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Dan Shepherd | On The Ball Property

@propertydan.otb

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I came across this deal today for a retirement property available on the open market…

It had a purchase price of £45,000, despite an RICS valuation of £95,000. This is common for retirement properties.

This property is currently tenanted, and retirement properties are typically not well performing BTL assets. However, with a low/average ground rent + service charge, cash flow is good until the asset becomes vacant.

Perhaps the real killer for this deal, is that the most recent sale was at £88,000. I would seek to price in future circa £20,000 lower than the next development.

With purchase costs, hold costs and the poor liquidity of this asset, this is not one I would pursue, despite the market price of £45,000 being over half what the RICS valuation has come out at.

Managing risk is key to analysing retirement deals 🔰

Would you consider buying a tenanted retirement at a steep discount? by @propertydan.otb

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a month ago

Book of the Day: Key Person of Influence by @danielpriestley

I read this book earlier in the year with a property lens.
It highlighted several things to me - which I will take forward:

1. Those who sit in the ‘inner circle’ get passed opportunities first. From my experience in property, this is absolutely the case, with to the best deals sent to reputable people.

2. This book tells you to publish your own content. Sharing your ideas publicly improves your credibility, and is a fantastic way to show your ability. It has got me thinking about writing a book.

3. The importance of partnership. This theme is across all books I read - whilst it may seem achievable doing everything by yourself, I have always seen value in having a business partner who complements what you lack. Since reading this book, I have entered a property JV which has been very successful so far!

I would recommend giving it a read! 🔰 by @propertydan.otb

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a month ago

I said I wouldn’t fall into this niche… however I am starting to like the look of retirement properties. Here is my checklist I consider, when looking at an opportunity.

1. Lease Length - is it above 90 years? If so, I am happy with that.
2. Service Charge - one that gets debated a lot, with some very high. This depends on what is included in the development, and price of the unit.
3. Ground Rent - when is the next review and what is the mechanism?
4. Restrictions or Eligibility - can you purchase in a Ltd company? What age do residents have to be?
5. Resale Pool - is the market active? what is a buyer looking for? How many other options do they have?
6. Condition - does the unit require work? If so, I don’t want it.
7. Location and Demographics - an important one. Is it an ageing area? What % are above 60? Look at census data.
8. Final Checks - do DD on the subject property and see if the final numbers stack.

🔰 by @propertydan.otb

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a month ago

I started out my journey with under £50k.

If I were to start again - here is how I would go about things 🔰

#1 What do you buy with just £50k?

Depending on what you would like as your strategy; mine has been to increase my cash pot which will allow me to scale my own portfolio for the future.

An example would be along the lines of…

House: 100K PP (20% deposit - £20,000)
Source + Legals + Stamp: £7,000
‘Light refurb’: c £10,000
Finance costs (1 year): TBC
All in: c 25,000-30,000

I would avoid BRRR’ing as you require more cash, and to scale you need to be building your own portfolio which I am not that state:

Same with HMO conversions: expensive and need more than 50k!!!

What would you do with nothing but 25k? by @propertydan.otb

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a month ago

Day 2 of the Home Reno: Continuing the wallpaper strip

A cool little timelapse to show my lack of practical skills. Excuse the dirty socks too.

I soaked with warm water and applied 2x coats with a sponge before peeling. Managed to do the landing and hallway.

Also managed to get some of the brick weave tidied…photos coming soon! by @propertydan.otb

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a month ago

I had an offer accepted on a 2 bed terraced property in Leeds for £144,000. We budgeted for a 15k refurb, with a GDV of £190,000.

However, after receiving the Level 3 survey there were some defects not visible which meant we did not proceed with this purchase. Unfortunate, however I learnt from these mistakes and ended up moving to a better deal with my current home renovation project!

I think it is fair to say a Level 3 survey is amazing value for money 🔰

At face value, this was a mostly cosmetic refurb. Our goal was to spend 10-15k transforming this house from the worst on the street to the best. However, the Level 3 survey came back with several problems…

1. Single skin extension with no planning permission - Not a good start
2. Plumbing issues in the bathroom where the vinyl is in disrepair
3. General modernisation above and beyond expected costs put us
4. Roof issues with party wall

We decided it was not worth proceeding with. Whilst the deal may stack up for other investors, factors such as the local area and refurb costs put us off.

What would you have done? by @propertydan.otb

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a month ago

After a successful retirement trade, here are 5 things I consider when looking at retirement homes as a property investment.

1. Cash Purchase - Can you buy the property in cash? Retirement homes can stick, and the pressure of a bridge loan mixed with a depreciating asset causes pressure.
2. Hold Costs - How expensive are the hold costs? Can you afford it? My personal budget is £5,000 pa on s/c and ground rent
3. Older Population - A fundamental one. If you have an opportunity in an ageing area, that is a positive.
4. Availability - Which other schemes are in the area? What is demand like for these? If there are too many retirement homes in the market, our strategy does not work and it becomes saturated.
5. Pricing Strategy - I have a strong method of my analysis. If it does not pass, no more work will go into it. by @propertydan.otb

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a month ago

Last Friday I attended the TMC Event in Manchester Piccadilly - with the guys launching their services offices 🔥

As I work in office agency myself, it was excellent to see a fresh, modern style of flex space delivered to a high specification and available at a competitive rate.

As always, some great conversations with great people. by @propertydan.otb

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a month ago

Day 1 of our Home Renovation 🏠

We decided to tackle the wallpaper today as I wasn’t feeling 100% so a nice and easy job!

We are going to be prepping the house for the rewire which is to be completed in coming weeks… by @propertydan.otb

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a month ago

Everyone knows your network is your net worth!

Here are what I find to be my three most important networking tips in property.

1. Show Up

Very simply - if you aren’t present, you will miss out on opportunity. Every event, a new discussion will take place. Being seen and present builds relationships.

2. Follow Up

This is the part not everyone completes. It is always great to follow up meeting someone the day after. You will stand out, and they will remember you.

3. Be Yourself

This is the most important. Be your authentic self. There are so many like-minded people in property, you don’t need to impress every one you meet. I am a bit introverted, so take longer to start building relationships with people. Take the time you need. by @propertydan.otb

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a month ago

Completion Day!

Me and my partner got our keys today for our personal home renovation project. This one is a semi-light refurb, however we are looking to make this into a modern family home for us 🏠

The base of the property is in moderate condition, however a rewire is needed with some of the electrics existing since was built in 1976! Apart from the rewire, it will be mostly cosmetic changes.

AI images: Our plan is to create a modern, family living space for us to live in. New carpets, painting walls, skirting and the usual stuff!

We have a lot of the furniture already, and the kitchen offers a good base to economically paint and improve without ripping out completely.

I will be posting weekly progress pictures to this page. Come and follow to see the progress of our house! by @propertydan.otb

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2 months ago

My first property flip paid for my Mum’s dream safari to Zimbabwe and South Africa 🇿🇼🇿🇦

Although I re-invested most of the profits into my next project and a personal house deposit, there was enough left on the side to tick off her bucket list destination!

Perhaps not the smartest financial decision, but it is motivating to know what property can accomplish if you put in the hard work 🔰

A breakdown of my first project.

I split the profits into 4 Quadrants:

1. House Deposit - Some of the money went towards my own house I have bought with my partner (a personal renovation!)

2. Another Project - I decided to re-invest most of my profit into another flip/trade. Still on the look out for more.

3. Education/Networking - I joined TMC which is the best choice of them all. A great group to be in with some very inspiring people.

4. Safari - A small cost relative but one which I am grateful I could do.

Key Message: Celebrate your wins.

To be able to tick off my Mum’s bucket list destination by 23 was pretty cool, and the trip was well worth the money.

I won’t do this after every flip but for the first it was a nice treat!! by @propertydan.otb

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2 months ago