Our first accidental HMO was bought 10 years ago!
With our first projects we made some stupid mistakes on the renovations, the layouts and the interior design. Since then we've been involved in dozens of projects both for ourselves and for other people. We know the renovation process inside out and learnt the hard way the processes to follow to create a successful project.
We've had hundreds of tenants stay in our houses, which has taught us what they want, how to attract them and keep them, and how to make sure the usual headaches like late rent and conflict between housemates are avoided.
And we've made some money along the way as well!
We're still actively growing our portfolio but since we started investing seriously in HMOs about 5 or 6 years ago we've built our portfolio and are now collecting over £30,000 every month in rental income.
We were exactly the same, and without our focus on HMOs over the past few years I guarantee we would still be spending 40-60 hours of every week in a job, working for someone else to pay the bills.
When we started out with our own HMO investing, Victoria and I were working 40-60 hours a week in corporate jobs we weren't passionate about. The income was good, but our lifestyle didn't match, and more than anything we craved freedom to travel and enjoy life.
Whether you're currently in the same position as we were or have your own source of dissatisfaction, I can completely relate to feeling like there's a better way.
Our starting points might be varied, but we're all looking for the same two things:
Security & freedom!
HMO investing can give us a lot more than this, as a big part of our motivation is to create housing in a broken market and raise the standard of accommodation in the private rental sector, but the important thing is that whatever other motivations we have, HMOs can 100% give us an abundance of both security and freedom!
"Regularly a single house will make in excess of £1,000 per month, and our most profitable houses bring in over £2,000 every month."
The process of creating a profitable HMO is relatively simple.
I'm not saying it's easy to put everything into place, but the processes we follow after year of trial and error are the on every project.
And we have plenty of examples from our own projects and from other investors who have completed Inside HMO Investing to prove that it works.
You don't need to be a professor in economics or a master builder to set up and run successful HMOs. I can promise you that we are neither of those things, and still manage to achieve success time and time again.
If it's so simple then, why do you need Inside HMO Investing to succeed?
The process of creating a successful, profitable HMO is simple… once you know how.
There are 4 steps to your first successful HMO, and we walk you through each of them in detail during the course to ensure you can go away and replicate our success.
To give you an overview of exactly what's included, these are the key areas covered in our HMO online course that you need to be familiar with in order to create and run profitable HMOs.
Module 1 - Finding Your Perfect Investment Area
In this module it's all about identifying the best areas for investing in HMOs, understanding how to measure tenant demand in your area, and how to pick the right target market for your investments.
It's probably the biggest hurdle we see in new investors, and unfortunately analysis paralysis often leads to inaction. We got fed up seeing smart people get stuck at this stage, so we went back to basics and figured out how to give you the confidence to pick an area and get started.
We make sure in this first module that you know exactly how to determine where you should be looking for your next HMO. We'll cover the positives to look out for and the things to avoid, from the county level right down to individual streets.
Module 2 - Finding Your Perfect Property
Once you've picked the perfect area, this module will help you find the perfect property. HMO Property Sourcing is a skill in itself, but there are plenty of options.
We'll focus on making sure you know exactly how to identify a suitable property for conversion to an HMO, as well as looking in detail at how to find these properties.
90% of our deals come from estate agents, so that's where we'll focus, but we also give an overview of some of the other options available to you to explore if you exhaust the open market (we still haven't)!
Module 3 - Our Unique Deal Analysis Method
In module three we get deep into the numbers. Whether you're a budding statistician or hate maths as much as I do, I'll make sure you know exactly how to appraise every deal that crosses your desk quickly and easily.
There are a lot of elements to consider when appraising deals, and too often we see investors missing out critical figures which can leave you in a sticky situation.
Our appraisal process ensures that you're buying the right property at the right price. We'll cover the returns you should be aiming for, purchase prices, buying and renovation costs, rental income, and running costs.
It's not just about the numbers though. The appraisal process also needs to consider the local area with regards to planning requirements and regulations that could cause major problems if not dealt with at this stage.
Module 4 - Ensure Finance Isn't Holding You Back
A difficulty that we all face at one point or another is having less money than we'd like to invest. Module four will help you overcome this most frustrating barrier.
Not only will I walk you through the different options available to you for buying HMOs with specialist mortgages and bridging products, but we'll cover exactly how much money you'll require to get started and to achieve your goals.
I'll also introduce you to alternative means of funding your future projects including commercial mortgages, raising private finance and working with Joint Venture partners. Once you're finished this course, your bank balance will no longer limit your investing!
Module 5 - How to Run a Successful Renovation
The renovation process starts for us as soon as we have an offer accepted, meaning that as soon as we collect the keys our team are ready to go and can get our projects finished as quickly and professionally as possible.
This area is one that scares a lot of new investors, and it has taken us years to fine tune our project management processes to the stage where we can convert a house with very little involvement. In module 5, we'll take you step by step through the processes we follow and the tools we use so that your projects can also run like clockwork.
Whether you need help specifying the works, understanding pricing for different jobs, finding reliable tradesmen, or keeping the whole project on schedule, we'll make sure the fear is gone by the end of this course.
Module 6 - Marketing & Management to Boost Your Profits
Just because it’s the final stage in the process doesn’t make it any less important. In fact how you market and manage your HMO portfolio on an ongoing basis can have as much of an impact on your future profitability as any of the other stages.
You may already know (or decide down the line) that your best option is to use a managing agent, but even that approach requires you to understand what you need from them to ensure they're looking after your investments.
This module covers both the marketing side of your business, where we discuss the elements of the ideal property marketing mix, as well as the ongoing day to day requirements for HMO property management.
As well as the 4 critical steps to successful HMO Investing, there is a wide array of legal and compliance issues to navigate as well (all of which are covered in the Inside HMO Investing course as well)...
Like the different planning permission requirements for small HMOs, large HMOs, and in designated 'Article 4' areas; and the licensing requirements and conditions (updated at the end of 2018) implemented by your local council to ensure the safety of your future tenants.
Working through these 6 modules will ensure you can create your own HMO portfolio, become financially free, and start to live life on yours terms!