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Jade got her first taste of the property game 7 years ago and has been steadily growing her portfolio ever since. In the last year, she’s made the switch to working in property full time and now has 3 HMO projects in the works.Balancing property and two small children is no walk in the park, but Jade consistently puts in the hard work and is reaping the rewards.
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Jade’s story
Jade started off her career as a retail store designer for high-key clients in key airports across the UK and Europe. She always had a knack for visualizing the potential of an empty space and turning it into reality. In her mid twenties, she decided to move in with her gran for 6 months and save up a deposit for a house.
Jade’s first house (bought with her then fiance and now husband) was no fairytale picture. With only 5% deposit, she was forced to take what she could get and the buyer was eager to get rid of the house. The current clients were a nightmare and Jade’s partner, Tim, had his hands full negotiating them into moving out. Then, the real work began as the house was in terrible disrepair.
“Head to toe wood chip wallpaper, burgundy carpet, cigarette burns… it was horrendous, horrendous.”
Tim is a builder and was able to complete the renovation work in his spare time over the next few years. They eventually sold the house, essentially completing their first flip.
Tim and Jade continued to flip houses but didn’t realised what they were doing. With Tim as a Builder and Jade as an interior designer, they were able to successfully flip houses every few years. However, the flips were slow, and they struggled to gain momentum.
Two and a half years ago, she had her first child and was made redundant from her interior design job while on maternity leave. After starting a business that didn’t pan out, Jade began to look seriously into property. They bought their first buy-to-let and Jade began to educate herself about the property market. First, she came across Simons Youtube channels and then she attended one day courses and other educational events.
Jade decided that HMOs were the faced paced game she was looking for, but her investment pot from the buy-to-let wasn’t big enough to get her started. After a discussion, her friend was impressed with her level of diligence and they started a joint venture together. Jade emphasises that this would not have been possible if she hadn’t put in the hard work prior.
“There is a lot to say for hard graft and education.”
A HMO Strategy
Renovations for Jade’s first HMO were on going whilst she was pregnant with her second child. Originally, she hired a letting agent to rent out the rooms in the HMO, but after 6 weeks, they had had no success. Jade decided to take care of the marketing herself and after a few key changes, the house was full within a month. After that they knew HMOs were a model that could work for them.
Now she’s on her third HMO with a fourth halfway through the buying process. It’s been a natural process and all the previous effort has allowed the last 12 months provide exponential growth. It hasn’t always been easy though, cashflow is a constant worry and Jade and Tim have taken on a lot of projects all at once.
“In property you’ve got to be very reactive and always have a plan B, C, D, and E to make it work.”
She predicts that each HMO will bring in between £800 and £1200 per month ranging from 3 to 6 bedrooms.
Jade’s Advice
Jade’s number one piece of advice for those looking to get into the game is cashflow. She cautions people to watch their flow and not take on too much at a time.
“Everything is expensive.” Keep you eyes on it. Delays are a real problem. Everything is a learning curve”.
For those looking to run ahead of the crowd, she suggests contingency plans be put in place and warns against moving too fast. “You do always get there, you just have to be a bit patient.”
Jade Bailey’s Links & Resources
Honeybee Properties– Jades Business Instagram
The Plot Designer– Claire’s Instagram
McNeil Construction– Tim’s Instagram
Email Jade Bailey – Got a question or looking for some advice? Get in touch with Jade here.