The Property Unleashed Podcast

Fund BMV Deals With Less Cash With Rob Peters

• Mark Fitzgerald • Episode 368

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Buying property below market value sounds simple until you try to fund it and every lender insists the “value” is whatever you paid. We sit down with property finance expert and active investor Rob Peters to unpack the real-world funding moves that let you secure BMV deals without automatically chasing joint ventures or handing the opportunity to cash buyers.

We walk through a specialist straight-to-mortgage approach that can reduce the deposit to around 10% when the discount is genuine, plus the key trade-off: higher rates and fees that can still be worth it if your goal is to acquire assets quickly and stack equity in your portfolio. Rob explains what lenders need to see, why the backstory matters (auction, retiring landlord, fast sale), and how to sanity-check the “at least 25% below open market value” rule before you get emotionally attached to a deal.

Then we get nerdy in the best way: valuation strategy. Rob breaks down why HMOs can be valued commercially based on rental income, why MUFBs can be valued using aggregate value instead of block yield, and what criteria make those valuations believable to surveyors and lenders. Finally, we cover day one remortgage and bridging loan setups designed to break the purchase chain so you can pull equity out fast and keep investing with momentum.

If you’re serious about UK property investing, creative finance, bridging loans, buy to let mortgages, HMO finance, and MUFB funding, you’ll want notes for this one. Subscribe, share this with a property investor friend, and leave a review with the finance question you want us to tackle next.

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Big Promise And Quick Hook

SPEAKER_02

Would you like to know how to fund your deals without the need for finding lots of investment? You will in this episode now. Hello and welcome to the Property Unleashed with me, your host, Mark Fitzgerald. So today's session is our resident financial expert, Mr. Rob Peters, where he at the Property Growth Summit gave some amazing case studies that him and his clients have used strategies to do property deals using traditional funding methods that potentially not all of us know about. Sometimes we always believe that we haven't got any money, we need to find investors, we need to do joint ventures. Well, Rob's going to explain to you exactly how you can leverage other people's equity, how you can leverage other people's funds and money, and also if you do have a small pot of money, how you can make it go a very, very long way. You will really enjoy this episode. So please take notes and let's get into it. So I'm sure you'll all agree that it's been a great day so far, and it's not over yet. We have our final speaker coming on board here. So I will whip through these because we are a little bit time poor here. But if you're interested in being involved, immersing yourself with a lot of the speakers that we have today, education to action, which you can try out for a pound, is our property investing community with lots of different trainings and the support of the people that you've been listening to today. It is well worth the pound to come and join us and see what you think for yourself. But without further ado, let's move in to our final speaker of the day, Mr. Rob Peters. I shall bring him straight in. And he is a financial expert. He is a guy that can do, he has the can do attitude. So if you're looking at any property projects and you're not sure of how you're going to fund them, how you're going to finance them, I highly recommend that you reach out to Rob and his team at Simply Fast Mortgages, and they will do you a really, really good job. So, Rob, great to have you on, my friend. How are you?

SPEAKER_01

I'm fantastic, Mark. How are you?

Meet Rob And His Finance Lens

SPEAKER_02

I'm good. I'm good. Always better for seeing you, my friend. So sorry we overran slightly. What I'll let you do now is take it away, my friend. Thank you very much, Mark.

Why Below Market Value Matters

Straight To Mortgage With 10%

SPEAKER_01

Thanks for having us. I hope everybody is doing really well and you've had a really good day so far. It sounds like there's been plenty of value added already. And hopefully we can top up a little bit on that and bring in some of the finance elements. So, what I want to do today is I want to do a bit of a presentation talking around finance. I'm going to introduce myself first. I'm going to tell you a little bit about us, what we do, our mission and our services. And then really the core of this is going to be about creative finance. And specifically, we're going to talk about below market value deals. So BMV deals. How can you fund them? Do you have to put money in? How does it work? All that kind of juicy stuff. Because the market is ripe for that at the moment. Yeah, it's definitely a buyer's market, and BMV is something we're seeing a lot of activity around. So without further ado, let's crack on. So a little bit about us. So my name's Rob Peters. My company is Simple Fast Mortgage. And we were established in 2020. So we've been going about six years now. We're specialists in property finance and strategy for property investors and developers based in the UK, but also overseas. So basically, we're mortgage brokers, but we're also property investors. And therefore, we understand all the strategies, we understand all the ways to maximize finance. We get deals done for people. So we're specialists with more complex situations because of that. We've got no market restriction, so it can work with any lender that's out there that's prepared to work with us. And we've done over, well over 150 million of finance to date. Me personally, I am 23 years experienced in financial services now, probably a little bit more than that. I need to update my slide. But I've been around for a while. By trade, I am a qualified financial advisor. So, you know, back 2007, pre-credit crunch, we were advising on lots of different things: strategy tax, inheritance tax, investments, pensions, all sorts of different stuff, holistic financial planning. Now we only focus on property finance. We've channeled all of that experience into helping investors and developers. And I'm a property investor as well. So back in 2007, I acquired my first property. And since then I've steadily grown a portfolio as well. So why would you choose to work with us? You know, there's lots and lots of brokers out there, there's lots of mortgage advisors. What's what's different about us? Well, we are a regulated firm, and I'm a regulated individual. And what that means for you is that we follow the rules, we do things properly, and if we don't, you know, we we can get into trouble for it. We're experts in more complex matters, so we deal with all sorts of things from lease options to auctions to HMOs to development and bridging, everything pretty much. We cover all the bases, we've got all the tools at our disposal. Because if I meet with a property investor or somebody who's looking to become a property investor, they're gonna say, here's my situation. What can I do? What's the best way to get going? Where can I raise the money? What's the best way of funding this deal? What do I need to watch out for? Now it's no good if I say, Well, I'm sorry, I don't deal with you know those bits over there. We only do this element here, we only do bridging, we only do buy-to-let mortgages. That's not really gonna help people with strategy, is it? We might want to raise money from the main residence, we might need to do something on a buy-to-let, we might need to talk about HMOs and commercial valuations. You know, there's all sorts of different things in there. We've got to have those tools at our disposal in order to cater for our clients fully. We've got over 150 five-star reviews on Google. So lots of people just like you beginning their property journey, lots of seasoned investors who have given us fantastic reviews. And I always say to people, if you want to get a flavor for how we work and why we're different, read the reviews because they're they're far better than anything I could write myself. Got some really great reviews on that. We're members of all the professional bodies. There's a big list there of all sorts of different ones, but I'm not going to go through them. We're members of pretty much all of them. We're also featured in the press and the the big national press, the Times, the Financial Times, the Daily Mail, The Guardian, Manchester Evening News, lots of stuff. Get journalists who get in touch and ask us to comment on various things, and therefore we've been featured in those tabloids. And what really sits at the heart of how we work is that we go the extra mile. So what that means is that we really want you to succeed, we really want that deal to get done. We've got a certain process and strategy that we follow as a business for how we work, and us being very thorough, doing lots of due diligence, asking for perhaps more documents than you used to, perhaps asking more questions than you used to. But there's really a method behind that in that we want to get to a position where we're really confident in the advice. There's no skeletons in the closet that are going to come out later. And if things do go wrong or something changes, and let's face it, in property, there's usually some sort of hurdle, then we will go the extra mile to try and resolve that. We'll think outside the box. You know, one of the standard things that we do quite often with clients is, you know, you know, on the residential side, we might be looking at income and self-employed people, people running limited company businesses, and maybe the numbers don't quite stack up. Well, we're talking to the accountant. We're saying, okay, when's the next accounts due? When's the next sole trader accounts due? Is there anything we can do in there to limit the expenses? Accountants want to maximize expenses, reduce profit, and therefore low tax. As mortgage advisors, we want you to have lots of profit. We want you to pay lots of tax because it makes the lending easier. So there's there's a there's a discrepancy there of agendas between us and accountants. So having that conversation can often result in getting things done. That's just one example of ways that we go the extra mile. Our mission is to build long-term relationships with active property investors and developers to help them achieve their property goals and financial freedom. So ultimately, we want to be part of your power team. That's what we're saying. You've got to build that team of people around you. You don't have to be an expert in all matters. You've got to know a little bit about all these areas. And finance is a really, really important area for property investors because it's where the leverage comes from, right? It's where the funds come from to make the deals happen. And hopefully, you know, if it's a really good deal, it's where the funds come back to enable you to do the next one. So we understand how important that is. We want to be part of that power team so that we can discuss and advise and vet strategies and deals before you get to the point where you're 100% committed in there. Yeah. Otherwise, we're just trying to fit that round peg in a square hole and it's too late. There's no way back out. But if we're talking about this up front and we're saying, oh, do you know, Rob, I'm thinking about doing this deal, I'm going to give it to a provider, we're going to have a 10-year lease in place. And I say to you, well, actually, a lot of provide lenders will want to see a five-year lease maximum. We might be able to do a 10-year lease, but it's going to have this impact. The interest rate's going to increase by X. You might pay more on fee, you might have a lower borrowing, whatever it might be. You can then make an educated and informed decision about whether that dealing strategy is the right one for you. So finance first, really, or at the beginning at least. And that's all part of being within the power team and helping our clients move forward. So I've already mentioned that we've got all the tools at our disposal. We do everything, but what does everything look like? If in doubt, well, here's a list of things that we do. So everything from residential, HMO, service accommodation, buy to let's bridging, development finance, auction purchases, second charge mortgages, overseas clients, expats, insurance, the full suite. And then there's all the things that sit between the lines here. So what about, you know, purchase lease options? You know, what about title splits? What about all these kind of interesting things? What about properties where you need to acquire it, but you've got to get planning permission? You can't start the work until you've got the planning, you know, all of this kind of stuff. Commercial valuations on HMOs, we could we can definitely talk through those subjects as well, because they sit in the grey between this, and you don't really find too many people in our industry of mortgage advisors who can who can assist and guide with those bits as well. Not saying we're a we're a legal expert or a tax expert, obviously, you've got to get that advice separately, but we will definitely guide and and and and push you in the right direction to get the answers that you need in order to get finance agreed. So let's jump into the meat on this presentation. We're going to do a below mass uh below market value masterclass. So BMV, below market value. How to fund BMV deals. So not spurious, complex arrangements that you would never use, but real life funding, things we've done for clients, things that I've done myself. We can look at what BMV and OMV is, yeah, what types of property might be eligible for these types of finance arrangements, different valuation models, how those deals can be stacked, type of finance solutions available, and some case studies as well. So below market value is BMV. That's what BMV is. Anybody who doesn't know what BMV, it's below market value. OMV is the open market value. So what we're saying here is you're buying a property, and if it was sold on the open market, it would be open market value. Maybe that's maybe you're buying it for 100. If it was sold on the open market, it would be 150, right? So you're buying it below the market value. And that's right, really the golden ticket in in property investing, I would say. It's the most simplest but the most effective way to make your money. And the reason why is because usually what property investors are going to do is they're going to add value by works. They're going to have to go through the risk of those works, finding the contractors, hoping they get the valuation at the end, making sure the work's all on time, making it to the right standard, all of that stuff. There's risk involved with all of that. There's time and there's money. But if you buy below market value, you're making your money on the purchase immediately, straight away, you've got that extra value in there. The difficulty is how it can be accessed. And we'll talk a little bit more about that as we go through this presentation. So, what we're looking for ideally is 25% minimum difference between the market value and the purchase price. So if it was in simple terms,$100,000 you were buying it for, then 125 would be the market value. Very, very simple terms there about it. The current market is prime for these deals. So there's a lot of property for sale, right? And at the moment there's not a lot of buyers, and the market's a little bit stagnant. And the reason for that is that there's lots of things that affect the underlying sentiment of people who want to buy. So basically they're sat on their hands, right? They're not taking action. And the reasons why they're not taking action, you've probably heard them all before, right? Especially if you're on social media or you've been on any of the webinars. People talking about things like the renters' rights reform, people talking about tax changes, making tax digital, you're gonna have to send all that stuff in as a landlord to the inland revenue, EPC issues, yeah, they might have gone away, but you know, they were there making things scary. The war in Iran, you know, all these things are going on at the moment in the background. And what that means is that people are worried, right? And when they're worried, they don't take action. So the people who need to sell need to sell, but the people who who are there to buy, they don't always have to buy, right? Some might, but most of them don't have to. So there's a disparity at the moment, and that's not going to be there forever, because I think there's a bit of a bubble until some of these things get ironed out where that sentiment is is lower, and that creates opportunity because all markets are primarily driven by two factors, and that is supply and demand. If the supply is high and the demand is low, then there's lots of it, and not a lot of people wanting it, then the price has to come down. That's the only way that that market really works. And if it's the other way around, you know, that there's not very much supply. So give you an example: memory for computers at the moment, with AI coming in, computers are using a lot more memory. If you look and try and buy memory now, it's really, really expensive because there's not that much memory available, but yet there's lots of people who want it. And because of that, the price has gone up, and it's exactly the same theory with property at its at its basic level. So the market at the moment gives us a really good opportunity to look for deals that are below market value, and that's what we're gonna talk about today. How do we fund them? If we get a deal that's below market value, how do we how do we add that deal to our portfolio? What different ways are there of doing it, and how does it work? So, what we're gonna talk about first is buying a property under market value without using bridge or cash. Yeah, so not not not a cash purchase where let's use this hundred thousand example, right? The property you're buying it for a hundred thousand, but it's worth a hundred and fifty. Yeah. Now it doesn't need any works doing. Yeah, so you're not gonna change it into anything, you're not gonna do anything to it, it's ready to go. It's an off-the-shelf purchase, if you like. You know, it's it's it's just there, you're just a great deal, right? Now, usually people might do this by using a bridge or using cash and doing other stuff, but there are different ways to do it depending on what the objective is. Here we're talking about going straight to a mortgage. So if we're buying a property, it's under market value, no work's required, and we want a mortgage based on the current market value. So basically, what we're saying is we want the lender to go, okay, I know you're buying this for 100,000, but I'm going to take into consideration the fact that it's actually worth 150. Now, you might think, well, yeah, that's obvious, right? Mortgage lenders don't do that. Yeah. The purchase price is the value 99% of the time. So if that property was worth 150k and you bought it for 50K, your mortgage is based on the 50 that you buy it. And guess what? They want a 25% deposit of the 50. Yeah. Now, that doesn't really help us that much. It adds a lot of equity to the portfolio because once you've put your deposit in, you know, you've still got all the equity in there, but you're still having to put that 25% deposit in. And the idea here is to try and get around that 25% deposit. So that's what we're talking about here. We're not talking about pulling out all the equity, we're talking about how to acquire the property with the lowest kind of cash involvement. And in the simplest way, actually. So most mortgage lenders don't allow to consider the open market value, they look at the purchase price. That's key point number one, and that's 99% of lenders. The usual solution is then to buy it with a bridge or cash, all cash, and then refinance it later to a mortgage. Now that's fine, that works. We can do that, and we're going to talk about that. But it takes more time, it's more complicated, it's more expensive. And if it's 25% below market value, and you know that's not a lot. If it's like a hundred you're buying it for a hundred, a lot of that is gonna be eaten up by the fees and everything else.

SPEAKER_00

Bridging loans have higher fees and costs.

SPEAKER_01

Yeah, they generally charge about 1% interest per month and a 2% setup fee. There's legal fees and there's valuations in order to execute that strategy. And actually, you've got to get two valuations because when you do the bridge, you probably need a valuation. And when you then go to a mortgage later, because the bridge is just temporary, then you've got to get a mortgage. The plus side on the bridge strategy is that you can actually pull the equity out. Because when you get to the because you've bought with a bridge first, when you get to the mortgage stage, that mortgage lender is now going to look at the open market value because you've owned it by the bridge. But there's lots of rules and stuff, you know, maybe you've got to have it for six months if you haven't done any work and all this other kind of stuff. So we're looking to avoid all of that for now and just say, well, you know, I don't need to pull the equity out. I've got cash, I've got things that I've got going on, but I've got the opportunity to buy this deal. And I'd like to add it to my portfolio, to slot it in there as a really good asset, but I want to do it by putting down the minimum amount of money possible and keeping things quite simple. So we've got a mortgage lender who will allow a purchase with the valuation of the property based on the current market value, so the OMV, regardless of the purchase price. And this avoids the need for a bridge loan. The purpose here is to acquire the asset with little money, not to pull out the equity immediately or achieve the lowest interest rate. That can all come later. This is about building equity in the portfolio. That's the that's the strategy that we're talking about here. So, in the context of this particular strategy, then, what we can do is we can we can get a mortgage of up to 90% of the purchase price, subject to a cap of 75% of the market value. Don't worry about the 75% of the market value, we'll calculate that for you. What you need to know is that if the property is 25% below market value, then there's a possibility you could just buy that with a 10% deposit. That's what we're talking about here. Now that's fantastic, you're right, because 10% deposit is much lower than 25% deposit. It's a good way to execute, get a property, get it into the portfolio. The equity's left in the deal until later on when you remortgage it. We're not pulling it out, right? So that difference, let's say property is 100,000, that's your purchase price. Yeah, it's worth 150 in this example because my mental arrhythmic's not that good. So 10% deposit on the purchase price of$100,000, you need a$10,000 deposit. You've now acquired a property that's worth$150. Your mortgage is$90,000 and it's worth$150, you've got$60,000 of equity in your portfolio from day one straight away. You can't pull that$60,000 out. But when you remortgage later on, you know, in a year's time, maybe two years' time, then it will be based on the market value. Then you can pull out the money. If that's your primary objective, is to pull out the money as quickly as possible. This is not the right strategy for you. But for the depending on the situation, depending on your situation, this can be a really good strategy for acquiring below market value properties straight onto a mortgage, no faffing around with bridging, no expensive fees, none of that stuff, and get it into the portfolio for later, building equity. So a few things that you need to know about this strategy. The minimum loan amount is 100,000. Right? So if we're going to lend 90%, then that means that the minimum purchase price needs to be about 112 or thereabouts. Yeah. Multiple properties can be done added to achieve this. So if you had a landlord, he was selling two or three properties, we can tie them all together under one loan to meet that 100,000, or go beyond it and just keep things simple, you know, and just have one transaction. There's always a downside with things, right? So, you know, you can't have your cake and eat it, as they say. The the upside of this deal is that you don't have to bridge, you don't have to buy cash, it's a 10% deposit, and it's pretty straightforward to execute. You add all the equity to the portfolio. The downside to this strategy is the lender saying, I want something back in return, right? I'm gonna do these things for you, and I want something back. And the things that lenders want back is money. Let's be fair. Yeah, they want a higher interest rate or more fee. They want to earn more money for providing this kind of unique product in the market, and there is one lender doing this. So the interest rate here would be between 6.5 and 6.99, and the fee would be between five and two percent, which is added to the loan, right? It's pretty high interest rate if it's a buy-to-let, something like that. But this is short term, yeah. This is for a year, maybe two years, yeah, and then you can come out of it and remortgage. This is just a way to get in, get access to the property quickly. And the amount of money that you're saving on the deposit, and from not going through all the fees and from allocating all your cash from other deals that you can do will make up that difference. And I know because we've calculated it many times for different people, yeah. One other key point here, it must be genuinely under market value. So if you go on right move and you find a property and you go, Oh, I think this is worth more than what right move says, that's really not under market value because number one, it's on the market for a start. And to make it under market value, we have to present the lender with a bit of a backstory. All right. So if it's an auction, that classes as undermarket value because it's only under market at auction to do it quickly because they're a motivated seller and they need to take action and get rid of it. You know, that's a pretty good result just in itself. If it's not an auction, maybe it could be um a private deal that you've got with somebody, you know, retiring landlord, they've got renters' rights coming in, all this stuff, they've had enough, they've made the money, they've been there 20 years, got a big capital gains tax liability, and they're looking to dispose of some of the properties and get out of all of this. That's a good motivational need for being under market value. It could be they just need a quick sale, right? So if you did find something you know online on right move or something, you're gonna have to dig a bit deeper, find out what's going on with it, and and put a little bit of a story together for us so that we can we can present that to the lender.

SPEAKER_00

So, what is BMV?

SPEAKER_01

Now, I don't mean to teach you the basics of what BMV is. We know what BMV is by now, right? Below market value. What I'm talking about here is what does BMV mean in the context of this product, yeah, where it has to be 25% below BMV. Now you might say to me, this is obvious, Rob. It's a it's you know, it's a property that's 25% below market value on a bricks and mortar valuation, right? And it is. So if it was like a buy-to-let, a standard property, yeah, then the way that those properties are valued is on a bricks and mortar valuation. You might have talked about valuations already today. I did catch the end of a bit of a conversation there about valuations. So we're pretty much experts in valuations because valuations are subjective. What is BMV? What is the value? And there's different lenses that you can apply to that to effectively manufacture things in your way. You can effectively manufacture a BMV in some circumstances. So let me give some examples here. So BMV on a buy to let property, so it's a standard two-bedroom property. You're going to rent it on an AST or to a provider or whatever you're going to do, but it's a standard property, a residential property, we call it. The way a valuer values that is by comparing it to other properties of the same type and in the same location that have sold recently. And they look at the value that they sold for, and they look at the value that you're buying for, and they say, okay, well, this is what it's worth, and this is what you're buying it for. It's as simple as that, really. That's how BMV is calculated on a residential property on a buy-to-let. Everything else is about the valuation, right? All other properties is about the valuation method. There are different ways that things can be valued, right? So if it was a HMO or an MUFB, there's effectively two ways to value those assets. And if between the two ways that we value it there's a 25% difference, this now becomes a BMV transaction. Right? So let's give you an example here to bring this to life. So let's talk about HMOs, right? Houses of multiple occupation. You've got a landlord, he's selling his HMO. Yeah, you want to buy that based on the bricks and mortar valuation, if possible. Right? So what you're doing is you're saying, okay, well, I'll take this off your hands, but I'm gonna buy it based on you know what other five-bedroom houses in this area have sold for, yeah, or what the square footage is worth in that area based on the size of it. That's a bricks and mortar valuation, valuing it based on you know the actual asset itself. When you bring that to us, if that's a HMO, let's say it's got a minimum of five bedrooms and five bathrooms, what we can access then is a commercial valuation with a lender. And a commercial valuation is based on the rental income. So you're buying it on one method, we're gonna value it with the lender who has this fantastic below market value mortgage option. We're gonna value it with them based on a commercial basis. Now, usually, at least in the north of the country, that commercial valuation is gonna be higher than the bricks and mortar valuation. And that difference between the two is you buying the property below market value, meaning you can now access this product and pay a 10% deposit. Okay, so we're manufacturing that kind of scenario by the type of valuation that we're gonna get done, which we have control over with this lender. That's HMOs. What if it was a multi-unit freehold block? So basically a block of apartments, right? Two or three apartments, four apartments, ten apartments, twenty apartments, whatever you want. Yeah, there's two ways that they can be valued as well. They can be valued on a block value or an aggregate value. Now, a block value is when you are buying it based on the yield. Yeah, so as a whole block of 10 apartments, if I sell this to an investor, how is that investor going to calculate what he pays for it? Well, he's gonna look at the rental income and he's gonna look at the yield, and he's gonna make a number up from that. Yeah, that's how he's gonna get to the value. Now, again, generally speaking, in most places, not all, but in most places, the aggregate value will work out better. And the aggregate value is the opposite of that. It's imagine that those 10 apartments were all sold as separate apartments to first-time buyers, not based on the rental income from the whole lot and the block value, but they were sold all separately, and then you add them all up together. That's usually going to give us a higher value. So, this is about again, it's about the type of valuation. Is the valuer going to value it on a block basis or on an aggregate basis? Well, we're going to control it with this lender. We're going to make sure they do it on an aggregate basis, and therefore, if that value comes back higher, then we've created a BMV situation again because you're buying it for 250 on a block value, and we've had it valued at 330 on an aggregate value. The lender says, This is now below market value. We only need a 10% deposit. Thank you very much. You've added a fantastic asset to your portfolio with little money deployed. 25,000 in that example, your purchase price is 250, 25,000 deposit. You've got an asset there that's probably producing quite a few thousand pounds a month in cash flow. This whole scenario is why title splitting is a thing, right? So you probably heard about title splitting, you split the titles up, and then you get the value based on all the flats. Well, here's here's a here's a shocker, right? In terms of finance, you don't need to split the titles. Not unless you're selling. It's only about the valuation method. The titles do not have to be split to get an aggregate value, and that's what we want. All we want is the surveyor to go out and say, this could be split if we needed to split it, and therefore I'm happy to value it on that basis, but it doesn't need to be split right now, only if you're selling it or selling some of them and keeping some of them, then obviously you've got to split it in order to do that. We're just going to lend on the freehold.

SPEAKER_00

Aggregate value. Covered this.

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Zero Deposit Paths Using Bridge

SPEAKER_01

What is it worth if a first-time buyer bought it on a bricks and mortar basis? That's what an aggregate value is. Block value, if an investor bought the lot on a yield, what is it worth? And those are the two numbers that you want to get comfortable around when you're doing your due diligence on the property. What are those two values? Is there a difference between the two? Ideally, the aggregate's higher, the block value is lower, that's what you're buying it for. And the difference is what we call BMV in this situation. So there's a few other caveats here for these multi-unit freehold blocks. It is a complex area, and we can go through it if you've got a deal like this. Reach out to us, more than happy to have a have a chat with you and walk through the deal with you. But in order to be suitable to be valued on that aggregate basis, there's certain factors that need to be met. One of them is that each apartment ideally needs to have its own utilities and council tax. Why? Because what we're saying is we're valuing it as if it was all split up and sold individually. You can't really sell it individually if it doesn't have council tax or its own gas and electric. It needs to have separate access. So you can have a communal entrance and then you go there to different apartments and flats, that's fine. But you can't go through one flat to get to the other one. If you sold them separately, then you know John is gonna have to go through Paul's house when he finishes work. That's not that's not gonna that he's not gonna be very impressed with that. Nobody's gonna buy that property, yeah. Size of the flat or apartment matters as well. Ideally, we want 30 square meters minimum. Now, if it's a block and there's maybe one or two that are below that, then we can kind of look at the whole, but it might affect the valuation. So this that the value when he goes out, let's say there's 10 apartments and one of them is below 30 square meters. We've asked him to do this aggregate value, what's each one worth, and then add them up. He's gone, yeah, fine, I'll do that for you. But he goes there and one of the apartments is less than 30 square meters, he's probably gonna say, Nobody's gonna buy this, it's not suitable to sell as an individual apartment. Therefore, he might even decide that he's not gonna do an aggregate valuation at all on the whole lot because just end up with one left, you know, that couldn't be sold, and it would probably affect the value significantly. So, ideally, 30 square meters per apartment. And importantly, as well, there's got to be demand for the flats. If we're saying these could be they could be split up and sold later and therefore value it on that basis, then there needs to be a market for people to buy them. So if you've got you know a block of flats in the middle of an industrial area that somebody's converted, you know, commercial to resi, they've they've they you know they've made a great gain on it, it's a fantastic thing that they've done, but probably not going to get an aggregate valuation because the value is gonna go, okay, yeah, it's 30 square meters, they've got separate utilities, they've got separate council tax, no problems with the access, the access is fine. However, there's nobody to buy this, nobody wants to live in this area. Yeah, there's no sales going on, nothing's happening. So be aware of that as well. And again, it's telling the story of why it's BMV. There must be a reason for the lender. With these two items here: the HMO BMV and the multi-unit freehold block BMV, there needs to be some kind of reason why they're selling, you know, a quick sale for whatever reason is good enough. But we're actually really kind of manufacturing the below market value difference by using by understanding valuations in detail and using them to our advantage, using lenders that will allow this. Not all lenders will allow an aggregate value, for example. You know, they won't do that. Some will insist it's block all the time, some will have rules around it, and the ones that will, they still want a 25% deposit. But what we're saying here is that if we can manufacture that difference in the value, we can then get away with a 10% of purchase price deposit and add that asset into the portfolio. So, some case studies on this, just to kind of wrap your head around the numbers and how it might work. These are really broad, most of them are real deals that we've that we've done. So let's run through these and hopefully it kind of brings it to life. I'm quite conscious, you know, we're talking a lot of technical stuff here about about properties, and it can be hard to understand the concept behind that. But so let's look at some examples. So, example one, a buy to let. Yeah, purchase price is 112,000, the open market value is 150,000. So we're gonna borrow 90% of the purchase price because it's below market value. We're gonna get a mortgage of£100,800 based on that 90%, plus a fee that'll get added on. That means that we need a deposit of 11,200. So, in order to get a property worth 150k, we only need 11,000. That's pretty good, right? Equity straight away into the portfolio is 50,000. So we've added a load of equity into the portfolio. So again, we're not talking about pulling the equity out in this scenario, we're talking about how to acquire the assets, add them into the portfolio with as little cash deployed as possible and keeping things simple. That's a buy-to-let example. Let's look at a multi-unit freehold block example. So, what we've got here in this example is we've got four units, so it'd be four flats. This is a real life one that we did with one of our clients, Bada. And I can say that because there is a discussion out there if you're interested. There is a discussion podcast out there somewhere that's just gone out last week or so where we talk about this deal. It's purchased for 168,500. Yeah. That is the price that he's paying for the property. We had it valued on an aggregate basis or split basis, if you want to call it that, at 255. This property has not been split. It's not split. We've just had it valued on a split basis because it could be split if the lender wanted to, if they had to take possession of it. And also it ticked all those other boxes. You know, it had separate utilities, they were all over 30 square meters, it was in an area where somebody would actually want to live there and buy it. So the lender was happy to do that, the surveyor was happy to do that. So, based on that purchase price of 168,000, we're going to get a mortgage of 151,650 pounds. Fee gets added on top. The deposit needed is 16,850. So to add a property worth 255k into the portfolio, he's putting a deposit in of 16,850. Immediate equity gain, 95,000. Whopping piece of equity there that's added into his portfolio. Now, if he was to then you know go on this mortgage and be like, well, you know, this gets the deal done, it's fine, it works, but it is six and a half, seven percent, and you know, I'd like to improve my cash flow. Maybe later down the line, after a year or so, or maybe two, we exit the deal, exit this mortgage. We can then pull out the equity. We can get 75% of whatever the value is at that time, the aggregate value. So if it was 255, we're pulling out an extra 40,000 almost at that point, which means that all money is out plus 22,750 in this example. Yeah, so that's an MUFB multi-unit freehold block, and how that might work in reality. Let's look at HMO. HMO valuation win. So purchase price 250,000 bricks and mortar basis. Valuation on a commercial basis, 325. Same property, no changes, no work, we're not doing adding value, we're not doing anything to these properties, we're just buying them, we're buying below market value. Our definition of below market value, right? So 325 is the value. So our mortgage is 90% of the purchase price, which is 225 plus fee, lender's fee. That means the deposit is 25,000 and the 75,000 of equity added to the portfolio. So the effective loan to value is 69%. Yeah, so it's not highly leveraged or anything like that, it's just accessing the uh the open market value to lower the deposit. I've included an extra example here that's a little bit more complicated just to show you that there is more interesting ways that we can use this as well. So, lease option, yeah, HMO lease option. You've got control of the property, you've got an option to buy it in two years' time. This is a real example here as well. So the purchase price agreed is 240,000. That was agreed two years ago based on the value at that time, right? The client paid the landlord a thousand pounds a month for the two years. Yeah, and um he also did, so that's 24,000. He also did some works to the property to upgrade rooms to ensuite. So as the tenants moved out one at a time, piecemeal, he kind of you know tick ticked away, did a bit of work, added a few ensuites, made it better, made it nicer, added value to it as well. So he's hitting it from both angles, he's buying it at two years ago price, he's adding value by doing some works to it, and that thousand pounds a month that he's been giving to the landlord, our lender is gonna be happy to take that as the 10% deposit. So when we get our 90% of purchase price, because it is totally below market value now, it's worth 360, right? When we're buying this, he's buying it for 240 still, but he doesn't even have to put the 10% in, right? Because the 24,000 is treated as paid because we've got the lease option agreement that says he's paid 1,000 pounds a month and you know it's going to come off the uh the purchase price, and plus we've got evidence that he did works as well. So there's no deposit here for this. Yeah, the the landlord was owed 216 to complete the purchase. The mortgage was 216, 100% of purchase price. So clusters below market value. Equity gained immediately, 124. Obviously, there's some cost of works in there that we'd have to net off. Just to keep things simple, there's more interesting ways that we can use this. So when we say what is BMV, you know, maybe it's not quite what you thought it was. Maybe there's other ways that things can be BMV. And if there's anything to kind of learn from this, that's what I want it to be. To get you thinking about this stuff, you don't have to remember everything that I've been through. I'm sure you won't. I've thrown a lot of information at you today, a lot of technical stuff. If you've managed to stay awake so far, you know you're you're you're you're 80% of the way there. All you have to know is that this is possible, that there are options available. If that scenario arises, if you're going to look for these deals, if you've got something agreed, then that's the time when we talk and we go through the details. So key info recap here. Yeah? Straight to mortgage is only suitable where no works are required. So if you're going to do works and stuff like that, this doesn't work. It's either off the shelf or works have been done pre-valuation. So what I mean by that is maybe you've got control of the property via an exchange with delayed completion or an option agreement or a cash purchase or bridging finance, whatever it is, then you've done your works, then we can kind of come in with something. But this this strategy is not for where works are needed really. It's just get the property, it's under market value, we're not going to do anything, we're just going to add it in the portfolio, deploy as little cash as possible. So the aim is not to pull out the uplift, but to acquire the asset for a small deposit and build equity in the portfolio, avoiding bridging costs. If pulling out all the equity is the goal, yeah. If you think if this doesn't work for me, I need to pull the money out, then it's cash or bridge purchases required to break the chain first. Talk about that in a minute. HMOs, buy to less, multi-unit free odd blocks are prime for this. 90% of the purchase price mortgages available, 10% deposit. Deposit can be treated as paid via works that have been undertaken or lease option agreements. All right. So if you've done work, you've added value to that property, you've done something, you've put money in there. We can treat that as your deposit. This is not available on commercial property. Yeah. So if it is a shop, a warehouse, an industrial unit, we're not doing this with it. This is only for residential property, HMOs, MUFBs, places where people live. So hopefully that's been helpful. I want to talk about strategy two, if that wasn't enough. Let's have a look how we're doing for time. Okay, we're not too bad. So strategy two is what's called day one or same-day remortgage. This is about breaking the chain. Yeah. Important thing to note here in this technical jargon of day one, same day mortgage, right? Day one mortgage or same-day mortgage does not mean the mortgage is arranged in one day. Yeah. I've had many people ask me over the last few weeks. So if I apply for the mortgage before breakfast, will I get it approved after dinner in the evening? No, you won't. What we're saying here is that the mortgage is going to happen on the same day that the purchase happens. There's going to be two transactions. Not that we can arrange a mortgage in one day. If we could, my life would be super easy. So it requires starting the process many weeks before to facilitate the purchase by cash or bridge within six months of the purchase or even the same day as to break the purchase chain. Why? Why are we doing this? Lenders lend on purchase price unless the chain is broken or works are done. So that whole thing that we just talked about with the mortgage, where we're saying, all right, we're not pulling out the equity, we are just adding it to the portfolio with a 10% deposit. This is the opposite side of that. Yeah. This is where we're going to say, okay, we're not going to go straight to mortgage. We're going to either use some cash that we've got to buy a property and we're going to line a mortgage up so that then the mortgage and the purchase by cash all happen on the same day in an ideal world. Well within a short period of time, let's say. Yeah, but let's say the same day. What that means is the cash is only deployed for a short period of time, and it means that the mortgage is based on the open market value. So now we're pulling out the equity, right? This example,£100,000 purchase price, that's what you're buying it for. You've got£100,000 in cash. 150,000 open market value. We want the mortgage based on the 150,000 because we want to pull out the equity. Yeah. So a lender will give us 75% of 150,000, but not if we're buying it for 100,000. So we have to buy it for 100 first and then do the mortgage after. Some lenders have a time scale, six months, you might have heard. Some lenders don't. We can do it in the same day. So you could have your cash purchase with the legal work all going and a mortgage application running alongside it, and then your cash purchase and the mortgage all complete on the same day. Cash cash purchase 100,000. Mortgage is based on the 150. Actually, it's 75%. You're pulling out more than you paid for it straight away. You're getting all your money back. That's what we're talking about here. So it means applying for the same applying for the mortgage at the same time as starting the process, uh, the purchase process to line them up so they complete at the same time. It doesn't mean starting the mortgage in the morning and finishing it at lunchtime. So there's two financial transactions running side by side. One, the purchase by cash or bridge, and it can be either of those. If you've got cash, fantastic, works much better. If not, there are bridge options available and we look onto the next stage of how we fund it. And the second transaction that's happening on the same day is the mortgage, the bit that's giving us the money back. The purpose here is to pull out the equity uplift gained by buying below market value or after works have been done to increase it. Yeah. So this is the opposite to what we talked about previously. How do we pull out that money? Standard mortgage interest rates can apply here. So the the plus side of doing it this way, it's messier, right? We've got to have a bridge, we've got to use cash, we've got to do it in the same day, we've got to line it all up. But the plus side is that we can go on to normal interest rates, you know, starting at 3.09%. Yeah. Or or or you know, 3.09 has a 5% fee. I said they watch out for the 5% fee. Yeah, low rates, high fee. They always get you with the low rate. So something reasonable would be 5.59 with no fee added. All right, but there's lots of options. We talk about products at another time. Here we're talking about strategy. We can go up to 80% loan to value on the mortgage. Yeah, so we can have multiple properties altogether. We can have portfolios, we can have MUFB, we can have HMOs. Everything can be considered apart from commercial property because it doesn't work for these strategies, right? It doesn't work, the lenders don't do it. You need special commercial lenders. We do commercial stuff, so if you've got warehouses and shops and stuff, that's fine. HMO, shops underneath, fine. But we're not going to execute these strategies on there. Okay, so let's move forward. So day one remortgage, how and why. So the aim is to pull out the equity gain as soon as possible. This is how we facilitate momentum investing. So if you're buying it for 100,000, it's worth 150. You want to pull out that extra difference or 75% of it, yeah, 75% mortgages, pull out 75% of it, so that you can use the money to go do something else, right? Buy another property, invest into your HMO, maybe just go on holiday, you know, whatever you want to do, but you want to pull that equity out and use the funds for doing something else. How is the value added? So there's different ways that the value can be added. So value through works. This is an easy one, right? So what we mean by this is that you complete works on the property to enhance the value. It's pretty standard stuff. As long as we can demonstrate that works have been completed, we can remortgage immediately at the open market value, right? And that is the key here: remortgaging at the open market value, right? So you buy a property for$100,000, you spend$20,000 on it, it's now worth$160,000. We can remortgage that immediately as soon as those works are done with multiple lenders. Because lenders accept that. They say, I understand this, you've bought it for$100,000, you've spent some money on it, you've shown us how you've spent that money, and now I understand that it's gone up in value, and I'm happy to accept that and give you a mortgage based on that increased value. And here you go, thank you very much. You can have your money back out. That's easy, easy stuff. The difficulty comes through when we're adding value through buying below market value because we're not doing any works, it's less common and few lenders will allow it if we break the chain. Yeah, so we've got one lender who will allow it straight off the bat, nothing needed. Now, what we're going to do is we're going to break the chain by purchasing it first, either by cash or bridge, but then immediately afterwards go into a mortgage at the open market value. There's not that many lenders who will do that because they'll go, Well, what have you done to increase the value? Why is it not just worth the hundred thousand that you paid for it? They go, I haven't done any works. They'll say, Well, you bought it for 100, therefore that's what the market's at. Yeah, and that's defined by the way that you bought it. They don't want to do open market value. But that's not all lenders, there's still a handful, right? We've got one lender for the previous strategy. Here we've got, you know, between five and eight lenders who will look at this sort of stuff. The property could be purchased for cash. Use your own money, you can use investors' money, you could use vendor finance if it's set up as a loan agreement in the right way. Yeah, and we do it via a bridge or however we do it, or uh whichever way that's structured. The key is to purchase it and have that transaction. Yeah. So if we're using a bridge, and now here's the here's the really the golden nugget, we could potentially borrow up to 100% of the purchase price on a bridge if the deal stacks up at valuation stage. So what we need is we need a good strong value. It's gotta be at least 25% below market value, and if that's the case, there is a bridging lender who will say, Okay, let's look at the market value of the property. All right, the market value is 150, you're buying it for 100, the value has confirmed this. Because of this, I'm happy to lend you 100, all of it, the full purchase price. Yeah, at the same time, we're lining up the mortgage. Yeah, we're getting our mortgage provider ready. Our mortgage provider is gonna look at the£150,000 value and give us 75% of that. And we're we're starting that process in advance at the same time we're doing the bridge. So, what we're gonna do then is we're gonna get you know 112,000 back, something along those lines from the mortgage. 100 grand for the bridge, 112 back, probably covers the bridge and the expenses and other bits and pieces. It's a free property in that example. The bridge can be done the same, re taken out and repaid on the same day. If it's lined up in that way, it can all be done in one day. So you've got your bridge application to buy, you've got your mortgage application to exit the bridge, you've started them both at the same time, you know, like two cars going down the motorway side by side, and then when they reach the destination, that's the completion day. And on the completion day, the bridge completes, the mortgage completes, everything takes everything else out. It's all just done and dusted in one day. That's the ideal situation. It might be a couple of days after, it might be a week, it might be a month. You might want to do a bit of work, might be shortly after, right? But if you are doing works, remember we can only get so far with that mortgage application because we can't value it, and we need a valuation for a mortgage, we can't value it until the works are done, yeah, because the valuer can't see what you're gonna do in the future, you've got to have done it. That will delay things. So you might be on that bridge for a bit longer, and then we're going into this kind of standard thing, we're gonna do works and exit. That's fine anyway. There's no problem there. The the the the jewel here is in the not doing any works, below in buy buying below market value, maybe putting in a zero deposit, because I'm gonna go on a bridge, 100% bridge finance, and then exit to a mortgage pretty quick. Now, the bridging lender might have minimum fees, they might say, Okay, well, I know you're just doing it in one day, but I'm gonna charge three months interest or a few percentage in fee, you know, so that they make some money out of it. That's fine. The deal needs to be able to accept that as well. That's why the mortgage option exists, that's why we found that solution. Because if you don't want to accept the bridge, you don't want to go down this, you don't need to pull out the fine uh pull out the equity. Guess what? We can just do it on the mortgage, put the equity in the portfolio. All right, so something else fantastic there. Another way to access below market value deals. Day one remortgage case study. Let's have a look at a couple of case studies here on how this actually works in reality. So, example one, buy to let bought with cash, purchase price 100,000, works completed, cost 20,000. The market value now is 180 after the works. So it took a while to do the works, yeah, took a month or two to do the works, and obviously we couldn't value the property until the works were done. So that delays the mortgage. You can't have the mortgage completing on the same day as the bridge. Um so the mortgage completed, let's say 12 weeks later, three months later. The mortgage is 75% of 180. We get 135 back. So we bought it for 100, we put 20 in there. There's probably other costs and stuff involved for the bridge, for the legals, for the valuation, stamp duty. It's an all money out deal there at 135. Example two, this one's bought with a bridge, right? So purchase price 100,000. Bought below market value. No works are needed, and that's key, right? This is the bits where it's more tricky, where it's harder to use the finance system to get a valuation on the open market value because no works have been done. So bought for 100,000, no works needed, the value is 150,000. The bridge loan provider said, I agree, you can have all the money to buy this. They've given us 100% of the purchase price, all the 100,000. The bridge costs are approximately 10,000. The mortgage completes on the same day as the bridge. We've started them both a few weeks before, you know, six weeks before, and they all complete at the same time. The mortgage is 112,500. There's no deposit needed, the cash for fees only. So the client's still got to pay stamp duty, still got to pay legal fees, they've still got to pay a valuation fee, and all that money will come back out within the 12 months anyway. That's how it works if you're using a bridge at 100% financing. Example three, this is my property, right? This is one I did was it last year, maybe even the year before. List of court. So I bought this flat for 78,000 cash. Yeah, the total cost of the property, including the stamp and the fees and everything else, was 85,000. That's how much money I put in to acquire the property. I needed to do no works, nothing at all. There is a slight lie there, right? I did have to spend, I think it was 250 pounds because there was a leak on the join on a on a pipe, and we had to take the floorboard up and replace the fitting, you know. So I had to pay for the plumber to go out and do that. And it had made a stain on the roof uh of the ceiling of the apartment below. So I got the decorator to go in and and paint over that and make it good again. But no work's required really. Yeah, the mortgage valuation was completed before I'd actually bought the property. So I found the property, I put my bid in. This was an auction one, I bought it at auction. They've agreed it. I'm buying the property, I've got you know 56 days to complete. The first thing I did was go into my solicitor and say, let's start the purchase. Here's the money, let's go. At the same time, I went to the mortgage lender and said, Let's start a remortgage here for a property that I own. Yeah, or that I'm going to own. And they said, Okay, fine. Yep, we start the application process, we get a valuer, the valuer goes out, I give them the estate agent's details. The estate agent gives them access to the property, the valuer, he goes, he values it. He values the property at 135. So I'm buying it for 78 and it's been valued at 135. I need to break the chain in order to get a mortgage on 135. So I'm breaking the chain by buying it for cash, and then one week later, my mortgage completes and I get all my money out of the deal plus 2,000 pounds extra. I could have had more if I wanted to, but I'm not greedy. I didn't want to leverage it too much, and I'm quite happy with that. The 2,000 just covers any voids, uh, rental voids. So that's a real life example. Example four, another one, my property, salt mill, another flat bought for 38,000. Can you believe this property originally, when it was new, was sold for 120,000? Right? 38,000. Too much supply in the area. Total cost of the property is 46 in this instance. No works required, don't need to do anything. Property value 80,000. I can get a mortgage based on that of up to 60,000. So all money out again. I'm not doing any works, right? It's the easiest property investing that you'll ever do. Get a property, undermarket value, find a solution to get the money back out. Maybe you put the money in first, maybe you need the cash flow to buy cash. Maybe you use a hundred percent bridge, maybe you go straight to mortgage and just put a 10% deposit in. But we're doing nothing, right? Apart from managing the finance, managing the legal work, we're not doing any works, we're not doing any of that stuff, any of that difficult risk-based things where where stuff can go wrong. Just adding equity to the portfolio, acquiring properties with little cash put down. These are the properties. So this first one here, that's Lista Court, really nice, complex there. And then the other one is the Saltz Mill one, much bigger. That comes with a gym, free gym, and a parking space and a few other bits and pieces as well. So, in summary, right? BMV masterclass. I'm sure you've got a lot of information in your heads now going round there of all these different things that you can do. Again, you don't need to know everything, just need to know that things can be done. If it's BMV, then we can help. Deals can be funded easily if you're buying BMV or doing works. This is what you need to know. There is the potential for a low deposit and leave equity in the portfolio, or if you don't want to do that, we can pull equity out. Depends what's right for the situation. You don't have to be an expert in finance, all you have to have is a basic understanding to ensure it's available to you and lock the deal in. Yeah. I've shown examples of two different funding strategies today. There are many more creative ways to use finance sensibly. All we've talked about today is buying below market value two ways. That's it. That's all we've talked about. And you've seen the kind of level of depth that we can go into in how we can manufacture BMV and do different things. There's other things out there. We could be here for a very, very long time if we went through more of them. So the message is really reach out to discuss your situation and how we can help fund your deal. If you've got something agreed and it's BMV or you want to get into this market and really understand what to look for, the key is really secure the deal. Secure the deal and then we'll just then we can decide how to fund it. But yeah, if you want to know more, reach out to us. We're all over social media. We can be found in the website online. You can drop us an email, and there's our contact details if you would like to take a note of them. I hope this has been interesting. I hope you've learned something new about how to fund deals. And if there's any questions, I'm quite happy to take those now.

Audience Q&A And How To Reach Rob

SPEAKER_03

Absolutely. Have I learned something? Oh my goodness me, Rob. I think we may have saved the best to last in a lot of respects. What a fabulous talk. And I cannot believe some of the stuff that you've said. It's just mind-blowing, isn't it? This is this is oh, it's almost too good to be true, isn't it? What uh what I I just can't get my head around it, and and I'm sure there'll be lots and lots of questions. So brilliant, brilliant talk, great presentation. Would it be okay to ask you a couple of questions now?

SPEAKER_01

Yeah, it's absolutely fine. My only caveat is that I have to fit all the questions in to 13 minutes because I'm taking my daughter to see her first live concert this evening, and then we have to go out.

SPEAKER_03

Don't worry, we are super quick here, I can promise you. Okay, so let's have a little look at the questions very, very quickly. Do you operate in Northern Ireland?

SPEAKER_01

For these particular strategies, no. These are these these are limited to to England and Wales and Scotland as well, I think now.

SPEAKER_03

Okay, no problem at all. Could you use this for a row of five houses being sold together? Worth one million being advertised at six seven five modern method of auction. I suppose you're going to say yes, because effectively it's a portfolio, isn't it?

SPEAKER_01

Absolutely. Works really good for portfolios because you know they can all be valued individually as well. So, yeah, absolutely it can work for portfolios.

SPEAKER_03

Brilliant. Okay. Marie was asking Belanger. Market value is that the same as undermarket value?

SPEAKER_01

Yes, it is under market value, below market value. It's the same. The difference the what we're looking at here is how much are you buying it for and what is it worth on the open market value? Either using a normal bricks and mortar valuation, or for the more complicated things with HMOs and MUFBs, using those specific valuation strategies of how we look at the assets to value them.

SPEAKER_03

Yeah, yeah, I'm absolutely perfect. That is okay. This is obviously yes. Can can we use you for bridging loans? Of course we can.

SPEAKER_01

All day long. We do we do bridging loans all the time. And actually on our website, we've we've got a bridging loan calculator on there where you can you can pop on yourself and you can you can plug some numbers in and see what it comes back with. I don't think it knows about these creative strategies. So you know these are a little bit in the grey, but if you're just looking standard kind of bridging, that there is a tool there that you can use to give you an idea. The best way is book a call and we'll go through your situation and deal, and you can feel a lot more confident about what's available for you.

SPEAKER_03

Awesome, thank you very much. Trevor was asking if he could have some PDFs. So is there possibly a way we can get in contact with you and get the PDFs? He's a bit worried that the quality of the recording he won't be able to see the screens. I was screenshotting my head off, I've got to be honest with you, so I can look at it in detail later. But are you able to put these these sort of case studies on a PDF on your website or something?

SPEAKER_01

Yeah, so what we'll probably do is we'll we'll we'll share them, we'll we'll maybe share them after the call. We'll we'll see how they can be distributed, or what we'll do for sure is if you follow us on your favorite social media, you know, Facebook, LinkedIn, Instagram, whatever it is, then we will share some posts over the next few days about each of these elements as well, with the key criteria in there to help you out.

SPEAKER_03

Awesome, that's brilliant. Anna has asked, can she use this strategy for service accommodation?

SPEAKER_01

Well, service accommodation is just a buy-to-let property, usually, unless it's got multiple kind of rooms in it that you're letting out separately, but usually it's it's a buy-to-let. So the service accommodation is just the use of it. Um generally speaking, there's no difference in how it's valued. You know, there isn't a service accommodation valuation method, and at least not for smaller ones. So absolutely, yeah, it can be used. What's the what's the value of the property that uh that you're buying and how much are you buying it for? Is there a 25% difference between the two? This is the test that you should all be doing. Look for that 25% difference minimum. It needs to be it needs to be solid, right? Not not spurious. And um, if that exists, then then we can have a talk about it.

SPEAKER_03

Absolutely, that's brilliant. I think that's that's all of the questions. Uh I just wanted to ask one question actually. What's in it for the lenders?

SPEAKER_01

What's in it for the lenders? So if we look at the mortgage strategy, well, effectively, when you when they lend 90% of the purchase price, they're only going up to 75% of the value. So it is like them lending 75% normal buy-to-let mortgage, but based on the value. Umbody else does that. There's only one lender who does it that we've got an agreement with. You know, all other lenders are still in the dark ages where they are no, it's it's 75% of the purchase price, and we don't care what the value is. But yeah, so that opens up that market now where we can go straight to mortgage. The the other aspects where we're breaking the chain first to pull out the equity, that the the lenders, you know, they're managing their risks still because they're still considering the market value in those in those scenarios, and that's what it is. It's about the pragmatic approaches by certain lenders who are willing and prepared to work with people like us and investors and understand what we're doing and want to put the solutions in place so they can do more business.

SPEAKER_03

Yeah, yeah. And I suppose if it did default and go to auction, they'd probably get all of that purchase price anyway, wouldn't they? Because it's below market value.

SPEAKER_01

They would, they would, exactly. So when when you actually, if you know, if you were really boring and geeky like me and you kind of worked out all the numbers, you you could see that their exposure is is still quite low. So even if they lend 100% of the purchase price, if it's significantly below market value, then they're only like at 80% of the market value anyway.

SPEAKER_03

Yeah, it's still worth that money. I get that. I as I said, I nearly kept up with you, Rob, you are incredible with your numbers and your facts and you think it's just brilliant. And and we're really grateful to have you on the ETA platform as well. So I just think that was brilliant, and uh possibly the best was kept till last here. What do you think, Mark? I thought it was amazing, Rob.

SPEAKER_02

I knew you'd kill it, I knew you'd kill it and come out there with uh with that, you know, funding and strategies and ways to do things because you're doing it yourself, and that's one of the things today is you know, the people that have been on here today are living and breathing property investors. We're out there, we're actually functioning and we're doing all of this. So, Rob, absolute pleasure to have you on today, my friend. As James says, it's great to have you on the ETA platform as well, helping and supporting the community as well as all the other investors out there. So, if you do want to talk funding or work out how you're gonna, you know, strategize and get out there and property invest, and you're ready to take action, then you need help with that. Reach out to Rob and his team. So thank you. Thank you for coming on, Rob, today. It's been great.

SPEAKER_01

Yeah, no problem. My pleasure, absolutely. And you know, I'm glad it's um been of value and hopefully it helps some people get some deals done, particularly in this market, because it's it's ripe for this stuff. You know, there's lots of deals out there that that are below market value at the moment. Um, so you can really kind of take your pick around there and negotiate prices as well. What I would say is the book call QR on there, my diary is quite full at the moment for the next week or so. But if you go to the website or just Google Simple Fast Mortgage Get Started, or go to the website and click the get started, there's like about four or five questions, you know, what are you looking to do? It takes about 25 seconds, 30 seconds, and it'll send an email through to us, and then we'll be in touch with you and we'll book a call in. So if you look at the link and you think, well, you know, I don't really want to meet with Rob at 6 45 in the morning on a Tuesday when I start my first meeting. Then there's other ways that you can get in touch and we'll we'll we'll get in touch with you too to find a suitable time.

SPEAKER_03

Lovely, absolutely brilliant. I really, really enjoyed that. Thank you so much, Rob. Really, really good.

Closing Links And Final Goodbye

SPEAKER_02

No worries, thanks for having me, guys. Good to see you, Rob. Thank you very much. Thank you very much. Amazing, amazing presentation by Rob, and one I'm sure you'll all agree was massive value. Once again, if you'd like to check out education to action at www.education toaction.com. That is our community where our experts are always on hand to help you. And of course, there's lots of learning to be done in the vault there. So do check that out or check out thepropertyunleash.com as well for great podcast episodes and, of course, information on how we can help and support your property investing journey. Thank you for joining us today. You take care and bye for now.