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Paul & Liz Lanfear own a property business based in Leeds called Property Angels, which specialises in boutique property for busy professionals. They have a portfolio of houses of multiple occupancy (HMO’s) and single lets. Their properties are very high end, boutique HMO’s aimed specifically for the young professional market in north Leeds and really do need to be seen to be believed.
Whilst HMO’s are their primary strategy, they also consider other property related projects and run a highly successful training and mentoring business with their flagship product being the ever successful ‘Heavenly Day’, which is a HMO master class.
Paul & Liz undertook Simon Zutshi’s Mastermind 14 last year and were delighted to be selected as Top performers. Many of you will have read their article in the January issue of YPN magazine this year and today is an opportunity for you to catch up with where they are now in their property journey.
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Investing Strategies
Paul and Liz have a 70/20/10 split, which means that 70% of their time is spent on their main focus – growing their HMO portfolio.
20% of their time and resources are put into capital creation projects like planning gain and flips.
The remaining 10% is spent on their ‘Heavenly’ training business.
Biggest Success
The first purchase lease option they completed on is one that Paul and Liz continue to be proud of. They have an incredible relationship with the landlord, who is already considering other deals with them.
In addition to being on the market for sale, the property was also up for rent which made them immediately think of a lease-option. They agreed a purchase price with the landlord of £180,000, along with an equity split at the end so that when they exercise their right to purchase the property, the previous owner will get a set % of the profit.
The lease fee is £700 a month (exactly what the previous owner would have got if he had let it through an agent), and after refurb the net cash flow is £600 per month – a net ROI of 72%!
Biggest Difficulty
The same project could also be their biggest difficulty as it was their first foray into using more creative strategies, doing bigger refurbs and setting up multi-lets. They admit they were right on the edge of their ability with this deal.
What’s Your Favourite Book?
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Awareness
The Compound Effect
Paul & Liz Lanfear’s Links & Resources
PropertyAngels.uk.com – Find out about Property Angels and the services Paul & Liz offer including their fantastic Heavenly HMO days
Facebook.com/propertyangels – Keep up to date with property angels on Facebook
Email Paul – Got a question or looking for some advice? Get in touch with Paul here.
Email Liz – Got a question or looking for some advice? Get in touch with Liz here.