Listen to this episode below:
Jethro has recently made a radical career change from the world of music to the world of property. 18 months ago a chance encounter with the book Rich Dad, Poor Dad kick started his journey and he hasn’t looked back since.
With no background or previous experience in property, construction, investing or business it has been a steep learning curve but one that is already proving very rewarding.
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As he’s still relatively new to property investing, Jethro is only just beginning to consider what his long term strategies will be.
He’s obviously got a passion and skill for flips/development deals and is trying to decide between scaling up the volume or scaling up the size of developments, but feels he’ll most likely sway towards the larger projects.
With regards to creating a more regular monthly income, he’s also spending some time considering which buy and hold strategy is right for him and he’s currently thinking student lets might be the answer.
After good success with his first deal, Jethro got stuck straight in to his second deal which was a significantly more complex project than his first one. There were some difficulties along the way (see biggest difficulty below) but ultimately he’s completed another fantastic deal.
He paid £255,000 for it and spent £60,000 on the renovation. With £15,000 worth of costs/fees as well, it brought his total spend to £330,000. After an enormous amount of interest, 2 people wouldn’t give up on it and the final agreed sale price reached £430,000 giving him a massive £100,000 profit.
At the start of his second project Jethro was still working full time as a DJ in the evenings and trying to run the development during the day (resulting in not very much sleep!). He did a lot of things better the second time round, like getting fixed contracts with the builders, but it was still perhaps a little more than he could handle with a full time job.
One morning, he showed up at site to find the builders saying they couldn’t do it for the agreed price and were walking off site, leaving Jethro with a half-finished house and nowhere to turn.
He had to renegotiate a day rate with them in order to keep them working, which he now realises was a fairly extortionate day rate, and he had to leave his job in order to manage the build. But as you can see from his success above, it all turned out OK in the end.
What’s Your Favourite Book?
As a self-confessed walking cliché, Jethro didn’t feel his book list would be anything we hadn’t heard before, but he does encourage us all to explore every avenue of learning from other property podcasts, to industry magazines and experts’ Youtube channels.
Jethro East’s Links & Resources
FairstoneProperty.com – Fairstone Property is Jethro’s property business focussing on affordable, fast turnaround buy to sell projects.
Fairstone Property on Facebook – Keep up to date with Fairstone Property on social media
Email Jethro East – Got a question or looking for some advice? Get in touch with Jethro here.