‘Are You Looking to make Easy Money From Property Without Having to do Any Work Yourself’
Hi, my name is Richard Matthews and I own the property company RJM Properties. I’m a successful buy-to-let landlord, property sourcer and property dealer. At the time of writing this (June 2007) I currently own a portfolio of 65 properties, I have built my portfolio from scratch, starting in September 2003 with NO MONEY of my own.
So how have I managed to do this, and create my wealth so quickly?
Well if you’ve got time, I’ll show you. You see everyone knows property is a great investment. How many times have you heard that! Everyone talks about how property prices keep going up and first time buyers can’t get on the property ladder. Well there is a reason for this, there is a massive shortage of property in the UK and although the government has plans to build more, they can’t keep up with demand.
So I bet you’ve heard your friends talking about buying an investment property, what a great idea! Or is it? You see for the thousands of people that buy an investment property every year over 95% do it wrong.
How’s that you're thinking?!
Well the problem with buying an investment property is firstly you’ve got to find a huge deposit, usually 15% - 20% of the purchase price because you’ve told the bank you don’t intend to live in it, and the second problem is once you’ve bought it you can’t afford to buy another one because you can’t get the rent on the first property to cover the mortgage!
So Why Invest in property?
For over 50 years property has proved to be the most consistent vehicle for investment, with property prices doubling every 8 years.
The UK market has enjoyed ongoing capital growth in the medium to long term. Since the inception of statistical surveys property has proven to be a great medium to long-term investment, regardless of short-term market fluctuations.
Unlike almost any other asset, you have a wide range of long-term, low-interest finance available to help purchase your property.
You also have the added benefit of being able to obtain income throughout your ownership of the property.
The Facts
The compounded average annual increase in house prices has been 11% since 1948.
According to the Office of National Statistics, rents have risen on average by 13% per annum since 1962.
The government predict there will be a shortage of 3.8 million properties by 2021.
Rental demand has increased by 50% since 1988 and the Centre for Economic Research predicts the demand will double in the next 10 years.
Why Invest Now?
Rental demand will continue to grow at an exponential rate over the next 10 years due to the increasing number of:
First time buyers being pushed out of the market due to escalating house prices.
Single parent families and divorcees looking to rent.
Students and single people looking to rent.
Individuals spending disposable income as opposed to investing in a home.
Families relocating due to more flexible employment
So I bet you’re wondering how I, Richard Matthews managed to build up a portfolio of 65 properties at the humble age of 27 and give up work. Its simple, I only buy income producing assets, that means after all costs, interest, letting agent fees, insurance etc - every one of my properties produces a positive cash flow every month. That means once I’ve bought it and rented it out I don’t worry about it again, I just go off and buy another one, like you go out and do the weekly shop.
So why am I writing this?
Well, you see when I got into property I couldn’t find the right properties, and I couldn’t get the sums to stack up. Rather than giving up there, I tried harder, looked harder and ended up scouring the country for suitable properties. Now when I found them everyone wanted me to start finding properties for them. In January 2004 I established RJM Properties and by that April we were professionally sourcing high yielding investment properties for the trade and private individuals.
Four years on and we’re doing more business than ever, finding more suitable properties for more satisfied customers.
Now I said earlier that I started with nothing, well I bet you are wondering how you buy a property with no money in the bank. Its simple - you borrow it. Every Bank, financial institution and loan company is falling over themselves to lend you money - so let them.
So I bet you’re wondering isn’t this a bit risky, well you never get anywhere without taking a risk and as long as you’re only using the money to buy income producing assets then they will cover the payments for you.
Investment Example
Invest £60,000 - buy 5 properties (mortgaged)
Portfolio value - Yr 1 = £300,000
+ Growth @ 11% = £205,517.5 (over 5yrs)
+ Rental income = £51,915 (over 5yrs)
= Gross profit of £257,432 or £51,486 per annum
= An 86% per annum return on your initial investment
Property purchase price £60000
Mortgage lending 85% £51000
Discounted initial rate 5.34%
Monthly mortgage payment £226.95
Rent £350PCM - £450PCM
At the mid figure a £173.05 Profit/month is shown
Rent required £283.69
Now why should YOU invest in property?
Well for most people it’s a lifestyle choice, they want to create extra income to buy that new car, afford home improvements, that holiday, cruise, or even give up work. They can do that from the passive income produced monthly from renting their portfolio out.
Then of course there is the capital growth, if you just left your portfolio alone to gain equity, you would have an excellent pension product, but you can also re-finance your portfolio along the way and use the money for whatever you like.
Property is unlike any get rich quick scheme you will see advertised, very low risk, very low start up capital required, you own all the assets and take all the profit.
So how can RJM Properties help you?
Well, as I said at the start, I’m Richard Matthews, and I run RJM Properties, I believe the property sourcing and portfolio building service we offer is unique, and of course when you come to RJM Properties you have the advantage of using all of my personal contacts that I have used to build my portfolio and give up work.
So if you’re interested, call my office on 01776 810 515 and we will send out our confidential 14 page buy-to-let handbook.
Best Regards,
Richard j Matthews