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Having started investing in 1998 with properties in South Wales and abroad, Mike achieved financial independence by 2006 with the passive income from his portfolio.
He now has over 50 single lets, over 20 HMO rooms along with commercial property interests, and is an Amazon number 1 best seller with his book ‘How to Successfully Invest in Property‘.
He attributes a lot of his success to a property mentor he was able to turn to for advice, and is now joining us to share his property journey and pass on some of that advice to us.
Show Sponsor
You may remember Shaun Callacher from episode 14 who, still in his early 20s, has over 100 units in his portfolio that are predominantly HMOs through lease options and rent to rent deals. I’ve persuaded him to spend an hour giving us a proper introduction to Lease options, what they are and how to acquire them.
The webinar will be completely free to attend and it’s taking place on Wednesday the 10th of June at 7.30pm. We will record it as well, but the only way to access the webinar or be sent a copy of the recording is to register now at insidepropertyinvesting.com/lease
Investing Strategies
Mike is passionate about using his funds to grow a portfolio without running out of cash. The best way he has found to do this is to flip properties to create capital and use the profits as the deposits for buy to lets. This enables him to keep growing his portfolio without spending his starting capital.
Biggest Success
In 2003 Mike was offered some land in the Brecon Beacons where he designed and built 4 houses, including his own home where he still lives to this day.
In 2005 he won the UK self-build award in the ‘economy’ class. The property was built for only £140,000 which he was able to do because of the contacts he had built up over his years in the industry. It just goes to show the value of your network.
He’s also proud of a mixed use commercial/residential property he bought for £550,000. He struggled to get the money together but was committed to buying a property of this value so was able to spend 6 months structuring the deal in a way that enabled him to buy it.
Biggest Difficulty
Mike had a deposit down on a 1 bedroom new built flat in Swansea when a highly sought after 2 bedroom in the same block came available for £285,000 with an expected value at completion of £350,000.
Mike jumped at the opportunity but this was in the lead up to the financial crisis and by the time the development was complete the lending criteria for new-builds had changed and the demand had plummeted.
He was effectively stuck buying something he didn’t want to buy for more than it was realistically worth, but he was able to drag the purchase out for 6 months by creating a snagging list that he made a condition of the purchase.
During the time he was able to find another buyer willing to buy it for £276,000, meaning he lost £9,000 on the deal but in the grand scheme of things he was happy to get away from it without losing any more on it.
What’s Your Favourite Book?
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How To Stop Worrying And Start Living
How to SUCCESSFULLY Invest In Property
Mike Woods’ Links & Resources
Mike Woods The Property Expert – Direct link to Mike’s website
Twitter – Follow Mike Woods on Twitter