Our November PIM was another great evening – with 2 excellent speakers.
Headline Speaker Dick Dabner had an exciting time just getting to Bristol. After all the floods, a landslide delayed his train – but with a quick bit of rearranging the schedule, Dick was able to catch his breath and give us some reallly useful insights into successful JVs.
Dick specialises in adding value to property, using all sorts of different JV models.
He stressed that despite the current problems with bank lending, there’s no shortage of money around, unless you think there is!
Many people are getting such poor returns from mainstream financial investments, and especially their pension funds, they are only too keen to take advantage of the much better returns from property.
Adding value can be done in so many ways, Dick shared a number of case studies from his own portfolio, including:
- Converting commercial property to residential
- Adding additional stories to buildings
- Converting a large flat into 2 smaller ones
- Converting into HMO
- Using permitted development to extend a house – then converting into flats
- Adding value by attracting a good quality commercial tenant, even at a slightly reduced rent
Dick emphasised the need to be flexible and inventive. Many of his properties have been extended and added to in several stages – often it is easier to get planning permission that way.
He also isn’t afraid of paying over the current market value, provided he can see a good profit from adding value. This is a great example of an open mind!
Here are some more of Dick’s top tips:
- Always JV with someone you trust – remember their credit rating will affect yours when you JV
- Start with friends and family
- PIMs are a great place to meet JV partners – get networking!
- Prepare a businesss plan and know what returns you are offering an investor
- Ask for references once you have done some JVs
- Estate agents are a great source of deals – but it’s essential to deliver to maintain your credibility or the next great deals will go to someone else
- Have a Plan A and a Plan B for all properties – and an agreed exit plan
- Get RICS valuations – and present the property professionally for the valuation
- Use lock-out options to buy yourself more time
- Always make sure your intentions are very clear and agreed with your JV partner ie are you flipping or keeping the property
- The right legal agreements are very important
- Don’t try to borrow the deposit directly – release equity from another property instead
Everyone who was there learned a huge amount from Dick’s presentation – and went away inspired, after plenty of networking!
I’ll be giving you an update on our second speaker Taiwo Orishayomi in my next blog.
We’re looking forward to seeing everyone at the next PIM on 24 January in Bristol, we’ll be announcing the speakers very soon.
To your Property Success
Del Brown, Property Options