Hi Erico,
I am very interested to hear further regarding your property education from Ranjan especially around BMV and the mentoring service provided. There are so many of them out there and want to make sure that my money is well spent!

I would also welcome some advice on commercial mortgage lenders that may entertain the same theory on BMV purchases. I run my own training business and wish to purchase a property that has been on the market for some time with the vender happy to negotiate purchase price. The aim is to sub-let half of the premises.

Mrs Jones

Hi Catrin,

I am completelly statisfied with the Rajan's 1 year mentorship. I just finished it.

Besides education (Business Planning, BMV, Negociation, Tax, Multiletting, Development, Planning Permission) you end up being part of a network of ex participants which are happy to share their knowlodge and experience.

I also end up partening with another participant and we have now 2 development projects (flat conversions) in London together. This helps to share costs and risks from these early days of a learning curve.

Erico

Glenn Armstrong’s course was very interesting; he comes across as a very sincere, genuine chap. The course was an excellent insight into buying props BMV and it would be possible to start just using the information gained during the day, however if I was doing this I would take Glenn up on his mentoring to help close the first couple of deals, he has a wealth of knowledge that can help people keep their homes and other times help him secure a deal with them to buy BMV. I got the impression it would be better to do it full time as it can involve going to court but like all things it can be done while holding down a ft job if you are committed to making a success of it.

What am I doing?, well I intend to build a multi let portfolio based on renting to professionals, for the extra work involved the positive cash flow from each prop should be a lot better than a single let strategy therefore allowing each prop to build a “nest egg” for any future interest rate rises/voids/repairs and maybe cash flow the probable negative cash flow on my CEE portfolio. Even buying BMV the cash flow seems limited (unless buying greater than 18% BMV where you start getting cash back on the deal) with single lets and a 1% increase in interest rates could really tip some of these portfolios over the edge especially in today climate with no capital growth for the foreseeable future.

In summary it would appear that BMV NMD deals are around and do work, its just that there is now lots of competition in certain parts of the country which I imagine would make it harder to get the juicy 25%+ BMV deals which would most likely give you cash back, if we where in a period of capital growth that would matter little as we could be drawing down extra equity a year down the line.

Please comment on the above thoughts, I would be interested to hear your views.

ATB


Jason