084: Andy Graham created Smart Property Investments along with Eddie Dovison and Nick Morris in order to leverage each other’s skills and scale quicker than they could on their own.

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Andy Graham Smart Property InvestmentThis trio describe their investing pedigree as HMO development, holding over £2 million worth of assets – all top spec, high yielding HMOs. They began their respective property journeys individually but came together last year to form Smart Property Investments in order to leverage each others skills.

They currently have 3 HMOs under way at present and a project with a Gross Development Value of £2 million being finalised. They also have experience with rent to rent deals but make it clear that this is not their focus.

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Investing Strategies

HMO properties are the main focus for these guys, both individually before they got together, and continuing since they formed Smart Property Investments. They are so passionate about this strategy as they recognise the fantastic cash flow potential of these types of properties. They are now branching out into other developments and flips, as a way of accelerating their income, but believe the demand for shared housing will steadily increase and a lot of the profit from these other deals will be funnelled back in to their HMO portfolio.

Biggest Success

One of the HMOs they’re currently working on a is mid-terraced property in an area they already have a lot of student houses. They bought it for £150,000, and think it’s going to cost £50,000 to convert it from a 3 bed house into a 6 bedroom, high end HMO. 75% of the funds are coming from JV finance, and they hope the end value of the building will be around £250,000. This will mean about £20,000 of their money is left in the deal, the investors will be paid back within 3 months, and it will give them a monthly net profit of £1,500 per month!

Biggest Difficulty

One of the first properties they bought in Stoke was a tenanted student HMO. They explained to the mortgage advisor how the property was set up, with separate ASTs on each room, but when the mortgage valuation was done, the lender refused to lend as they didn’t offer HMO products. As a result, the deal fell through and they lost a lot of money in abortive costs because they trusted someone who should have known better. Thankfully they were able to recover some of the costs as the lender acknowledged their mistake, but the deal was gone and they’ll never get that time back.

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Low Cost High Life: Live an Affordable Life of Luxury – Mark Homer

Smart Property Investment’s Links & Resources

SmartPropertyInvestment.com – Andy, Nick and Eddie’s main company website
Facebook.com/SmartPropertyInvestment – Keep up to date with their latest projects and contact details on their facebook page

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