PeCo Investments

02/12/2021

𝐖𝐡𝐨'𝐬 𝐆𝐨𝐭 𝐌𝐲 𝐃𝐞𝐚𝐥𝐬? 💁‍♂️

Making property deals stack for an investment has got harder over the past couple of years due to market conditions.

While it is true that some properties are fetching a premium right now, we understand that there are other unloved properties out there who's owners are crying out for solutions... They are just harder to find!

That's where 𝐘𝐎𝐔 come in 😉

If you are a deal sourcer, or you know someone who has a problem property in the North East that they need to sell, then I'd love to hear from you!

Send us a message and let's chat about how we can 𝘱𝘢𝘺 𝘺𝘰𝘶 𝘧𝘰𝘳 𝘦𝘷𝘦𝘳𝘺 𝘱𝘳𝘰𝘱𝘦𝘳𝘵𝘺 you refer to us 👋

24/10/2021

More investment in the area!

The cash will help to finance revolutionary projects across all modes of travel, including rail, road, bus and cycling in Teesside, Darlington and Hartlepool

06/10/2021

Out and about on the hunt! 👀

I spent this morning out and about (using my precious fuel 😂) looking for empty properties that arent advertised for sale...

Why?

Anything on the market right now is HOT 🔥 and going for well above what I'd be looking to pay, so you got to look for stuff that other people aren't looking at.

This way you:

👉🏼 Have a good chance of securing a discount
👉🏼 Find properties you can add value to
👉🏼 Help the owner solve their problem
👉🏼 Help tidy up the local area from empty properties
👉🏼 Provide more homes for local families

In about 1.5hrs, I have turned up 20 empty houses, plus 2 larger commercial properties 👌🏻

Key things to look out for:

🏡 Boarded up doors/windows
🏡 Windowlene covered windows
🏡 Post hanging out the letterbox
🏡 Overgrown gardens
🏡 A build up of rubbish
🏡 General dis-repair

Now it's onto the next part - contacting the owners to see if I can help to solve a problem for them...

04/09/2021

👉 𝐇𝐚𝐯𝐞 𝐚 𝐏𝐫𝐨𝐩𝐞𝐫𝐭𝐲 𝐭𝐨 𝐒𝐞𝐥𝐥? 🏠

If you are looking for a quick sale, or have a property that you are struggling to sell, then contact us today to see how we can help!

We can help with:

✅ Empty/Unwanted Property
✅ Property in Need of Repair
✅ Un-mortgageable Property
✅ Property in Negative Equity
✅ Quick Sales/Property Take Overs
✅ Portfolio Downsizing

We are Looking for:

🏠 Family Homes
🏤HMOs
🏢 Commercial Property

💰 𝑾𝒆 𝑨𝒍𝒔𝒐 𝑷𝒂𝒚 𝑪𝒂𝒔𝒉 𝑭𝒐𝒓 𝑳𝒆𝒂𝒅𝒔!

Earn £500 on completion of any property you refer to us!

Just keep an eye out for empty properties in your area (They mustn't be already advertised for sale!), and send us the details, we will do the rest!

Get in touch with us today to see if we can help you!

𝐓: +𝟒𝟒 𝟎𝟏𝟔𝟒𝟐 𝟑𝟎𝟗𝟑𝟏𝟓
𝐖: 𝐰𝐰𝐰.𝐩𝐞𝐜𝐨𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭𝐬.𝐜𝐨.𝐮𝐤
𝐄: 𝐈𝐧𝐟𝐨@𝐩𝐞𝐜𝐨𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭𝐬.𝐜𝐨.𝐮𝐤

03/09/2021

𝐖𝐡𝐨’𝐬 𝐠𝐨𝐭 𝐲𝐨𝐮𝐫 𝐦𝐨𝐧𝐞𝐲? 👀

By far one of the biggest things we all struggle with when trying to get started in the grand old world of property is figuring out how to actually get the money to buy the bloody things, right? 🤷‍♂️

I mean, houses aren’t cheap, let’s be honest, and if you don’t have any of your own capital to start with then it can seem like an impossible task to get started.

Even if you do, I’m sure you don’t have an endless pot of cash 💰 so even you lot will need some extra funding eventually (and by the way, if you do have a pot of endless cash, be sure to drop me a message! 😁)

𝑻𝒉𝒂𝒕’𝒔 𝒘𝒉𝒆𝒓𝒆 𝒋𝒐𝒊𝒏𝒕 𝒗𝒆𝒏𝒕𝒖𝒓𝒆𝒔 𝒄𝒐𝒎𝒆 𝒊𝒏…

You will hear a lot about JVs in property circles, and you might be stuck thinking – “what the heck is a JV?”. Well fear not comrade because I’m about to break it down for ‘ya! 🤓

Well, straight from Investopedia, the definition of a JV is “A joint venture (JV) is a business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task.”. Marvellous!

𝑺𝒐, 𝒘𝒉𝒚 𝒅𝒐 𝒑𝒆𝒐𝒑𝒍𝒆 𝒅𝒐 𝑱𝑽𝒔 𝒕𝒉𝒆𝒏? 🤨

OK, so you know that you need some money, but why is someone going to give you money? Well, read the definition again – it’s about ‘pooling’ resources. And what resources do you have? Time, experience, knowledge, your network, deals, a particular skill set, passion, commitment, drive, shared values & goals, student debt… er OK, not the last one, but you get the point.

Not everyone is in the same situation, some people have money, but no time to do anything, or maybe they live too far from an area that can give a reasonable return, or maybe they don’t have the knowledge and/or confidence to assess a deal, run the numbers and carry out the refurb.

𝑯𝒐𝒘 𝒄𝒂𝒏 𝒚𝒐𝒖 𝒔𝒕𝒓𝒖𝒄𝒕𝒖𝒓𝒆 𝒂 𝑱𝑽?

Well, you can pretty much agree anything you want between you, as long as all parties are happy with the agreement, but some of
the common types of JV are:

👉 Straight JV – Your time and their cash

👉 Intellectual Property - Knowledge/experience/network Vs. Cash

👉 Get someone to host a mortgage for you and control it with a deed of trust to share gain/loss

👉 50/50 partners – equal shares of cash and effort

👉 1 for me, 1 for you – Source a deal for your investor, then they pay for the next one for you

👉 Opposite skill sets – For example someone good with numbers and someone who can get the work done, i.e. an accountant and a builder

👉 Fixed return loan – The investor doesn’t own any equity, they just receive a fixed return on their money

Just be sure that you agree everything up front and get a contract drawn up, and also be aware of the FCA requirements in PS13/3 around offering investment opportunities and when investors need to self-certify as a sophisticated investor or high net worth individual.

Fan-dabby-doosy, I hear you say, but how do I find someone who will want to invest with me?

Wellllllll, there is one place that all investors and potential JV partners hang-out together – Can ye guess where it is yet? That’s right, EVERYWHERE! 😎

There are people all over who would love to put their money to work but unless you give them the opportunity, they will sit there forever saying – “I wish I could get into property!”.

The key is to just talk about what you are doing, let people know what you know, so they know that you know what you are talking about, and you know that they know….. well, what you have told them I suppose. 💁‍♂️

If Mr. X knew that I could offer him a return on his money much better than what they could get in the bank, where his money is actually de-valuing, and I can prove to them it's a solid investment and I know what I'm talking about, then does it make sense that he would rather give me his money? Of course it does, unless he is on an Andrew Carnegie style mission to give all his money away!

Improve your chances by going to different places (networking meetings, gyms, activity clubs, golf courses, etc..) and talking to different people to expand your network… spend half of your time just networking and putting out the word of what you do.

Get on social media and find ways to add value to other people (are you getting value from this post? 🤔) and people will come to you, just put yourself out there!

The key is to find out what the other person wants, and then to create a deal that works for all parties… DO NOT just go around asking everyone for money, be the person that brings the opportunities to the table and knows how to structure a deal, and the money will find you! 👌

Good luck! 🤩

27/08/2021

👉 𝐇𝐨𝐰 𝟏 𝐡𝐨𝐮𝐬𝐞 𝐣𝐮𝐬𝐭 𝐩𝐮𝐭 £𝟓𝟎𝐤 𝐢𝐧 𝐦𝐲 𝐩𝐨𝐜𝐤𝐞𝐭 💰

Flippin’ ‘eck!

To flip or not to flip? The age-old question… 🏠

Well, there are certainly down sides to flipping properties, because once you sell them, you don’t make any more money from them.

I’m sure most of the people reading will be thinking, ‘Why not just refinance and pull the money out, then you still have a house?’

I know, because I’ve been thinking about it myself! But, you always have to look at individual circumstance…

For me there were too many negatives to keeping hold of this one.
This was my first property that I bought.. I bought it in my own name 18 month ago on a 95% residential mortgage and paid the deposit and refurb with a bank loan (none of my own money in – yay!).

The plan was to BRRR it (no I don’t mean filling the place full of ice and turning the AC on full whack you numpty!), and end up with my first rental after the initial term, but I had so many changes happen over the past 18 months – with changes in jobs, relationship, mindset, tax situation, and apparently there was this strange disease going about that made us all work from home – joy!

I won’t bore you with the details, but basically it just doesn’t work for me financially to hold it in my own name, and looking at the other options, I figured the cleanest way forward was to cash in, sell up and use the funds to go again – this time all set-up properly!

So, that’s just what I did!

I purchased the property for £59k at the time and spent £9k on it… in my own name remember so no SDLT just how I like it – keep up!

So, all in at £68k on this one and just accepted an offer of £105k – bosh! 💪

Now, as I have been living here, that profit is tax free too, so that’s going to be a nice chunk into my war chest for moving forward with, so on the whole, pretty pleased with it – certainly considering I bought it with none of my own money because, well – I didn’t have any to start with lol

Now that’s pretty small fry to some of the deals people are knocking out, but what it is validation this stuff works. From nothing, this 1 house has generated me £37k profit in 18 month (plus I get back the deposit & money I spent on it too 😉), so not too shabby!

I have more projects in the pipeline and I will be looking for further investment to fund them, so if you are interested in making a return on your money rather than leaving it rot away to inflation in the bank - drop me a message to arrange a chat about working together. 𝐍𝐨𝐭𝐞 𝐭𝐡𝐞 𝐦𝐢𝐧𝐢𝐦𝐮𝐦 𝐢𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭 𝐢𝐬 £𝟏𝟎,𝟎𝟎𝟎.

27/08/2021

𝐖𝐨𝐰𝐳𝐞𝐫𝐬!

Now is a good time to be a student 🤓

Just came across a mortgage product offered by Bath Building
Society offering 100% LTV mortgages for students 🤯 Think I'll go back and do my masters after all 😂

The max loan size is £300k and assessed on the basis of rental income gained by renting the rooms out to other students, and also can take parents income into consideration.

This is an awesome opportunity for anyone at uni or that have kids/family members at uni at the minute - would deffinately be looking into this as a way to get your/their first HMO for free! 💪

Anyone fancy it? 🤔

27/08/2021

𝐑𝐞𝐧𝐭 𝐂𝐨𝐧𝐭𝐫𝐨𝐥 - 𝐲𝐚𝐲 𝐨𝐫 𝐧𝐞𝐢𝐠𝐡? 🤔

If you haven't heard, there is a lot of talk about rent control at the minute in the private rental sector.

Only last week, the SNP announced rent controls in Scotland as part of its policies, aiming to cap private rents to 25% of household income.

Now, an online petition which has a reported 50,000 signatures is calling for rent controls in England too.

The reason for the petition is that in certain areas, in particular Cornwall, there has been an influx of people purchasing investment properties for use as serviced accommodation, subsequently resulting in a shortage of rental stock for local residents.

Along with this, there are also calls for additional taxes to be levied on investment properties.

Is this a fair shout to protect local housing stock? Do you think it will come in to play, and will it spread nationally? If so, what affects will it have on the private rental sector?

Love to hear people's thoughts on this 😊

21/08/2021

𝐓𝐡𝐞 𝐈𝐬𝐥𝐚𝐧𝐝 𝐅𝐚𝐜𝐭𝐨𝐫 – 𝐒𝐮𝐩𝐩𝐥𝐲 𝐚𝐧𝐝 𝐃𝐞𝐦𝐚𝐧𝐝!

Have you ever wondered what it is that continues to drive up property prices? 🤷‍♂️

Yes, there is general economic growth and inflation etc., but property prices increase at rates greater than inflation year on year, with the average house price currently sitting at 8x the average salary, so it’s got to be something more than this, hasn’t it?

Well, the UK is a fairly small Island in comparison to other countries and has a high population density (England in particular has a density of 425 people per km^2, 28th highest in the world).

Further to this, when you consider that 3 quarters of UK land is designated as farm land or natural green space (non-build able), then you can begin to understand why developable land carried a premium.

With the population increasing and a limited amount of available homes and buildable land, then you can see how the rules of supply and demand dictate that property prices will continue to rise, as they have done since records began.

This makes property a fantastic asset class to invest in as it is a solid, tangible asset, that not only has a long history of positive performance in growth, but has ever increasing potential for further exponential growth.

In the current economic climate of high inflation rates and negative interest rates, more and more people are turning to property investing as a way to protect and grow their wealth, but with the ever increasing rules and regulations aimed at property investors, not to mention the recent tax changes, tenant fee ban, mandatory licencing and ever increasing EPC requirements, it’s becoming more and more important to ensure you remain compliant so as not to fall fowl and land in hot water with the authorities who are taking a zero tolerance approach to non-compliance. 👊

So, if you are just starting out in property, don’t just jump in blindly – make sure you take the time to learn how to remain compliant or you could end up regretting it down the line, or better still, leverage other people’s knowledge and experience through joint ventures, learning on the job – Sort of like an apprenticeship for property investing!

We have some interesting investment opportunities coming up in the near future which will open up a limited number of spaces for people to partner with us. If you would like to be considered, then please get in touch with us at PeCo Investments for an initial chat.
👋

20/08/2021

𝐇𝐚𝐯𝐞 𝐲𝐨𝐮 𝐡𝐞𝐚𝐫𝐝 𝐨𝐟 𝐭𝐡𝐞 𝟏𝟖-𝐲𝐞𝐚𝐫 𝐩𝐫𝐨𝐩𝐞𝐫𝐭𝐲 𝐜𝐲𝐜𝐥𝐞? 🤷

Being an engineer 👨‍💻, I love using empirical data to back up a theory, especially when that data presents a clear, repeatable pattern.

One such pattern is what’s know as the 18-year property cycle, and it is something I came across about a year ago.

The 18-year property cycle is an economic cycle that shows how property prices change over time and the various phases that the market goes through.

It was first coined by Fred Harrison in 1983 based on research of property and land prices over a 300-year period and holds true across different countries and cultures. With this model he correctly predicted the 1990 and 2008 market crashes – years before they happened! 😮

He even wrote to Tony Blair and Gordon Brown to warn them what was coming...

He defined a repeatable economic pattern that the property market seems to follow, with the following distinct phases.

After reaching all-time highs, property prices start to tumble signalling the start of a recession. This typically lasts around 3-4 years. People will say they never saw it coming! 🙄

Once the market bottoms out after the recession, things will stabilise, and a period of slow recovery commences. This is where the experienced investors get back in on the action to take advantage of the discount deals on offer, while borrowing is restricted for those relying on mortgages.

This will be followed by larger organisations coming in after gaining confidence in the market, such as pension funds, and will result in a steadier rate of growth returning to the market 💰.

Then there is generally a mid-market correction, or dip. This is usually due to early investors cashing in on their early profits and selling off stock.

After this, the pain of recession starts to be forgotten, giving way to an explosion in prices as banks start to lend again, opening up the market to the masses. This is generally where you start to see the media reporting on property prices and an influx of property programmes on the TV, further fuelling the apparent urgency to buy property which appears that it will continue to go up forever 📈, until....

They don’t!

They get to a point where it’s no longer viable to buy property for investment and prices become out of reach for the masses, causing a drop in sales, which begins the downward spiral!

People start to panic, triggering mass sales of properties as people think that prices are going to fall through the floor, causing banks to pull lending again due to lack of confidence in the asset, but at some point, It reaches a point where the experienced investors decide to come back in, and it starts all over again! 👌

A point to note is that the low point of each crash is generally higher than the subsequent one, meaning that over time, house prices do continue to rise.

Fred Harrison has recently come out and predicted that, despite some initial uncertainty over the effects of COVID, he is now confident that the model will hold true – with prices continuing to rise in the ‘boom’ phase until the next crash in 2026.

Since becoming consciously aware of this theory, I have been on the lookout 👀 for the tell-tale signs that indicate the various stages – from increased infrastructure spending to the increasing popularity of property investing and the re-birth of all of the property shows now back on the TV.

The effect of COVID has been hard to predict, but with the now soaring house prices, I think it’s safe to say we are in the boom phase and fitting nicely into the cycle once again.

So, the question is – is Freddy boy right and is 2026 going to be the year that it all comes crashing down?📉

I believe the data so I’m going to say YES…. What about you?🤔

Would love to hear people’s thought on this one! 😃