The Property Millionaire (That Wasn't!)

....marketing and sales, and her beliefs and actions around that, because, if you don't have enough clients, it's a marketing and sales issue.

But the fact that she wasn't sure if she could handle more clients made me focus on her outgoings and how to make the most of the equity in her flat. 

I asked her if she was interested in going into investing in rental property, and she said that she was, in theory, but was very timid about the idea.

I told her that, if she mortgaged her flat now, for the 70% of the value that she would be allowed, she could probably pull out £189,000 on an interest only mortgage at 6% per annum.  This money would be tax free. 

She could use £1000 a month of that to boost her income immediately, which would improve the quality of her life a lot, and invest the rest in a couple of one bedroom flats, perhaps a bit further along the coast in Worthing (cheaper) to give her a very wealthy old age indeed.

Her immediate objections were "But they would never give me a mortgage, I don't earn enough, and how on earth would I pay the repayments?"

I got my pen out, and on the flipchart, while telling her that she could get a mortgage of 70% of value usually without having to prove income, I showed her that the mortgage would cost her an extra £945 a month.  She could use £56,700 of the money she pulls out to sit in a high interest deposit account, and to pay the repayments for the next five years.

"What about after that?" she asked.  "Hang on, I said, I'll show you in a moment...."

She could put aside £60,000 to add £1000 a month to her income for the next five years.  This, together with the repayment fund, would leave her £72,300 in the pot.  She could go off to Worthing, find a few one bedroom flats and if you allowed for £20,000 for deposits and costs, she could buy three with a bit of haggling.

(If she looked for below market value deals, which I could show her how to do, she could probably buy more, or even get her money back out and go on to do it again and again)

This would mean, with her own flat, she would own property worth £607,000 (being made up of one flat x £247,000 plus 3 x £120,000)

Then, in five years time, if we just follow the trend of property prices of the country as a while, not even the predictions for the South East, she would make a further £303,500 in capital appreciation, enabling her to mortgage her portfolio which is now worth £910,500 (just under a million, notice people, please!) for 85% of it's value, releasing £773,925 in total.

After paying back her previous mortgage of £189,000 and her three other mortgages of £102,000, totalling £306,000, she would have new amount sitting in her bank account of....

£278,925, totally tax free.

Then she could put aside five years of mortgage payments on the new mortgage of £773,925 (interest only at 6% costing £3869 a month) totalling £232,177, leaving her  an extra £780 a month to boost her income.

Topped up by rents from the flats of about 3 x £700 a month each, as she's been steadily increasing the rents in line with the market rate, while her mortgage payments have remained the same. 

Income now, £2000 from business, £1000 from reserve, £3000 or so from rents.  Total around £6000 and most of it tax free as it's not earned income.  Lovely!

The really interesting bit comes over the next five years, as her portfolio increases in value to £1.36 million, enabling her to remortage 85% of it, pulling out £1,156,000, which will give her a pot of £382,075 to pay the new mortgage with, play with and live on.  Plus the rental income from the 3 x flats.

I could see that she was getting excited by now, she could glimpse the possibilities. 

I had essentially shown her, in five minutes, that she was already financially free, and could be a property millionaire within 10-20 years.

Then she said to me "So what's next Nicola, how do I do all this?" and I suggested she join the Money Gym Club at Silver Level, to get a feel for how it all works, and get property investment mentoring support while she makes some initial enquiries about remortgaging.  "How much is that?" she asked.

"£27.50 a month" I replied.

"Oh, I couldn't afford that" she said. 

Dumbfounded, I left.

Then I received a comment on our site recently via my business partner and fellow Ecademist, Judith Morgan's blog, regarding our membership site and whether Silver is worth £27.50 a month. 

"I will say that I don't believe there isn't value in the site, I just find it questionable that there is £27.50 worth of value there every month - in my experience.....To be honest I fully expect you to disagree with me. If you had only an ounce of integrity (and clearly you have a great deal more) you'd disagree with me, based on the fact that you fully believe in your product....I wish you luck with because I believe you're motivated by the right kind of reasons and I hope you continue to assess and re-assess"  Best regards, BJ

If someone can't see that the mentoring combined with coaching we offer, accessing the kind of knowledge and "outside the box thinking" demonstrated above, not to mention the business acumen of Judith, my internet marketing knowledge, the Money Gym wealth coaches combined wisdom, the support of all the other Money Gym members and clients, is worth £27.50 a month, or the monstous sum of £330 per year, then something is seriously wrong with my marketing somewhere.

(Actually, we know there is, and we are putting it right!)

Judith often says now, that when she meets someone, the first thing she asks them is not "what do you do?" but "do you have any equity in your property?"  If they reply in the affirmative, she then says "oooooh, I could make you seriously wealthy!".  Just can't help herself.

LOL

If you like the sound of all this but can't quite believe it's not "too good to be true" then why not take advantage of some of the resources below, as there is something to suit everyone.

FR*EE WEBINAR

I will be joined by fellow Ecademy BlackStar, Mike Segall for our Working Lunch webinar (just like a tele-conference really) on Wednesday at 1pm and it's all about property. 

You can book your place, while accessing the recordings of previous calls, by visiting:

http://www.TheMoneyGym.com/WorkingLunch

DO IT YOURSELF WITH ONE TO ONE SUPPORT

If you join The Money Gym Club at Gold Express Level right now, you not only get one to one support from one of our Wealth Coaches (mostly investors in property themselves), extra bonuses worth over £1600, get in before our pre-Sept membership fee rise, but you get to join Judith and Nicola in the Autumn, as part of our exclusive Mastermind Group. 

Gotta tell you, there are only 3 places left now as they are going like hot cakes.  And can you wonder?  We have been making UK millionaires since 1999.

Find out more at http://www.TheMoneyGym.com/GoldExpress  

Then email Judith urgently to see if you are a suitable candidate for this programme (we don't take everyone, you have to be open minded, ready to work through your negative and limited beliefs, and willing to take action).

I really hope you enjoyed the story today, and that it made you think a little bit differently. 

Because that's how the wealthy think, a little bit differently. 

That's the only difference between a wealthy person and a poor person, really, you know.

Warm regards

Nicola &
The Money Gym Club Team

p.s. The other tip is that I can get you into a Passive Investments Open Day, ahead of the queue.  Email Nicola@TheMoneyGym.com to be put on my VIP guest list.  They taught me all this stuff and they do it all for me, because I would never get round to it otherwise!