What Rich is doing Now.
Things have moved on since I began blogging on this site over a year ago. I’m still a landlord, I have thirty years experience as a builder and am still happy to advise and help landlords with building-in low-maintenance to their properties. But my goals have moved on and been crystallised with the help of Nick Parkin and others. Having initially become a reluctant landlord I’ve found I like the semi-passive income, so I’m working towards the point where I don’t have to work in building or developing unless I want to. (I probably will as I don’t enjoy idleness for long, and to supplement income). I appreciate it’s going to be a lot harder to achieve this now without a rising market to sweep me forward, or No Money Down mortgages. This imposes a strict discipline of only buying the very best deals and being very patient. To keep life simple, and minimise investment, I want the minimum possible number of very high yielding properties, and the nicest possible tenants. I’ve found a few areas where it’s possible to get this combination. It may even be achievable with single-let properties numbered in single figures. I’m unimpressed by large inefficient portfolios that barely break even month-on-month. ‘Lean and Mean’ is better. I’m targeting small properties with problems which make most investors run for the hills, but which, with a bit of creativity, flair and lateral-thinking, can be resolved prior to purchase. I won’t pay more then 70% of open market value and I’m looking for yields over 12%. My latest purchase easily exceeds 20% yield with a C50% discount. These properties are hard to find and unravelling the problems is beyond most amateur investors, but with a meticulous though creative approach they present opportunities to make big rewards with surprisingly low risk. Cheers, Rich