Thank you for all of your comments on my 1st video blog update, they are awesome! You can read them here http://sussexpatrick.com/2012/02/03/my-1st-video-blog-update/#comment-384

I will be making more video blogs (I’m planning my next one) but I wanted to write a quick (ish!) update now.

The refurb on my 2nd property will hopefully be finished at the end of Feb. My plan is to rent it out but it might make more financial sense to sell it (or find a tenant buyer). I ended up getting 3 quotes for the work and saving a lot of money!
Thank you to:

•  Andy (and Debbie) Kime for doing a great job.
•  Paul Howard for your expert advice with restoring the bay window.
•  Frank Sumner and Steve Boyd for providing quotes

Here are some photos of the refurb: Property 2

I’ve spent a lot of time looking into the multi-let strategy and have found 2 areas in Sussex where I think it will work well. I need to do more investigating and speak to Francis Dolley. Thank you to Peter Fannon for your advice.

On Wednesday and Thursday last week I was in Leeds. It’s amazing the difference in house prices in Leeds and Sussex. In Leeds you can buy 2 and 3 bed houses for £40K-£60K. In Sussex you can buy a beach hut for £40K! It makes sense for me to buy a few houses in Leeds, to help with my financial freedom.

I would like to thank John Philbin and Kris and Jayne Carpenter for their time, showing me around their investment areas in Leeds. They are all well established and experienced investors (and very nice people!). Thank you also to John for picking me up at Sheffield Station (there were no trains at King’s Cross on Wednesday due to signalling problems! How often does this occur at King’s Cross?!!)

My 1st property should be redecorated this week (after the minor flood). Thank you to Scott Lynch. This will enable me to quickly get the property re-valued and refinanced. I can then start investing in Leeds.

After about 6 months I’ve finally found a buyer for the unmortgageable (is this a word?!) studio in Bognor. I found my buyer by going to the Brighton PIN Meeting. Thank you very much Cath Sweby and Peter Fannon for your help. It’s an example of my persistency and why I never give up.

As I always say (and mean) I really appreciate the inspiration I get from people because it helps me to keep going. However I know I can achieve so much more. When I created my blog in May 2010, one of the first things I said was “My motivation is to learn/set up one or more recursive income strategies.” I am now working on my plan to create a recursive income stream.

I find myself in a bit of a dilemma and am not sure what to do. I’ve received the following request from Jayne Carpenter:
“Please keep calling them prop’s, makes them sound more friendly and kind!!! (I also have had similar feedback from Mr Dolley – your much more polite than me!!!!)”
All I can say is Jayne Carpenter’s much better looking than Francis Dolley!!

Thank you for reading my update.

Enjoy!

Hello people

Thank you for your responses to my last update. You can read them here.

http://sussexpatrick.com/2012/01/09/welcome-to-my-property-network-8/#comments

I’m pleased to have introduced the idea of property investment to my friend Kwok Cheung, as I’d like to work with him again one day. One of my goals is to teach people everything I’ve learnt (and learning) in property

In relation to the video of me walking down the stairs (in my previous update), Nick Hatfield made this comment on Facebook “If you’d stop yapping you’d get down a lot quicker Patrick.”

It inspired me to make another video on Thursday – and I walked down the stairs 1 minute faster. More significantly, it was the 6^th time I’ve done those stairs – and I longer have any fear of falling down them.

It’s good to take chances and do what you really want to do!

I like all types of feedback and have received the following complaint from Francis Dolley:

“You know something you do that really pisses me off – you refer to properties as ‘props’!! I hate that!”

Francis – I’ve added a couple of entries in MS Word’s AutoCorrect feature. Now, when I type the aforementioned abbreviation, Word replaces it with ‘properties’. It’s good working with you.

When you believe it you will achieve it.

Best regards

Patrick Souiljaert

I am the first property investor with Cerebral Palsy. Follow my journey – www.sussexpatrick.com

Like me, you can achieve anything you want – just take action and stay focused.

Hello People

Welcome to the new people I’ve added in the last week to My Property Network (now in excess of 400 members). If you’re not sure who I am, I am the first and only property investor with Cerebral Palsy (www.sussexpatrick.com).

Thank you for your replies to my last update. I appreciate them all and have posted them on my blog http://sussexpatrick.com/2012/01/03/welcome-to-my-property-network-7/#comments

On Wednesday I viewed my 2^nd prop with Paul Howard and Frank Sumner – and made this video

I would like to sincerely thank both Paul and Frank because without their help, I couldn’t do what I am doing. I’m really pleased because Frank says he can replace the bay window for less than Vale Management have quoted and I’ve asked Paul liaise directly with Helen at Vale, to get the work done ASAP. It’s nice to be working with such good people.

This video is just of me walking down the stairs

I knew I could do it because I had done so on two previous occasions. (The first time, I wasn’t focussed because I’d slipped over walking up the path to the prop. The back of my shirt had landed in something I wished it hadn’t! The second time, I spent a couple of minutes figuring out how to do it).

It wasn’t easy – but it was simple. All I did was use the wall as support and took one step at a time. Of course there was a chance I could have fallen down the stairs – but I knew, if I concentrated hard enough, I would not fall.

Paul didn’t realise it but he really helped me. When I want to do something and someone advises me not to, it motivates me even more to do it! I’ve always taken chances in life (but I’m very risk-averse). Over the last 18 months, I’ve learnt that successful people take chances. To me, taking a chance is when you’ve got nothing to lose.

I think everyone should take chances in life because you’ve got nothing to lose.

One of my goals in 2012 is to start joint venturing (JVing) with people. I’m planning to have tea and coffee (I drink both but not at precisely the same time!) with two separate investors in my area this week.

Following on from my previous update:

• My 1^st prop is going to take about another month to fully dry out – and it’s not a problem!
• I’ve given the vendors a deadline, on the 1 bed flat in Bognor, of 5.30 on Tuesday to fully accept my offer.
• As promised, here’s the update on ‘my 3^rd prop’. Please see the email to Whiteheads below.

The only thing to add to it is, about the Excel extract in my email – it comes from my Property Analyser that I’m currently developing. It will contain all of the associated costs and tell you if a potential prop is worth buying. I love Excel. When I was at BT I created lots of Excel macros.

From: ‘Adam Gregg’

Sent: 05 January 2012 10:07
To: patrick@sussexpatrick.com
Subject: RE: Flat C, 4 Linden Road

HI Patrick,

Thank you for your email.

Have spoken to the vendor unfortunately this is unacceptable for them to take £85,000, so I’m sorry to say this one is not going anywhere and I believe that they will stay where they are.

we will keep you informed of anything else that comes on that we think may be suitable.

Kind regards

Adam Gregg
Branch Manager

Whiteheads Group Ltd
70 Waldwick Road, Bognor Regis, West Sussex, PO21 2PE
Tel: 01243 870044 Fax: 01243870077 email:adamg@whiteheadsgroup.co.uk

Disclaimer:  This e-mail from Whiteheads Group Ltd contains information, some or all of which may be confidential and privileged.  If an addressing or transmission error has misdirected this e-mail, please notify the author by replying to this e-mail.  If you are not the intended recipient you must not use, disclose, distribute, copy, print, or rely on this e-mail.  Whiteheads Group Ltd has endeavoured to ensure that this e-mail is free from computer viruses, however, you are advised to carry out your own virus check prior to opening any attachments.  Whiteheads Group Ltd does not accept any liability for any damage sustained as a result of any software viruses following opening of any e-mail or attachments.  This email may be monitored for quality and training purposes, in replying to this message you are giving consent to this.  Important communications should always be followed with a phone call, fax or printed copy by post.

From: patrick@sussexpatrick.com [mailto:patrick@sussexpatrick.com]
Sent: 04 January 2012 22:57
To: ‘Adam Gregg’
Subject: RE: Flat C, 4 Linden Road

Hi Adam

Hope you’re well. I’ve had a long day!

All I can be is honest with you.

I’ve spoken to 5 EAs/surveyors in Bognor. The estimates I now have on Flat C, 4 Linden Road (after a refurb) range from £100K to £110K One guy said he has viewed the prop and it’s in a bad block (I remember seeing a large crack in the communal front door window when I viewed the flat, which may be a tell sign)

Another guy said he read (in the full details of the prop, inaccessible at the mo on http://www.rightmove.co.uk/property-for-sale/property-32223394.html) the remaining lease is 68 years. I think it’s 85 years. Please could you clarify?

Linden Road is at the low end of the PO21 2A’ postcode, when it comes to sold prices (average £93,630). The last recorded sale in the 2AN part of Linden was in 2006

Sold prices of Flat C, 4 Linden Road

27 Jun 2003      £78,000

23 May 2002     £49,000

I’ve done a Rightmove search for 2 bed flats within 0.5 mile of PO21 2AN:

These 2 comps (sold STC) are both ground floor with a garden

http://www.rightmove.co.uk/property-for-sale/property-31537402.html

http://www.rightmove.co.uk/property-for-sale/property-35806751.html

On the market since March http://www.rightmove.co.uk/property-for-sale/property-29262877.html

On the market since May http://www.rightmove.co.uk/property-for-sale/property-33836033.html

With all of the above in mind, my original maximum offer of £85K was about right.

As I am a people-person, I would like to work with you and Whiteheads. However, when it comes to buying props, it needs to be a good enough deal because my analytical side will prevail.

Apologies for any inconvenience caused.

Best regards

Patrick Souiljaert

I am the first property investor with Cerebral Palsy. Follow my journey – www.sussexpatrick.com

Like me, you can achieve anything you want – just take action and stay focused.

Hello humans

Happy New Year to you all!

Welcome to the new people I’ve recently added to My Property Network (now in excess of 400 members). If you’re not sure who I am, I am the first and only property investor with Cerebral Palsy (www.sussexpatrick.com).

I’ve had an action-packed few weeks. I’ve secured the purchase of 2 props in 2 weeks and my first prop (which I completed on in May has been flooded! It’s all good fun!

The flood in my first prop was caused by a bust pipe in the flat above. I haven’t done anything about it myself. Howard & Co www.howardestateagency.co.uk (the best letting agency in Worthing) have sorted it all out. My tenant (and her baby) stayed with her mum for 5 days, whilst the flat dried out. The maintenance company are going to do the required redec work. All I need to do is ensure the work is done properly so I can get the flat re-valued and refinanced.

(The best tenants are people who have got no ambition of owning their own home – because they will treat your property as their own home)

My 2^nd and 3^rd props are going through now.

My 2^nd prop is a 1 bed flat with a yield of over 10%, right by Worthing Station. The flat was due to be sold at auction but I bought the prop beforehand – and I should complete on it on 9 Jan. The flat needs a refurb. It has a big bay window (which was going to need a lot of treatment, due to damp). However the maintenance company have applied for planning consent to replace the window with a new UPVC one. They estimate the window will be replaced at the beginning of Feb but I would like to try and get it done sooner. I like a challenge! All I need to is try and get the planning consent rubberstamped ASAP. Paul Howard is a Worthing Councillor and has said he can help! Thank you Paul – it’s great working with you.

What I haven’t mentioned above is all of the dealings with solicitors, EAs, letting agents, builders, maintenance companies etc.. It goes without saying because we all do it. My point is this, if non-investors were to read what I’ve written they would probably say something like “property investment and owning properties is so difficult. All you get are problems with tenants, damaged properties, having to apply for planning permission…”.

I love property investment, all I see it as is people. The hardest thing I find is viewing a load of props. Everything else is simple and easy. I really like liaising with people – and doing the analytical work.

My 3^rd prop is a 2 bed flat in Bognor town centre (near the station). It’s on the market with Whiteheads (www.whiteheadsestateagents.co.uk), one of the biggest EAs in Bognor and I’ve built a good relationship with them. I was the first person to view the prop when it came onto the market for £100K. The EA said the vendor was very motivated, wanted a quick sale and would accept a low offer. After viewing the prop on a Friday, I started at £70K, and then after the weekend, I told the EA my highest offer was £85K.. The EA came back saying the vendor wanted £94K.

I left it for 2 weeks and phoned the EA and offered £85K again. The EA came back with £90K. At 90K the yield is 9.2%, I thought it’s a bit low but had another look at all of the figures and concluded it was worth buying the prop for £90K:

• I compared the maintenance charge and remaining lease with my 1^st prop (10% yield):

Prop 1 maintenance charge & GR £950

Prop 1 remaining lease 68 years

Prop 3 maintenance charge & GR £546

Prop 3 remaining lease 85 years

• I would like to work with Whiteheads and they have offered me a rental management fee of 7%.
• After the refurb the prop would value up to £125K

On 23 Dec I received an email from Whiteheads, saying the vendor now won’t accept anything less than £91K. This prompted me to have another look at the figures, and another search for comps/sold prices. It appears that £125K is a little optimistic and think what I originally thought about the prop only valuing  up to £110K. Hence I phoned the EA last week and explained my concern. They said they’re going to email me sold comp prices of £125K. I would still like to buy the prop if it will value up to £125K.

I’ve decided to call some surveyors and other EAs I know in Bognor and ask their opinion. I’ll then let Whiteheads know if I still want to proceed with this purchase.

I have had another 1 bed flat, 10% yield offer accepted (through another EA) but the vendors aren’t very motivated to sell (if at all). The vendors are a husband and wife, and a business partner in Majorca. It took them over 3 weeks to make a counter-offer of £62K to my offer of £60K. Hence I offered £61K, waited another 10 days or so and then went with £62K. The EA said “The vendors are very happy accepting your offer of £62K but the business partner is now thinking about buying out the husband and wife.” That was over a month ago. What I’ve decided to do here is, phone the EA and say my offer will only last for another 7 days.

I always say to people that I’m looking for a yield of 10%. There are different ways of calculating yield and I would like to clarify how I do it. Some people include the maintenance charge, ground rent, refurb costs etc. I go by the gross yield hence only use the purchase price and the annual rental income – and there’s a good reason why. I know what the rental rates are in my area so when I’m browsing Rightmove, I can quickly ascertain if a prop is a potential deal. When I find a potential prop, I then phone the EA and ask for more info.

This is how I calculate yield:

(the annual rental income / the purchase price) * 100

My motivation to try to secure 2 props in 2 weeks came after Rob Moore emailed to tell me he had entered me into the Progressive VIP competition. This led me to take massive action and I posted a number of updates, throughout the 2 weeks, (and my competition video) directly on my blog. Go to www.sussexpatrick.com and scroll down a bit!

Many congratulations to Iain Wallis for winning the competition – you are a worthy winner. Iain is going to buy a BTL prop and donate the proceeds to Cancer Research (in memory of his sister-in-law). I would also like to thank all of the people who voted for me.

When someone issues me with a challenge and a deadline – I go for it!

My updates always seem to end up longer than I intended! I’m going to write another update to run through the figures on my 3^rd prop and whether I decide to buy it. I’ll also outline my plan for 2012.

Other blog updates in the pipeline:

• Another one on Mindset (I love mindset stuff!)
• A blog inspired by the Wealth & Lifestyle weekend I recently attended.

Thank you for reading!

Best regards

Patrick Souiljaert

I am the first property investor with Cerebral Palsy. Follow my journey – www.sussexpatrick.com

Like me, you can achieve anything you want – just take action and stay focused.

At 6.15 this evening I made an offer of £90K for the 2 bed flat, should hear back tomorrow whether I’ve got it. I’m not really concerned if I don’t get it tomorrow. I’m prepared to wait a little longer and see if I can get it any cheaper. At £90K and with a rental fee of 7% (after remortgaging) the net cashflow will be £182, which is good enough.

I had a call from Howard & Co yesterday re my flooded prop. They said the flat has now dried out and the tenant can move back in. The maintenance company are going to redecorate in a couple of weeks. I’ve bought Howard & Co an Xmas hamper, I’ll deliver it on Friday and find out more info.

I love this property game – it’s all about building relationships.

Looking forward to the VIP Xmas party tomorrow night. I’ve bought new shoes and a bow tie but might need to borrow a mask!

(I wrote this on Thursday morning)
In the post this morning I received confirmation from Accord, who processed the transaction, I faxed yesterday. Just spoken to Sue Laird, I was very appreciative to her and Tracey for their help. Sue said “When you need to make another transaction, just give me or my team a call and send a fax.”

The key to overcoming these types of obstacles in life is to speak to someone with authority and who understands the situation. I’ve done this sort of thing so many times before

Left a voicemail with Vale Management, who manage the block of the flat I’ve just exchanged on, asking about any outstanding/planned works.

Spoke to the EA manager about the repo I really want to buy. It’s a case of waiting for the bank to authorise access to the prop.

Chased up the prop I thought I had secured last week. This is the one the vendors are a husband and wife and a biz partner in Majorca. I think the biz partner is still debating whether to buy out the husband and wife. It takes them ages to make a decision.

I’ve also got my eye on 2 other props. One which I offered on 2 weeks ago when it just came on the market. The other has a very complicated lease and has fallen through twice so far.

Friday’s action

Had a call at 8.50 this morning from Joanne from Howard & Co (01903 212210) to say that the fire brigade had been called out because my flat in Worthing has been flooded, due to a burst pipe in the flat above. My tenant (and her baby) stayed the night at her mum’s. I phoned back to give them the details of the management company who maintain the block and spoke to Paul Howard. I phoned Paul back at 10.30 to double check the insurance situation:

Paul: “Yes, you’re covered. The damage isn’t as bad as we first thought. The carpets are soaked through tho.”
Me: “Oooooo, I needed to get new carpets!!”
Paul: Leave it with me, I’m going over there this afternoon. Don’t worry about it”
Me: (having stopped worrying) “Thank you – I really like working with you.
Paul: “We like working with you too.”

I would like to nominate Howard & Co for another customer service award.

I had a call back from Vale Management re my new prop. The old damp-damaged windows are going to be replaced with UPCV ones imminently. The owner had paid £2K to have the work done but, annoyingly, Vale have paid the money back to her, due to the delay in having the work done. The good thing is it will significantly reduce the £6K refurb

I’m off to Peterborough now for a fun, fun weekend at the WEALTH AND LIFESTYLE SUMMIT. I better get dressed first!

This morning I overcome what would have been a major obstacle, before going into the EA at 4 PM today to give them a 10% deposit cheque for the prop I secured yesterday.

Yesterday I phoned Accord (where my residential offset mortgage is) to transfer funds into my Santander bank account to cover the 10% deposit cheque. I asked “I need to withdraw money from offset savings account please.” The answer I got was “You need to send a letter to us in the post in order to do that.” I wasn’t expecting this to be the case, as I can pay money into the account over the phone or via the web.

I then kept getting the robotic response “Sorry I can’t help you”, which I hate. I kept going and spoke to loads of people. The excuses were ridiculous:
“We haven’t got the facilities to do that”
“We can’t do that, it’s in your terms and conditions”
“We need your signature”

I kept asking “Please can I send you a fax?” Eventually I got through to the right manager (Sue Laird), who said “You can send a fax.” which I did last night.

This morning I phoned up to chase my fax and spoke to Tracey. At first Tracey was very unhelpful and she didn’t know who Sue Laird was. I started to go through the same thing I went through yesterday on the phone (I knew the best thing was to stay calm and polite). Then Tracey directed me to their website and suggested I download and fill in a transfer form:

Me: “I’ve got CP and I can’t handwrite properly.”
Tracey: “Have you got someone there who can help you?”
Me: “I wish I did but I haven’t.

After a more minutes on the phone Tracey remembered who Sue Laird is (Sue has just joined the company). At which point Tracey became more and more helpful.

Tracey went to find Sue and tried to locate my fax from last night. Tracey asked me to resend my fax to another fax number. I tried to do so but I was using the phone line! Tracey phoned me straight back on my mobile. We kept getting cut off because my mobile reception isn’t great at my desk!

I sent the fax and phoned Tracey back. Sue now had my fax and was going to deal with it today.

I said to Tracey that I’m a property investor and will be making withdrawals and payments on a regular basis. She said that Sue will be setting up a better system for me (either by phone, email or the web).

I was on the phone to Tracey for about 50 mins and it ended like this:

Tracey: “Sue is going to phone you with an update later on. My shift ends at one o’clock but if you need anymore help please give me a call tomorrow.”
Me: “You have been so, so helpful I feel like giving you a hug.”
Tracey: “That’s so kind of you to say that. I’m here to help you.

I felt drained after the phone call but with a great sense of achievement, having turned the situation right round and into a positive outcome.

On my way to the EA, Sue left me a voicemail to call her back. Sue had left for the day when I got home and phoned her back. But the guy I spoke to seemed to think Sue had made the transfer for me but left her a message to call me in the morning.

Just to be on the safe side, I’ve phoned my back and they were more than happy to give me a £5K overdraft!

I’ve never worked so hard in my life but I love it. Property investment is the best job in the world – and I’m inspiring people doing it! With my analytical and good people skills I know I’m going to be very successful. I feel I’m still at the start of my journey because I haven’t taken off yet.

My mind is now focussed on finding 2 props in 2 weeks.