‘Property’s great because you can leverage it, borrow it, create income streams

 and it’s solid’

In this intimate open question and answer session, Mark shares his expertise and experience with a small group of property entrepreneurs. The questions are wide-ranging and the answers detailed and comprehensive. This podcast provides invaluable information and advice for anyone who is a property entrepreneur wherever they are on their journey.

 

KEY TAKEAWAYS

• What is your vision for property moving forward?

We are going into other countries and now looking to grow in Ireland.

If we can take what we have here and move it into other countries we will be using a tried and tested business model.

• How do you see interest rates panning out in the future economy?

The US is ahead of us in this raising cycle and Brexit is almost entirely responsible for the faster growth rate in the US. Brexit is a domestic issue, as part of the global community countries now go into recession at the same time. If we were not involved with Brexit we would be growing at the same rate as other countries.

• How should I future proof my portfolio?

The best defence against higher interest rates is to have a really good cash flowing portfolio, you can get fixed rates over a number of years, balancing the times when rates are higher.

If interest rates are higher, the outlook for inflation is higher and the economy is probably moving forward strongly this, in turn, means the capital value of your properties is likely to be rising. The best way to deal with all things is to have plenty of cash around you.

• How leveraged is your portfolio?

Currently its around 6 out of 10. My attitude is to buy it convert it develop it, refurb it and try and get back as much money as I can. I don’t go beyond my purchase and refurbishment or development costs, I aim to get my money back and then hold the investment and let the loan to value drift down over time.

• Do you have money in banks that are unrelated?

I think that’s a good idea, Keep your savings account away from the where you hold your current account and any bank you have a mortgage with. Fraud is now the biggest concern the banks are under siege and its vital to always have it at the forefront of your mind when you are contacted, who-ever you think it may be as the scams are very sophisticated.

• What are your views on modular housing?

The fact that you can control all elements, as happens in the manufacture of cars means the outcome is predictable and running a building site can be very challenging. The time on site is less and you get a much more precise predictable product so I think it will become big in the next few years.

• What is the process when you see an abandoned property that you are interested in purchasing?

You can purchase and download the title deed from the land registry this will provide the name and address for the owner or you can knock on the neighbour's door as they may know.

Every council has an ‘empty homes officer’ who has a list of all empty houses and the owners. If owners do nothing and the property falls into disrepair the council will carry out repairs and make charges to the owner. After a period of time, the council is able to put the property to auction.

 

• BEST MOMENTS
• ‘You are better dealing with people who live in this country, they are not going anywhere they have to live in these houses so the market is there’
• ‘As commercial is converted to residential the supply is less and therefore demand is increased’
• ‘When you’ve built them and are letting them out you have to set the rent high just to pay for everything and it doesn’t really work’

 

VALUABLE RESOURCES

Intelligent Investor book by Benjamin Graham

Progressive Property

 

ABOUT THE HOST

Mark Homer is an entrepreneur investor.  He has worked with investment since he was 15 years old using the laws of wealth! He is a spreadsheet analyst with an impressive following from major publications including BBC Radio, The Wall Street Journal, The Independent, as well as co-authoring the UK’s best-selling property books.  Mark has always looked for the best investment vehicle, and at the end of 2007 with Rob Moore the co-founder of Progressive Property his joint portfolio produced more profit than any of the other investments he’d tried in the last ten years, combined.

 

CONTACT METHOD

[email protected]

 https://www.linkedin.com/in/markhomer1

https://www.facebook.com/markprogressive

https://twitter.com/markprogressive

‘Brought to you by Progressive Media’: https://progressivemedia.uk/