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Author Topic: Transition from UK Poker Pro to Letting Agency  (Read 12267 times)
Goosey82
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« Reply #30 on: May 06, 2016, 04:48:31 PM »

Solid enough week, two new landlords and listings (you can see them on Shanta Letting Facebook page) both in popular areas, imagine they will rent out very quickly.  Also had meeting today with some property acquisition and sales company who have acquired a few large portfolios and looking to sell on individually, hopefully source one or two for next investment or for the landlords who are looking to buy.
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Goosey82
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« Reply #31 on: May 10, 2016, 10:52:24 AM »

I recently did an interview for a podcast with Mike Michael Stenhouse over at Inside Property Investing and it has been released if anyone is interested in listening. Its about how I got started in property, what I am up to now and where I am looking to go.

You can download it on Itunes searching "Inside Property Investing 115" or http://www.insidepropertyinvesting.com/markshanta/
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TimothyVanwinkle
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« Reply #32 on: May 26, 2016, 01:48:25 PM »

The mass buy to let boom has turned decent residential areas into slums.
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EvilPie
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« Reply #33 on: May 26, 2016, 02:47:08 PM »

The mass buy to let boom has turned decent residential areas into slums.

Don't know about slums but it certainly has an effect. The area that I live in has lot's of 2/3 bed semi detached houses that seem to get snapped up by landlords as soon as they come on the market. They aren't cheap at £160k to £200k and the yields aren't great either at £550 - £800 pcm but still they keep buying them meaning that owner/occupiers don't get a look in.

The tenanted houses stand out a mile from the owner/occupier ones. You just have to look at the gardens to tell that whoever lives there doesn't give a shit.

I don't think estate agents help the situation to be honest. My sister recently sold her house and had quite a few offers. She was offered £200k cash from a buy to let investor and also £205k from an owner/occupier but they had to get a mortgage. The estate agent advised my sister to go with the cash buyer even though it was less money because the sale was more likely to go through.

How can that be fair? They aren't giving the people a chance even when they offer more.

Is it the estate agents fault though? What about the mortgage companies who delay the process so much that it makes cash buyers infinitely more preferable? Is it the affordability rules that mean people apparently can't afford £800/month mortgage so they have to pay £1k/month rent instead? Is it the ridiculous chains that develop when multiple people are reliant on each other to move and any one of them could pull out at the last minute ruining it all whereas the BTL guy can stop that chain?

What I'm saying is that buy-to-let doesn't help residential areas but it's not necessarily the fault of the buy-to-let boom but more so the fault of whatever has made BTL so popular/profitable in the first place.

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« Reply #34 on: May 30, 2016, 12:30:59 AM »

Affordability isn't a major issue for BTL.  The loan is generally based on the rental income.  There are a few lenders who don't need evidence of a regular income to allow you to borrow. 
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SuuPRlim
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« Reply #35 on: May 30, 2016, 12:22:31 PM »

can't believe i missed this really really interesting, defo post some more.

I've worked on a fair few decent commercial property deals and this has also really interested me, this never something you look at?
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Goosey82
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« Reply #36 on: May 31, 2016, 03:48:31 PM »

Affordability isn't a major issue for BTL.  The loan is generally based on the rental income.  There are a few lenders who don't need evidence of a regular income to allow you to borrow. 

Spot on with what you are saying. As far as I am aware for major lenders the minimum income for a BTL mortgage is £25,000.  Another bit of lending criteria is that you allude to is the rental income being 125% more that the mortgage repayments (which it should be if you are buying a decent yielding property), there is discussion that this figure may be rising to 140%.
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Goosey82
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« Reply #37 on: May 31, 2016, 03:56:36 PM »

can't believe i missed this really really interesting, defo post some more.

I've worked on a fair few decent commercial property deals and this has also really interested me, this never something you look at?

Thanks for feedback, appreciate it. Whats your experience in property?

Funny you should mention commercial property deals.  I am hoping this will be my next property purchase in the form of a shop for my letting agency.  At the moment I essentially rent a desk from an independent estate agent, which is terrific because it keeps my costs down, we can pass referrals to each other and advice.  However, the downside for me is no branding on the office, so I dont get any walk in customers.  At the moment as I am growly at a nice steady rate I am OK with that, but I plan to expand and keep growing the business so I will eventually want the right commercial property.  I am actively viewing, and while not being ready to move just yet, if the right one came along I would buy it.  I see it as a low risk investment as I will be paying the rent to myself!

Last month was really busy for the letting agency, took on 5 new landlords and 4 out the 5 of the properties are reserved/let out already.  The last one I just listed last week and think it may stick for a while at the price the landlord is hoping to achieve for it.
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EvilPie
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« Reply #38 on: May 31, 2016, 04:06:25 PM »

Affordability isn't a major issue for BTL.  The loan is generally based on the rental income.  There are a few lenders who don't need evidence of a regular income to allow you to borrow. 

Spot on with what you are saying. As far as I am aware for major lenders the minimum income for a BTL mortgage is £25,000.  Another bit of lending criteria is that you allude to is the rental income being 125% more that the mortgage repayments (which it should be if you are buying a decent yielding property), there is discussion that this figure may be rising to 140%.

Pretty sure it's 125% of the interest rather than the actual repayment. Once you have one though if it's in profit you can use that amount to evidence affordability for your next one without taking the rate rise stress test in to account. Handy eh Smiley

All lenders have minimum income levels now before they'll even talk to you so it's going to be very difficult for poker players who can't evidence anything. It's going to get regulated soon as well whereby they'll look at income after expenses rather than the current ridiculous system where they just say your rental figure has to be 125% of your rent. Once you take agents fees, insurance maintenance and of course the tax man's cut there isn't anywhere near as much left.

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Motivational speeches at their best:

"Because thats what living is, the 6 inches in front of your face......" - Patrick Leonard - 10th May 2015
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« Reply #39 on: June 01, 2016, 12:47:23 AM »

It's 125% of monthly payment.  Generally stressed at around 5%.

Although two big players in BTL sector recently went 145%.  So won't be long till they all fall into line it's basically self policing.  There are still 2 lenders for definite that will give you a BTL mortgage without you having to provide income proofs.

The difficulty poker players face is getting past the AML checks and showing where the money become they have came from. 

I am dealing with a case just now we're my client has £860k equity looking for an interest only loan of £266k can't place it anywhere.  So frustrating, finally thought I had managed it based on figures I took off him when I seen his payslips things took a turn for the worse.  Still affordable but no longer meets criteria.
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EvilPie
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« Reply #40 on: June 01, 2016, 09:13:04 AM »

It's 125% of monthly payment.  Generally stressed at around 5%.

Although two big players in BTL sector recently went 145%.  So won't be long till they all fall into line it's basically self policing.  There are still 2 lenders for definite that will give you a BTL mortgage without you having to provide income proofs.

The difficulty poker players face is getting past the AML checks and showing where the money become they have came from. 

I am dealing with a case just now we're my client has £860k equity looking for an interest only loan of £266k can't place it anywhere.  So frustrating, finally thought I had managed it based on figures I took off him when I seen his payslips things took a turn for the worse.  Still affordable but no longer meets criteria.

Well mine isn't but I'll leave it with you.
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Motivational speeches at their best:

"Because thats what living is, the 6 inches in front of your face......" - Patrick Leonard - 10th May 2015
SuuPRlim
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« Reply #41 on: June 02, 2016, 10:06:21 PM »

can't believe i missed this really really interesting, defo post some more.

I've worked on a fair few decent commercial property deals and this has also really interested me, this never something you look at?

Thanks for feedback, appreciate it. Whats your experience in property?

Funny you should mention commercial property deals.  I am hoping this will be my next property purchase in the form of a shop for my letting agency.  At the moment I essentially rent a desk from an independent estate agent, which is terrific because it keeps my costs down, we can pass referrals to each other and advice.  However, the downside for me is no branding on the office, so I dont get any walk in customers.  At the moment as I am growly at a nice steady rate I am OK with that, but I plan to expand and keep growing the business so I will eventually want the right commercial property.  I am actively viewing, and while not being ready to move just yet, if the right one came along I would buy it.  I see it as a low risk investment as I will be paying the rent to myself!

Last month was really busy for the letting agency, took on 5 new landlords and 4 out the 5 of the properties are reserved/let out already.  The last one I just listed last week and think it may stick for a while at the price the landlord is hoping to achieve for it.

I have close to 0 experience in property, I'm just an opportunist. The deals I did were with leisure industry business + freehold deals, sometimes spots came up with my network where I was able to place an operator wanting to buy a business but couldn't fund the freehold purchase with an investor looking to buy commercial property, and the investment is a whole lot more attractive when you have a tenant with successful track record ready to sign a 20yr lease.

My brief exposure to commercial property has left me very interested in it and looking to get more involved as my finances allow.

I'd love to get involved in stuff like that again.
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Mark_Porter
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« Reply #42 on: June 02, 2016, 10:56:59 PM »

Glad I stumbled on this gem, very interesting. Keep posting.
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vegaslover
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« Reply #43 on: June 02, 2016, 11:03:51 PM »

It's 125% of monthly payment.  Generally stressed at around 5%.

Although two big players in BTL sector recently went 145%.  So won't be long till they all fall into line it's basically self policing.  There are still 2 lenders for definite that will give you a BTL mortgage without you having to provide income proofs.

The difficulty poker players face is getting past the AML checks and showing where the money become they have came from. 

I am dealing with a case just now we're my client has £860k equity looking for an interest only loan of £266k can't place it anywhere.  So frustrating, finally thought I had managed it based on figures I took off him when I seen his payslips things took a turn for the worse.  Still affordable but no longer meets criteria.

Well mine isn't but I'll leave it with you.


My BTL mortgages are also done on 125% of what the interest payments would be.
Lenders are getting ridic tight on regulations though. Asking for min incomes and going through your bank statements/spending even though your rental income pisses the min requirements.
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PokerBroker
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« Reply #44 on: June 07, 2016, 12:56:43 AM »

It's 125% of monthly payment.  Generally stressed at around 5%.

Although two big players in BTL sector recently went 145%.  So won't be long till they all fall into line it's basically self policing.  There are still 2 lenders for definite that will give you a BTL mortgage without you having to provide income proofs.

The difficulty poker players face is getting past the AML checks and showing where the money become they have came from. 

I am dealing with a case just now we're my client has £860k equity looking for an interest only loan of £266k can't place it anywhere.  So frustrating, finally thought I had managed it based on figures I took off him when I seen his payslips things took a turn for the worse.  Still affordable but no longer meets criteria.

Well mine isn't but I'll leave it with you.


My BTL mortgages are also done on 125% of what the interest payments would be.
Lenders are getting ridic tight on regulations though. Asking for min incomes and going through your bank statements/spending even though your rental income pisses the min requirements.

What if you go through a period of no rental income?  I'm not saying I agree with lenders but I understand the reasoning.  Too many people take out BTL mortgages with bad advice because tehir situation hasn't be assessed properly. 
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