Worries and Concerns of Private Investors

In this article I will be addressing common worries of investors: people who agree to invest in opportunities for a greater return on their capital, such as a property deal.

If you were an angel investor, what sorts of things would you be worried or concerned about when looking to invest in a deal?

Here are a couple of common worries and concerns:

Investor Concern: Money sat in the bank earning very little!

Today’s research shows the best interest rates right now... with the top earner being just 1.11% APR - ANNUAL PERCENTAGE YIELD!!!

That means if you have £20,000, your interest PER YEAR is only like to be around £222... yes it’s alright, but it’s nothing to get that excited about.

Especially when you take into account the current UK inflation rate... 😱

A better way to grow your wealth is to invest it.

Say for example, into a hands-free passive property deal, where your return on investment will be much higher than any current UK bank interest rates.

Property really does enable us to beat the banks! 💷 💷 💷

Investor Concern: No time or knowledge to invest funds

Whilst it’s important that you have an overview of how the investment process works, it’s not always necessary that you know everything about property: the area, the strategy, the tenant type, the project type, the refurbishment works, and the refinance process.

Add to that that you may not physically have time to research all the above - nor the inclination!

It is quite acceptable, and actually very common to be an armchair investor.

That means you are someone who invests passively, with as a hands-free option i.e. you don’t get directly involved in the project’s happenings day-to-day.

You just invest, then sit back and watch the big picture unfold, knowing the project is working to build your wealth.

So no, you don’t have to be a property expert in order to invest in property.

You just have to find someone who is!!

Investor Concern: How secure and safe is their money?

This is a common concern for people, because with the volatility of other investment methods, you want to be sure that you will get your money back.

Stocks and shares go up and down in value, and you may end up losing money.

Ditto with cryptocurrency and trading.

Banks are relatively safe with your funds (assuming they don’t go bust!), but your interest rate is poor.

Property is safe because it is a tangible asset, built of bricks and mortar. It really exists - so should the worst happen, such as the developer unexpectedly dying during the project (cheery!), at least the investor will still be able to sell off the property to recoup their funds.

Not only that, property consistently increases in value over time, meaning your money really is secure within a property deal.

Ever heard the term “safe as houses”?!

That applies to your property investment too!

Investor Concern: Not knowing who to trust with their money.

This is without a doubt the most important part of any investment.

Anyone can say anything to anybody in order to extort money from them - don’t let yourself be fooled and taken for granted by people who do not have the best of intentions for you.

If you are investing finance with someone for a property project, please ensure they are confident and competent at bringing to the project:

- knowledge
- skills
- education
- experience
- network
- power team
- problem solving
- focus
- time
- energy
- honesty
- integrity

If you’re not sure that they can provide all this, then walk away from the deal!

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𝗧𝗼 𝗶𝗻𝘃𝗲𝘀𝘁 𝘄𝗶𝘁𝗵 𝘀𝗼𝗺𝗲𝗼𝗻𝗲 𝘆𝗼𝘂 𝗰𝗮𝗻 𝘁𝗿𝘂𝘀𝘁 𝘄𝗶𝘁𝗵 𝘆𝗼𝘂𝗿 𝗺𝗼𝗻𝗲𝘆, 𝗴𝗲𝘁 𝗶𝗻 𝘁𝗼𝘂𝗰𝗵 𝘁𝗼 𝗳𝗶𝗻𝗱 𝗼𝘂𝘁 𝗵𝗼𝘄 𝗜 𝗰𝗮𝗻 𝗵𝗲𝗹𝗽 𝘆𝗼𝘂.

Kellyann Martin is a Property Investment Strategist based in Leeds.

For more details on working with Kellyann, visit the website

www.kellyannmartin.co.uk

The Credibility of People You’re Investing With.

I love property, but sadly the property investment industry is rife with sharks and peddlers, out to separate you from your hard-earned funds.

Most people active in property know of many other property people across the country – and now that social media is a key part of business, it’s very easy to see what other people in the industry are doing – and how they are behaving…

Here are a couple of examples of investment horror stories. Obviously it wouldn’t be fair to name them, but I suspect other property people will know of them.

# A development guru who promised big things with investors’ funds; took lots of finance from people for large projects, and then disappeared into oblivion – absconded from the UK, now suspected to be in south east Asia.

# A property training provider who delighted in showing off an expensive car, all the while having not paid back hundreds of thousands of pounds to investors they owed money to.

# A charismatic and seemingly successful developer – having made a series of choices and mistakes leading to debt and disaster and personal crises, which ultimately led to their downfall and incarceration. (Although I will add that it is good to see them claim they do intend to repay all debts as a moral obligation to their conscience)

So with all these sharks infesting the waters with their seeming greed and lack of morals and ethics, the key question here is, before you invest your money with them: what do you really know about them, and their knowledge, experience and credibility?

And most importantly: their integrity as a person?

Thank God evil, devious, and greedy Mr Burns is just a cartoon character!

Here’s a couple of ways in which you can check out the credibility of someone you’re considering investing with:

• Watch them. And not just for a short while; for months and months, or longer if necessary. As long as it takes for you to feel comfortable that they are who they say they are. Meet them in person if possible, several times.

• Stalk them from afar. I fully expect that anyone considering me will have checked me out in the ways I’m about to suggest. I encourage it. And that’s absolutely fine, because if you’ve nothing to hide, you’ve nothing to worry about.

• Does what they say and do seem real? Can they prove it? It’s all very well them saying they’ve done this, that and the other, but where’s their evidence? They should be able to show you case studies, legal documents, Land Registry certificates and so on. I am happy to showcase any of my projects, and always ask if anyone wants to visit – obviously that’s easier to do during the refurbishment stage when there’s no tenants living there to pester!

• Companies House should show you a few things about them – but remember it doesn’t show you everything, and it’s not always fully up to date. For instance, it shows you the properties I have within my limited company, but it doesn’t show the ones in my personal name. If in doubt, or if something doesn’t tally up with what they’re saying – just ask them!

• Their credit file score and credit report – are they willing to show you it? Be aware of missed payments, unserviced debts built up, county court judgments and so on. It is best when they have lots of ticks every single month, and a nice high score. And if there is some minor blip, can they explain it? For instance, credit card balances might be down to buying a new boiler, not just simply a bad spending habit on shoes and handbags!

• The deal they are offering: does it actually stack up? Can you see exactly how and when your money will be returned? Is it realistic? Openness and honesty is key here. Last year I had to tell an investor that the deal simply couldn’t afford to give them the interest rate that they were looking for – there wouldn’t be enough in it to make it viable. What’s the point in making fake promises you can’t deliver on? No point – so make sure you ask lots of questions, even the awkward ones.

• Recommendations, referrals and testimonials. Now in the work I do, it’s easy to get feedback about my property and tenancy work – but not so easy to get angel investor testimonials. Why? Well put quite simply, it’s not really fair to ask someone who has invested with you to publicly admit to the world that they’ve lent you money – even though you did a good job and returned it in full and on time with the agreed rate!
• We’re still a little shy in the UK about talking about our money, and I fully respect that my investors probably won’t want other people harassing them to lend them funds.
• However… do they have people willing to tell you about their personality and character? The length of time they’ve known that person, and in what capacity? The work they’ve seen from them? Dig dig dig for that information, especially if you’ve not known them very long!

I hope all this helps you, no matter who you choose to make an investment with.

If you don’t know, like and trust someone, you definitely shouldn’t be working with them.

It’s vitally important that you protect your assets at all costs, and you’ve every right to be suspicious and cautious – in fact I strongly encourage you to be!

Because it’s very likely that you’ve worked hard for your funds – so don’t let some wretch disappear with them.

Thanks for reading, hope you found these top tips helpful!

Kellyann Martin: just a very ordinary, normal girl from Leeds trying to make an honest living… sorry to disappoint!

Kellyann Martin is a Property Investment Strategist based in Leeds.

For more details on working with Kellyann, visit the website

www.kellyannmartin.co.uk

MISSION ACCOMPLISHED: Project Complete!

The Throstle Lane project is now fully complete, tenanted and making rental income.

There’s some transformation shots of the works included in this post, because everyone loves seeing the before and after differences!

The final tally of the refurbishment cost for this house has been my most expensive project refurbishment yet… but there was a vast amount of things to put right in order to make the property safe and lettable.

The missing lintel structural wall defect fix and gaping hole in the roof definitely played their part in stretching the budget! 

However, there are always unknowns and unforeseen extra works which pop up in any property project – the only thing you can be guaranteed of is to expect the unexpected!

So it is always better to pay the cost of getting things fixed right at the start to ensure a safe, watertight home for the tenant, and thus lessen the likelihood of problems arising once the property is occupied.

The tenant family are settling in nicely and really enjoying their new home – which has been a fabulous fresh start in a new area of Leeds for them.

Leeds City Council are paying the tenant’s rent as she is a single mother claiming benefits – and to lessen the risk for me, they are paying the rent direct to myself every four weeks. A win-win for all!

This superb story has been made possible by the kindness of the private investors for trusting me with their funds:

# A dilapidated property brought back into use

# A tenant family housed

# A great return to be generated on the private investment funding

# …and a superb example of social responsibility beneficial impact in the local area.

What’s not to love?!?

Thanks for reading!

If you’d also like to be involved in a future project where your funds can be deployed in a socially responsible investment creating great homes for local families, get in touch for a discussion.

Kellyann Martin is a Property Investment Strategist based in Leeds.

For more details on working with Kellyann, visit the website

www.kellyannmartin.co.uk