fully transparent: how much i make from 11 properties

[@vanfourello]

Wow! That’s so awesome! Thank you for sharing this in such details! Love it! One more thing to consider is to include emergency/unpredictable spendings fund - eg small fixes/repair/maintenance , broken household appliances, etc Some repair (wall painting, etc) after tenant moves out and before new one moving in. And also while having some maintenance there would be some idle of not getting the rent- so would be needed to cover that, etc

[@richardgreen3386]

Really great video on the financials - no BS and sound analysis which is pretty rare on this topic. It would be great to see a video or 2 as a deep dive on your latest project where you converted 4 flats from deal sourcing/identification, determining scope, engaging trades/architects, planning and project management. A real deep dive.

[@nintendokings]

One thing to note: you glossed over ‘management’. Truth is when you’re managing & renovating so many properties like this, it’s basically a full time job.

[@ThatAhmedKhan]

fair point - but i mentioned why i didnt include it

[@andrewbryant4259]

If you’re a DIY wizard it might seem easy. But otherwise you’re inevitably going to have to pay someone to do some work at some point. Structural, electrical, plumbing, you name it. Not many people can do it all by themselves so there will undoubtedly be some cost here

[@michaelhall2138]

How long are the mortgage deals- -5 years?- i’ d guess.

[@brunobris]

​@@andrewbryant4259he said management not refurbishment roles.

[@salsabila786]

Great video, I got in to properties at a similar time in 2018, I've got a mixture of BTL and HMOs. But being in the North East of England, I bought most as corporate sales or auctions, refurbed and rented it out with no mortgage. I've also taken on 3 properties I leased, converted to HMOs and rented them out, each HMO for which I've invested very little for lease and refurb is getting me twice the income of each BTL. It's basically a part time job but I've been able to go in to part time contracting as opposed to a full time job on the side. I knew interest rates would never stay at lows like 0.1% in December 2021 forever and didn't want the exposure. My investments in my 11 properties is similar to yours, but the yield is much better in the North East and personally I think it's coming to a time that capital appreciation is catching up with the South now.

[@jamesspearing121]

Agreed.. the yields need to be good or you are losing money or barely breaking even - and in a volatile market that’s a lot of risk. Forget yields of 5 or 6% that agents tell you is good. Should be able to get 9% minimum on straight fwd BTL let alone HMO etc.

[@sammyajose1267]

props for not letting the job application rejections deter you. onwards and upwards

[@ThatAhmedKhan]

Yes - thank you! 🙏

[@misterr279]

Great video, regarding the cash flow and the risks. Even if my portfolio cash flow dropped from 3.5k to 1.5k it would still mean I could wake up when I choose, train when I like, sleep when I want to, walk and explore, read, create etc and not have to answer to some wage monkey or do another totally useless corporate job....THAT is why I got into property. Create a reality you are happy to endure.

[@ThatAhmedKhan]

great perspective :)

[@bartholomewlyons]

That is IF you have enough properties to get sufficient income. What is 1.5k a month? You strive to be a bum or what?

[@CC-dy7tc]

@@bartholomewlyons this is so true but once you have sufficient income let’s say 3k - 4k a month, it’s nice to be able to have many options as opposed to going 9-5 everyday.

[@bartholomewlyons]

@@CC-dy7tc but think how much capital is at risk. This would help you make ends meet and sloooowly clomb the property ladder. But time v money ratio here is unviable. This dude doesn’t go into how he raised the initial money for the 1st property. That is either family, hard work, loan etc. So he does this for the views but this is not something useful to 99.99% of viewers. No detail as to where the money goes (maintenance 175 per month? Insurance doesn’t cover everything and finding tenants, replacing tenants etc is also not easy). This is hard work, not rewarding in the slightest. And you don’t have that much time as one would think. You also invest so much time in refurbishing it. Nah, learn a craft, be unique, teach others, build a real business. I also have properties I rent and I dont find it rewarding or smth to strive towards.

[@George-ch2dp]

Currently studying a Real Estate Masters at university in Edinburgh. Crazy that your 15 minuet video has been more engaging and informative than my two hour lectures. Thank you for this video and keep up the good work!

[@brunobris]

Your videos are not only educative but awesome to watch. Pretty much work in the video itself before the exact information delivered. Thank you Ahmed

[@ThatAhmedKhan]

Here's 4 free property courses I've made totalling over 32-hours of property knowledge: www.ahmed-khan.com/free-courses

[@kevinliang1775]

Amazing! A lot of useful and condensed information! I stop many times to think through and do the calculation myself. Thanks for sharing

[@ThatAhmedKhan]

I think I need to slow down in future videos lol

[@programming_duck3122]

It would of been interesting on how you managed the initial capital for each one of the properties.

[@FilipinoFamily-t6z]

Thats why this is all BS, cool if you have 100k in the bank already otherwise this is a stupid way to make money now

[@jackwicksproperty]

Such a good video mate, youve clearly spent a lot of time on the structure and the filming of this and it was 100% worth it!!!

[@ThatAhmedKhan]

Appreciate that! Thanks, mate! :)

[@ThatAhmedKhan]

hope you're doing well, been a long time

[@hishamadamu9889]

@@ThatAhmedKhan u inspire me to get into real estate

[@fireelighting8610]

Thank you for the video man, very clear and informative, I'm looking forward to getting ready for my business career, all of this is very helpful! Good luck man

[@ThatAhmedKhan]

Thanks, mate. Best of luck!

[@hbchohan7886]

The best explanation of the real cash flow concerning rental properties. Excellent work Ahmed.

[@ThatAhmedKhan]

Much appreciated!

[@davidwhitton5519]

This video demonstrates that leveraged money in these times of more realistic interest rates apposed to the the free money times of the last decade don't work. I bought a flat for £45000 for cash spent £6000 on a refurb basically all brand new as I am a builder and done the work myself, new value is £75000 and my monthly rent net profit is £490. I'm just in the middle of purchasing another property for cash that is landlord owned who can now no longer make enough income from it with the new rates yet I will comfortable make £550 a month net as a cash buyer. The new game in town is for those who hhave saved their money in the last decade of crazy free money which was obviously never viable long term. The higher those interest rates the better as far as cash buyers are concerned.

[@kooolooooo]

You're right. Also as time goes on, banks are becoming more and more stringent in their lending criteria. Making it more difficult to start leveraging in the first place.

[@JimmyBob708]

45k? Which country is this in?

[@cxg101]

@@JimmyBob708 lots of places up north

[@ln5747]

You foolishly lump all leverage together. 90% leverage is not the same as 40%. Buy to let can absolutely still work with leverage during high interest rates and will maximise returns. Real estate is mostly a leverage game, it's it's huge advantage. Owning outright is arguably not worth it, for all the hassle you can put the money in an ETF index fund (often in a tax wrapper) and usually get a higher long term return with zero work and greater flexibility to withdraw funds. Bad advice - own real estate for the long term and with at least some amount of leverage.

[@CabinetFramingUK]

@@ln5747exactly. Why lock up 50k to get back about 4.5k a year after tax. Much rather just lock up a deposit of like 10k and make 3k and do that with 4 properties with the same cash

[@manni192]

Great video and thanks for the breakdown. The increase in Corp tax after April will leave you around £4k worse off which sucks :(

[@ThatAhmedKhan]

yeah not the best!

[@matthewcox6490]

@@ThatAhmedKhan is this true? corp tax only goes to 25% for companies earning over £500k profit per annum.

[@ChrisLee-yr7tz]

@@matthewcox6490 Its a sliding scale between 50k and 250k. Co's over 50k are charged at 25% but then there's a marginal relief for those between 50k and 250k.

[@johnjoyce2508]

That is an amazing presentation. So in depth with super detailed explanation. Thank you

[@manrajjutla4710]

Great video, thanks for being so transparent with your numbers!!

[@ThatAhmedKhan]

Always!

[@anumsheraz]

Cruelly fantastic video. The new thing I learn was stress test. Thankyou 😊

[@LA-fr7fx]

Great video - always remember, that rates can go up significantly when a country is heavily indebted. The UK has almosr w trillion of debt and swap rates have a strong say on interest rates - like we sas under the Lizz Truss government.

[@Chinggis42]

I'd love to see a video explaining how one would get started on such an endeavor.

[@juniorale411]

amazing content brother, 🙏out here sharing instead of selling

[@ThatAhmedKhan]

I appreciate that!

[@juliegeorge8533]

Ahmed you are a star! Thanks for all your work. Be blessed.

[@ThatAhmedKhan]

Thanks! You too, Julie!

[@cmann4751]

how did you get the initial funds to buy the first property?

[@riOdariot]

he clearly knows the right people (some rich people, or his own family members who are likely to suggest be well off)... Only a crazy (or stupid) average person would spend 200k+ on his first property investment to buy a 1 bedroom flat. Clearly he's not your average person.

[@SwahiliSpicE]

Hey, thanks for this. What is the stress test percentage these days. it must have changed form 5.5 since interest rates have gone up. And also, how did you get to the 5.5%? Was that just a standard fixed percentage or is there a way to get to that?

[@prestonjaworski3371]

This is an amazing video for advice! Thank you so much. Liked and commented!

[@ixardesign8603]

If your properties are owned in a ltd company, section 24 doesn’t apply (mortgage interest rates are still tax deductible). Nor does it if you’re operating your rentals as SA. Surprised this wasn’t mentioned (with the usual ‘i’m not a tax advisor caveat of course!)

[@ThatAhmedKhan]

Yeah completely missed that tbh! 😂😂😂the disclaimer is a must

[@mattbryan9178]

One big concern is lower house prices. Being fully leveraged if you get a lower valuation you will need to inject more capital to continue securing 25% LTV.

[@ln5747]

What do you mean? Unless it's on a bridging loan etc during refurb you just wouldn't remortgage if you get a lower valuation, not inject more capital.

[@mattbryan9178]

@@ln5747 Apologies the above should have referred to that being the option vs suffering inflated interest costs on the variable rate which would see profit eroded further possibly to a loss.

[@grzegorzjones2629]

You are making an excellent point and that's the main reason why I never do what all those property investing gurus i.e. S Leeds tells you to do. What you refer to is commonly known as the negative equity. If you sucked out all of your extra equity from the property, paid it out during the remortgage and used to buy another property it is all great for as long as property prices keep going up. However, when they start going down you end up with 2 properties which may have not enough equity in the mortgage. Banks usually expect the investment BTL property to be 75% LTV max. If the value of your properties go down and your both mortgages are now more like 80% LTV bank can contact you and say: well, you need to pay an extra 5% of the total property value of property A and B... at which point you are pretty much screwed because you may not have so many thousands of pounds sitting in your bank account (+ your property couch tells you it's a waste of money to have excess funds locked in 1 property if you can buy 2 and earn money from both, so basically blah blah talk which doesn't take into account the risk of the falling prices). If you don't pay that missing 5% on both properties bank can start to repose your house (or both in this case)... which is the mechanism that caused 2007 property crash and why so many people had their properties repossessed back then. We now have falling property prices so interesting times ahead for those relying on their property couches to do the thinking for them. When the tide goes we will see who was swimming naked...

[@pietrocasotto8814]

@@grzegorzjones2629 exactly !

[@rob_m]

Question. What’s the long term exit strategy? Assume you are successful and you end up owning 50 properties with a mix of owning them 100% yourself and shared with the bank. You’ve repaid yourself your original directors loan and the limited companies you have are producing significant profit. What’s the most efficient way of drawing capital out of the limited companies? Personal income tax and leaning heavily into dividends? Is there anything more efficient than that?

[@ln5747]

That's generally how people remove the income tax efficiently aside from selling the company. Personally long term I'd build a portfolio and if I wanted to get out I'd change the company to a trading company and you can sell the company tax free I believe. There are qualifying terms of course, I think it has to be trading (not investment) for quite a few years. But you could sell the investment properties and start development projects for a number of years to qualify, I could be wrong but it's something I shall look into. Because if you sell your investment portfolio company you will immediately lose a significant percentage to capital gains tax. As someone who owns several rental properties in my personal name but is still quite young (30s) I need to speak to a tax specialist before I wrap more properties in a company structure - I'd like to know an exit plan. It's ok saving tax now and building everything within a company but getting both capital and income in to your own name one day is important.

[@ThatAhmedKhan]

Optimising salary and dividends does seem to be the way to go but I'm sure a tax specialist would be able to advise better. I might reach out to one and try make a video on it.

[@mikeowen1819]

@@ln5747 errrr... no you can't sell a company tax-free! You can sell a trading company under Entrepreneurs Relief which is a tax rate of 10% on the first £1m of profit (and then normal CGT rates after that) but if its an investment company then it's all at normal CGT rates which is 20%.

[@ln5747]

@@mikeowen1819 10% entrepreneurs relief is clearly an exit strategy, as per my point. I was of the notion it was 0% on the first 10 million, but it's 10% on the first million (used to be 10 million but Tories raising taxes across the board). The point was it's a relatively tax efficient means to dispose of a company long term and I believe it qualifies provided it's trading for a number of years prior to disposal.

[@mikeowen1819]

@@ln5747 I'm afraid you're being too simplistic again. To qualify for Business Asset Disposal Relief (the new name for Entrepreneurs Relief - my mistake) a company cannot have more than 20% of its turnover, expenses, director's time and assets to be from investments relative to trading. So you build up a portfolio of properties....and then have to come up with some fantastical new idea and make it four times larger than your property company AND THEN find someone to buy it all for £1m or less to maximise your BADR tax relief. I'd suggest it was easier to separate the property business and that great new idea and focus on one or the other and accept that you'll have to pay some tax on the profits your investment company makes - that's 19% currently (going up to 25%) inside the company and then dividend rates personally as you exit the company. If it really was that easy to make the money and pay little or no tax.... we'd all be doing it and the Government would also close the loophole! ;-)

[@asatoraegames4533]

Nice to see some content explaining that private landlords aren't making bank from standard BTL - I think there's a huge misconception about this, especially from renters. Sadly not helped by a large proportion of abysmal landlords.

[@arcticblaze1013]

Hey man, just stumbled on to your channel. Keep it going! Would love to see more, as a 21 year old wanting to get into property investing these sorts of real videos are so useful! Can you do a video on LISAs and help-to-buy schemes? Your opinions on them and what to go on to from there?

[@draafroz]

Great video, I am looking for a BTL apartment in central london, is this the right time to buy or wait for few months? For BTL apartment, is one bed or 2 bed would be better in the said location? Thank you

[@abdullahk8691]

Nice to see a young man so dedicated. Alhamudulillah

[@ThatAhmedKhan]

Appreciated!

[@121hassy]

How can u use islamic term alhumdulliah. The guy is taking interest left right and centre . It's completely forbidden in Islam. Word of advise to brother if u don't mind. Don't compromise Ur values for this dunya. It's very temporary. I would rather get a full time to earn £2500 per month which is earned halal than all this

[@malikali2305]

Great video, may i ask why you chose interest only mortgage? What is your reasoning / strategy behind it? Thank you

[@KyleDeVilliers]

Very informative! Thanks for being clear on every topic

[@ThatAhmedKhan]

Glad it was helpful!

[@quiet_one8061]

Rents went down in 08 they are coming down as many people instead of selling are trying to rent it out like in 08. Eventually there's a new equilibrium you shouldn't expect rents to go up as rates go up as there are competing impacts.

[@infernogamers168]

Great content here. I would say there are plenty of these videos explaining how to secure future cash flows etc. I guess a main point is how you came about having the money to secure your first BTL with a 25% deposit? Would be a great insight 👍🏼

[@dmonleon24]

get a job & save like 99% of people prior to you did

[@infernogamers168]

@@dmonleon24 get off your parents account!

[@ThatAhmedKhan]

You've really only got 3 options 1. Job and save 2. Start a business e.g. rent2rent 3. Joint ventures

[@ANIA2469]

What was the cost of refurbishments ? Did you do everything yourself or paid builders?

[@bigboldbicycle]

When you "pull money out", what type of loan product do you use? Do you remortgage to a higher value, or do you take out a second loan on top of the mortgage?

[@wintersun398]

12:12 When you convert one house into two flats, do you pay stamp duty when the 'new' property is created. I'm assuming it went from e.g. 12 north street to 12 north street and 12a north street. I'm looking at something similar whereby a 3 bed house was extended with a garage and two beds above it. I want to knock down the entire property and rebuild two 3 bed houses. The footprint is big enough to do this.

[@Matt-wi9qp]

This seems like a real insightful video and I like how you have gone through and explained everything clearly. Only thing which I thought of is that you'd be paying a higher band on some of the £67k right? So post-tax income would be more like £48k, rather than £54k?

[@Gymthingz]

If you own each in different llcs. Then tax is applied to each separate entity.

[@ThatAhmedKhan]

correct

[@kaeji_namitsua]

@@Gymthingz How much does LLC cost yearly and setup cost?

[@Justin-xr2rh]

Thanks for the great video as usual Ahmed. 💪 Only question is, why are your videos sped-up?

[@ThatAhmedKhan]

Sorry, what do you mean?

[@Justin-xr2rh]

@@ThatAhmedKhan Before my brain could process what you said in a sentence or the associated image with data on it is registered, the video has moved on to the next sentence with a new image with data and I keep having to pull the slider back. Your video edits are awesome btw, might want to slow down the video speed a tiny bit in youtube videos. For reels that speed is perfect! 😊 .. also, keep doing what you are doing, its working! 💪

[@ThatAhmedKhan]

@@Justin-xr2rh appreciate the feedback! Pretty hard speaking to a camera so end up speaking much faster lol but noted! will improve

[@netayconnection6236]

@@ThatAhmedKhan This is funny (not in a rude way) I tend to speak exactly the same speed in my day-to-day life, and therefore I understood everything. Perhaps, as suggested by Justin slow next time, and maybe just pretend speaking to the camera as if it was your friend/family etc! Regardless, great and informative video like the pie chart representations and even with colours as a top.

[@ChrisLee-yr7tz]

@@ThatAhmedKhan I actually prefer it. I tend to watch a lot of KZbin on faster than normal speed.

[@romelimmense]

Why did you not include the payment to the principal and only the interest payment of the mortgage? I think it should be included because that is the payment for the property since it is not yet fully paid. I hope you will answer this more power.

[@FreedomFighterz215]

His loan is interest-only

[@ThatAhmedKhan]

correct

[@supernova9886]

Wow.. a straightforward video ..that's unique

[@ThatAhmedKhan]

crazy right lol

[@stickhrk]

OK I got to around 10 minutes before zoning out, proud of myself. (I'm trying here aight!!)

[@MrNitrocification]

that slack notificaton at 13:57

[@chillelement8301]

Thanks bro. 6:06 full spreadsheet visible

[@sasdf2215]

But then even if rents go up, surely there is a point where you lose the majority of your demand as potential tenants just get priced out. London rental market is wild atm. I don’t see how many people will afford 1.8-2k/ month 1 beds if wages are stagnant.

[@ThatAhmedKhan]

yeah it's a tough one for sure

[@AfzalHussein]

Great video, edit and thumbnail. I have a feeling your channel is about to blow up! 💪🏽💪🏽

[@ThatAhmedKhan]

Thanks bro🙏🏻🙏🏻I’ve seen your videos over the last few years. I’ll drop you a message on insta. Would be good to catch up and talk KZbin if you’ve got time

[@Kasperrr637]

Really eye opening video about investing in properties, keep it up!

[@ThatAhmedKhan]

Glad you found it useful!

[@pinkandreas]

Thanks for sharing this numbers with us. Great. This is a real value. How are you managing market risks or if the real estate isn't rented and you have to pay the interest rate from your pocket?

[@smrfingers]

Whats the exit strategy or end game for interest only mortages? if we pay interest only then what do we do at the end of the 25 years?

[@ThatAhmedKhan]

Short answer: you just remortgage. Long answer: ill make a video on this lol

[@smrfingers]

@@ThatAhmedKhan subscribed and waiting 🙂

[@Bi9Dre]

So underrated, this is gold😶

[@ThatAhmedKhan]

Thanks,bro! Appreciated! :)

[@Joe_Sole]

Thanks for your transparency - I took a lot of value from this.

[@ThatAhmedKhan]

My pleasure!

[@anthonyomara1064]

What about the long term capital gains, will they be taxed as a corporation tax, probably Yes,

[@ihaziqhabib]

Such a informative video! Thanks 👍🏻

[@preetikaur1333]

Hi thank you so much for this insightful video. Can you give more information about how someone can get mortgage on LTD company. Thanks

[@dylangarcia7732]

Great video Khan! Just a question.. did you use a mortgage for your first BTL?

[@naheerameer8268]

I’m happy for you but you should provide a disclaimer to weary watchers: This lifestyle has you Leveraged out your eyeballs and the tenant may or may not pay up at the start of the month but 10-15 mortgage payments definitely will remember to collect. Also remember that the real spread on rentals that have

[@ThatAhmedKhan]

this is a fair point - I think there's an element of risk with any investment out there but at the end of the day, holding property in the UK is definitely at the safer of the spectrum I'd say

[@naheerameer8268]

@@ThatAhmedKhan oh yes, not doubting real estate as an investment vehicle since it’s returns have globally been higher over the past 100yrs. But the strategy you shared isn’t the same as house flipping (where you recoup cash after 1 transaction) and people need to be able to manage the risk of holding multiple mortgages for a really really long time before their all paid off and you can retire in luxury! For every 1 person who gets it right, there must be 10 declaring bankruptcy! The maths doesn’t factor in risk.

[@rossmasterton]

Is there a minimum time you have to wait to get a reevaluation after refurb so u can then refinance? i.e. Could you technically buy a house and then put a new mortgage on it 6 mnths later?

[@TheCarsWorld.]

seriously very helpful video would love to see a day in your life video

[@ThatAhmedKhan]

Thanks for the idea!

[@1982favourite]

So the net yield is what hits your pocket when all is said and done is that right.

[@contactjd]

I may be missing something here but if all your mortgages are interest only, what is your plan when they all end? You still owe the original capital, so would either have to try and keep rolling them over, or sell up to pay it back?

[@ThatAhmedKhan]

refinance for another 25 years on a new mortgage

[@contactjd]

@@ThatAhmedKhan thanks for replying. Be interesting to see how this pans out if the market ever crashes or rates keep shooting up

[@TicTacsMakeMeHigh]

Not sure what interest rates your fixed at and for how long. But majority are 2%. Aren’t you concerned with interest rates going up? What interest rates are you expecting the BOE to go to?

[@ThatAhmedKhan]

I was always paying more than 2% since I was buying in limited companies and my mortgages are in a five year fixed so I still have a few years ago until I have to refinance so we will have to see with what the rates are at that stage but I don't think it should be too much of an issue based on my calcs

[@WajahatMughal]

Ahmed, who edits your videos! INSANE man!

[@ThatAhmedKhan]

Thanks bro! I have someone in my team :)

[@cyprio7]

Did you get permission from the freeholder when you did the conversions of the flats? If so, did they charge you?

[@yabdelm]

Is he actually buying these properties, in full, or getting a mortgage on each? (total noob here, unfamiliar with mortgage terminology to begin with even)

[@ccclcsr]

The beauty of setting up a company is, you can put your spending under the company

[@ThatAhmedKhan]

Correct

[@Jordanzz00]

Sorry, beginner here looking to gain knowledge.. how does putting the spending under the company help?

[@DamienTalksMoney]

Great video

[@ThatAhmedKhan]

Thanks bro, I appreciate that! I've seen some of your videos recently as well - really good content! I'll drop you a message on Insta, would be great to catch up and talk KZbin, property, etc :)

[@davidbeljan]

So you are paying only the interest on those loans?

[@danielbaxter3508]

What area do you invest? Some good returns in there based on the prices in my opinion.

[@bartholomewlyons]

And then you add the time you spend on it, the stress of markets going up/down etc. Keep grinding but getting on the property ladder from nothing is a hustle.

[@vanessakellow2957]

Thanks for this. Can you do a video on rent to buy? Really grateful for in-depth info

[@ThatAhmedKhan]

Are you referring to any specific buying schemes?

[@vanessakellow2957]

@@ThatAhmedKhan yes - landlords - renting a property to sell. Seems like a big US market. Wondering if you had considered that. I’m a landlord with S24 killing the profits. Looking into disposal and incorporation. I was interested to read Lloyds bank intend to be the biggest landlords in the UK. They are rent to buy ..

[@SuperKillaki]

What a brilliant piece of content

[@ThatAhmedKhan]

Thank you! :)

[@vintage0x]

thanks for this video. [but man. sharpies on regular paper?! use normal felt tip pens, not permanent markers!!]

[@ThatAhmedKhan]

thought it might be hard to see the pen on camera lol

[@ahmadsaleh564]

Hi Ahmed, Happy to see we share the same name. I notice that the " Stevenage" total cost is missing ? how could you turn that 600K to 1M ? you mentioned that the project us still running, how much the cost so far?

[@ThatAhmedKhan]

I'll have to add it up - will do a full video on this!

[@royalegamer2704]

Calculations with rise in mortage interest rates and energy bills alone is enough to put anyone off intesting in property market nowadays.

[@MrCoolbanna]

How it should be

[@FazsterHQ]

What’s your strategy for finding good builders to do the renovation works once you’ve secured the property.

[@ThatAhmedKhan]

Recommendations is the best way to go!

[@bharsanta5029]

I just did first few mins of the video… and ahh Woow.. great video!!Thanks for being so transparent and explaining everything so clearly!!

[@ThatAhmedKhan]

Thanks for watching and I'm glad you liked it! :)

[@GeoffreyHale]

Adjustable rate loan? Interest only loan? British?

[@detonnate]

One major problem with your model is you raise your rent as much as your want but the FACT remains if they can’t afford to pay it you won’t get anything period. In which cause you are totally reliant on the equity and inflated value of the properties which when the markets drops puts you in a very bad situation. Also as someone who works in finance I can guarantee you the rates are not coming down at all in the next 3 to 5 years. Basically your are sat on a ticking time bomb. Liquidate you holdings now and hope you come out with more the you started with and try and buy something outright. It’s not what you have it’s what you own that matters nowadays. Debt is about to become very dangerous.

[@ThatAhmedKhan]

All my properties are on a 5 year fix, so I should be ok for at least another 3 years and by then hopefully the rates will be lower as well. A lot of factors at play here

[@detonnate]

@@ThatAhmedKhan good job for the fixed rate it’s always better to lock in a rate for as long a period as possible even if you think the rate with drop. I. The world of finance a certainty is worth it’s weight in gold. I have been analysing the numbers and looking at pervious trends and realistically I can’t see base dropping below 3/5 percent in the next decade especially with the state of the FED at the moment and the amount of US debt they have on their books. I would plan for high rate at the end of your deals and plan to liquidate if not all but at least half of your housing stock focusing on the high/value and unrentable properties

[@ImranKhan-vw2wx]

Great video Ahmed, your best so far. Are any of your properties located in council owned blocks? If so, have you had to navigate costly block repairs/upgrades mandated by the council?

[@ThatAhmedKhan]

I own 4 properties in council blocks - nothing major so far

[@DunguBook]

Did you buy it through an ltd company? And how did you do it?

[@ThatAhmedKhan]

Yes - I buy properties using a limited company to avoid the section 24 tax changes. If you buy properties in your personal name then you can’t offset the mortgage interest and therefore your tax is much higher. So it’s a lot more tax efficient, for most people, to use a limited company to buy and hold properties. For a detailed process, this is included in my free course - bit.ly/courses-msg Hope that helps!

[@bigboldbicycle]

LTV on BTL mortgages are usually maximum of 75%, how do you get £256k mortgage on a £320k property, which comes to a LTV of 80%.

[@gregfidler8700]

If B2Lmortgages want a 25% deposit, how did you finance and refurb a £237K property with £51K?

[@iknowineedausername]

Can you explain how banks calculate the stress test percentage. Why is this 5.5 % here. Is it 125% over the current interest rate ?

[@saltanatiskakova2917]

You would still have to pay corporation tax on the profit, before reinvesting, thought everyone knew that…

[@ThatAhmedKhan]

Sorry, I meant that you could upgrade the property as 'repairs' are considered a cost. I'll have ot check what I said exactly in the video but I think I might have made a mistake there!

[@gregdufeu]

Question…in your example on paper you said that the property was revalued at 320k and you then remortgage to 256k “an 80% loan”…how did you do this when a BTL requires a minimum 25% deposit and therefore a maximum loan of 75%. 4:48

[@ThatAhmedKhan]

You can get 80% LTV mortgages. 75% is more common but 80% is possible

[@gregdufeu]

@@ThatAhmedKhan thanks, well done…nice portfolio and video and thanks for the reply 👍🏼

[@sheetalsachdev2659]

I assume there was a deposit right covered within the £51,130? Also The ROI is dependant on the revaluation, anything less would change the ROI numbers? What to keep in mind to ensure the revaluation is the max for the property - is it location or anything else?

[@sheetalsachdev2659]

@Ahmed Khan hope this is not an incorrect question. looking forward to your response.

[@reidtv7185]

This was the first thing that I noticed, the deposit is over £50k so I can’t see how he’s bought this and refurbed it for £50k 😂

[@ThatAhmedKhan]

you'd have to research comparables and work out the end value. Generally you can get pretty close but it's always a bit subjective so there is some variance

[@ThatAhmedKhan]

which £51k figure are you referring to sorry?

[@vvwalker7261]

How much did you pay to the freeholder to reconfigure the leasehold property?

[@supra1000]

You are spot on my man. One of the greatest video ever, legendary. I have 4 BTL and at the moment im ok. 2 of them are expiring in the end of 2025 and early 2026. Mortgage is about 205k and im thinking of gradyally raising the rent which i hate doing but ill have to i guess. Whats your prediction for 2026 interest rates? Do you think they ll be on their way down? Im little scared as they all interest only and im thinking of starting paying half of my profit to the loans. What would you recommend? Any feedback i will greatly appreciate. Im subscribed now.

[@nikkion2140]

What SIC codes did you use to set up your Ltd company? Any recommendation for an accountant pls/ Thanks. God Bless.

[@reabo22]

Well done man!

[@ThatAhmedKhan]

Thanks bro!

[@tomnoake8177]

Really good vid. Did you ever think of just selling after refurbing the properties, what made you keep them for rentals ?

[@Cheesieshorts]

probably the possibilty of having passive income, paying off mortgage over 20 years and selling / retiring on the properties later on in life

[@Andrew-ig5sp]

He will earn the most from Inflation + Time. The cash flow is allowing him to hold so many properties.

[@TriGGerJOY]

Love your success Sir. I am also looking to have my own business first time in my family I am working hard for it ,Sir any suggestions or words from you is greatly appreciated. Thank you.

[@lindseyscott3011]

I’ve just pulled out of buying a BTL. Really not worth it just now in Scotland. Stamp duty now 6%. Dividend taxes going up. 110k house. 32k deposit plus £7500 in fees. After tax it would literally make me about £150 p/m. Would take me 4 years just to break even on fees.

[@leahmcdermott4189]

110k for a house?! Cries in London prices 😂😭

[@nailaaziz1992]

How did you get the funding over £50k for your 1st property, This is where most of us don't even look at property as don't have over £50k to start

[@brooksjtony]

What about legal costs, stamp duty, etc Mortgage payments until the renovation work completed and tenant in?

[@ThatAhmedKhan]

That was factored in when I spoke about how much money was left in, in the end

[@brooksjtony]

Ahmed, how is the profit you make ie. £7k not CT ‘ able if you reinvest into another property, as this is another asset, surely you can’t put that down as an expenditure? Thanks

[@ThatAhmedKhan]

I made a mistake. I meant you can use it to upgrade other properties as long as its not a capital expenditure, rather than buying properties

[@arizrasul3258]

what type of mortgage did u get? Was it a halal mortgage or haram one?

[@adzsn5787]

Well he showed the interest mortgage so

[@sikanderalishah8999]

Do you buy all these properties under one ltd company or separate?

[@ThatAhmedKhan]

i buy under 1