Efficiency & Property Investing

• The Importance of Personal Guarantees in Property Financing

  In this episode, Nick unpacks the concept of personal guarantees in the context of property investment mortgages in the UK. Aimed at newcomers to the property market, Nick explains what a personal guarantee is, how it works, and why lenders often require it from company directors or shareholders. He discusses the implications of signing a personal guarantee, including the potential risks to personal assets and credit scores, as well as strategies to mitigate these risks, such as negotiating terms and seeking independent legal advice. KEY TAKEAWAYS A personal guarantee is a legally binding promise made by an individual, typically a company director or shareholder, to be personally liable for the debts of a limited company if it defaults on its mortgage repayments. Lenders often require personal guarantees from directors or shareholders of limited companies as additional security, especially in property investment where loan amounts can be substantial. Signing a personal guarantee poses significant risks, including the potential loss of personal assets (like your home) if the company defaults on the mortgage, and it may also impact future borrowing capabilities. To mitigate risks associated with personal guarantees, individuals can negotiate terms with lenders, consider personal guarantee insurance, and seek independent legal advice before signing. It is crucial to understand the implications of a personal guarantee and to seek professional legal advice, ideally from a solicitor specialising in independent legal advice, to ensure informed decision-making. BEST MOMENTS "A personal guarantee in the context of property investment mortgage in the UK is a legally binding promise made by an individual to be personally liable for the debts of a limited company." "By signing a personal guarantee, you are agreeing to be personally responsible for repaying the mortgage debt if the company is unable to do so." "Limited companies have separate legal personality from their owners, which means that if a company goes into liquidation, the owner's personal assets are generally protected." "Having a personal guarantee in place can affect your ability to obtain other loans or mortgages in the future." "It's crucial to understand the risks involved and seek professional advice before signing one." The UK’s #1 Property Investing Event – MSOPI Training https://bit.ly/3FqcL4l The UK’s #1 Property Investing Event – MSOPI Training London https://bit.ly/4isD2xs HOST BIO Nick is an award winning property investor, voted Fastest Newcomer 2022 by Premier Property, and is an accredited Retrofit EPC Assessor. He sources and renovates properties for himself as well as other investors. While doing this he has developed his own systems for efficient investment, such as developing his own methods to save time when viewing properties and estimating market values and potential returns, costing out renovations. He spends three months of the year abroad and while there continues his business with use of modern technology and his proven systems. Location freedom has always been his "Why" for being a Property Investment and has now reached his ideal of the colder months spent in Thailand and the rest of the time in the UK, all while continuing to run his business This Podcast has been brought to you by Disruptive Media. https://disruptivemedia.co.uk/

  --------  

  8:54

  --------

  8:54
• The Benefits of Accountability Groups in Real Estate

  Nick discusses how having an accountability buddy or group can significantly enhance commitment, motivation, and decision-making, ultimately leading to more consistent action in achieving property investment goals. He outlines the benefits of accountability, such as overcoming procrastination, improving decision-making, and providing emotional support during the ups and downs of the investment journey. KEY TAKEAWAYS Accountability is essential for property investors as it helps them stay focused on their goals, overcome procrastination, and make better decisions by being answerable to someone else. An accountability buddy can increase commitment and motivation, help overcome procrastination, improve decision-making, and provide emotional support throughout the property investment journey. Look for someone who is also a property investor, shares similar goals, is honest and trustworthy, and is willing to provide both encouragement and constructive feedback. An effective accountability system encourages setting specific, measurable, achievable, relevant, and time-bound (SMART) goals, rather than vague objectives, to ensure progress is trackable. For an accountability partnership to be effective, both parties must commit to regular check-ins, whether through phone calls, meetings, or messages, to maintain motivation and accountability. BEST MOMENTS "Accountability is crucial for property investors because it helps them stay on track with their goals." "Procrastination is you keep talking about doing something, but never actually doing it." "An accountability buddy can act as a sounding board to offer an objective perspective on potential deals." "You want someone that you can bounce things off and that will give you honest feedback." "Having those right people around you can supercharge your journey." The UK’s #1 Property Investing Event – MSOPI Training https://bit.ly/3FqcL4l The UK’s #1 Property Investing Event – MSOPI Training London https://bit.ly/4isD2xs HOST BIO Nick is an award winning property investor, voted Fastest Newcomer 2022 by Premier Property, and is an accredited Retrofit EPC Assessor. He sources and renovates properties for himself as well as other investors. While doing this he has developed his own systems for efficient investment, such as developing his own methods to save time when viewing properties and estimating market values and potential returns, costing out renovations. He spends three months of the year abroad and while there continues his business with use of modern technology and his proven systems. Location freedom has always been his "Why" for being a Property Investment and has now reached his ideal of the colder months spent in Thailand and the rest of the time in the UK, all while continuing to run his business This Podcast has been brought to you by Disruptive Media. https://disruptivemedia.co.uk/

  --------  

  11:46

  --------

  11:46
• Should You Choose New Builds or Fixer-Uppers? - A Comprehensive Guide of the Pros and Cons for Investors

  Today, Nick discusses the pros and cons of buying new build properties. He shares insights from a conversation with aspiring investors who believe that new builds are a no-brainer investment. Nick outlines the advantages, such as low maintenance costs, energy efficiency, and the appeal of modern designs, while also highlighting significant drawbacks, including higher purchase prices, limited potential for value addition, and common construction issues. KEY TAKEAWAYS While new build properties offer advantages such as low maintenance costs, energy efficiency, and warranties, they also come with drawbacks like higher purchase prices, limited potential for value addition, and potential construction issues. The decision to invest in new builds versus existing properties should align with one's investment strategy, particularly whether the investor prefers hands-off, low-maintenance assets or properties with potential for renovation and value addition. New builds often come at a premium price, which can lead to a decrease in value during the first few years of ownership. Investors should be aware of this potential depreciation when considering new builds. New builds may have minor defects that require resolution, which can be time-consuming and frustrating. It's important for investors to be prepared for these potential issues even with warranties in place. For those new to property investing, it is recommended to focus on properties that allow for value addition through renovations rather than new builds, as this can lead to better capital appreciation and rental yields. BEST MOMENTS "Buying a new build offers a very different set of advantages and disadvantages compared to buying an existing property." "You will pay a premium on a new build, making it more difficult to achieve a high rental yield." "If you have a strategy of adding value, buying a new build means there's really no potential to add value." "While I might get a higher rent off these properties, I know there's no chance for me to make capital appreciation within a smaller time frame." "For a new property investor, I would say you don't want to be going down that route at the moment." The UK’s #1 Property Investing Event – MSOPI Training https://bit.ly/3FqcL4l The UK’s #1 Property Investing Event – MSOPI Training London https://bit.ly/4isD2xs HOST BIO Nick is an award winning property investor, voted Fastest Newcomer 2022 by Premier Property, and is an accredited Retrofit EPC Assessor. He sources and renovates properties for himself as well as other investors. While doing this he has developed his own systems for efficient investment, such as developing his own methods to save time when viewing properties and estimating market values and potential returns, costing out renovations. He spends three months of the year abroad and while there continues his business with use of modern technology and his proven systems. Location freedom has always been his "Why" for being a Property Investment and has now reached his ideal of the colder months spent in Thailand and the rest of the time in the UK, all while continuing to run his business This Podcast has been brought to you by Disruptive Media. https://disruptivemedia.co.uk/

  --------  

  13:10

  --------

  13:10
• A Comprehensive Guide to Prepping For a Valuers Report

  In this episode, Nick shares valuable insights on preparing for a lender's valuation inspection, focusing on two key scenarios: selling a property and preparing for a re-mortgage after renovations. Nick emphasises the importance of presentation and accessibility for sellers, detailing how a clean and organised home can create a positive impression for the surveyor. He also discusses the critical aspects of property condition that surveyors assess, such as structural integrity and core elements like plumbing and electrics. KEY TAKEAWAYS When selling a property, it's crucial to present a clean and tidy home to create a positive impression for the mortgage lender's surveyor. Decluttering and ensuring key areas are accessible can facilitate a smoother inspection process. Surveyors primarily assess the structural integrity and overall condition of the property. Homeowners should address visible issues such as dampness, roof condition, and the state of electrics and plumbing to avoid red flags that could impact the property's value. For property investors preparing for a re-mortgage valuation after renovations, having all relevant documentation, such as building regulations approvals, safety certificates, and warranties, is essential to demonstrate that the work was completed to a professional standard. Providing before-and-after photos and videos of renovations can effectively showcase the property's uplift in value. It's beneficial to create a Google Drive link to share these documents easily with the lender. Surveyors base their valuations on comparable sales in the area and prioritise the lender's security over the seller's profit expectations. Being prepared for a potential down valuation and having a well-documented case can help in negotiating a favourable outcome. BEST MOMENTS "A mortgage valuation is conducted on behalf of the lender, not the buyer. Its primary purpose is to confirm that the property is worth at least the amount you are borrowing." "If you have a new boiler put in, there's your certificate of installation. Windows installed, there's your FENCES certificate." "The surveyor will look for any red flags that could impact the property's value or the lender's security." "The surveyor's valuation will heavily rely on evidence that the renovations are legal and professionally completed." "A surveyor's priority is a safe lending decision, not meeting your profit expectations." The UK’s #1 Property Investing Event – MSOPI Training https://bit.ly/3FqcL4l The UK’s #1 Property Investing Event – MSOPI Training London https://bit.ly/4isD2xs HOST BIO Nick is an award winning property investor, voted Fastest Newcomer 2022 by Premier Property, and is an accredited Retrofit EPC Assessor. He sources and renovates properties for himself as well as other investors. While doing this he has developed his own systems for efficient investment, such as developing his own methods to save time when viewing properties and estimating market values and potential returns, costing out renovations. He spends three months of the year abroad and while there continues his business with use of modern technology and his proven systems. Location freedom has always been his "Why" for being a Property Investment and has now reached his ideal of the colder months spent in Thailand and the rest of the time in the UK, all while continuing to run his business This Podcast has been brought to you by Disruptive Media. https://disruptivemedia.co.uk/

  --------  

  22:56

  --------

  22:56
• Understanding Spray Foam Insulation: Benefits, Risks, and Alternatives

  In this episode, Nick Bower delves into the topic of foam insulation, specifically spray polyurethane foam (PUF), and its implications for homeowners and property investors in the UK. Nick provides a balanced overview by discussing the pros, such as superior thermal efficiency, effective airtight sealing, and quick installation, alongside the significant cons, including the risk of moisture retention, potential timber rot, and challenges with property value and mortgage approvals.  KEY TAKEAWAYS Pros and Cons of Foam Insulation: Foam insulation, particularly spray polyurethane foam, offers superior thermal efficiency and an airtight seal, but it also poses significant risks such as moisture retention, potential timber rot, and complications with property value and mortgages. Moisture and Structural Risks: Improper installation or lack of ventilation can lead to moisture being trapped, which may cause timber decay and structural damage that is hidden beneath the foam insulation. Impact on Property Value: Properties with spray foam insulation may be deemed un-mortgageable or receive lower valuations from lenders and surveyors, making it difficult to sell or refinance. High Costs and Removal Challenges: The initial cost of foam insulation is significantly higher than traditional materials, and removal can be equally expensive and complicated, potentially costing as much as the installation itself. Regulatory Concerns: The spray foam insulation industry lacks comprehensive regulation, leading to concerns about installation quality and safety. Homeowners are advised to use certified professionals and keep thorough documentation to avoid future issues. BEST MOMENTS  "Foam insulation has a higher R value as a measure of thermal resistance per inch than traditional materials like mineral wool or fiberglass." "By creating that airtight seal, foam insulation can prevent moisture from escaping... this can cause roof timber to rot, leading to severe structural damage." "The presence of spray foam insulation... can mean they downvalue your property or may refuse your mortgage." "My personal opinion is it's not worth the hassle. It's expensive. It can hide problems. It can affect your value." "I feel that the cons far outweigh the pros of it... when it's affecting the value of your house, the chances of refinancing, getting a mortgage." https://bit.ly/3FqcL4l  The UK’s #1 Property Investing Event – MSOPI Training London https://bit.ly/4isD2xs  HOST BIO Nick is an award winning property investor, voted Fastest Newcomer 2022 by Premier Property, and is an accredited Retrofit EPC Assessor. He sources and renovates properties for himself as well as other investors. While doing this he has developed his own systems for efficient investment, such as developing his own methods to save time when viewing properties and estimating market values and potential returns, costing out renovations. He spends three months of the year abroad and while there continues his business with use of modern technology and his proven systems. Location freedom has always been his "Why" for being a Property Investment and has now reached his ideal of the colder months spent in Thailand and the rest of the time in the UK, all while continuing to run his business This Podcast has been brought to you by Disruptive Media. https://disruptivemedia.co.uk/

  --------  

  16:21

  --------

  16:21

More Business podcasts

Trending Business podcasts

About Efficiency & Property Investing