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Today I am delighted to be joined by David Granat, a 26 year old electrical engineer who has just left the corporate world after working in the automotive world for the past 9 years.
He was able to make this move after winning the most recent mastermind programme run by Simon Zutshi, where over the course of 12 months he built an HMO portfolio worth £1.7 million that generates over £160,000 profit per year.
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Entering the Industry
Although it’s only in the last 12 months that David has dedicated himself fully to property, he’s long had an idea that he’d like to enter the industry and leave his job as an electrical engineer. After buying his own flat in 2013, he was able to refinance and buy 2 single-let properties in Coventry, completing on the deal the day before Stamp Duty was increased.
These first two rental properties gave him a good grounding in the industry, as he boldly took on all aspects of the process himself; from building furniture and completing the DIY, to managing the buildings and providing longer term maintenance.
Although he paid over the asking price for the properties, they’ve since gone up in value. His 6 months as a landlord before starting on the Mastermind course last October also meant he was classed as an experienced landlord, and was able to access HMO mortgage products later down the line.
Building a Portfolio
After buying his first two properties, David signed up to the Mastermind course. Since then, he’s managed to build a portfolio of three HMOs, and acquired 6 rent-to-rent deals, all within Oxford and the surrounding areas.
To fund the growth of his projects, David has secured £300,000 worth of private investment, which he’s already put to good use. He recently purchased a 4-bed, 4-storey property for £227,000, and completed £90,000 worth of refurbishment to turn it into a 6-bed HMO. It’s since been valued at £420,000, with £10,000 left in the deal, and £2,000 per month being generated in profit from its tenants.
David says the encouragement from Simon Zutshi has been vital, and by building his network, creating investor packs, and immersing himself in the industry, he’s already finding huge success.
In the future, David intends to move away from the rent-to-rent model, in favour of focusing on buying HMOs. He says he’ll concentrate on the tried-and-tested 6-bed en-suite model he’s already been successful with, and will replicate it across more properties.
Over the next 12 months he has a target of 10 more HMOs, giving him 60 rooms in total, and with a view to aiming high, over the next 5 years he’s working towards owning an ambitious 250 rooms altogether.
What’s Your Favourite Book?
Essentialism: The Disciplined Pursuit of Less – Greg McKeown
David Granat’s Links & Resources
You can find out more about his property journey at www.DCGproperty.co.uk