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!

▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️▪️

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

But What About The Refurbishment Project During This Covid Chaos?

But What About The Refurbishment Project During This Covid Chaos? My last update mentioned the good progress we were making on the project at Throstle Lane in Leeds. If you’ve not yet seen the pictures, it’s a dated ex-council house, where I was undertaking the buy – refurbish – rent out – refurbish model. The intention is to keep the property long term, and it has been bought with private investment funds, to give the investors a fixed return on their capital. It was going all well… I had a Selco delivery booked for a large amount of large and heavy materials – and then BOOM, Coronavirus hit. I’m not sure if you’ve heard of this Covid-19 virus that’s sweeping the globe? It’s only been mentioned in the media once or twice…?!! Effectively, the country has ground to a halt, whilst we all combat this terrible and dangerous disease. Life as we know it is on hold… But what does this mean for the project? Well, having studied carefully the Government guidelines and advice, and thought about the pros and cons of pausing the project, I decided to continue with the refurbishment as best and as safely as I can. Refurbishing a house is obviously not the sort of work that one can do from a desk at home. Gladly, I am not an imbecile, so I have found it reasonably simple to assess the risks, put into place a safe risk assessment plan to manage them, and have cracked on. After all, there’s a family waiting for this house. And also, time is money, and when it’s somebody else’s money at risk, I’m not prepared to let them down either. And plus, I’m an eternal optimist; I know this dreadful pandemic will be beaten soon, and then we can all get on with our lives and resume some sort of normality. Some of my planned contractors, labourers and painters have had to be cancelled, due to keeping the guidance of us all keeping socially distant. So that just left on the project the handyman, and er, me. Luckily my handyman is a recluse anyway, so he poses no risk of interacting with others outside of work hours. The other bonus is that he is superbly multi-skilled, and has already done a vast amount of work himself within the house. Now the bad news: me… I’ll be honest, I’m generally just a supervisor on my refurb projects. I have no manual skills, I am appalling at DIY, and I am physically as gormless and clumsy as they come. Generally with DIY or garden work in my own house, I start a task, get bored within minutes, regret starting it and not just outsourcing it, and then get stroppy and frustrated and then do a half-arsed slapdash rush job. It’s no coincidence that all my rental properties are in a far better condition than my own house! But, needs must in this time of shortage, so I have had to dry my eyes, get my hands dirty, and gerronwi’it. I’ve got to keep the end in mind: ie this project is going to be a home for a family, so I can’t let that future family down. Thus, I have been assisting with the following:  – sweeping and removing rubbish (hey, start slow, earn those labouring stripes!)  – scrabbling about for materials, because my Selco delivery got cancelled. I’ve been desperate for plaster for two weeks now, as all the major suppliers are either closed or out of stock! My own shed has been heavily raided for resources; a supreme bit of luck that I had some kitchen worktops that fitted perfectly!  – mixed some mortar for the roof patching work! Hoiking heavy bags of sand and cement about for it: not so much fun for a weak pathetic Leeds lass with no muscles.  – painting: walls I’m ok with a paint pad, but ceilings are the work of the devil, I can’t see where I’ve already painted!  – helping with dot and dab plasterboarding! Until the handyman realised within seconds I was crap at it and took the trowel off me!  – and the bit I’m most impressed with myself with: apprentice glazier! After the new supporting brickwork lintel had been fitted above the living room window, we took out the window to fill in a large gap above the frame, and I’ll be honest, I was terrified about doing this, knowing how gormless I am. But although the thought of potentially dropping the very large glass window pane unit terrified me, what scared me more was knowing if I did drop and break it, it would cost me more money to have to buy a new one! So I calmed my panic, composed myself and helped remove and replace that glass with the smoothness and sleekness of a, erm, newborn baby giraffe… But no glass was smashed, woohoo!   So yes, I have done far more manual work on this project than any of the others. My hands are red raw, and every single day last week I gained a new cut or injury on them, the most unpleasant one being when the naughty saw bit me…   But on the plus side:  – I’m doing lots of daily Fitbit steps!  – Thus I’m not putting on additional weight during this quarantine!  – I’m keeping my labour costs down.  – And best of all, the house is getting completed, albeit bit by bit, and slower than expected. But better to go slow, than have to stop. Remember that the tortoise still won that race! Upstairs is pretty much finished, all the living room artex has now been plasterboarded over, awaiting some elusive bags of plaster, and we’ve just made a start on the kitchen units, which is always an exciting bit to do. Don’t forget, if you’d like to see the progress of the refurbishment, then the album for it is on my Facebook page here: https://m.facebook.com/kellyann.martin.10/albums/947238585671044/?ref=content_filter   And although I’m not currently viewing any properties for future projects because of the social distancing rules, as soon as they are lifted, I’ll be back on it. So if you’d like to consider being a potential investor for the future, do get in touch for a discussion on what I can offer you return-wise on your capital – which I guarantee is better than the banks’ abysmal interest rates! All my contact details can be found on my website www.kellyannmartin.co.uk Thanks for reading the update, and I hope that you and your family, are all safe and well, and have an absolutely lovely isolated Easter! Hey, even Jesus had to spend it alone in his cave… My very best wishes,                           Kellyann Martin

PROJECT UPDATE: Throstle Lane

PROJECT UPDATE: Throstle Lane.

It’s been a few weeks since I posted, because I’ve been busy entertaining myself with the latest refurbishment project in Leeds.

This is a residential house in my area, an 8 minute drive from my front door, and a prime property for a family, a large, roomy ex-council end terrace with front and rear gardens.

The house was very dated, seemingly not having been touched for at least thirty years, due to the deterioration of inside and the décor – which included an old 70s/80s style stone feature fireplace and a 60s style kitchen cabinet!

There were two bedrooms initially, but with clever use of an insulated stud wall, and making good use of the large bedroom with two windows facing each other, this house now has three bedrooms. The new rooms are still decent sizes; and the interior structure of the floor plan has worked out way better in real life than I visualised it in my head, so I am very pleased with the way it has turned out.

As we’re patching the house back up, we’re finding that due to the age of it, more ‘contingency’ work is cropping up – but this is usual in such a dated property, and nothing to panic about.

These unexpected items include a lot of rebuilding of interior walls, as much of the old blown plaster was just coming off in chunks, so we’ve had to go back to brick in lots of areas. The roof also took an unexpected bashing in the recent storms, and many slates have had to be replaced, but that is patching up nicely to become watertight again.

My biggest concern though is the living room window. On looking at every other house surrounding my property, it is clear that when the council replaced everybody’s old wooden windows with new PVC ones, none of the houses had a supportive lintel put in. So my property, along with everybody else’s external brickwork above the window, has dropped, and that is what needs fixing.

The structural engineer has been out to survey what needs doing, the builder has been informed and booked in, so that’s the only major job I’m concerned about – fingers crossed!

On the whole though, the project is going well. First fix electrics have been done, and the rooms are starting to come together and emerge as liveable spaces!

As for the figures for this project, here’s they are:

Asking price on open market: £77,000

Purchase Price: £60,000.

Refurbishment budget: contingency having to be kicked in, so I’ll let you know in due course! But hopefully no more than £12,000, which includes the structural work, roof repairs, full rewire, complete new central heating system and boiler, loads of bonding and replastering, new kitchen, new bathroom, décor and flooring throughout, waste management (including some fly tipped rubbish and cannabis farm which somebody else kindly donated to my drive!) and then finally sort out that jungle of a garden!

Estimation revaluation: £105,000.

I own a near-identical property same street around the corner, 22 doors down, which revalued up at this figure – plus another round the corner sold recently for the same price, so I am confident it will achieve the new value after refurbishment.

This project has been purchased with the assistance of private investor funding.

They are helping me bring the property back into use for a local tenant family to rent out as their long-term home.

In return, the investor is getting a great fixed return on their investment, returned within twelve months – as soon as the property has been refinanced for the uplifted equity value.

If you would also like to invest in a property project for a hands-free passive income – and you love the idea of socially responsible investment in developing homes to enhance the socio-economic welfare of low income families – then do get in contact with me to discuss future projects which need investment.

All my contact details can be found on my website www.kellyannmartin.co.uk

Meanwhile, if you want to have a look at the progress of this latest refurbishment, then the album for it is on my Facebook page here:

https://m.facebook.com/kellyann.martin.10/albums/947238585671044/?ref=content_filter

Thanks for reading, and do make sure you have a great day!

PS – want a VIP tour of this project to see a real life ‘Homes Under the Hammer’ refurb, and to meet me in person?!
Just give me a shout!