How Professionals Take Their Profits from Property
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How Professionals Take Their Profits from Property


I am welcome to today’s webinar I really
hope you well my name’s Aran Curry and really looking forward to spending the
next hour with you looking at how the professionals successfully take their
proper property profits and how you can do exactly the same and also looking all
those recent tax changes and help you understand whether they impact you or
not and if they do impact you what you can do to mitigate that impact we’ve got
a few hundred of you registered for for the webinar today so while I’m just
waiting for those people to go to climb on the webinar I can see people
registering right now just a couple of quick quick domestic things the first
thing is as we’re going through I will be launching up a couple of polls a poll
is where I just asked you to give me some general feedback and in fact our
launch rolled up now and you can see you can see the first example when I
launched these up if you can click on them as quickly as possible
it just gives me a great feel of where you are who’s in the audience so I can
make sure I tailor the webinar to fit you best so the first one here is just
asking have you heard me speak before have you been on a webinar and heard me
speak before so that’s quite an easy one it’s neither a yes or a No or not sure
now by the way when I push these polls up sometimes depending on your
technology in your software you’re not able to click which can be very
frustrating what I’d ask you to do then if that’s the case is use the chat box
down at the bottom right of your screen there’s a chat section
it’s private no one else can see when you type in the chat box by the way so
just use the chat box and answer the question ideally click the bowl but if
you can use the chat box they can see there’s about there’s about 60% of you
have heard me speak before which is quite normal for a webinar like this and
there’s about 40% of you that haven’t so welcome back
so those that have and those of you that haven’t then welcome you know I’m not
going to cover me in detail out there was quick slide on me give you a bit of
my background but if you want to check me out more you can always go to
www.arancurry.co.uk thank you for clicking on there so
quickly the other couple of domestics have talked about using the chatbox if
you can enter the polls if you’ve got questions as we’re going through today
which I’m sure you will have or some of you will have you know what I’d
encourage you to do is type in your questions at the bottom right again use
the chat box type in your questions and then what I guarantee to do in the next
48 hours I will get every single question answered okay
I can’t guarantee to get it answered on the webinar today we may or may not have
time but what I can promise is if you typed a question in either me or my team
will come back to you and make sure that question actually gets answered so type
those in and then we can help you with those questions okay okay so I’ve just
put up the second poll which was just to ask how many buy-to-let properties you
currently own because you know we have some people I’m sure that I don’t have
any at all we’ve got something that 1 2 3 bracket etc and some right up 11 plus
you know like myself got a lot more properties so so if you want to click on
that as quickly as possible for me as well just I’ve got a feel of the
audience’s experiences by to let that would be absolutely great
the final thing I’d say before we get started I can see quite a lot of people
on the call now so as I said we’ve got them hundreds of you registered so my
recommendation people always say well Aaron you know when we join a Weber now
at what would you is there any tips you’ve got for our learning so we’re
going to be together for the next hour or so maybe a little bit longer what I
always say is first of all get somewhere comfortable secondly if your spouse is
watching TV and you’re set on an iPad or your laptop or something like that
my suggestion is just move somewhere else they won’t distract you and you won’t distract them okay they don’t want to hear my voice
for the next hour so that might be a tip for you grab a drink so that your comfy and grab a pen and paper you know if you’re going to spend the next hour
with me I better deliver some value to you and and I will do so therefore my
recommendation is grab a pen and paper because you’ll you want to make some
notes you’re going to learn some stuff that is worth note taking about okay so
um yeah we’ve got about 30% of you have clicked to say you don’t have any
investment properties at the moment we’ve got
thirty percent in that one two three bracket which is quite normal about
twenty eight twenty seven percent in the four to ten and then the rest of you in
that eleven plus so we’ve got a good range which is normal
for a tax webinar and wherever you are by the way in that range you’re going to
find today’s webinar really really valuable so okay so let’s get that
closed down let’s make sure everybody’s gathered in which you are and yeah we
let’s get started so okay so today we’re going to be looking at what I call the
time-tested tax toolkit the time-tested tax toolkit I’ll explain more what that
is but we want to make sure that the the information we’re gonna cover today
let’s let’s let’s just get clear on what that information is so first of all I’ll
explain what the time-tested tax toolkit is so you know it’s all about being tax
efficient with our investing will cover the recent tax changes so we’ll talk
about a change what they are I’ll help you identify whether the impact you or
not because there’s a lot of misunderstanding about them as a lot of
people and clear we’ll talk about stamp duty and interest rate relief so you
know what because they’re the two main changes sometimes cause Clause twenty
four or mortgage interest rate relief so we’ll talk about both of those get you
really clear on those I’ll show you if you are going to be a 40% tax payer you
may be already or if the changes tip you over I’ll show you ten mitigation
strategies to mitigate the impact of that and then most importantly I’m going
to show you two foundational principles two really simple principles you’ll
understand when we finish the next hour you’ll fully understand them and you’ll
see how they make you income tax efficient capital gains tax efficiency
inheritance tax which I’m going to teach you how to run your portfolio
whether you’ve got one property to five or fifty as tax efficiently if someone
would as would have a hundred or two hundred the beauty of property tax is
that you can you know someone’s got two hundred properties it’s not one rich for
the wealthy and a different one rule for the wealthy and a different rule for
everybody else you can use the exact same strategies the wealthy use even if
you’ve just got one or two properties so so
that’s what’s on the agenda for us on this webinar as I said
there’s probably gonna be about an hour of Education okay reserve the right to
go five minutes over or five minutes under but about an hour of education at
the end of the webinar you know if you’ve got great value from it and
you’ve enjoyed it you may say well what else do you do as a company so at the
end of the webinar once we’ve done all the education if you are interested I’ll
show you my company have a done-for-you service where we build people in a
hands-free manner we source some amazing properties we negotiate on them for you
we sort the solicitor we sort the mortgage we get it bought we refurbish
it for you we tenant it we manage it week we we provide a fully fledged done
for you service we’ve helped over a thousand clients to buy property in the
last decade and and we do it all for you so if that’s potentially of interest you
may want to plan to stay on for another twenty minutes at the end of the
educational piece and I’ll talk you through that as well if you just want
the education that’s totally cool you’ll get the education first and then you can
stay on if you want after that okay so that’s the plan for the webinar so let’s
get stuck in now when I’m teaching property investing as a whole you know
people come to my one-day events my three-day events right up to my
one-to-one coaching clients who pay me twenty five thousand pounds to coach
them for a year you know just for an hour a week a coach them over that year
period but it just explodes their property investing by the end of the
year they’re financially free through property or nearly financially free and
whenever I’m teaching or coaching they’re at what’s been really interested
is when I decided to start teaching about four years ago before that I did
lots of building my own portfolio there are lots of helping other people but
when I decided to start teaching I went and interviewed literally you know
hundreds and hundreds of people who’ve got to financial freedom through
property and I looked at what their core skills were what were the the skills and
abilities that they had to bring to the table and then what I did was I went and
interviewed and looked at um you know a couple of hundred people who were
intelligent articulate people who set off on their property investing
journey but somehow had fallen over on the way they’ve got no properties but it
ended with one or two or three but they’ve ended stopped and you need to
get to eight to ten properties probably to get financial freedom where it covers
all your bills and all everything you couldn’t spend so and so I studied why
does people follow you but what was really interesting when I study both
groups in detail I was able to identify ten core skills ten core skills that if
you have the skills at eight nine or ten out of ten in your locker and you and
you take action because you have to take the action as well I can almost
guarantee you’ll get to that point to financial freedom but the frightening
thing was with just one or two of those skills missing just one or two you know
everything else can be eight nine ten but one or two were at four or five
you’ll fall over along the way you’re not going to get to the end goal and
where you want to get them so for me when I’m teaching it I want to teach
people the ten core skills because if they can get all ten either themselves
so an eight nine or ten or this age you know what these three or four I’m going
to personally get to make nine ten the others I need to outsource because I
have no interest in are don’t want to do them or I need help with them so what
else we’ve all experienced and that you then know what you need to master now to
today’s webinars not about that so today’s webinar is not about teaching
these I have another webinar for that if you reach out to my team [email protected] they can invite you along to a webinar where I
cover those ten core skills in detail but what we’re going to do today one of
the ten core skills which comes under the profit on this left hand
side the profit segment there’s five segments here purpose plan payment purchase profit but under the profit segment there’s the time-tested tax tool kit
now when I teach that there’s about a day’s worth of teaching so we’ve got an
hour together or fifty minutes left now and there’s about a day’s worth of
teaching so I cannot possibly cover it in detail with you today but what I can
do what I can do is give you the core elements I can help you to understand
what the changes have been I can help you to understand what you need to do
about it and I can definitely help you understand how the professional take their
profits let’s go ahead and and do that so okay
now just before I dive in for those of you that have seen me before forgive me
for this but for those that haven’t it’s useful just to have a very brief bit of
my background so my name is Aran Curry I know you can’t see me but you can see
me there on that slide I’m the founder of the Insight Group which is a group of
five companies over 40 members of team now that work with me and we we build as
I said really successful property portfolios. Those five companies all come
together you know work world-class delivery with a largest portfolio
building company in the UK both in terms of size of team in terms of number of
properties that we buy for our clients in terms of number of clients etc so so
that’s the Insight group and as I said earlier I’ve over 200 properties in my
portfolio now and we’ve helped our clients over the last decade to buy over
a thousand properties and now now looking to buy kind of 30 or 40
properties a month for our clients okay and then we have the education arm you
know maybe I’m lucky I’m blessed that my businesses have management teams in
place that do an awesome job I definitely have value but they do an
awesome job so I get my passion from doing webinars like this my one-day
events with over 100 people at them you know where I’m helping many people at
once so my education business which is about three years old now property
investing may be easy education we’ve helped to educate over twenty thousand
people in the last three years alone in property so I don’t share these figures
with you to brag I share these figures so you get a sense I’ve been here seeing
this and I understand it one of the key things for me is committing to mastery
it’s the understanding that people have more experience than you have been doing
this for longer than you in the right way you know there’s no point doing the
same year for four years and you’ve only actually got wouldn’t year experience
just to make four attacks but the people that have done this for a long time and
I’ve got rid loads of experience that it can bring a lot to the table became
saved you know my first 10 properties when I wasn’t getting help from anybody
you know I was losing money now it’s costing me hundreds of pounds or
thousands of pounds or tens of thousands of pounds so so my goal in the next next
50 minutes is to give you real great content real great value I believe in
mastery i believing going to someone experience I teach people to do that but
therefore I do the same with the property serf and the tax of a special
ax so what do I mean by that well basically we’re going to dive in to what
I call the time-tested toolkit okay which is all part of this safe secure
portfolio plan you can build really successful populace safely and securely
but I’m not an accountant you know I want to put that warning up right now
I’m not a trained accountant my expertise lies in property however I
commit to Mastro so when all the new changes came in about 18 months ago I
went in interview five of the leading property tax accountants in the UK and
attained a you know I want to teach my client fish I want to make sure we’re
doing the right things I want them to know if it’s go in pack them on art and
if it is going to impact them out and mitigate it and they gave me some
awesome training but better the things you get when you go to the best in the
country so they’re the things I’m going to share on with you net now on the
webinar with a couple of hundreds of you on I can’t possibly make sure that I
understand each and every single one of your personal scenarios so the challenge
I had got the see that today is and talking generically
I’m talking to you generically so what I would encourage you to do I’m going to
talk to you generically I’ll give you some key distinctions some great
learnings if you go to your accountant and talk about those great learnings and
may look blank or they’re not which is another another phrase for they’re not
an expert in property tax because I used to have a great business tax accountant
but he wasn’t good at property tax because he wasn’t involved with property
great business tax accountant but not a great property tax accountant so if you
bill to your accountant and they look blank or they’re not a great property
tax a camera maybe you need to change that maybe need to use a different
accountant and we can recommend someone to you good and there’s nothing in it
for us to do that but we can recommend and help you however if you go to them
my goal is I give you enough distinctions that you can go and have an
educated conversation where you’re in power you know what’s going on and you
can then work with them to decide your best plan for your fruit for your
structure ok now the other message that your view is this stuff isn’t rocket
science so many people I meet as they’re investing because they’re
worried about the tax changes or they’re worried about how to set things up I’d
rather you bought ten houses all set up wrongly but at least you’ve bought ten
houses are you making some money and you pay more tax than you should
versus you do it by any houses if you’re not sure how to set them up you make
more money by yourself and pay more tax than you should then you make not buying
any so whatever you do go do it I’m going to give you enough in this session
that you know exactly what you need to do okay so let’s look at what are some
of the recent changes of coming with regards to tax and with regards to kind
of budget announcements and things like that so what are some of the recent
changes well first of all back in 2016 there was an increase in rent a room
allowance if you rent a room out in your house to somebody else for about 20
years they’ve never changed the allowance you could earn a certain
amount before you pay tax but it was you know it was around I think 400 pounds a
month just over so they increased that now to 625 pounds a month so you can
rent a room out in your house earn up to 625 pounds a month there is no tax to
pay okay kicks in after that point okay the second thing in 2016 as well there
was the removal of what’s called the wear and tear allowance now this mainly
impacted people who had maybe a house of multiple occupation renting out to
students or young professionals etc you used to be able to say here’s the rent
that I’ve taken missed this year let’s say it was twenty thousand pounds and
usually it’s a well ten percent of that so that’s two thousand pounds I can put
offset against my income as wear-and-tear allowance you know that
there would have been some damage to the beds to the sofas other things like that
so and regardless of whether you did do anything with beds and sofas you could
still offset it well the government understandably came along and said you
know what people can add up what they’ve actually spent if they’ve changed beds
and sofas they can pay for them if they haven’t they can so that changed in 2016
you can’t just not just plain ten percent automatically you can only claim
for what you’ve actually spent and have receipts well okay back in 2016 as well
there was a freeze of laha rents now if you’re not sure what that is la chaise
local Housing Authority so if you’ve got a tenant
property who is all DFS now look Housing Authority and soon to be universal
credit but if you’ve got a tenant in your property who is on benefits then
you know in your area there will be a certain benefit allowance for a
three-bed property there’ll be a lower allowance for two beds there’ll be a
lower one for one bed this is set allowance and as long as they qualify
for it that’s what they get paid and generally they went up with inflation
but what the government have done is they said you know what we’re going to
freeze that for four years we’re not going to put it up okay the challenge
for you as a landlord is if you rent to a an amateur tenant you need to be
putting your rent up every year three to five percent a year always I’ve done it
the last 20 years and I’ve been a big supporter of lh8 energy of people not
them they say oh you’re going to get a bad tenant with all tenant types are a
great tenant there are bad sense whether it’s a real professional whether it’s
all the professional whether it’s a family whether it’s a benefit tenant or
a student there are a great tenants and bad tenants so you need to make sure
you’re getting great tenants whatever you do but you want to be pushing those
rents up three to five percent so it’s moved us a bit further away from benefit
tenants because if the rents staying still for four years we need to keep
pushing the rent up and you’ll see why later on that’s not to say we don’t use
them you know there are great if there are other benefits as well so if they’ve
got disability benefits in the background they can be great long-term
tenants you know a 50 year old who very sadly you know and the house for 25
years got in an accident it become disabled they got the house repossessed
now they need to rent somewhere you know they’ll rent your house though when it’s
2025 years they’ll really look after it and they’ve got other benefits as well
as the housing benefits that help them to pay any rent increases so that it can
be a great thinner so do rule out lhj but just be careful with it be careful
to choose the right ones okay and understand that these freezers in place
the scary thing for me actually is a human being by the way is you know as a
landlord I want to get as much right as possible as a human being that you know
people the charities like shelter etc have the Charter the charity shelter
except sure have done a study and they believe that by the time the four uses
up 2020 a that most benefit tenants will only be
able to afford the bottom 10th percentile of housing stock so if you
take all the 3-bedroom properties in your area they’d only be able to afford
to rent the bottom 10 10% what that’s going to lead to is a lot of
homelessness because they’re not going to afford to rent places and there’s not
gonna be anywhere for them to live so I personally feel that you know I feel
this wasn’t the right decision and and I think from a social point of view it’s
going to cause some problems but that’s a side that that’s not what you’re here
for okay so number four corporation tax now
this is an interesting one so they’ve said the government have said although
there are further changes afoot so whether it will come through that
they’re going to take corporation tax down from 20% level down to 18% so the
benefit of that is if you’re running your investment in a limited company
you’re only then paying 18% tax on any profits instead of 20% and that’s a lot
lower than 40% actually a 40% tax by it okay however if you then take the
profits out of the limited couple if you draw dividends on the property the flip
of that is they’d increase the tax on dividends so actually if you’re making
your money a minute a company and leaving it in there and I’ll come back
to that later then that number for corporation tax down is a great thing if
you’re leaving in there to grow a portfolio for the future this is a 10-15
year plan brilliant use if you’re taking all the profits out all the time though
because of the increase in tax in dividends actually does to counter each
of the rap okay number six stamp duty changes which I’m going to
cover in detail so in April 2016 there’s a change of rules to stamp duty and
number seven April 2017 there’s a change of rules to the income
tax relief you can claim on your mortgage interest it’s also called
Clause 24 it’s also called mortgage interest tax relief or interest tax
relief they’re all the same thing the final point of note we’re going to get
into six or seven in detail now but the final point of note is if you’ve got a
holiday let property or service accommodation then interestingly they’re
not treated under property tax they’re treated as a business or the business
taxes therefore this change to income tax
relief doesn’t affect you if you’ve got a holiday letter service accommodation
now some people in the industry are using that as a marketing ploy they say
oh this tax change come and do holiday let’s or service accommodation because
you don’t get tax do not pick a strategy just because of the tax implications
pick a strategy that resonates with you pick the right strategy for you and then
when you’ve picked the strategy learn the TAT rules okay my one-day event I
teach people the five core strategies that consistently make people a hundred
thousand pounds a year aim to get 50 people who not just had a one-off year
but consistently made a hundred thousand pounds plus a year and ain’t any of
those people and having interviewed them successfully as Clues out the hundreds
of hundreds of strategies out there ninety-eight percent of the mobile one
use one of just buy strategies so my one-day event I actually teach those
five strategies so you can learn them and most importantly the characteristics
of each one so you can decide which one resonates most with you good only then
might you pick a little X and service accommodation one of those five don’t
pick it because of the tax they go by just wanted to make you aware in case
you’re already in it okay so let’s look in more detail first of all the stamp
duty changes to stamp duty changes so what were the changes that came in and
what’s the impact well basically the way that stamp duty works is in the left
hand column that you can see the wars column so if you’ve got forty thousand
two hundred twenty five thousand pounds purchase no stamp duty to pay and if you
buy a residential house by the way the walls column is the true column if you
then pay somewhere between hundred twenty-five and two fifty you’d pay zero
percent tax on the first hundred twenty five thousand and then two percent on
anything between one to five and two fifty then five percent I method between
250 and 95 etc the new rule that came in that affects investors is if you buy a
second property if your name goes on the deeds of a second property okay
at that point it adds three percent to the tax bill so if your name goes on a
second property that’s worth a hundred thousand pounds before there was zero
percent tax now as three percent right and column you’d pay three percent
subdue to tax on 100 so that would be three thousand pound
bill okay if it’s in the 252 nine to five you’d pay an extra three percent on
that piece okay so let’s show you a couple of examples
let’s take an example of a house that you buy for two hundred and seventy five
thousand pounds so the statute Udo the old way zero percent on the first one to
five is zero two percent on the next one to five is two-and-a-half thousand and
five percent on the final twenty five thousand is one two fifty
so the total tax bill always 3750 however if this is an investment
property we now pay an extra three percent on the whole lot so we still pay
the three thousand seven hundred fifty but three percent of to seven fifty two
hundred seventy five thousand is eight thousand two hundred and fifty extra so
your stamp duty bill is now twelve thousand instead of three thousand seven
hundred fifty now that isn’t fun when you’re an investor that’s not good news
however however what happens to property prices over time this house on average
they double every eight to nine years but let’s say fifteen years or fifteen
years from now what will this house be worth an extra that’s right two hundred
and seventy five thousand pounds so is it going to stop me and put me off
paying because the stamp Jim is now twelve thousand but I’m going to get two
hundred and seventy five thousand pounds of growth if I’m sensible it definitely
won’t I actually think the government have pulled a good one here okay I think
they provided a vote winner for the masses by saying look with penalizing
landlords they secondly they raised more money in tax thirdly the investors will
still buy so it would stop people from buying because it shouldn’t stop you
from bag it’s not a nice tax but we pay a lot less than a concert on the
continent you can pay seven percent even up to ten twelve percent 12 percent you
pay dat on your house purchases okay so in the scheme of things you know this
came in two thousand sixteen most people have forgotten about it now it’s just
the new norm do not let stamp duty be a reason not to
buy okay because that house is going to go up in value and make far more cash
flow if you bought the right diamond property the right property
far more money but you’re paying the sub duty but you know second example just so
you’ve got it hundred thousand pound house so previously the tax on that was
zero if this is an investment property the second house that you buy the tax is
now an extra three percent of the hundred thousand so it’s three thousand
pounds in tax okay so let’s look next let’s look next at interest rate relief
changes Clause twenty four mortgage interest rate relief changes whatever
you want to call it okay so in April 2017 the government brought in a new tax
structure that meant that you know in the old days the good old days
whatever mortgage the mortgage was costing you for the interest element
anyway whatever you were paying in interest on your mortgage you could
knock off the income before you worked out what tax bracket you were in before
you works out your profits now you can only get the mortgage interest relief
that twenty percent as if you’re a basic rate taxpayer so if you are a basic rate
taxpayer there’s actually no changes I’ll show you that shortly but if you’re
a 40 percent tax payer there is a change so let me show you this so why did the
interest rate relief changes come in what were the government goals well the
government goals were to create less larger portfolios or my landlords so to
allow more properties to be available for first-time buyers and more property
to be available for pension releases they’re encouraging people to take the
money out of pension and buy property to build a pension for themselves they’re
doing that because pensions don’t work by the way but that’s a whole nother
story okay or not working well at all so
what’s the second goal to deal with the deficit they have a deficit they need to
deal with it okay so these are the main reasons they brought this tax changing
now what you need to do is work out first of all based on the new rules
which tax bracket you will be in so how does this work well first of all they
take your employed income offer yourself employed your self-employed income they
take the income that you have then you add to that your property income you can
take off all the costs so you can take off insurance letting age of maintenance
costs service charges accept the mortgage interest you can
knock that off so you take your property income you take up all the costs except
the mortgage interest and you add that to your employed income and that gives
you your total income to decide your tax bracket if your total income varies
above you know the moments about 44,000 so go into the fight for forty percent
tax bracket but by 2020 they promise that that will get to fifty thousand so
I’m going to use that figure of fifty thousand so you totally incomes above
fifty thousand you’re a 40% tax payer if it’s between fifty thousand about
thirteen thousand you’re a 20 percent basic tax payer and if it’s below that
you don’t pay tax okay so you would but the way you work out
your total income now you can offset the mortgage interest first so let’s give
you an example okay and by the way once you’ve done all of that then you can
claim relief on your mortgage interest at just twenty percent so that but we’re
going to show you some examples so which category are you in you might still be a
basic rate taxpayer if you are a basic rate taxpayer having run through those
rules there is absolutely zilch impact stop worrying about the tax changes
watch my next bit on how professionals set their profits and implement it but
just stop worrying about the TAT changes they don’t impact you at all in fact if
you’re under fifty thousand of income as an individual which you’ve done these
rules or under a hundred thousand as a couple because you can share it between
you stop worrying about the changes okay now you might be somebody and it’s just
tipping you over you know you you maybe we’re earning between you as a couple
eighty thousand a year but now and you’ve got five property so it’s just
tipping you over that will just keep you in to the higher rate tax bracket the
impact then is going to be quite modest and probably wouldn’t lead to any
changes until you buy more houses or you could be in a situation where you’re
already a higher rate taxpayer that you know like myself with 200 plus
properties and definite in that tax bracket this definitely affects me more
than most which is a good but then you need to use the mitigation strategies
which I’m going to share with you okay so you work out which category you’re in
his example if you’ve got employed income or self-employed income a thirty
thousand that okay thirty thousand Grove sorry you then
look at your rental income by let’s say five properties at six hundred pounds a
month for 12 months so in this person’s got five properties
rented out they’re making thirty six thousand of rental income the costs of
the property the letting agent the maintenance etc let’s say at two hundred
pounds a month so they can offset those costs but not the mortgage so they
offset twelve thousand that would leave this person on fifty four thousand
pounds of income now they work out which tax bracket they’re in for this person
sadly that’s kicked them into the forty percent tax bracket now for clarity the
first fifty thousand of what they earn isn’t in the tax bracket doesn’t if all
the incoming to forty percent it just ticks the extra four thousand that’s why
for this person the impact is modest they would have overly worried they need
to know about that they wouldn’t overly worry if you’re already a forty percent
other then all of your property incomes in that forty percent bracket then that
makes a difference okay so let’s look at some examples let’s show you some couple
of examples so what’s the impact let’s look at six hundred fifty pounds a month
rental property maybe a hundred k rental property okay and it’s gots cost of two
hundred like I just did mortgage interest of three hundred so the old way
of working things out you could knock all that off and say I made net profit
at 150 pounds your tax at your normal rate so if you’re twenty percent
taxpayer it would be 30 pounds of tax a month if your for taxpayer be sixty
pounds a month that’s the way it was worked out before quite simple we
understood it okay now let’s look at the effect of the changes and how they work
and we’ll look first of all at a lower rate taxpayer so the rent still six
fifty they can knock off the costs of two hundred that get text into for fifth
day but not the mortgage interest yet so then they say you’ve made four fifty a
profit without the mortgage interest twenty percent tax on that is ninety
pounds okay and it was previously third so however
now you can knock off your mortgage interest so twenty percent of the
mortgage payment and if you remember the mortgage payments three hundred pounds
or twenty percent that is six day so 90 minus six they gives me tax to pay of
thirty and if I flick back briefly to that last slide twenty percent tax payer
previously paid three so although it works out a slightly different way if
you’re a twenty percent tax payer the tax you pay is no different whatsoever
so still worrying about it less than hundred
thousand as a couple fifty thousand and individual stop worrying about it now
higher rate taxpayer let’s look at that so they again goes six fifty minus two
hundred is four fifty now you can’t knock off the mortgage yet you pay for a
percent tax on that so 40 percent of 450 is a hundred and eighty it was
previously just six day but you can only claim you can claim your interest rate
relief but only at twenty percent you used to be able to offset it for six or
twenty percent relief on three hundred is now 60 pounds 180 minus 60 is 120
previously it was only sixty pound tax bill so your tax bill has gone up from
sixty pounds a month to 120 pounds a month okay so it does affect the higher
rate taxpayers okay that’s how it affects you okay is property still
profit with a higher rate taxpayers a hundred percent it is it’s phenomenal no
because of the leverage you can get in property and I’ll show some examples
later on if you want to stay on and see how to build a successful portfolio I’ll
show you some examples and you know it’s just it’s just it’s phenomenally
successful because of the leverage you can get because the banks would lend you
money you can’t borrow money to buy stocks and shares you can’t borrow money
to build your business or not seventy five percent at the money you need you
can to buy property because the banks know it’s safe and believe it’s safe and
you know you it really it quadruples your results right away more more than
that the quadrupling from day one so okay so it still really works and you
can use the mitigation strategies as well so it’s not a reason not to do this
but understand the impact okay now some people say on that basis should I be
investing as an individual or a company I’ve heard lots of things what do I do
it depends on your strategy where you’re trying to get to and it depends on your
tax situation okay so the general rule of thumb is if you can invest and you’re
not over the thresholds then you would invest as an individual and you’ll see
why of it later on so but you would invest as an individual if you’re in
this for the long term and you’re not over the thresholds if you’re going to
go over the thresholds when you buy your seventy eight the night property you
still buy the first six in your own name and then you can switch may be to limit
company four appropriate later on so again don’t
worry about it just get them and buy them until you’re going to reach that
threshold if you’re flipping properties where you buy for a discount and sell it
on our trading property then you want to be buying in a company okay now once you
switch to limited company if you’re ugly you know some people will switch a
limited company here for exact acts player you might switch to limited
company for future purchases okay if you switch to limited company there is a
concern but what there’s less mortgages available for a limited company
mortgages now what’s interesting for many years there was but because of
supply and demand and more people wanting it now there’s more banks
offering it and because there’s more banks offering it’s got more competitive
so your limited company mortgages are maybe about half a percent more
expensive on the mortgage half a percent that’s it and so and I think that’s
going to get more and more competitive they’ll never become equal but maybe get
down 2.3 of a percent higher so in the scheme of things
it can be tax efficient if you’re in a long term plan and a 40% tax payer to
move into the MIT company but until you’re at that point definitely be
buying in your own net okay so as I said before this is a you know it’s generic
advice go check with your accountant obviously if you’re building a limited
company beware it costs money to extract from it so if this is a long-term growth
plan if you’re building a portfolio for the future then you can afford it that’s
there then you’d buy in a company because you build it in the company you
don’t take any drawings out so you don’t pay any tax on it the company’s getting
taxed hopefully 18 percent corporation tax is going to go so you’re letting the
profits build up in there and you’re buying more and more and more property
what’s in the future it comes to retirement time and your personal income
drops then you can start drawing the money out of the limited company and
your personal income has dropped so therefore you’re not over the thresholds
maybe by then you can also from a limited company pay or the family
members to utilize their tax allowances you can even give them a salary and if
you’ve got children etc and if you’ve lent money to the company
to get the investment going you lend it a hundred thousand pounds to buy the
first few properties and get it going the first hundred thousand a profit you
can take back out without any tax at all because it’s a directive lonely but the
company you can take it back out okay so if you’re building this long-term and
you don’t need the Inc from it then a limited company can be
great day if you need the income from it even if you’re for business that’s pay
it may not be right you need to check that out okay now let’s finish this
piece because I want to move on and show you how the professionals take the
profits and how you need to do it too but let’s just finish this piece off and
you know if you are in that forty percent bracket and you’re impacted by
it just very briefly and I spend a lot more time on my ministry program but
very briefly what are some of the mitigation strategies you can use to
minimize the impact well here’s some of them you could pay off your high
interest rate mortgage bonds I don’t believe in paying the debt down by the
way you’ll see in a moment you pay the debt down you end up paying
more tax in the long run so I’m not recommending that one but if you
desperate to mitigate the impact you could pay off the higher interest rate
mortgage borrowings you have secondly I do what this remortgage your high
interest rate mortgage bonus or lower ones people have got lazy in the last
few years because the mortgage rates are cheap so so cheap they don’t shop around
on mortgages as much as they should so get a great broker we’ve got one if you
want them to help you email us info a property in psycinfo info a property
insight don’t vote just say will someone contact me about that and we’ll get
someone to have a look that you could consider selling properties without a
mortgage cost now I do it believe in selling properties by the way I hate
that idea but if you’ve got the wrong properties you know in my whole
portfolio over 200 properties is one property that was worth selling when I
reviewed and it was a two hundred fifty thousand pound property that I’d bought
as a residential I lived in it a number of years ago quite a number of years ago
now and when I moved out I kept excited I believe in selling and I rented it out
but it’s rented for only a thousand a month and the mortgage is maybe 900 a
month or something it was just breaking even I was keeping for that the capital
growth if you’ve got a property worth 250 and you’re only getting a thousand
on the but the rental income that one could well not be good enough you know
you your rental yields are not good enough on that you should be looking to
get on a hundred thousand pounds purchase at least 600 pounds of rent so
therefore at 250 thousand at least 1500 pounds a month of rent otherwise you’re
not getting the right yields the right cash flow you shouldn’t be bank okay so
we could consider selling those you can read
Uschi person profits is a quite a cute one and this is probably the one you’ll
use if you’re at 50,000 but you want to get up to fifty five thousand you can
use this strategy or a hundred thousand as couple you want to get two hundred
and ten what you do you set up a limited company that’s you so if your name is
John Smith you set up John Smith Limited and what John Smith limited does their
job is to manage the investment so you might have a letting agent already
managing the property but John Smith limited you pay them every month for fee
for managing the investment someone needs to track the letting agent and
check the cost to right somebody needs to track the mortgages refinance at the
right time so we need to look after all of this very simple situation and you
know you might charge 10% of your rental income you’d pay to John Smith limited
to manage the properties for you what this does is gives you an extra cost so
if you’re at fifty five thousand and you’re paying five thousand a year to
John Smith limited it means your personal income drops to 50 and so you
don’t go into that forty percent threshold the five thousand is paid to
the limited company you have to pay eighteen percent tax on it there but
that’s better than paying forty percent tax on it in your own name the only
challenge with that is then the five thousand pounds is in the limited
company so if you’re going to use it to invest some more that’s fine if you need
that five thousand to live off doesn’t work because you need to get it back out
of the limited company so they took quite a few fee and if you’re a couple
there’s ten thousand there you can offset that’s cool that’s quite cute
saves you two or three thousand pounds a year in tax a mobile number II is it
saves you a lot number five you could transfer existing properties into a
company to be honest you know when I spoke to the professionals
they’d reviewed for every hundred people be reviewed with maybe four three
percent of the population is worth doing so it’s very unlikely worth doing its
work with your accountant but you could transfer your existing profits into a
company for me personally I’ve got lower your hundreds in my own name but I’m
gonna just buy future ones in limited company I could transfer you could
transfer property ownership to a basic rate taxpayer moving out of your name to
somebody else’s be aware when you transfer property at number five or six
if you if that properties gone up in value between you buying it and now when
you transfer it’s as though you’ve sold it and they’ve bought it so now you’ve
got capital gains tax to consider as well so you need to look at that very
carefully but if you bought something I haven’t got a
p-value in the last few years and that that maybe is worth considering you can
pay more into your pension or pay more to charity you know if you’re just
tipping over you’re at fifty two thousand consider giving that two
thousand pounds to charity or giving that two thousand pounds to a pension
that you’ve got because then you can offset against tax make sure you’re
claiming every allowance relief expense possible again people have got lazy with
that they’ve got lazy collecting their receipts because the mortgage rates are
so low you know you could spend some money on repairs if you’re at fifty
three fifty four thousand you could say well I spend four thousand pounds on
repairs I was going to do them next year anyway now with this one I’m
categorically clear if they’re categorically repairs you would have
been doing in the next three or four months and I’m cool you’d get in them
building match so you can offset attack however don’t do it just avoid paying
more tax because you’ll still spend more on the repairs so please at person’s I
have spent five thousand on repairs but that’s you save you a thousand on your
tax bill not five thousand with it repairs you’re going to do now go do
them then the last one is consider your day job a bit of lateral thinking you
know why are you in this maybe you’re into property because in the long term
you want to be in a position where you don’t work so much well maybe now’s the
time maybe give up a day a week give up two days a week yes you’ll have less
income but you’ll pay less tax so some people that’ll be right it’ll push you
to make that decision now just to finish this piece off okay deed of trust
I’ve continuously said if you’re in a couple you can earn up to a hundred
thousand before it impacts you many couples you’ve got one person earning a
lot of money fifty sixty thousand the other person may not be working they may
be a housewife or a house husband now if that’s the situation when you buy
properties you can still buy them together use all the benefits of the fat
one have you’ve got a larger income to get the best mortgages but you can then
use a deed of trust to say I’d like to apportion the profits of this house how
you want you can say a hundred percent to my spouse and zero percent to me on
ninety nine one or ninety ten or fifty fifty whichever way you want to set it
so if you’re earning what will more money than your spouse than if you said
it ninety-nine one to them it means that except of the profits go on their tax
return only 1% go on yours a deed of trust is a simple two-page document your
solicitor can draw up for you they’ll probably charge you about 150 pounds
once you’ve done a couple to be honest you’ll realize you can just do the
document yourself it’s a simple document but do the first couple through a
solicitor so you know it’s done properly you need to fill in a form 17 and send
it to HMRC which is a very simple form just to tell them that’s what you’ve
done and then it’s that so totally legitimate the legitimately transferring
the profits into the lower earning now the challenge is you need to understand
this once that’s set it’s set for life so if in ten years you sell it and it’s
made a hundred thousand game ninety nine thousand that game as your spouse is one
thousand is yours so whatever use and you should never
sale by the way but if you do what however this set up they stay like that
forever of your spouse goes back to work later you cannot then say I want to put
it back to 50/50 now because it’s set up in that way it stays in that way if you
do want to change it back it’s like you’re buying it from your spouse
they’re selling again you’re back into that capital gains thing so but check
out these are trusts they’re really really good overall action to be taken
right now don’t panic because of the changes understand the changes to be
honest we’ve covered what you need to know you might need to refresh you might
say to my team can I have a recording and what’s your recording of this and
just go through it again take your spouse through it but just understand it
consider the impact thoroughly but get on and by do not let this lead to
procrastination you couldn’t subscribe to my youtube channel or also my blog so
YouTube channel a faring curry on my blog at www.careerfh.com out the tax up
and get your today now what I want to do with these last 15 minutes probably 20
minutes I want to show you how the professionals take their profits for
property and how you can do exactly the same be tax efficient with your
investment okay just before I do that we run one day events have looted through
them a couple of times live in person with me we run them in London Nottingham
and Birmingham Manchester Leeds they’re the upcoming ones we also occasionally
do Southampton Bristol Edinburgh you know other places as well normally those
events 297 pounds it’s a day if you’re getting
value in the last 20 minutes from them this is a whole day 8-hours me on stage
life teaching you the 10 core elements teachings of five strategies that you
should choose from to get your property investing right showing you how
regardless how much money you’ve got regardless of how much time you’ve got
regardless of what money experience you’ve got you can build a really
successful profile it’s a great day it’s normally 287 pounds in 20 minutes time
I’m going to give you a phenomenal offer on that okay really phenomenal but I’ll
give you that in just a moment okay so let’s get into the next piece which is
how do we get tax efficient now if you’ve got your pens and papers and I’d
like to ask you to write down two statements on your path the first is and
then I’ll explain why I’ve made them but these are the core statements that will
make sure your tax efficiently you’re probably invested the first is never
ever sell my investment property so never ever sell my investment property
the second some of you will feel more uncomfortable but let me explain
afterwards so the second is as the property goes up in value as the
property goes up in value increase my debt against it so never ever sell my
investment property and as the property of yours up in value increase my debt
against it now believe it or not I’m going to explain why they are your
foundational principles that you will use forever with your tax planning they
will be worth before the tax changes they work exactly now with the touch
changes and they work whether you’ve got one to five fifty or two hundred
properties these are your foundational principles and it’s this simple so these
are allow you to be income tax efficient capital gains tax efficient and
inheritance tax efficient so let’s go through some examples and show you how
this works okay so I’m going to deal with income tax verse now first of all
let me ask you a question will you brought up and I imagine you were most
of my audience normally are who are interested in property will you brought
up by parents who taught you that that was
that or loved ones that taught you that is bad you should pay debt off and
saving is good the majority of people but are interested in property were
brought up by parents like that and we need to thank those parents for giving
us that thought however the challenge is the challenges if they taught you that
debt was bad and that was it that’s a problem because actually there is good
debt and there is bad debt okay a bad debt is most debts that people have so
your residential mortgage is a bad debt but you can stay in bed all day you when
you get up you still have to pay that mortgage you can be unholy for two weeks
and not use your house you still have to pay the mortgage is something you have
to pay regardless bad debt same as a car loan same as an overdraft same as a
credit cat okay now a good debt though a good debt is a debt that somebody else
pays for you and it makes you profit so if I have an investment property and the
tenant is paying the mortgage payment for me and it’s making me profit that is
now a good debt that’s a debt that’s making me money okay
so you need to understand as an investor that there’s good debt and bad debt not
just the saying that debt is bad okay and if you if you don’t you want to
learn more about that by the way there’s an awesome book called Rich Dad Poor Dad
by a guy called Robert Kiyosaki okay now let’s look at this in more detail let’s
look first of all the income tax okay so the income tax Ameri this is in ninety
thousand pound property sixty seven and a half thousand mortgage and I’ve said
it some interest in it for an hour percent I mean these days you’re getting
mortgages under three percent you know it’s a lot cheaper than this but just
for simplicity this property’s got the rent coming in the costs going out in
very simple terms I know the tax changes change this equation slightly but
basically it’s making 219 pounds I’m of the profit and they for taxpayer pay for
accepts that select 20 percent twenty percent has no tax no tax okay very
simple terms now let’s imagine we had two people I take two people from the
audience I’m going to take a bath and John okay
so a bus and John have and I don’t know you guys saw this made up with a
scenario but you’re identical houses you bought next door to each of the
semi-detached houses and they’re ready to the same types of tenants and making
the same rent and in your own life you have the same jobs okay everything’s a
say however abbasids upbringing was so
strong so strong that that was bad but even having had my learning he says I
get your learning I get what you’re teaching me but I’m going to pay my
mortgage off and over the next 10 or 15 years you work hard to pay that mortgage
down okay so what a bus is doing in effect he’s over the next 10 or 15 years
he’s found another sixty seven thousand five hundred pounds and paid the
mortgage down to zero okay John in the mean times have that sixty seven and a
half thousand pounds and being able to have some parties with it in a good time
and some holidays or if you sent more sensible as what two or three more
properties put more deposits down and bought more houses so he’s got more
assets going up in value over time however let’s look at a passive
situation what’s the reward that Abbas gets for having paid that mortgage down
so diligently well here’s the reward they’ve got identical houses identical
incomes but the government comes along as there’s a bus you paid that mortgage
off so there’s an extra 250 pounds hitting your bottom line as a result of
that we can attach you a hundred pounds a month which is twelve hundred pounds a
year more than we’re going to tax John congratulations so a bath works really
had to pay the mortgage down uses his own money to pay it down and the result
is he gets taxed more more so first rule you know that second rule I said if it
goes up in value increases that were the first because don’t pay the debts down
on your investment properties they’re good debt do not pay the mortgages down
okay and this works still works I’m going to come on to it with all the
recent tax changes okay so let’s look secondly back at about this situation so
a bus is not better John sorry John is not paying the mortgage down but John’s
full of my advice from earlier always always put the rents up three to five
percent here so the six fifty becomes six seventy becomes six ninety comes
extent 710 so in three years time he’s making an extra 60 pounds a month the
trouble is that’s going to hit the bottom line have to pay more tax he
doesn’t want to do that well maintenance probably has gone up
with inflation let’s say that’s gone up ten pounds that’s 990 pounds per month
on the maintenance but the other thing that’s gone up with inflation is the
value of the house so John goes the bank say hey this is worth more money can I
borrow some more money against it please the bank
you can say you can borrow some or maybe only challenges if you borrow more money
you maldis payments will go up and John says well that’s fine I’ve got more
income coming in so let’s say the mortgage payments go to 300 pounds a
month he’s borrowed more money I’ll come back to the more money in a moment and
what he does with that but he’s got sixty pounds extra coming in in rent the
mortgage has gone up 50 pounds that means it’s gone up 10 so he’s got an
extra 60 pounds across the bottom line is if income profit stays the same every
month so his tax bill stays the same so if he follows that second rule as the
property goes up in value increase the debt against it he says income tax
efficient income tax efficient now there are some nuances with all the new rules
that’s why I said this takes a day to teach and I don’t have that now but in
principle I want you to get the principal because the principal even
with all the nuances the principle holds true you need to be doing this and I’ll
show you why in a moment okay so we’re now income tax efficient following that
second rule let’s look secondly at capital gains let’s assume you bought a
property 30 years ago for a hundred thousand pounds they double on average
every eight or nine years but let’s assume it’s every 15 years so it becomes
with two hundred thousand becomes with four hundred thousand pounds okay you
sell the property the government say you’ve made a three hundred thousand
pound gain so therefore you’re going to get tax forty percent tax payers you pay
twenty eight percent tax on that which is an eighty four thousand pound tax
bill so you’ve sold it you pay eighty four thousand pounds in tax you pay the
estate agents and solicitors you’re probably going to net out about three
hundred thousand let’s imagine instead you took my learnings my learnings were
never ever settle principle one instead what you do you refinance the property
you borrow seventy five percent of what it’s now worth which it’s worth four
hundred thousand would be three hundred thousand so you’ve still got the three
hundred thousand out of the house without selling it you still go spend
that on it and the rates have gone up every year so the rents are paying for
the mortgage and it’s making you 219 pounds a month of profit so the mortgage
is getting paid now what then happens if you’ve sold it and it keeps going up in
value you don’t own it but if you did own it
and it kept going up in value this isn’t a trick question if it’s worth four
hundred thousand now and they double every
if king is will it be worth in 15 years time that’s right 800,000 pounds and if
it doubles again after that over 15 years whether you’re here or not your
family will be what’s it worth 800 thousand doubles that’s right
1.6 millions of the person that sold it them and their family just missed out on
a further 1.2 million pounds worth of growth that the other person gets
because they followed the rule to never ever sell a property now you need to buy
the right property to start with by the way so they’re always feeding you lots
of other rules to learn on that we’re not covering that on this webinar when
we do a done-for-you service people we buy only outstanding properties if you
want to get educated my one-day event I teach you how to early by outstanding
properties but now here’s the other piece what people don’t realize is and
telling you to keep the property to the grave you’re going to own it until you
die the day you die now what people don’t realize you can comfortably get
mortgage finance to the age of 90 buy-to-let mortgages to the age of 90 if
you’re planning like me to live beyond the age you can get commercial for an
ounce well into your hundreds so you’re literally going to own these properties
until the day that you pass away okay now if that’s the scenario if that’s the
situation what people also don’t understand is say you pass away in four
if ideas time and this house is worth eight hundred thousand pounds so you’ve
made a seven hundred thousand pounds gained for you and your family over the
last forty five years the day that you pass away there’s something called
capital gains wash out the capital gains is written off even though you made a
seven hundred thousand pound gain they said there’s no tax to pay we’re writing
it off how beautiful is that people don’t realize that so you see all these
people in their sixties and the seventies busy selling their properties
and paying capital gains tax to tidy things up and I’m like that’s crazy guy
first now I’m not saying die sooner still died effect i but sell out is
after take them to the grave with you okay so for tax inheritance that’s that
leads a stir okay so let’s look at inheritance that
now back to our example a passenger so Abbas had paid the mortgages off so he’s
getting hit for income tax a half 30 years pay more and more tax than John
it’s even though they’ve got the same pot full of its issue when you pass away
the a pass had a million pound portfolio let’s also assume your personal
allowance when you pass away the first three hundred twenty-five thousand
pounds approximately passes to your kids and there’s no tax to pay for a couple
it’s 650 but let’s assume for simplicity that your residential property your
other assets you’ve got your stocks and shares had used up your allowances so
your property is extra just for simplicity so you’ve got a million pound
portfolio so a bus passes away and the government say to his kids
forty percent tax to pay on the equity so that’s a four hundred thousand pound
tax bill by the way you’ve got 12 months to pay me now unless a bus is a genius
he can’t predict when he’s going to die so let’s assume he died in a flat market
so now the kids are struggling to sell houses quickly they’ve got this tax bill
they end up selling them a discount to get rid of them quick a bus has worked
all his life this could be you Eve what’s all you like to build this
million pound portfolio what really had you pass away they end up selling it for
850 they have to pay the tax bill Bend with less than half a million pounds in
their accounts now if you follow the two core principles though you’ve got a
million pound portfolio option to John’s the John scenario but he’s borrowed
seventy five percent of what it’s worth he’s got seven hundred and fifty
thousand pounds on mortgages okay the rents are paid for those more views so
this is eight properties they’re all making two hundred pounds a month he’s
making good rental profit and the mortgage is getting paid for by somebody
else by the tenant so he passes away the government say 40% tax on the equity but
the equities now only 250,000 support exactly that the kids get attached but
it’s still a hundred thousand pounds but I know which bill I’d rather get they
now maybe only need to sell one house maybe two I know where I’d rather be now
by the way when I do my fault teaching you’ll learn how to not even pay the
hundred thousand pound bill there but for simplicity I want you to get these
two core principles by following those principles never ever sell your
investment properties and as the property goes up in value increase your
debt against it with income tax efficient capital gains tax efficient
and inheritance tax efficient now I’m sure you’re now starting to see
how we’re being tax efficient if I jump back to the income example though one of
the challenges is people say to me Aaron this all makes sense I’m being really
tax efficient but where’s my profit I’m going to need a heck of a lot houses at
200 pounds a month to be making great profit that’s true however let me show
you now exactly how the professionals take their profits how do the
professionals take their profits so let’s look at a hundred thousand pound
example property with a seventy five thousand mortgage on it and twenty five
thousand of equity okay let’s assume over the next one two
three four years however long it takes the property goes up in value 20 percent
so it’s now worth one hundred and twenty thousand pounds we’ve got a mortgage on
it we go back to the bank we say can I borrow seventy five percent of the new
value the bank say course you can so you borrow 90 thousand pounds now the rent
is paying for that increase cost you pay off the old mortgage of seventy five
thousand that’s paid off and the balance the extra fifteen thousand what the bank
do the other mortgage paid off the balance they put into your current
account is 15,000 pounds future spent now I want you to notice three things on
this slide the first is the right-hand column the equity column even though
we’ve borrowed more money now the equity has gone up from 25,000 to 30,000 and
next time it goes up to 36 then 243 so it keeps increasing through the years
okay the second thing I want you to notice which is really exciting is the
compound effect next time it goes up 20 percent because it’s 20 percent of 120
the growth is twenty four thousand instead of just 20 thousand so the
amount you can release next time 75% of that is 18 thousand so the fifteen
thousand this is an inflation proof release the time after that is twenty
one thousand six hundred but I’m not the third thing I want you to know it’s
really important like the money you release because it’s money that you’ve
borrowed it goes in your bank account but it’s not an income it’s money you
borrowed so there is no tax to pay is tax-free fifteen thousand three eighteen
thousand actually twenty one thousand tax-free it’s tax-free okay now I’m sure
you’d get it if I said to you look this is how you build a poor
you buy a couple of these houses they go 20% might get one year two year four
years whatever it takes you release 15,000 house one 15,000 house – you’ve
got 30,000 pounds that’s enough to buy number three now because you’ve got
three what people that realize that there’s three going up in value now they
only need to go up about 13 percent for you to be able to release money from the
three – by number four now you’ve got four going up in value because there’s
four the only needs to go up about ten percent you can release it by number
five now you got five minutes go by eight percent people at least by number
six it gets faster and faster and faster and faster and faster start now get on
with it buy them as soon as possible because you’ll get to your end as
quickly as possible or you’ll have a bigger end because you are far more now
let’s assume you did that for 10 years you started with two and you built a
potful over the next 10 years and 10 years and I came and saw you say Darren
it’s brilliant I’ve got nine properties now because that’s what you would grow
to nine properties and they’re all worth I said they’d gone up with just 5% year
the national average is 7.9 percent a year for the last eighty five years but
they say it was just five percent a year so they’ve gone up and these properties
are worth about 150 thousand each got nine of them so you’ve got each of those
are making you 200 pounds a month so it’s about twenty twenty-five thousand
pounds a year of rental profit unfortunately have to pay tax on that
bit but on this bit you’ve got a pot further that’s 1.4 million pounds in
value a million of mortgages and three hundred and fifty thousand of equity
okay now you say to me our and that’s so good 9 ounces I’m happy with that I
don’t want any more so next year the houses go up five percent let’s assume
so they’ve gone up to 70,000 i come back to take brilliant news your properties
have gone up in value seventy thousand pounds you can release fifty two
thousand five hundred just like you’ve been releasing through the years to buy
more houses tax-free you can release that much you say Erin
that sounds great but I told you I don’t wanna buy any more houses so I don’t
need to do that I’ve got enough I said well that’s really cool why don’t you
release anyway just like you’ve done for last ten years in the same way tax-free
but instead of buying more houses spend it on a can go on holiday quit your job
and live off it tax like having 70 thousand pound salary by
the way next year 5% you can release 55,000 the year after that 58,000 how
cool is that by the way if you’re not smiling because you’re in your head
listening smile this is amazing this is amazing stuff now couple of bits you
might say to me look Aaron the market is not going to put 5% every year just I
stand it that’s true so suddenly is you get double-digit growth 10% growth you
can release 105 thousand what you have to do is stick to your budget so when
you can release something five you still just spend 52 an hour the other 52 1/2
goes in a rainy day bank account for the poor years that might happen for four or
five years you’ve built up a really good continuously and then you might have
four or five years away it doesn’t go up at all or it’s a bit negative and you
live off a contingency pot if on average it goes up at five percent then this is
what on average you can release okay so you put your averages in remembered 5%
is actually when you compound it over 10 years it’s half of the national average
compounded seven point nine percent compound is double five percent
compounded over ten years okay so I feel really safe and secure modeling of that
now the other thing is you might say Erin I only need 30 thousand tax-free on
this right hand side and I only believe it will go up false and I said fine well
thirty thousand means you need forty thousand of growth at four percent that
means you need a million pound Papa Mia we now know what size pot for the unit
so be assist you know Erin tiny sixty thousand tax-free but I also only
believe four percent great sixty thousand means 80 thousand growth of
folks that you need a two million pound pop of it once you understand this
equation you can work out what size pot fill you you need to build to be able to
release tax-free the amount of money you need beautiful okay
the summary here is never ever sell your investment properties as the property
goes up in value increase your debt against it use this strategy we want to
a multiple properties and gear at seventy five percent by the way gearing
is how much you borrow the house is worth hundred thousand how much you’re
going to borrow against it I’m saying borrow 75 percent letting you borrow
seventy five thousand in that sample as it goes up you borrow more okay the
ramada G’s out there are eighty percent eighty five percent for me personally
it’s in my interest to get people to gear
is they buy more houses me or my done for you it’s too risky
I don’t tell them – you want to leave head room of 25% safe secure portfolio
plan make sure you always leave Headroom to protect you but don’t gear lower than
that though you want to gear at that level because that’s where you get your
leverage and that’s where you get your real growth you’ll see that in a moment
when I show you building a portfolio so that has been briefly and quickly the
time-tested tax toolkit which is all part of the safe secure portfolio flap
okay now I said and about by the way I know you’ve been fighting questions in
which is awesome keep typing those in I said I was going to make a phenomenal
offer for you and just before I do that I just want to check if it’s worth me
staying on I said it’s that I said we’ll go through and do the taxes I said if
people want me to I’ll stay on and show you how we had done for you service we
build a really awesome portfolio for people so we can show you how with
105,000 investment over maybe a ten year period you can build a portfolio of
eight to ten houses and be taking a tax-free release of 40,000 per annum
maybe up to 60,000 with the rental profit as well so I’ve just put a quick
poll up if you can’t click on the poll for any reason just type in the air in
the chat box it’s private there you know would you be
interested in me staying on for another 20 minutes and showing you how to build
a portfolio with about 100k investment you can invest less than that but how
you build a portfolio that creates that kind of income so you might be a yes
please I’d like to know more you might be a maybe I’d like to know more let’s
see some more or you might be another thank you I’m just here for the
education on tax and I don’t want to hear anything else about building a
portfolio and that’s fine as well so what I’m going to ask is each and every
one of you I’m going to grab a quick drink but can ask that you click as
quickly as possible on the relevant tab that’s relevant for you so you know you
every single one of you can click one of those if you can’t click then just type
it in the chat box so I know I don’t want to stay on and do it if none of you
want it but but but just so I know I mean from early guidance I can see
there’s about 70 78% of you are either in that yes or maybe bracket most of you
in the yes bracket so but get quick as quickly as you can
have a very quick drink I’ll be back with you in 30 seconds click right now
or type it in that chat box okay so yeah so we’ve got loads and
loads and loads of you holders of you wanting me to stay on and cover that so
we’ll do that in just a moment just before we do that and as I said if you
can’t click on the poll type it in the chat box so I can see and I can see
where you’re at with this and it’s fine either way the final piece for those of
you who would you see for the education and also for you those of you that want
to go out and now to grow a portfolio I said I’d give you one final phenomenal
offer I I like to make people’s transactions with me a no-brainer
okay you’ll see that when I cover I don’t for you service shortly and how to
build probably you’ll see it’s a no we make it a no-brainer I want to do the
same with education I want to help you get to your next level education I know
if you spend time around me by the way I’m not stupid
I know if you spend time around me and I give you awesome content eventually it’s
a point you’ll go what else do you do and then you’ll buy one of my products
you’ll work with me on something okay but you’ve seen I’m here to give great
awesome content my one-day event is normally 297 pounds as a thank you for
your spending this time with me today I’m going to give you a gift you can
come and spend a day with me a full day 8-hours live me onstage teaching you any
of those venues you can come and spend that day with me for free I’m going to
give you a full day with me totally and totally for free remember it that day
we’re going to cover how regardless of your time your money or your experience
you can grow a really really successful portfolio that makes you forty thousand
two hundred thousand pounds plus a year we’re going to cover the five main
strategies in property and how to choose the right one for you we’re going to
cover the ten key areas that you need to master in your property investing and
how to get to an eight nine or ten or each of them we’re going to cover how to
make sure you only ever by outstanding investment properties only ever by
outstanding ones what I call diamonds you don’t want rubies or emeralds or
lumps of coal you want diamond property during your by eight to ten of them you
may as well make sure every one you buy is outstanding all of that from me in
person for free on top of that if you want to click through and do that here’s
the website you need to go to right now to get your place so while I’m talking
just type it in double uw-w bottom left there www are
encouraged you K stroke P SS 1p s S stands for property success or MIT
that’s the name of the the one-day event so www dot are incorrect you guys wrote
P SS one what I’m going to give you as well as that ticket is if you found
great value in this webinar I’ve got my property investing made easy master
class okay my online master class now if there’s an image there of it you know
it’s a DVD boxset I’m not going to give you the DVD boxset that cost me a
fortune to send that to you but I’m going to give you online access to all
of that for free for free so you know you can get that for free you can get
the course to get for free as well you’re going to pay a price of neal
morphing okay so if you would like to claim that just go to www.irs.gov go grab it okay by the way when you go
to that domain name this is what you’re going to see you’re going to see the
property success so make it is a whole page it tells you a load of information
about it it’s totally free and it will have the upcoming event in that bottom
bar there you can see some some example events but it’ll have the upcoming event
and date so you can choose appropriately for you okay
then once you click to say you’d like to register it will ask you just for your
name your email address and your phone number you click register now okay and
once you register you’ll get a thank you page so you know that you’ve that you’ve
got registered and then we’ll email you a link so you can get live on to your
you’ll get live on to your property investing made easy master class you’ll
get linked and you can get that straight away so go ahead right now and get that
it’s totally free so you might as well www Arrancar a coat you K stroke P ff1
okay now while some of you are going and doing that okay I feel like pausing but
I know you’ll do that while I’m talking so I’ll let you get on and do that okay
by the way yeah just just go ahead and do that
that’s available for you until midnight tonight midnight tonight you can go to
that domain name and get yourself registered okay so and if you buy the
final piece if you’re not sure where you want to come to or when you can come or
which venue if there’s also a TBC button so you’ll see the next three events we
got but if none of the suit you are the day to do it so you just click the TBC
to be confirmed put your details in then and the team will reach out to you and
they can tell you the events for the whole the next year and you can pick the
relevant ones that’s best for for your situation okay so let’s move on while
you’re doing that let’s move on so we said that we were going to look at the
how to build a really successful portfolio okay so I’m just going to
spend maybe 20 minutes just doing this with you maybe 15 20 minutes so how
would you build a really successful properly well the first thing is you
have to be bang Diamond properties you have to be buying the right properties
the right investments we call a succeeds I don’t have time to cover that in
detail but we’re ruthless absolutely ruthless okay my team look at over 100
million pounds worth of property a month and sift through that to find
outstanding properties for our clients as I said earlier on we bought over a
thousand properties for our clients we know what works or succeeds of crucial
this product that we have called cash flow builder is designed to do exactly
that build you cash flow as well as asset growth when you buy an investment
you want to be getting both great cash flow today and great asset growth in the
long term both are critical it’s ideal for people any success or one of the
things I teach is any successful property purchase needs three things at
the table you can provide all three you can provide the money it needs money you
can’t buy a house without money it needs time somebody has to put the effort into
source an amazing deal to negotiate on it somebody has to put the effort in to
learn those skills somebody else put the effort in to pick the right mortgage to
pick the visitor so this but the effort in to refurbish
it someone else put the effort in to manage it long term and it needs
experience you know when I started investing my first 10 properties we’re a
disaster because I was putting the time in now a good friend of mine mark was
putting the money in and neither has had any experience
so we were losing hundreds of pounds thousands of pounds a couple of times
tens of thousand pounds making big mistakes because we didn’t have the
experience at the table it’s only when they can make some mastery and realize
how much someone with experience could teach me what they’ve learned in decades
in just a few days and suddenly my investing rocketed okay so you need to
have all three at the table you can bring all three to the table however
what we do with cash flow bill that if you have got a lump of money and you’ll
really don’t have as much time as you’d like because you don’t want to create a
second job for yourself I’m assuming or you don’t have the experience then this
product could be perfect for you okay we’ve got clients who join us but we’re
just starting out and they say I need someone with experience this is perfect
for me you know great investment value how many saw will experience we have
clients who’ve got three or four properties and they send you know what
this takes a load of time I didn’t I wanted to be an investor but I’ve
created a second job I don’t have time for this but I want more
can you do this and you’ve also got more experience but a lot more than three or
four or five good and we have people that have ten eleven plus is good you
know what I’ve got some experience he I could probably keep doing this myself
not as well as you but I could do it myself
but I really don’t have a sign missus hassle here you go do this for my dad so
when we’re investing for you we’re buying outstanding properties the best
properties at the moment in the UK are in the price bracket of 70 to 130 K of
value that’s the sweet spot when you’re investing in the UK okay and if you
don’t believe that just good tonight on Rightmove or something like that
type in and look find a house anywhere in the UK you can buy for a hundred
thousand pounds and you know check the rent on it it’s probably about six
hundred a month depending on the area there abouts
letting the same area find a house you can buy for two hundred thousand pounds
and check what it read for and it rent work rent for twelve hundred pounds it
won’t be double there be eleven hundred maybe nine nine five in that example so
you want to be getting the best yields of sweets what is seventy thousand up to
130 probably up to 125 normally because of the stamp duty kicking in at 125 so
that’s where you want to be buying your properties if that’s not in your area if
you’re listening to from me in London family let’s don’t work in London you
shouldn’t be buying family let’s remember because the upside down on cash
flow that they wouldn’t pass what we call the sixties they’re not diamond
properties your property should make you money
regardless of what’s happening in the marketplace or weathered in all all
seasons when the markets flap when it’s rising it should be making you money so
we by outstanding diamond properties it’s safe and secure we follow all the
stuff I teach all the rules I teach you’ve heard of AP of it today 20 days
with the content all sorting to my teams you’ve got no times of any type okay
you’re not tied to us in any way it’s bespoke and personal to you I’m going to
show you an example in a moment how we build a portfolio but we actually
bespoke it to you we build the portfolio in a bespoke way for your goals what
what resources do you have today what your long-term goals and then let’s
build a plan for you okay because everybody’s plans different everyone’s
outcomes are different okay as an aside know most people who do a done-for-you
service alike just get it done for me I don’t need to learn about this but other
people say while you’re doing it for me will you also teach me for that reason
all of my education of my three-day event my 60 hours online trading that
lasts a year my personal forum where you can come on and ask me any question you
want for a whole year and I personally go on there and answer you so you’ve got
me as your personal mentor when you invest with us and we buy properties for
you and on this on this service then once you’ve got and forgive me we’ve got
the wrong number on that once you’ve got a total of four properties in your
investment properly err so the four properties in your investment properly
once that’s actually happened then what happens is you get access to all of my
education for free every last bit of it for free okay so um you know some of you
will go it’s done for you service you’re doing it for me I don’t need any
education but others will go wow you’re going to teach me why I go along so you
can start buying something from me now that we really get me going and get
things successful but if I learn why am I going along eventually I might take
over and buy them myself often you won’t because you’ll realize
it’s hard work and how good we are even though you’ve had learning but you can
do that you can learn and then do it yourself some people invest some money
with us get the learning and invest some other money themselves depends what
monies you’ve got depends what your goal is it depends
what your what you’re trying to achieve and what you’d like to achieve so you’ve
got the capability you’ve got the ability to be able to invest in the way
that you’d like okay it’s all hands-free this is a hands-free investment so
you’re going to invest anywhere from thirty five thousand up to up to seven
hundred seven hundred fifty thousand you’ll see it’s multiples of thirty five
a typical investor with us a typical investor normally invests about the you
know around the forgive me for losing my flow their typical investor normally
invests around 105 to 140,000 pounds when we invest with us that’s the type
of level that they’re that they’re investing at however however you may
decide that you want to invest your thirty five thousand you may decide
you’ve got four more you want to go a lot quicker this is again where we said
we need to bespoke this for you we need to make this a bespoke investment so you
know exactly what the returns are you going to get from the investment and you
know exactly how this particular investment is going to grow for you so
we’ve bespoke it specifically for you now what we’re going to do is look at an
example property let’s look at an example investment and what you’d be
able to achieve if you were to a to invest with us so you know if a typical
property is between 70 and 130 let’s take a scenario and let’s assume that
you invest and you buy they say a 90 thousand pound property four foot four
now let’s let’s look at that threshold you buy a 90 thousand pound property so
when you buy this 90 thousand pound property then you’re going to need to
put down a deposit so let me catch your screen up so you can see this so you’ve
got a 90 thousand pound property I’m going to give you an example by the way
one hundred and five thousand pound investor because that’s a typical
investment with us so you’re 90 thousand pound property you
put down the deposit of twenty two and a half thousand pounds and you get a
mortgage of sixty seven thousand five hundred and by the way this house I’m
showing you here the magnetar you go that’s not a particularly nice with used
to with our hat when we buy a residential
property we make hard decisions we buy as a home buyer so many investors when
they start working with them they looking to walk into a public B can’t
help it their brain goes off would I like to live here
that’s not important it is important that lots of people want to live here
one of the checks that we run is to make sure at least 10 people reply to an
advert in the first week if they do you know it’ll rank easily if they don’t we
walk away however good the deal okay that’s one of the things that makes us
reject a lot of property if you’ve got twenty people want to live here it’s
irrelevant whether you do ok so this example once you’re an investor you
think with your brain not your heart and at one of the challenges we have is a
connection with investing it all with homes is a heart connection so I’m going
to move you into your head so this is an end Terrace it’s actually looks like
it’s like in some of these asteroids and terracing these 3-bedroom property so
you buy this property you put a twenty two and a half thousand pound deposit
there now what else happens here when you put that deposit down and buy this
property you also have other costs and fees so what I’ve done is I’ve listed
the typical costs and fees for you so you can see what those costs and fees
are okay and they’re scattered across the page there just to confuse you and
but basically the typical costs and fees when you buy an investment property but
you come across a you’ve got a solicitor and included with the searches so this
is going to cost you about a thousand pounds okay you’ve got a mortgage
valuation to pay for typical mortgage valuation is about three hundred and
fifty five pounds you’ve got a gas check and an energy performance certificate
which is about 130 pounds I’ve built into the factoring here I’ve built in
paying for the refurbishment now a typical refurbishment is about three
thousand pounds okay so now because we’re refurbishing 15 to 20 properties a
month then when we’re refurbishing we really drive the cost down and that
economy of scale gets passed on to our investors they don’t pay extra so you’re
going to get maybe a kitchen a bathroom and redecorate for that investment
amount okay now if the reversion is going to cost a bit more we need to
negotiate even better and get more money off the price okay
we’ve covered the tenant time to get your first center we’ve covered the
mortgage brokers fees we could stamp duty sir you’ve spent about eight
thousand pounds – not just by this property but
refurbish it get it ready to let get it tenant it and get it bought okay so
every cost has been accounted for there I thought I’d list them for you so
you’ve got those cost there okay so if we go back to the previous page then
when we go back to that previous page you’ve spent twenty two thousand five
hundred as a deposit and another eight thousand approximately on those costs so
you spent about thirty thousand pounds now the in fact group doesn’t do all of
this for free we’re gonna build you an outstanding portfolio so we’re going to
find the house negotiate on it diamond houses only negotiate on it sort the
solicitor out get you the best mortgage so it make sure it’s the best mortgage
get the property bought then refurbish it for you organize the refurbishment
then soar out will cast letting agent to manage it for you okay and then on top
of that for at least twelve years probably longer however long you want to
do it we’re going to keep tracking that houses performance because if we buy you
three just out with in a couple of years we can say release money from number one
and three you can buy number four year after that release number four four and
two you can buy number five from five and one user by number six we’re gonna
track that if you track that intelligently and articulately every six
months we’ll review you’ll know where you are you’ll know where you’re going
if we track that sensibly articulately what we can do is knock at least a
couple of years off your investment journey if it’s going to be a 12 year
plan it becomes a 10-year plan we do all of that in with what we do okay so what
do we charge for doing that you can go online tonight you can go do this
yourself it will cost you nothing but it will cost you a lot more when you make
those mistakes and do it by outstanding properties that cost you a load of time
that’s option what option two you can Google property sorcerer tonight online
lots of property sources professional people who make a living sourcing
properties will come up what they do is find a motivated seller put you in touch
with them they charge about three thousand pounds for that but you then
have to sort everything else out the mortgage the refurb the finding agent
the management they get the property bought and then managing it for next 12
years making sure it’s refinanced making sure it’s on the best deal you have to
do all that yourself and it’s cost you three thousand pounds okay
so what do we charge there are two simple investments with us if you’re
going to invest with us to do this very simple we charge three and a
half thousand pounds plus back that is if that covers doing all of this for you
and mentoring you for next 12 years to make sure you’re always refinancing when
you should and buying more properties and building an outstanding property
portfolio plus all the bits today to find a great property in the next four
to eight weeks then get it bought for you then sort the solicitors then sort
the mortgage then get it refurbished for you manage all that so you don’t even
have to do any of this and then get a world-class letting agent to manage it
and our world-class letting agent by the way is rental insect now I haven’t gone
crazy out of that three and a half thousand pounds we make about a thousand
pounds of profit that’s it because I’ve got four full-time professionals backing
these great deals but we do volume we’ll do thirty properties a month that will
report me for me will then let the properties for all you are manage them
you’re not tied to us you don’t have to users remember no times if you do use my
letting agency rental insight they’ve got very average fees four hundred plus
VAT for a tenant find and then separately ten percent was back to
manage the property so if we collect the rent we get ten percent of it if we
don’t collect it we do get paid so we’re going to collect okay our properties
were 98 cent occupies 95 percent rent collected because we’re only buying
outstanding properties that we’ll rent well okay because we want to make it win
for us as well as you so the benefit I get is if you’re never ever going to
sell it and I give an outstanding service at my letting agency I get a
client for life for the letting agent sir dad so very very simply that is it
that’s your investment so do you want to put all the effort in yourself and all
the timing yourself to source your properties and to get them bought and to
manage them and know when to refine answer and you have that experience if
you feel you do then come to my one-day event I’ll educate you if not though
this service will do this for you that’s a real minimal investment at three and a
half thousand levels back to guarantee you’ll have an outstanding property to
guarantee successes you’ll get over covered in detail to that but to
guarantee those things okay so by the way if you’re interested in this I’ll
send you out a lot more information you can check it out this for clarity no
profit share with me I used to have a product where people fact I still do
where people give me a share of the profits a share of the
upside and for some service I bring to the table person like and but that isn’t
this product for to clarity if you’ve seen anything else so that is it that’s
all you pay no hidden costs so let’s go back to the example we buy this property
you’ve spent in this example thirty thousand five hundred to buy it and pay
all the costs and fees and get it rented and then just four thousand pounds three
and a half thousand plus back with us so you’ve just spent under thirty five
thousand to buy your first property so with a hundred and five thousand
invested you’d be able to buy three of these one two three you’ve got three
properties or bought or refurbished they’re probably worth about ninety
three thousand pounds each because you’ve refurbished them because if all
you know decorating the walls doesn’t add value but kitchens and bathrooms
does and you’ve got three properties all up and running now let’s fast forward
this we take these three properties now we’re waiting for the market to go the
market goes up over the net we assume zero percent growth year one and then
just 5% per year after that okay so let’s assume that in that
scenario these three properties in three years time are worth about ten thousand
pounds more we go back to the bank we said can I borrow seventy five percent
of the new figure this a course you can you can borrow do some the seventy seven
thousand the rates have gone up they’re paying for the new mortgage your old
mortgage was sixty seven and a half so you’re able to release nine thousand
four hundred on property one same on property to say my property three you’ve
released twenty eight thousand pounds okay on top of that they’ve been making
rental profit now these properties we guarantee at eight percent yield
that means if it’s a hundred thousand pounds property we’re guaranteeing on a
hundred thousand pound property but it’s going to rent for at least eight
thousand pounds a year which when you break it down is at least six hundred
and seventy pounds a month they’re good yields that these properties are
bringing in okay so but as perhaps making that guarantee
to you you need to know but we’re then going to we’re then going to deliver on
that on that guarantee so what we do is we say that that will equate to at least
two hundred pounds a month of net profit a minimum of two hundred pounds a month
of net profit however you know because I want you to plan for
worst case I’ve modeled this only 5% growth the other thing that we’ve
modelled this on is we’ve modeled it on assuming they only make you a hundred
pounds a month less than they’re actually going to make it in fact
probably more than that but if we assume that they’re going to make you 100
pounds a month less then we assume they’re only going to make you hundred
twenty-five pound a month of profit to be really cautious so if that was the
scenario and we’ve got that scenario then the rental profit that we’ve got
kicking in is about four and a half thousand pounds it goes up a bit with
inflation so you’ve made in three years twenty-eight thousand pounds of growth
that you’ve released and about fourteen thousand a rental profit that’s 42
thousand on the right-hand column that’s enough now to buy property number four
you’ve now got four properties this is assuming you leave you rent a profit in
some of you will want to take those out and spend them it will just take you a
bit longer to get property for some of you will leave all your profits in and
you’re growing this for the future the bottom line is by the end of year three
you’ve now got four properties and even though you’ve had to pay these eight
thousand of costs that you have to pay as a one-off when you first buy a house
one off cost you keep down for four years but you only paid all those cost
once even though you’ve paid that across four houses you’ve still got 41 percent
growth on your money even though now let’s now fast forward this and get
exciting four properties go up in value those four properties go up in value
over the next couple of years you can release money and by the fifth okay and
then the five properties go up in value etc so let’s buy year seven let’s look
at this table make it simple in Year seven you can release 35,000 pounds but
you need 44,000 to buy the next one so you don’t buy any properties that you
you stick at fact now in reality you could add to this you can always bespoke
you can add to it you can take out a bit year you might add some money and speed
it up yeah you can release 68,000 you need 46 so you can buy one you get six
properties yeah now you buy another you can see now by year eight you’re buying
one property in a year by year 13 you start buying two properties a year how
it speeds up and speeds up debt really phenomenal now here’s the exciting bit
remember this is a hundred and five thousand investment example you can
invest less or more with hundred five thousand by year seven
if you stopped at that point at our and I want to stop now you’ve now got five
properties each of those let’s say they’re making you 2,000 pounds a year
of rental profit you have to pay tax on that boots profit so five times 2,000
that’s 10,000 of rental profit but the final colony is the exciting one based
on what you’ve learned tax efficiently you’d be able to release twenty three
thousand four hundred a year inflation proof for the rest of your life tax-free
plus the ten thousand you’re on thirty three thousand a year now let’s say
that’s not enough for you you might go ten year plan ten-year hundred five
thousand invested being cautious you’d have eight properties you’re
releasing forty three thousand a year tax-free plus eight times two thousand
eight sixteen thousand rental profit you’re on sixty thousand so let me go
that’s not enough of a twelve-year flab sixty thousand releases tax-free its
equipment about ninety thousand of income eighty five ninety plus ten
properties at two thousand a year twenty thousand around a profit you’re over a
hundred thousand pounds equivalent from a hundred and five thousand invested to
start with okay if you don’t do it with me please please do it but we will do
this for you there is all the costs are included in your thirty five thousand
investment or hundred five or 250 whatever you put in everything’s
included now if this is of interest I want to finish off the webinar if this
is of interest remember you get all the education in with this remember you’ve
got peace of mind because we’re bank diamond properties you need to learn
what they are you know remember this is bespoke and personal to you we look at a
hundred properties just to recommend one to you thoroughly professionals people
who do this for a day job through sifting – and you’ve got no Taine’s
whatsoever you might commit to building ten properties but you can stop whenever
you want not tied to us at all you don’t have to use my agency if we’re
outstanding you will every investor has if you don’t want it you can manage them
yourself okay now if this is of interest to you okay if this is of interest then
what we can do is what I’m going to do is Chris it’s like up a pole for you
okay if this is of interest then and you would like to reserve a slot then just
click on the pole and let me know if you can click for any reason type in the
chat box so what I’m going to say about reserving a slot by the way
we work with 10 prop 10 kinds every month we know we can buy 30 properties a
month on cash flow builder service an average client invests one hundred and
five thousand often a lot more so they need three when they invest a 10 clients
times 3 is 30 probably so we kept ourselves at 10 clients we find our
clients through webinars like this or through the events that we do when we’re
at the events people love what I teach and some of them go up and say I love
that I can see that you’re a genuine guide like to use you to build a
portfolio for me and so we know will easily reach 10m of we always reach that
capacity no problem whatsoever okay so we’re not there’s no pressure here from
us but if it’s potentially of interest what we don’t want you to do it’s been a
situation where you’re fighting with others first lot so what we say is you
spent an hour hour and a half with us now today because you spent that time
I’d like to give you the opportunity to reserve a slot when you reserve us what
what we’ll do my team will work with you over the next 21 days to get you
everything that you need so they’ll email out to you in the next 48 hours
probably the next 24 they’ll send out to you a full copy of a webinar now we’re
in a quarter me going through the cash flow builder model we’ve done it in 20
minutes now the detail a so you can watch it in detail see how to buy gold
and properties how we build it up but B you can share it with spousal of ones
other people who who are a part of this decision secondly we’ll send you a
spreadsheet you can then drop your own numbers into that spreadsheet you can
say well how’s this going to work for me if I put an extra ten thousand a year in
what would that look like if I invest three hundred fifty thousand how fast
could I retire how fast could I build a forty thousand income with three hundred
fifty thousand map in two or three years you know you can look at all the
different scenarios okay and then on top of that my team will
make sure we answer every single question you need to do your due
diligence and check us out and decide if we’re the right company for you and we
know out of everybody serves a slot a third go ahead in the next month with us
they’re ready to rock and roll they might need to release the equity from
their own house but we’ll help you do that as well that’s part of the service
will help you to review and see what you can release if you’ve not done that we
can do that for free with my mortgage teams
a third of you will go ahead to right away a third of you will go ahead over
the months to come and a third of you won’t and that’s fine we’ll just get you
all the information and you can decide but you need to reserve a slot because
then what we’ll do in the next 21 days might eat we’ll just focus on you it
won’t focus on other people they get all your questions answered so you can work
out if this is for you or not for you and either way is fine okay by the way
you might want to in you Judith as well as to speak to previous clients people
who are getting outstanding service for us already and I won’t just give you my
two best friends but numbers to ring up I’ll give you here’s a list of 15 people
take any couple you want and we’ll introduce you then here’s another list
of 15 if you need some more pick another couple we’ve got stacks and stacks are
really happy client so so lots of you clicked already it’s either yes please
reserve me a slot maybe interested please send me some more information
okay we’ve got about 40% of the audience of click yes please which is eighth
we’ve got about 20 percent in that maybe we’ve got some people clicking can I
come and visit your office you absolutely can you know you meet the
team and it’s not just me our webinars over 40 members of team that deliver
this service come and visitors head offices in Scarborough now just to make
you aware three hours approximately on the train from London if you come in
from the south but come and join us okay you might want
to attend one of our discovery days a Discovery Day is specifically for this
product so it’s only it’s not a training thing the training thing was my
properties excessively we did that earlier a Discovery Day is me me in
person again white at my eyes you get to meet us and we spend four or five hours
you’re in a group of 10 to 20 people and we go through this in detail and then
you can again helps you work out this is for you so you might prefer to do that
and attended the Discovery Day if you down south we run them in London and
scabrous if you’re down south you might prefer to go to London and do that or
you might be say no thank you I was just in for the education I was just having a
look and seeing what you were doing so if I can just ask each and every one of
you to click as quickly as you possibly can if you’re not able to click for any
reason because of your software type it in the chat box but can every single one
of you you’ll be one of those things if you don’t click anything my team are
going to ring you to get feedback so they’re going to ring you up anyway so
you may as well click one and then we know which you are and we just send you
the right information you know if you’re a yes please or a maybe we’ll send you
the information if you’re a discovery day we’ll
we’ll send you the information on the discovery days the dates and get your
booked on one of you on a visit office will contact you arrange to do that if
you know thank you that’s totally cool as well so click as quickly as you can
type it in I’m going to grab a very quick drink it will just spend a couple
of minutes to finish off so that we do very shortly okay so thank you for
clicking so quick is about seventy percent of you either in that yes that
maybe or can I visit our discovery day so I’m delighted about that and I really
really look forward to working with you we’ll get all the information out to you
and then you can work out if we’re the right fit for you that’s that’s
absolutely great okay so as I said before if you can put your information
in there then use the same headings but yes please can I reserve a slot maybe
please send me information can I come and visit you can i book a discovery day
or no thank you and just tag that in the chat box and my
team know where you are okay so we’re going to finish off just by
saying look when you move forward you want to invest with knowledge you want
to invest with confidence because you can create financial freedom you know
I’ve helped people hundreds of people now move from wherever you are right now
across the financial freedom through probably either on my done-for-you
service or my education you know some of you will have taken that offer some of
you will have said you know what I want to reserve a slot he works with ten
clients a month bought over a thousand properties I’d like to reserve a slot
I’d like to work on that some of you will want to attend the education you’ll
have booked to come and attend the education by the way if you weren’t able
for any reason to get to WWWE and Cory coat the is what that was to book your
one-day event if for any reason you couldn’t get on the domain for any
reason I’m sure you could but I’ll put a pole up for that as well so you can
click on this today yes I’d like to come to the one-day event this is different
to discovery Davis’s education please can you contact call me and sort the
details you might say maybe can I have more information or no thank you
so again click on that or if you’re not able to click type it in the chat box
but make sure it’s clear that this is about the one-day event can they please
can you can I come to it when there then maybe I’d like the one-day event
information honor thank you put on the chat box or just click the relevant
whoop ok so we’re going to finish now so bottom line invest with knowledge
invest with confidence create financial freedom I really really hope you’ve
enjoyed the webinar I wish you all the best view investing whether you do that
with us or yourself and yeah best best wishes you will get invited to some
further webinars I run webinars every couple of weeks come and join us on
those get get my free education and look forward to working with you
best wishes thank you bye

4 thoughts on “How Professionals Take Their Profits from Property

  1. Interesting.
    The topic on inheritance tax was skipped over very quickly so I question that. Also the Capital Gains washout rule is no longer valid so unclear when this webinar was recorded.
    It makes a number of claims on tax reduction no longer relevant…

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