
to England and pull your sleeves up.
Poppy: Yeah.
Chris: We will do.
Poppy: Amazing, yeah that sounds a great plan doesn't it?
Samuel: Alright, is there anything else you need from me right now?
Chris: Thanks so much for your time.
Poppy: Yeah.
Samuel: You're so welcome. Well listen, when you come to Newcastle, drop us a message,
let us know how it's going and if we can help in any way, we will.
Poppy: Ah, thank you so much. Hopefully once we get back we'll come along to your crash
course and-
Samuel: You should do, you'll love it.
Poppy: Yeah.
Samuel: Awesome, see you guys.
Poppy: Thank you so much.
Chris: Cheers.
Samuel: Bye.
Poppy: Thank you, bye.