January’s PIM saw an excellent presentation by property investor Ian Day.
Ian had a highly successful career in academic medicine and was a Professor at Bristol University – but with 2 small children, he found himself with family commitments incompatible with the typical 60-80 hour weeks of his demanding profession.
In just a couple of years, he built a portfolio of multilets (HMOs) which comfortably surpass his income from employment, but only take 2 hours per week to run – so he is now full time in property – although he’s still involved in the research he loves too.
A packed house followed Ian’s story – as he highlighted the different motivations people have for starting out in property. For Ian of course Recovering Time was top of the list. For others in the audience it was also about Freedom, Flexibility, More Income, Education, Building an Alternative Pension, and Maximising Potential, among other desires.
Ian explained exactly how he started out and then gradually built his portfolio – starting in 2011 with an investment flat; he released equity from his home to fund the deposit. This had potential for capital growth, but didn’t produce a particularly good yield – so next he invested in a 4 bedroom HMO, which needed minimal refurbishment work and generated a better yield.
So Ian repeated the system, adding a 6 bedrooom HMO, with a yet bigger yield. As time went on, he sold the first flat to release equity for deposits and got good price deals on new properties through dealing direct with local vendors. He’s also added value – by knocking through a garage to create parking in the garden of one property, which has helped tenants – leading to better quality tenants – and also kept the neighbours happy – a win-win. At another property, Ian has redeveloped the separate garage into a small studio, with great views – this is let out short term, via AirBnB.
Ian doesn’t have a huge portfolio, he has just half a dozen properties and all this was developed while managing his demanding job, until last summer when he was able to leave, with an increased income. He now spends between 2-4 hours per week managing his properties – although he did very much highlight the importance of good systems for managing his properties and his tenants. He’s also invested in quality tax advice to structure his businesses efficiently.
Ian’s latest project is a larger property, involving a title split, which he will be refurbishing to allow 11, instead of 8, tenants. We’re sure Ian will be back again before too long to update us on his business – so watch this space! Meanwhile if you would like support to get started yourself, you might like to know that Ian is part of the Property Options mentoring scheme.
This was an excellent and revealing presentation, showing exactly how someone with an entirely different – and very busy – career can build a property portfolio from scratch, in quite a short space of time. If you couldn’t make it, then do make sure you join us next month:
Join us on 25 February 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