3 HMO Property Investments in the UK from Overseas in 12 Months | Simon Zutshi
we would be able to get a gross cash flow about 30k on this one and uh that would that should kind of net cash flow around um 17 and a half k if they don't view the properties as long as you're confident in what you are investing and the deals tax it should be good enough and it is currently cash flowing around uh just shy of 50k net after expense is around 20k which is 18 roi for me so hopefully we have oh we do sunil hello how are you hi simon hi everybody good afternoon oh it's good afternoon here so it's 3pm here it's okay yeah so you're you're back it's a man isn't it you're back in oman it is yeah i'm in i'm in oman i'm in the capital city called muscat a beautiful place as you can see sun is shining same here in birmingham we've had blizzard we've had blistering over the last three days there's been all no we haven't no i can't rather be there actually but still so so neil i'm i'm not sure if you have your slides it might be easier if you moved it will make you a co-host you can share so you can talk through them um but the reason i've asked you so now is again i'm this event is obviously getting people to take action but also it's helping get out their own way and also um building their belief about what's possible and so no you know you're based in amman and obviously i know you you've just come over to the uk this week is that the first time you've been here it week or had you come over previously when did you last come before this last trip so before before this i'd come for the uh pin dinner and our uh my sort of uh the last uh mastermind uh sort of monthly call yep yeah indeed okay great so um so you know you're you're not in the uk is the point and yet you've been able to as part of our mastermind virtual group very successfully uh do some incredible investing and i want to just talk about some of the deals you've done and inspire people even if they're investing remotely because sometimes people say oh well you know i live in birmingham i want to or i live in london i've got to invest in london and the idea of investing you know even two hours away from where they live is just a complete impossibility but when you're investing i don't know how many hours it is is it what seven eight hours to oman uh yeah it's it's about a ten hour flight if you were to kind of you know have a direct flight here yeah and then obviously the time difference as well and yet you've been able to do it so i think it's gonna be massively inspired so if you wanna share your slides and just tell us a little bit about yourself and then talk about some of these deals yeah absolutely are you able to see the screen simon uh we could just see you at the moment so okay the green button at the bottom is where you share share the screen yeah there we go that's it perfect we can see your site just i can okay if you want to put it into um just a slideshow screen yeah full screen that would be great yep just so that's it just the bottom there that should be it how's that uh yes uh that's presenter mode but uh that's fine we could leave it in that if that's rather than messing around we'll we'll leave it like that okay so quickly but pretty quick introduction about yourself please sir now yeah uh so my name is sunil uh i'm a uk expat based domain and i've had um i've had a a varying career you would say that i was i was in the merchant navy i'm a qualified captain actually so i was in the navy for 10 years and i decided to change my career because of family reasons and i did my master's in cardiff university so i graduated with a distinction in msc in international transport and i joined supply chain as my chosen profession so ever since i've been heading sort of procurement departments and supply chain sort of teams across sort of multinational companies so i've had the you know i've been quite blessed in terms of you know working in the uk as well as overseas yeah um so that's that's always given me that you know flavor of you know visiting countries and and you know sharing that experience um i'm also part of the mmv2 uh which started in april last year whoops shout out for mb2 absolutely the best one and um there's a little competition by the way amongst the different groups in case you hadn't noticed but yes sorry carry on tonight i'll just i'll just keep interrupting you uh inconvenient times of that night no problem i'm absolutely uh blessed to be part of this group um you know great bunch of people uh so supportive uh i wouldn't be able to kind of do what i've been doing uh without without their support uh my chosen area of investment is liverpool and my main strategy is co-living hmos yeah so before i go into my next slides just wanted to kind of probably uh you know add a few kind of nuance in terms of you know being an overseas um sort of investor yeah so it was it it was for me it was quite key to understand you know where um what your limitations are uh and and for me uh the it was to basically time poor and basically the geography so it was absolutely key uh in order for you to kind of move ahead in your in your property journey to strengthen those areas and and have that specialist team the one that you always keep on referring to the power team around you because this is so important uh to surround yourself with that uh you know people that you can rely on and in in my case it was it was not something i had an option it was something i had to do yeah so having a specialist accountant a specialist mortgage broker i kind of source my deals through deal sources because i can i can rely on them and obviously i need to a lot of due diligence behind in terms of you know genuine getting genuine off market deals so these are the small things and and you need to kind of you know but at the same time uh have a mindset there's no limiting beliefs in the in the sense that if you are based overseas there is no uh the you are not disadvantaged in terms of investing in the uk you can do it successfully as long as you kind of obviously trust the process and have that power team with you um so with that in mind sorry there's one other advantage as well which i just want to point out is a distinction that um i teach people that really they don't want to be managing the properties themselves because that's not the best use of their time and it's easy to manage a couple of projects as you get more and more it takes more time and that takes time away from actually finding the deals which is where you make most of the money however um you have to use other people to manage properties for you so actually that's a real advantage isn't it you can't get caught up in the management itself because you're not on the ground to do it absolutely this actually forces you down the route that you know you are going hands-off from from day one yeah and like you said simon you know uh investing properties need to be you need to keep the emotions out you know it's it's purely a business you're buying uh an asset and which is going to give you the the returns that you are looking for and it's all about the numbers and if it stacks up it's good enough and they were i heard uh yesterday's few few of the spokesperson and one of one of the gentlemen did say that you know they don't view the properties as long as you're confident in in what you are investing and the deal stacks it should be good enough yeah absolutely awesome that's great distinctions there so let's let's look at some of the deals you've been able to do uh whilst on the mastermind virtual 2 program sure so this one uh is a is a three-bed terraced house uh in hmo i mean in liverpool sorry uh just i mean uh obviously people who are following the uh liverpool market uh and and you know the general market trends would know uh this is an extremely uh popular area for investment you often have to be ahead of the queue in order to kind of get to view properties as well and and some of those things that you mentioned about people putting in sort of you know bids in in liverpool basically the shortlist people who uh who who can actually view the property so the having those connections locally and and knowing uh knowing those uh genuine off-market deals is so key for you to get yourself ahead of the queue yeah so basically this was a uh unhabitable condition uh and i think uh my fellow mastermind adam also has come across same thing it's basically it was a cannabis house uh so it's a motivated seller uh they needed a quick sale uh or it would have gone for auction um and this was so through a specialist deal sourcing company it was a genuine off-market deal um i just just marketplace one point there sorry to interrupt again but a mistake people make they sometimes find sourcing agents sourcing companies and think oh great they'll do it all for me you absolutely need to know how to assess deals yourself because unfortunately a lot of sourcing companies there are some great ones but also lots who really don't know what they're doing so you absolutely need to double check things don't you cinel absolutely and and one of the things that uh for me uh making my growing my network the deal sourcing company or the deal sources that i met through word through pin meetings and it was through a series of meetings over over the you know over the period of four to five months having those regular zoom calls and and follow-ups and trying to understand what i need and in terms of you know what their kind of you know way how they work uh that was quite important so it was not like you know here you go there's one deal so we actually built up that relationship to understand what my needs were and how they could help so it's so important also trying to get references from from people that they have actually sold deals to i spoke to them as well to understand you know how good they were so you absolutely drive seven you need to do your due diligence on on on deal sources yeah uh so this particular property was purchased for 85 000 again uh one thing we are taught in in in mastermind speed of implementation so uh we we needed to crunch the numbers very quickly and it was quite clear that you know this this property was going to be uh making money uh so we needed to move quick and there was no hanging about and this is where i think uh you know a lot of the um you know i would say uh people who are not that confident would lose out because they take a lot of time to decide whether to go for it or not so in my case it was we knew that this was i knew the investment area i knew uh the the numbers uh you know stacked up so it was just a question of moving in fast yeah so the refurb cost on this one is approximately 45k uh so basically we've just uh so the these were the properties i actually went so i spent three days in liverpool so this was part of my getting familiar with with the area so uh i spent three solid days in liverpool uh which involved you know meeting estate agents meeting property driving around the town getting a look and feel on on how things are so that when next time when you when somebody does refer to an area you have a rough idea in the head in terms of you know what what that was uh uh you know meant so basically post refurb gdb uh we estimate is around 165 k there would be about 34k left in the deal we would be able to get a gross cash flow about 30k uh on this one and uh that would that should kind of net cash flow around um 17 and a half k uh for it for the year yeah that's a pretty good result right yep yeah and we'll be happy with that guys show of hands yeah great deal round applause that's a great deal so we're talking about about 50 roi uh which was quite uh you know for me you know like i said everybody is in different situation for me those numbers stacked up and it was good enough yeah right uh the second one uh unfortunately the the picture hasn't changed uh but uh yeah this this one also a very similar one it's a three to five bed uh hmo conversion um this was also a motivated seller tired of previous tenants now uh mike uh who's again my fellow master binder he mentioned some of these properties are on the open market and it's in front of your eyes and and the exercise which you told simon uh you know go on to uh write move or zoopla look for the look for these kind of properties and you would be able to find them it's just a question of looking at these properties in a different angle this was obviously a tired property uh needed a lot of needed a lot of refurb to it so market value about 100k we purchase it for about 80. uh we're going to put in about 35k worth of refurb in this uh post refurb we estimate it it would fetch around 150k and that would be around 22k left in the deal uh that should uh gross cash flow about 25k net around 13 and again this one was around 61 in terms of roi again very similar uh in in terms of uh both the approaches and we we are going to pro and one of the things i'm quite kind of proud about was you know this these these properties really needed that uplift and in terms of uh the uh the kind of works that we're doing to it it actually is going to help the neighbors not having to live in a property which is like you know really in bad condition and we are we are actually doing something for the community there yeah great and this is so just one other thing i want to i want to pick up here sorry is that very often uh sometimes landlords get a bad reputation right they get a bad rap because they're like oh you're you're an exploiting landlord etc well there are some bad landlords out there but you get to decide exactly what kind of landlord you are and i like to think that one of the ethics and principles we teach on mars we want to provide good quality accommodation to people that is much needed you know if we weren't here as private landlords there'd be a lot more people who would be homeless accountable spend a lot more money housing people so we are providing a really needed service to the community basically and you need to remember that and be proud of being a landlord providing good quality accommodation to your tenants carry on tanil absolutely uh so the last one uh this is a recent one that we agreed this is a 10 bed hmo in birkenhead again in merseyside liverpool area uh the sales been agreed so we're going through uh convincing on this one i'll talk to you a bit more detail because this is this is a different strategy of acquiring the property so basically this property was acquired through uh through retiring landlord again through a specialist hmo uh sort of uh property company the market value of this is around 425 k we agreed on 360k and i'm using an advanced strategy of purchasing this property through company shares rather than the traditional purchase which would mean uh that would give me a saving of about 58 000 that's on stamp duty as well as tax relief uh i can go in in bit more detail but in a nutshell uh i would save stamp duty uh and also uh there is a bit of tax relief which which has been confirmed through the due diligence that has been done through my accountants yeah so um it is fully tenanted uh and it is currently cash flowing around uh just shy of 50k uh net after expense is around 20k uh which is 18 roi for me um and it has got further development opportunities uh it has got basement where we can add if we need to uh additional three rooms uh which would also increase the cash flow and these were and this was one of the deals where i needed to kind of you know main target is to kind of get my cash flow secured so this was one of the one of the properties where i wanted a high cash flowing property in my portfolio and which was very little work to be done it was mostly trying to use some uh you know creative uh strategies of acquisition so that you could actually save some money so um so that's that's me in a uh in a nutshell in terms of you know the three uh deals i've got that's my contact details if anybody wants to get in touch i would say specifically people who are based overseas if you want any help from from my side in terms of you know learning from my journey i would be more than happy to help and connect uh because it's not easy and um there are a lot of you know things that that you might want to put in in terms of ahead or prepare in advance so that you are well set uh to kind of do the property acquisition in uk it can be done uh there are specialist people who can help and and it's only a matter of getting in touch with them um so please do do give a shout out and i would love to talk to you that's awesome that's a great offer i've got a couple of quick questions for you so if you add up all of those properties uh by the time they're all finished and ready how much profit before tax are you going to be making from all the properties you've acquired so before profit in excess of in excess of 100 000 after tax it would be just shy of 60k yeah that's not bad is it from someone who's actually living overseas absolutely not and i think you know the as part of my sort of you know three to five year plan uh was to replace by current income and then uh you know go on to kind of you know continue the property journey um so all of this you know these uh you know kind of deals would would definitely add up to it and um like you said you know you don't need to kind of uh you know you don't need to do this alone that's one thing and second thing uh you don't need to kind of you know be there to kind of get these deals done you could do it uh being outside of the uk as well great and and obviously you made that what was it that made you decide to come and join uh mastermind virtual too so for me i think uh i was probably uh at a point in my career where you know um you know things were frustrating uh it was not going ahead uh in in a way that i wanted uh covet uh also did not sort of help uh so i think i would say you know prior i i needed some um i would say a motivation or a kind of a goal to look forward in my life and i have to say prior joining mastermind there was a complete i would say a mess in terms of you know absolutely demotivated not looking forward to work and after joining mastermind i always say that mastermind is not a a property um sort of course it's you you will learn about property that's definite but what it is is a personal development course i've i'm a completely different person what i've joined mastermind and what i'm today you know those limiting beliefs my mindset has changed i've tremendously grown my network uh i've made friends and and you know this journey is going to continue something i i go into work now i feel like actually the work is helping me to fuel my my property journey and that's what i'm i'm really kind of you know chance so this this uh course has been incredible i think you know i really like to thank you and andy and everybody who's put in all the effort uh to put this uh course together uh it's it's a life-changing uh decision for me to be honest thanks so much that's great to hear and i know look obviously i think you you came and did our mastermind accelerator first of all and i think that's a great step because the mastermind virtual might not be for everyone obviously it's worked very well for you i know but but to make that big decision i think doing the three-day accelerator is a great first step because then you can understand the strategy and probably realize that you don't know what you don't know would you agree with that absolutely and i think uh someone to add to that i actually did the mastermind accelerator international yes which was a recorded version yes which gave me the opportunity to do the mastermind accelerator and then obviously going on to do the uh mastermind uh virtual so yes absolutely you know followed the uh the journey throughout uh couldn't agree with you more and uh you know absolutely brilliant all of these poses awesome that's great let's hear it for some hill please thank you very much guys i do hope you got massive value from watching this youtube video i encourage you to click on the link below to come and do the online training with me i've got another video lined up for you which i think is also going to be really useful that you should watch once you've registered for the online training with me so investment knowledge investor skill i'll see you very soon
2022-04-12 06:18
