Articles

Alison & Gemma Else | Joint Venture | Property Mastermind Programme (MM24)

November 22, 2019


can please invite first speakers our
mother and daughter combo Allison and Gerald please hello everybody and just really really
really honored to be up here today I don’t think really expected it and I
think two months before this date today we weren’t in a position where we
thought we would be but after a significant amount of hard graft we’ve
kind of we’ve got there so it’s not always guaranteed it’s not always in the
bag don’t assume that everybody it’s a pretty kind of nice thing it’s
definitely not so you talk to you little bit about who we are today
so we’re aspire homes as Simon said we’re a mother and daughter team so I’m
Gemma and I’m Allison we’re based in a little place called Salvin which is an
11 teens bahara in Warwickshire and we invest in and around the Midlands so
kind of about 45 minutes early from where we live i previous to join
mastermind was a head of packaging for a well known high street retailer which
was an extremely high pressurized stressful job and I think had always
known that there was more to life and than working for someone else which when
I kind of was put on medication for stress and anxiety it was something that
had to change and I actually got made redundant which was a blessing in
disguise so for anyone that’s facing that right now that’s a really positive
thing we were introduced to pin by a friend of mine and our first meeting was
absolutely a real light bulb moment we suddenly realized that there was a whole
new way of doing things that we didn’t know and you know we kind of went along
when we thought yeah we can we can do all this ourselves we can do all the
reading do all the internet search and all that kind of stuff and and we’ll be
great after doing nothing for about nine months we realized that I probably
wasn’t the case so we went on to the QuickStart
and and then accelerator and I think accelerators were really clicked for us
and we we really realized that the people we surround ourselves with and
the education we did was going to be a huge part of our success and that’s kind
of where our journey really started so in 2004 I took redundancy to work with
my husband in our kitchen and bathroom insulation company which I loved working
from home was wonderful for me but and he was working full-time he often went
out in the evenings doing quotes and quite often he ended up working evenings
and weekends so although we made a decent living from
it we were never going to be millionaires but over this time we’d
bought three single by two let’s and did two flips we already knew that we loved
the property and we’re always looking to see what else was available we never
thought that we could afford anymore by two let’s until Jemma came home one day
after visiting their friend and taught me more about Penn and it went from
there HMOs were our initial strategy but since
then we’ve kind of divided diversified as we’ve grown over the year in
mastermind we hold and buy for rental income so this is the main thing for us
that we need to pull or virtually all or we need to pull all or virtually all of
our money out of the deal once a refurb is complete so this makes our return on
investment infinite it means that we can rinse and repeat gaining an income from
the next property integrity is really important to us so it must genuinely be
a win-win deal I couldn’t sleep at night feel had ripped somebody off so we we’re
all about kind of working fair with our joint venture partners but also the
vendor as well and it has to work for both people and obviously be a deal why
would you buy it essentially our strategy is finding buildings which
we’re looking but unusual that people don’t sure what to do is or have the
wrong planning use where we can see an effective gain by developing so that’s
kind of what we’ve bought up into this point
we will continue to buy we’ll take this we take you through our case first case
study which is wheat Street in the meetin so this is the picture of it
before our daily partner described it as the ugliest house in Warwickshire and
this is it today after a complete we render on the front so it is a full bed
terrace in the naiton which originally was two houses knocked into worn in the
seventies I found on Rightmove they do exist deals online move the rooms were
huge so he took two down in a terraced house quite a big room generally and
which was perfect for a HMO so we bought it a modern auction which is busy that
don’t know you exchange you buy with a bid system eBay and then you exchange
and complete within two months it was a joint venture
we actually had bridging organised which fell through at the last minute and we
went out and found a joint venture partner and glycol bars on who who
stepped in the last minute and we’ve been very very lucky with him and we
thought an absolutely fantastic working relationship and a friendship and we’ve
got on to do more normal projects so you know doing much partners can be a really
positive thing the purchase price was one hundred and eighty four thousand the
commercial valuation has come back at 360 and the refurb is was ninety K which
means it’s a no money left in deal we’ve got 25 percent equity in that property
which is forty five thousand pounds and our net cash flow after all expenses
including paying off our joint joint venture partner is eleven thousand two
hundred pounds per annum so our next property is new street in L Shelton in
Leicestershire so we bought this property again at a modern auction it
was already converted into four flats but the front still has a commercial
status it was a shop at some point so it’s on a corner plot and it has a large
guard garden with a garage at the end of the
garden so the intention is that we will convert it
– – bets and three wombats and split the utilities so that includes the garage
turned into the one bed flat so we viewed it with a vendor and his wife and
asked what price would work for him a few days later we then met with him
again at his house and made an offer based on him leaving a hundred and
twenty thousand in the deal for one year for a 5% return so we paid two hundred
and twenty thousand for it without using any of our own money so the estimated
end value for this is four hundred and sixty seven thousand so the equity we’ve
created as one hundred sixteen thousand we will also be taking cash out of
nearly 30 thousand the net cash flow on this isn’t huge it’s six thousand per
annum but for a no money deal in and money out it works for us
one point to note there is don’t call it vendor finance to a vendor the term we
use was a deferred payment and that is a much more kind of acceptable it doesn’t
seem quite so ordered as why would you buying my house with my money weird
concept for a lot of vendors to kind of get through and so the next project is a
place called turn law in Clinton which is a tiny little village just off the
m-40 Amora and this is the size of the plot so we
bought this auction as well notice the theme and it was generally for the size
of the plot it’s a cottage built in 1923 which requires total modernization and
the plot is over 30 meters in length so the garden bit is the big bit
it also has rear access so for a drive etcetera and what we look to do is add
an additional dwelling by getting pollen gain and actually so that accommodation
works in this area because it’s brought me into the Cotswolds so the cottage
itself is we purchase the whole prop for two hundred and forty four thousand we
expect there to be an estimated value of 375 K for the cottage and 125 for the
dwelling so grand total of 500 the reverb costs and the bill costs for that
small that small dwelling or 65 k+ 35 so hundred in total which means it’s no
money left in deal and 30,000 pounds out plus a cash flow 16,000 pounds a year
which is based on 50 percent occupancy so again another another really positive
deal for us and just in terms of what we’ve achieved this year I think it’s
really easy when people standing up on the stage to kind of go oh well they
were also gonna do that and you know they’re doing really well and look at
the figures they’ve achieved and what I would just like to point out is that we
had a really small pot of money that we’d call of begged and borrowed from
family and friends I’m with that pot of money we’ve turned it into 1.78 million
worth of purchases so you can do it with hardly anything it’s not just about
having pots and pots of money and that’s a really important point I think put
important point people to take away so the total private funds that we have
actually managed to raise have been six hundred and fifty eight thousand I
expected gdv is three point sixty million once we’ve done the developments
and the net and your total income is a hundred and fifty five thousand which a
share taking out joint venture partners is ninety thousand pounds a year which
is way more than I would ever earn in a job so just take you through some of our
future projects and these are all secured apart from one which is very
close this one is a care home in the Nathan
which is going to be converted into twelve by th mo this is a two bed
Regency flat which we’re going to run a serviced accommodation after a full
refurb it also has planning to extend into the roof which means that we have a
couple of different exit strategies it also has a chamo license in an article
for area Camden Road in Coventry this one was actually a part of a bigger deal
that we found at beginning of the mastermind year there was four houses in
a row and that deal fell through which at the time was really really painful
but actually it’s a massive lesson that we’ve learned
over this year is that you have to learn to be able to walk away when something
doesn’t work we had some really bad down valuations and and so we decided not to
progress with those three three properties however the last one did
still work so we’ve carried on and progressed that so even when something
doesn’t look like it’s going to come off there might be an opportunity later on
down the line and finally is a hotel in Newport this is 18 beds and we are
joint-venture him with another Master Mind 224 person we never thought we
would actually become investors so the lesson here is to be open to every
opportunity well I think it’s really really important to say a massive thank
you to some of the people that have contributed to as standing up here today
and I think there’s points that people are going to take away as well so for me
it’s about the ripple effect I had a conversation with a friend of mine about
three years ago and he introduced us to the pen environment and I genuinely
would not be here today if I had not had that conversation with Dave
so tally what you’re doing because you might help them as much as you might
help you secondly Simon for the great content he has so much patience with us
because we all come in here go we’re going to do this we’re going to do that
you don’t listen to him until the last minute and then when you do you realize
actually what he says works so huge Thank You Simon
everyone involved in the pin community if those of you that might be new to
this a guy put sebastian before who is the Coventry pin host has been a huge
sounding board for us and a real point of kind of helping because when we’ve
not been sure on things so thank you to him and a huge thank you to our first
investor bar and who has been an amazing JV partner and I think had we had a
stumbling block at that first property we probably wouldn’t be as confident as
we are now so he has been really instrumental and then my partner Billy
who’s having no clue about what I’m doing I don’t think he really still does
now he’s come home on more than one occasion to me and floods of tears and
and I’m gonna get it all up and I can’t do this and he just kinda
keeps going and keep supporting me so this journey is a rollercoaster don’t
expect it to be an easy ride I would like to give a big thank you to my
husband Andy for his support and encouragement through the whole of this
year he wasn’t convinced that we will pull it off but the proof is in the
pudding for all the weekends that we’ve spent apart for also not complaining
about these weekends and also when I’m here today on his birthday and I just
like to say thank you as well to family and friends who’ve also been supportive
coaches and mentor for me Kersten was a really great fit as a coach she’s really
helped me explore kind of what makes me tick and also been there to provide kind
of encouragement when I think I’m failing and not not cheese and what I
want to achieve thanks to my coach Jackie Goodman who has been amazing
support help me focus on what is important and also constantly reminded
me just how far we have actually come joined this year thanks to everyone in
the room who’s also become our pin family for your support encouragement
and advice over the year finally thank you to sanjay shah and the team at the
emotional mastery for just being there and helping us on this a massive this
massive emotional roller coaster with so many different emotions that we’ve had
to deal with and then just leave you with some top tips so commit commit to
this course it’s absolutely fantastic but it’s not a day it’s a weekend every
single month we came up to Birmingham on a Friday and left on a Sunday evening
despite any living forty minutes away so absolutely suggest that everyone does
that and don’t come through those doors on your first day having any self-doubt
you really need to have self belief and strength of will in this journey it’s
not an easy journey but if you if you believe you’ll do it you will tell
everyone about what you do so it’s not only to us about this all the time and
we didn’t do it we didn’t tell everyone what we needed we needed money kind of
about two months ago so we went out there we swallowed our pride and we
asked for it and we got it so it really
GameChanger as I said as well so getting out type of what we’re doing obviously
affects well on social media three of our private investors came from there
was actually where we’re getting the best kind of return on investment wasn’t
doing too adventurous so really important there make sure you manage
your cash flow remember if you’re buying to hold and refurbishment refurbishing
that the cash flow doesn’t appear until you have the property rented so go with
a strategy that excites you the most not the one that makes you the most money
you’re in this for the long term and you need to enjoy it and to use down hill
saying it’s just a game finally just go for it because if we can
do it so can you be crazy buy everything and tell everyone what you do let’s hear
it for general Olson you

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