In 2016, almost to the day, Claire and I purchased our first ever home.
It was a repossessed house just outside Edinburgh.
The price was £221,151.
I can still remember my lawyer Keith calling me to tell me our offer had been accepted. Me and Claire hugged, danced around the room a little, and had that surreal moment of realising we were finally about to become homeowners.
Aged 36.
Probably 10 years later than we had imagined.
But that was our reality.
The reason it took us until 36 was simple. Our credit ratings were poor. We had always rented, and before meeting each other we had both got ourselves into a bit of debt.
Nothing crazy.
Mobile phones, catalogues, bits and pieces. Normal stuff that creeps up on people.
But it got to the point where I couldn’t even get a mobile phone contract.
That is how bad my credit file was.
We knew we wanted to own property, so the only way forward was a fairly long process of cleaning up our credit file, paying things down, saving properly and becoming attractive to lenders again.
To this day, that is probably one of the best decisions we ever made.
At the time, the driveway business was doing well and we had been saving hard. We had around £50,000 in the bank and approached a lender thinking we would be accepted straight away.
We were wrong.
Instant refusal.
So we went away, kept working, kept saving and got that number up to around £100,000.
This time, we were accepted.
The offer was accepted at £221,151 and we were ecstatic.
The property needed work, so we got people in to do renovations. Within a few months, we had spent around £20,000 on the house, but the value had soared to over £275,000.
We were quids in within months of our first ever property purchase.
Bingo.
That was the moment the penny dropped.
A year later, another property came up on the next estate. It was even better. Bigger, better location, and the kind of house we really wanted to live in.
The price was £315,000.
Again, it needed work. New kitchen, bathrooms and all the usual bits.
We really wanted it.
But then came the big question.
What do we do with our existing property?
Do we sell it, take the equity, and buy the next house?
Or do we keep it, rent it out, and slowly start moving into property investment?
We spoke to family and, in a very British way, most people advised us to play it safe.
Sell the house. Use the equity. Buy the next one.
That would have been the normal thing to do.
And we were so close to doing exactly that.
Then, at the last minute, we changed our mind.
And it turned out to be the best financial decision we have ever made.
We remortgaged the first house onto a buy to let mortgage and bought the second house.
We rented out the first property for £1,500 per month.
That same house now rents for around £2,350 per month.
At the time, that £1,500 rent paid both mortgages and still left profit.
Mainly because we had put such a large deposit down at the start.
That was when we got the bug.
From that point on, we were constantly on the lookout.
Sometimes for a better house to live in so we could rent out the one we were in.
Sometimes for a straight investment property.
Sometimes just for an opportunity.
And opportunities started to appear because we were looking.
The Auction Property I Bought From a Beach in Spain
We started looking at auctions.
Auctions can be a really easy, fast and relatively cheap way to find a good deal, if you know what you are doing and you have your finance lined up.
I remember one particular deal clearly.
I had registered interest online for a property not far from where I lived, then completely forgot about it.
A few weeks later, I was in Spain walking along the beach when a text came through.
“The auction property you showed an interest in is ending soon.”
I clicked the link, had a look, and placed a bid there and then.
Thirty minutes later, I owned the house.
That is how quickly these things can move.
The auctioneer called me, took a £3,000 deposit, and gave me a few weeks to arrange the finance.
Sometimes people use bridging finance for this type of thing.
A bridging loan is basically a short term loan that helps you complete quickly until you can arrange a longer term mortgage or exit.
It can be expensive, so you need to know your numbers, but the option is there.
On this occasion, we chose not to use one.
This particular property already had a tenant in it.
They had been there for around 10 years and were paying £1,250 per month, which was under market value.
The mortgage was due to be around £487 per month.
That meant around £763 gross profit per month, just like that.
I had done nothing to the property.
No renovation.
No upgrade.
No drama.
Two months later, I had it revalued.
It was worth £45,000 more than I had paid for it.
That is what I love about property.
Sometimes, if you buy well, you make money before you even put a nail in the wall.
Sometimes Boring Works Too
Not every property deal needs to be sexy.
Sometimes the boring ones are the best ones.
I bought a flat in Linlithgow, near Edinburgh, for around £145,000.
Straight buy.
No major work needed.
The mortgage is around £500 per month and it rents for £995 per month.
That is around £495 gross profit per month.
Nothing complicated.
Nothing fancy.
Just a basic buy to let that quietly does its job every month.
And within two years, the value has already risen.
That is the part people often miss.
Property is not always about massive flips, big renovations and dramatic before and after pictures.
Sometimes it is about buying a solid property in a solid area, renting it out to good people, and letting time do its thing.
The £116,000 Cottage on the Isle of Skye
One of my best deals is also one of my favourite properties.
And again, it came completely randomly.
We were up on the Isle of Skye visiting good friends who live there. We decided to go for a walk and passed a little cottage with a handwritten sign outside.
For Sale.
My friends actually knew the seller, so we made contact.
An hour later, we had agreed a deal for £116,000.
It is the cheapest property I own.
At the time, I had no idea we would eventually turn it into serviced accommodation.
But that little beauty rents from April to October for between £295 and £450 per night.
It was booked out for two months within 10 days.
That one little cottage has been an unbelievable reminder that property opportunities are everywhere.
You just need to be alert to them.
Sometimes the best deal will not come from Rightmove.
Sometimes it will come from a walk, a conversation, a handwritten sign, or knowing the right person.
Why I Do Not Love Flipping
We have also done the flipping side of property.
Personally, I find it a pain in the backside.
It is stressful.
There are always delays.
Costs go up.
Trades let you down.
Timelines move.
And for me, the money is not always worth the stress.
Some people love flipping.
Some people are brilliant at it.
But for me, I do not think I would rush back into it.
I much prefer holding property, collecting rent, growing equity and letting the portfolio build over time.
Where We Are Now
Today, the combined rental income from our properties is well over £10,000 per month.
And the rents rise pretty much every year.
There is also enough equity in the portfolio, mainly thanks to that early big deposit, smart buying, renovations and property values increasing, to buy another £2m worth of property.
That is the plan over the next year or so.
The funny thing is, we probably could have moved a lot faster.
For the first five years, we were not actively looking in the way we are now.
We were still learning.
Still a bit cautious.
Still finding our feet.
But now, I feel like we know the game.
And I predict the next five or six houses will be bought much quicker.
By the way, I only have around six properties.
I say “only” because people often assume you need dozens of properties to build serious wealth.
You do not.
You need the right properties.
You need cash flow.
You need equity.
You need patience.
And, most importantly, you need a business or income source that produces enough profit to allow you to invest.
For us, that was the driveway business.
The business created the cash.
The property created the wealth.
That is the bit most tradespeople need to understand.
Your trade business can make you good money.
But what you do with that money is what changes your life.
A Few Tips for Finding Great Property Deals
Here are a few things that have helped me find good deals.
1. Auctions
Auctions are an excellent way to find under market value property.
The key is doing your homework before you bid.
You need to understand the legal pack, the condition of the property, the area, rental demand, resale value, finance options and your true costs.
But if you get it right, you can buy with equity already built in.
That gives you skin in the game before you even start.
2. Rightmove Oldest Listed
Go on Rightmove and filter by oldest listed.
These are often sellers who have been sitting for a while.
They may be overpriced.
They may have had sales fall through.
They may be getting frustrated.
That creates opportunity.
Find the properties that have been sitting for months and make sensible offers.
Not cheeky for the sake of it.
Sensible.
The kind of offer that solves a problem for the seller and works for you.
3. Tenanted Properties
Tenanted properties can be brilliant.
You need to do proper due diligence, but they can be almost no brainer deals if the numbers stack.
Often, you are buying from a tired or disgruntled landlord who wants out.
A lot of landlords are fed up because the game is not as easy as it used to be.
But that does not mean property is dead.
It just means the lazy money has left.
For people who know their numbers and treat it properly, property is still very good.
4. Write Letters
Write letters to people with properties that have been listed for a long time.
You would be surprised how powerful a simple letter can be.
Ask if they would be open to a conversation.
Be respectful.
Be direct.
Do not try to be clever.
Just explain that you are a serious buyer and would be interested in speaking if they are open to it.
5. Build Estate Agent Relationships
Estate agent relationships are huge.
The best deals often do not make it to Rightmove.
They get offered to people the agent already knows can move quickly.
This is a real thing.
If you are serious, speak to agents regularly.
Tell them exactly what you are looking for.
Show them you can move.
Follow up.
Do not waste their time.
When a good deal comes in, you want to be the first person they think of.
6. Housing Associations
Housing associations sometimes sell stock.
This can create opportunities.
Again, you need to do your due diligence, but it is another route most people never even consider.
7. Boring Areas Can Be Brilliant
Do not get obsessed with glamorous locations.
Some of the best buy to let properties are in normal towns, normal streets, with normal tenants paying normal rent every month.
Boring can be beautiful.
8. Know Your Numbers
This is the big one.
Do not buy emotionally.
Know the purchase price.
Know the deposit.
Know the mortgage.
Know the rent.
Know the insurance.
Know the tax position.
Know the maintenance risk.
Know your exit.
Know what happens if interest rates rise.
Know what happens if the property is empty for three months.
The deal has to work on paper before you buy it.
Questions and Answers
What is a bridging loan?
A bridging loan is a short term loan usually used when you need to complete on a property quickly.
For example, if you buy at auction, you may only have a few weeks to complete. A normal mortgage might take too long, so a bridging loan can help you get the deal done.
But bridging loans can be expensive.
They are not something to mess about with.
You need a clear exit plan before taking one.
That exit might be refinancing onto a buy to let mortgage, selling the property, or using another source of funds.
Used properly, bridging can be a useful tool.
Used badly, it can become very stressful very quickly.
Should I use a bridging loan to buy at auction?
Only if you fully understand the numbers and have a clear exit.
Before bidding at auction, you should already know how you will complete.
You should speak to a broker, solicitor and accountant before the auction, not after.
The mistake people make is winning the bid first, then trying to figure out the finance later.
That is dangerous.
At auction, once the hammer falls, you are committed.
What is an intercompany loan?
An intercompany loan is when one company lends money to another company.
For example, if you have a trading business that has built up cash, and you also have a property company, the trading company may be able to lend money to the property company.
This must be done properly.
You need advice from an accountant.
You need paperwork.
You need to understand the tax position.
You need to understand whether the money should be loaned, paid as dividends, paid as salary, or kept in the company.
Do not just move money around because it feels easy.
Structure matters.
Can I use profits from my trade business to buy property?
Yes, potentially.
This is exactly the route many tradespeople should be thinking about.
Your trade business can create the cash.
Property can help create the long term wealth.
But you need to get advice on the best structure.
Some people buy personally.
Some people use a limited company.
Some people use a property SPV.
Some people do a mixture.
The right answer depends on your income, tax position, goals, mortgage options and long term plan.
What is a property SPV?
An SPV is a Special Purpose Vehicle.
In simple terms, it is a limited company set up for a specific purpose, often to hold property.
Many landlords use SPVs to buy buy to let properties.
Again, it is not automatically right or wrong.
It depends on your circumstances.
Speak to an accountant and mortgage broker who understand property before deciding.
What is a joint venture in property?
A joint venture is when two or more people come together to do a deal.
One person might have the money.
Another person might have the experience.
Another person might find the deal.
Another person might manage the refurbishment.
Everyone brings something to the table.
Joint ventures can be powerful, but they can also go badly wrong if things are not agreed properly.
You need everything written down.
Who puts in the money?
Who does the work?
Who owns what?
Who gets paid first?
What happens if the deal goes wrong?
What happens if one person wants out?
What happens if the property does not sell?
Do not rely on handshakes.
Use a solicitor.
Is buy to let still worth it?
In my opinion, yes.
But it is not as easy as it used to be.
Interest rates are higher.
Tax rules are tighter.
Regulation is increasing.
Some landlords are leaving the market.
But that can also create opportunity.
If amateur landlords are selling because they are fed up, and you know your numbers, there are still deals out there.
The key is buying well.
If you overpay, property becomes hard.
If you buy properly, property can still be incredible.
Is serviced accommodation better than buy to let?
It can be, but it is not passive.
Serviced accommodation can produce much higher income than a standard rental, especially in the right location.
Our Isle of Skye cottage is a great example.
But it also involves more work.
Bookings.
Cleaning.
Maintenance.
Guest messages.
Reviews.
Seasonality.
Utilities.
Management.
It is more like running a small hospitality business than being a traditional landlord.
The returns can be brilliant, but you need to treat it properly.
Should I flip houses or hold them?
It depends on your personality, skills and goals.
Flipping can create chunks of cash.
Holding can create long term wealth, income and equity.
Personally, I prefer holding.
I do not love the stress of flipping.
I like buying solid assets, renting them out, and letting time and inflation do their thing.
But some people are great at flips.
The main thing is to know which game you are playing before you start.
How much money do I need to start investing in property?
That depends on the property, the area, the deposit required, your finance options and your strategy.
We started by saving a large deposit for our own home because our credit rating was poor.
That gave us options.
It gave us a lower mortgage.
It helped us get accepted.
And it gave us equity later.
Some people start with less.
Some start with joint ventures.
Some start with cheaper areas.
Some start by improving their own home first.
The most important thing is to start preparing.
Clean your credit file.
Build income.
Save money.
Learn the numbers.
Speak to brokers.
Get ready before the opportunity appears.
What is the biggest lesson from your property journey?
The biggest lesson is this.
You do not need to come from money to build wealth.
We started with poor credit.
We rented for years.
I could not even get a phone contract.
But we cleaned it up, built a business, saved hard, bought our first property, kept it, and then kept going.
That one decision to keep the first house instead of selling it changed everything.
Most people play it safe because everyone around them tells them to.
But sometimes playing it safe keeps you stuck.
I am not saying be reckless.
I am saying get educated, know your numbers, take advice, and be brave enough to move when the opportunity is right.
What now…
Looking back, property did not feel complicated.
It felt scary because it was new.
That is the difference.
Most things are not as complicated as people make them out to be.
They are just unfamiliar.
The first property was the hardest.
Then the second felt easier.
Then the third.
Then the fourth.
Now, we look at property completely differently.
We do not just see houses.
We see income.
We see equity.
We see opportunity.
We see freedom.
And that is what this was always about.
Not houses.
Not bricks.
Not showing off.
Freedom.
Freedom to live where we want.
Freedom to spend more time with family.
Freedom to make decisions from a position of strength.
Freedom to own a business, not a job.
And that is exactly why I believe tradespeople should not just build businesses.
They should use those businesses to build wealth.
Because the trade business might be the thing that makes you money.
But property can be the thing that changes your life.
This is not financial advice. It is simply my journey, my lessons, and what I wish more tradespeople understood earlier.
in my off the tools programme we dig into property later in the course (after you are making considerably more profits taught earlier in the course
You can join here at www.tradecoach.co.uk/course
