I recently toured one of my student’s HMO property investment, a 26 bedroom house in Wolverhampton. In the video on my YouTube channel, you can see exactly how they bought this property and how they plan to transform it. This is a huge project and the buyers didn’t even have the funds when they put their bid in at auction! I highly recommend watching their story, in the video above, until the end if you want to make money through HMO property investment.
In this article, I will give you three lessons from their property investment journey. Firstly, I will highlight the importance of self-belief when starting in property. Secondly, I will talk about using commercial valuations in HMO property investment. Lastly, I will talk about how having a network can save you when problems arise while purchasing real estate. If you find this article helpful, please consider sharing it on social media. Together, we can make property education accessible to everyone!
1. Self-belief in HMO property investment
For a lot of people, a lack of self-belief is a big problem when getting started in property investment, or when levelling up to larger projects. Many people want to research and overthink everything, rather than taking action. In reality, you just need to learn the first steps, take action on them, and then learn the rest as you go. In other words, you need to do the ABC before worrying about the XYZ.
In this case, my students took action taking to another level. They bid on the property without securing funds to buy it! While I wouldn’t recommend doing this, it demonstrates the type of self-belief that a lot of people lack.
2. How to use commercial valuations in HMO property investment
Under certain circumstances, it is possible to have larger HMOs valued on a commercial basis. This means that instead of the property being valued as any other residential home, it is valued on a multiple of the rental income. This often means that the property is valued much higher, instantly adding equity to the property! This is exactly what my students did, leading to an end value of £1.4 million!
This only applies to certain larger HMOs and has some downsides, such as a limited number of mortgage products and higher rates. Whether this is an option worth considering will depend on your individual situation. Speak to an independent whole of market mortgage broker to see if this is something that would work for your project.
3. How having a network can save you as a property investor
If you are a property investor, or plan on becoming one, having a support network is essential. You need people around you that will give you advice and support when you need it. You need people that are far ahead of you and people that are at the same level as you to get advice from. If you don’t have this type of network, you may find there is no one to help you, if and when you get into difficulties.
Luckily for my students, they have all that built into their training with me. In this case, the buyers of this HMO property investment bid for it at auction without having the funds to buy it. Because they are my students and have received excellent training, they knew how to assess the deal and the numbers stacked. Therefore, when they reached out to me for help, my team and I were able to secure funding for them. If you are investing in property, you need to find a network like this, whether it is with my company or elsewhere!
Learn HMO Property Investment And Other Strategies
If you want to learn HMO property investment and other property strategies, why not learn from a property expert? Join me at my next training event!
On the course, you will learn how to:
-
Become a property investor using other people’s money so that you can get started straight away
-
Utilise the 5 different types of raised finance so that you know exactly what to offer and when
-
Find the perfect properties for the BRR strategy
-
Recycle your money so that you can ‘rinse and repeat’
-
Build a power team you can trust, so that you can save time and money
-
And much more!
Tickets are only £1, and you can get yours here. If you are ready to take action, I hope to see you very soon!
