How To Build A Property Portfolio From £0 | Property Q&A pt. 1 - UK Flipping Houses

In this video myself and my property mentor, Nick Ellsmore decide to do a Q&A and answer your questions. We answer questions on mortgages, bridging loans, builders and much more!
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Check out Nick's channel and part 2 of this Q&A: • Property Investing Q&A...
01:43 - What type of mortgage do you need for flipping houses?
03:23 - What does a bridging loan cover? Eg. % of purchase and renovation costs
04:53 - For my first property, would you recommend a simple buy to let or would you go for a BRR project?
06:30 - What would you do with £50k?
08:40 - If you had to start again with nothing, how would you go about building back up your property portfolio?
14:04 - Me and my four mates are tradesmen and want to flip a house together. Do you have any advice?
18:04 - What do you think of deal sourcers and do you use them?
20:55 - How can you trust a builder, that they know what they’re doing and won’t screw up the project?

[@ivoKulesza]

This is golden. Even if you know the steps, confirmation from someone whose done the path you want to take is always reassuring. Love the content Jack!

[@jackdavidsmith]

Cheers Ivo! Glad you enjoyed the video🙌

[@sidonio123]

So much information in 1 video maybe the best video I have see

[@ryanmason4827]

This is gold - what a bloke!

[@jackdavidsmith]

Yeah bro he’s awesome👌

[@justsomeguy1141]

Really good video! Appreciate the knowledge from you both

[@wipool1940]

Mate these videos are so inspirational and motivating. Very simple explanations. Thank you and your mentor.

[@TraderUDDIN]

One of the best videos out there in regards to properties. No Bulls***ing. Straight up knowledge.

[@eccentric2424]

What an amazing content! Loved it MH

[@lillozzam]

Super helpful! Thanks guys

[@mayumirobinson88]

Your videos are great! Really informative.

[@reb4821]

Useful information, thank you !

[@louism.4980]

This is fantastic, thanks guys!

[@jayjethwa9053]

Great video mate thanks

[@Neddie2k]

Thank you Jack for sharing Nick with us. I really like the question about starting from scratch.

[@jackdavidsmith]

It was good having him on the channel, right? I enjoyed the chat👍

[@jacklunn2345]

One of your best vids Jack, keep up the good work

[@jackdavidsmith]

Thanks Jack! I really enjoyed this kind of content and was great to have Nick on to share some wisdom 👌

[@Henry-rp8fw]

Great Q&A guys! Thanks for replying my question

[@jackdavidsmith]

No worries bro! Thanks for always tuning in 🙏

[@levifairway6535]

Glad I found this Channel, good useful content

[@jackdavidsmith]

Hey Levi! Great to have you part of the community! If you ever need anything drop me a comment! Happy to answer questions you’ve got 👌

[@jackhughes1280]

Great video and very helpful. I want to start flipping houses myself and really want to learn more

[@AWCCarDetailing]

Great video - Thanks!

[@kikitakeaway9806]

Thank you, great advice 👍

[@robertjohnston5772]

Great video guys thanks again to Jack and Nick I am a subscriber on both KZbin channels and you guys are fantastic keep it up. Many thanks Robert

[@jackdavidsmith]

Awesome Robert! Glad you’re enjoying the content! Appreciate the support 🙏

[@springer2194]

big ups jack, cheers for the great content

[@jackdavidsmith]

🙏

[@kcomfortsystemshvac7060]

Great info,,,,,cheers 👍👍👍👍👍

[@timburcham3563]

great content really helpful

[@haych7k672]

Proper gem of a channel ✅📈

[@jackdavidsmith]

Appreciate it 🙏

[@LothianValet]

That was quite good and alot of information. As I'm looking to buy some properties thats needing refurbished but was the money side of things thats holding me back from doing it

[@rocster01]

Love the starting from zero example

[@leeelse9003]

Hi jack 🤙 quick question, in this video the best way to let a property is to use a buy to let mortgage. My question is can I use a residential mortgage, renovate over a period of say 6 months, then remortgage as a buy to let mortgage?

[@ApoorvPuri]

I am glad that i found this channel. Thankyou sm for this much valuable information.

[@jackdavidsmith]

You’re very welcome

[@ApoorvPuri]

@@jackdavidsmith i really want your help bro

[@C.J.M]

This was amazing. I've already subbed to Nick's channel. Although flipping has its risks, I think it'd be the right step for me, rather than the traditional BTL.

[@jackdavidsmith]

Everything has risks, it’s about learning how to mitigate them to reduce them as much as possible with evidence of numbers and knowledge 👌

[@yahya7129]

Who dislikes this?? Great video wth

[@jakemochnacz]

Great advice, especially the info on bridging loans as an option. Looking to get my foot on the property ladder soon, so cheers for the knowledge. I also produce beats, not sure where you source your music for the vids but would love to send over a couple tracks to check out for you to use? Keep up the good work...PEACE

[@karlbratby4349]

Awesome 😎

[@LouisPMedia]

Great video jack, very inspiring. Can see you and nick make a good team. I'd love to see you touch more on sourcing selling deals in the future maybe? Love the high quality content, can see you put a lot of time on your videos, well done! 👏

[@jackdavidsmith]

Thanks! Appreciate it! I could get a guest on that specialises in deal sourcing and unpack the whole strategy. Would that be useful?

[@LouisPMedia]

@@jackdavidsmith Yeah I think that would be great 👍

[@khazone6071]

Thank you 🙂. 🤛🏽🤛🏽🙏🏽

[@Me-ll4ig]

These are great questions. Great video guys. Hi Nick, I dropped you an email but I am aware you are a really busy guy.

[@womblestacker7993]

With both of you

[@Dazzl3r]

How do you find property deals and sell these on? Just thinking that this would be a good exercise for a beginner to understand and practice how to find below market properties and still make a little extra cash to build an investment pot up.

[@husnainshah443]

Such an amazing video man! Super helpful and really nicely structured! Felt like I was part of the conversation ngl😅

[@jackdavidsmith]

That’s awesome man! So glad you enjoyed the video 👍

[@TASOOKA]

@@jackdavidsmith what are the risks of house flipping ?

[@nav0954]

Need more of this!

[@jackdavidsmith]

More Q&A’s with Nick?

[@nav0954]

@@jackdavidsmith Yes!...or just generally anyone who knows what they're talking about and can give some proper advice 👌🏼

[@williamthecat0]

Hi guys

[@andrewbradshaw2595]

Where’s best to get loans and funds to start flipping houses ?

[@jonathanrossi1987]

Hi Jack I am now looking to take the plunge into property and live just outside london. Do you think it’s still advisable to look in the midlands as things are so much cheaper? I am work a regular 9-5 and don’t have any savings.

[@farazk84]

Do you have any advice when it comes to rent arrears due from students or other tenants that have left without a forwarding address (and no guarantor)?

[@nbambi2323]

There are rules to prevent you from setting up hmo's (article 4) do these rules apply to student accommodations? As it's a multi let

[@jamesobrien1399]

Nice one for the answer, just to reply To your comments, we’re in 4 different trades and at the very start we don’t want to keep profits for ourselves, we then want to use the profits to get more houses, it’s a slow burner at first but I reckon it could go very far in the long run

[@jackdavidsmith]

Yeah man that’s awesome! Like Nick said, make sure everyone is clear on their roles and keep communication and expectations clear. Let me know how it goes bro!

[@jamesobrien1399]

@@jackdavidsmith yeah, cheers for the advice we have recently set up a joint account with a direct debit coming from all of our accounts looking forward to it

[@Omen0004]

@@jamesobrien1399 how is it going?

[@buddoyr]

Hi Jack, Any info on Nick's mentorship and how it works?

[@womblestacker7993]

So ? My re mortgage to fix up my house to sell that property to make lots money on it ,I can't then use that money to use to buy other property is that right ???

[@td1297]

If you are planning to do a flip and you have a bridging loan and lets say after 3 months you have completed the refurb and it comes time to sell, do you, get a mortgage on the property with say 3% a year interest and then sell it or...... do you just put it on the market and hope it sells quickly, my concern is that the property doesn't sell for 6 or 12 months and then you have 6 or 12 months at 1% a month and you end up with a nasty interest payment at the end eating into your profits ? Thanks.

[@iosifmarius7302]

Do you refinance with Buy To Let mortgage ?

[@YN-io6kj]

What sort of credit history do u need for a bridging loan? Is it more difficult to get than a residential mortgage.

[@jackdavidsmith]

Credit history doesn’t massively make a difference with bridging loans. Resi mortgages are based on personal credit scores because mortgage lenders need to be confident you personally can pay the loan back. Bridging lenders aren’t as bothered because they base the loan off the value of the asset being purchased. So if the loan isn’t paid, they will take it and sell it to get their money back. That’s why bridges usually give a lower LTV - it gives them room to sell the property cheaper, fast and still get their money back.

[@YN-io6kj]

@@jackdavidsmith Understood Thanks for the detailed response.

[@jackdavidsmith]

@@YN-io6kj no worries! Happy to help🙏

[@hhi3539]

Hi guys just curious why you can’t just buy a house in a residential mortgage and then sell it once you have done the house up

[@idontknowwhattonamethis75h82]

Hey Jack, so my mum has had our house extended and it is a 2 story extension ( 7m by 6m and 4m by 6 m) she did a full renovation along with a new marble worktop kitchen and underfloor heating system. She spent around £145k on the extention. It is a house in Surrey, Woking. I would like to know if this is a fiar price for an extention like that. I know that it may be a really wierd Question. The builders are real good but they are costy.

[@jackdavidsmith]

66m2 in total then? I suppose it depends on the quality of the kitchen. I would expect (if a builder is doing it all and managing the lot) to pay about £1.5k-2k per sqm and it will be more expensive because of the area you’re in. So it’s £132k if you went off of a £2k per sq meter. Then depending on the quality of the kitchen and where you live... doesn’t seem unreasonable. I’d have tried to get it cheaper but I also don’t know the added details of the situation

[@idontknowwhattonamethis75h82]

Yes , It was quiet an expensive kitchen from wren, the underfloor heating was added to the whole house, boiler as well plus alot more extras like high quality fences and a patio. All material was high quality and we added new bathrooms, doors, front door, tiled floor. Plus quiet alot of extras. The houses close to us also do extentions and there one are at a very similar price, so i guess that it was very reasonalbe. We also got planning permission for a room at the back garden with a kitchen, bathroom. Room size will be 6m by 6m and will cost us around £21k. So if we rent it out for around £600 a month than would it be worth waiting for us to break even within 3 years for that room.

[@spencebespokedreams]

How long does a flip take from offer to money in your bank?

[@jameslife3692]

Depends. Changes every single time! You can typically buy a house in 3-5 months from offer accepted to completion. Then you’re looking at around 2-3 months to renovate and another month or two to sell it. So you’re talking about 6-9 months start to finish on average

[@Alexxx---101]

Hi, 25k average profit? Is that figure based on buying houses below 100k? Or does the 25k average apply for a house that was 200k? So if I had 250k saved with no mortgage I would be better off buying 2 or 3 smaller houses rather than one larger house? Thanks

[@jameslife3692]

Yes you’re right mate! Do the market research but chances are if you’re buying more expensive houses you’re not going to make more money

[@Bloody_alchemy]

How much does it cost to get a mentor ?

[@hodmanmahamud1048]

What countries would you flip houses in?Would you invest overseas?

[@jackdavidsmith]

I personally wouldn’t flip outside the UK because I don’t know oversees markets. Not to say it wouldn’t work. Nick has flipped loads of houses in the US. Just depends where you’re knowledge is and where you’re based

[@taijahxox6397]

Just over broke 😭😂😂😂😂

[@nathantuck768]

Is it against the law to get normal mortgage and then flip it for the first one to get some capital to start with ?

[@jackdavidsmith]

You’re not allowed to get a residential mortgage for commercial purposes. You HAVE to be buying the property to live in, hence it being called residential, it has to be your place of residence

[@afoolandhistools]

Why can’t you do a flip on a residential mortgage ?

[@jackdavidsmith]

You can but it actually has to be your place of residence and not just for the commercial purposes of flipping a house. Because lenders expect you to have that mortgage for a longer period of time than a 4-8 month period

[@dylanwilliams5426]

How can I buy a house to flip without using my lifetime ISA could this be done by having it as a business property, cheers

[@pedericokali9819]

NOTHING WILL STOP ME FROM DEALING WITH PURPOSEHACKZ ON IG MY LOAN WAS GRANTED 😀

[@sbmorris2k6]

So you borrow a £50k loan use £25k for a deposit so are you taking out a mortgage aswell on top of the loan and paying them both back at the same time?

[@sbmorris2k6]

@@Ryan-kx5lr nope, nothing. Just sounds like you'd be paying off two loans at the same time which doesn't sound right.

[@sbmorris2k6]

@@Ryan-kx5lr you basically need to make sure you have a buyer for the property to pay back the loan and then keep any profit I guess. I'm just learning myself so not totally sure.

[@JayJay-wb4mv]

Do bridgers give you 70/75% of purchase price or market value so if you buy a property bmv

[@jackdavidsmith]

Purchase price, and sometimes of the refurb costs as well

[@annoymous7052]

I live in London and flipping houses here would be basically impossible, anyone know where the best places to flip are?

[@jackdavidsmith]

It’s not impossible if you’ve got the money and the profit would be much bigger per deal. I know someone who flips in London and makes a minimum of £100k each time... Obviously if you’ve not got the money travel up to somewhere like Northampton/Coventry or somewhere like that

[@annoymous7052]

Jack Smith I’m looking for a first time investment so London’s the wrong place. Will look into the places u suggested

[@user-wy4oy6di4x]

Invest in some mics as the echoing is quite bad. Good video never the less

[@BellaDiary]

Jack are you only 21?? No way!

[@jackdavidsmith]

I’m 25

[@bigdeano162000]

You can do a flip with a normal btl mortgage. You just have to wait 6 months before you can refinance the property. Very misleading

[@bendover-bz4bc]

But where is u s i ???

[@Glorpkinqzopst]

Is that £25k profit before tax or after?

[@hussienhadi7355]

Thank you for this video Jack! Exactly what I needed and I hope to connect with you some day once I’ve started my property journey in the near future. 👍 (insta: hussienhadi_)

[@jameslife3692]

I’ve never heard someone talking so much but saying nothing. He’s talking waffle. No successful property investor will ever condone buying a house that needs no work. Then it gets worse and he’s basically saying “get money somehow and then buy a house with it”. Ummm well yeah good one that’s why we’re all here watching the video! Let’s stop the dick swinging and talking about what you’ve done and actually talk about some property strategies. Disappointing video here Jack