How You Can Sky-Rocket Your Profits with Bigger Deals
We were delighted to welcome Barry Davies as our headline speaker at May’s PIM.
Barry is a very successful professional property investor, coach and mentor and is based here in Bristol.
He has been in property full time for 7 years and has achieved financial freedom through the multi-million pound property portfolio that he has built.
He is also a 2 times Amazon best selling author.
He has 27 properties in Bristol, worth over £9m and focuses on high end, high profit rooms, which generate £380k pa gross profit.
Barry is passionate about property investing and loves doing property deals. Whilst most investors are content doing deals on properties worth less than £100,000, Barry prefers the bigger deals with bigger returns – and he continuously looks for bigger and better deals each time to inspire himself and those around him – the Power of Thinking Big.
Barry’s presentation had everyone spellbound, as he explained exactly how he has built his property business, from scratch, over a short space of time – and as ever, it hasn’t all been plain sailing – he’s had some challenges along the way.
He started out in 2007, when he was still working, as most people do. His first property he bought jointly with a partner for £100k, below market value and sold on for £135k. This gave him a £17k profit, but this wasn’t that much for buying property in Bristol – and there were few BMV properties available in the city, so it wasn’t that easy a strategy to follow.
Then in 2009 he lost his job – and at the time was actually losing money on his rental property as the mortgage rate he had was so high – almost 7%. So he started building his property business full time, with a friend – beginning with Rent to Rent. The business grew fast and when he reached 12 properties he had replaced his income. However they also had 70 tenants and managing property wasn’t their real strength.
So next Barry started doing Lease Options on expensive property in the centre of the city – and later moved on to joint investments, developing large HMOs and converting commercial property to residential HMOs.
in his talk, Barry then went through 5 case studies in some detail, showing just how profitable larger deals can be. The biggest and best of these now generates £91k net profit pa. This was originally a commercial property in Old Market which he refurbished and converted into 19 bedrooms and 4 flats, at a cost of £400k – the property is now worth over £1.3m.
Barry went on to reveal how he makes almost £200k pa from just 5 large properties, including a Lease option – to make this money from more typical 2 up 2 down properties, generating returns of just £200 pm, would need a portfolio of about 40 properties.
Barry highlighted a number of key tips, including effective Risk Management
- Identify Risks
- Analyse both severity and likelihood
- Mitigate risks wherever possible (eg insurance)
- Have several options, especially where planning permission is needed
- Don’t risk everything on 1 deal – keep a buffer
- Walk away if the ROI isn’t good enough
- Remember that you won’t get anywhere if you don’t take any risks
- Build your property business step by step
- Start smaller and get bigger on each deal
- Get a mentor and create a great peer group
Barry also revealed his top tips for finding bigger deals
- Don’t limit your search criteria unnecessarily
- Look at converting commercial property – it’s much cheaper
- Estate & Gazette
- Google eg Guest Houses
Barry also had some excellent advice for finding a mentor – choose someone who
- Inspires you
- You resonate with
- Is good at teaching
- Has done it themselves
- Will stretch your thinking
Barry’s talk was detailed and informative, as well inspiring. He gave everyone who attended the opportunity to download a digital copy of his new book – and he also gave away a paper back copy in a raffle – Sophia James was the lucky winner.
This was a great evening, packed full of excellent advice and if you couldn’t make it, you missed out.
So do make sure you join us on 30 June 2016 at Holiday Inn, Bristol City Centre, 6-9 pm
For more info and to reserve your place CLICK BELOW!
We look forward to seeing you there.
The team at Property Options