Meet The 35-Year-Old Who Achieved Financial Freedom With 25 Properties

[@TheHumblePenny]

What was your biggest takeaway from this interview? Please focus on the positive learnings.

[@DafyddMorse]

James seems like a top bloke. Great interviewee. Another reminder of what we're aiming for. Money is the tool that allows us to do the things that we want to do. I'm a little way behind our friend James, here but heading in the right direction 😊. Thanks Ken and Mary.

[@TheHumblePenny]

He is! You're welcome 😊

[@TheMoneyParadox]

Very kind of you to say Davydd. Glad to read you're moving in the right direction. Knowing you're on the right path and having that momentum already built up is half the battle.

[@emmanuelapac3315]

FI is achievable 100% and my goal is Sept 2023. You just have to be patient, consistent and in time you will achieve your goals. Compounding is the great thing to check out and James mentioned it several times in the video. I will also start follwing him on the Money Paradox but also still check out the Humble Penny for my weekly dose of POSITIVE encouragement. God Be With You.

[@fooddweller]

Good conversation but the only thing was James was not straight forward in answering Ken's questions at all. If i can remember some of the questions Ken asked...Example . How did you get started? How did you buy your first property? Where did you get initial deposit? How did you get money for the subsequent properties? Where are the best locations to buy properties? These were simple and straight forward questions to answer but James was going round so Ken has to keep on repeating the same questions again and again...wow! But Ken did well for all the time bring James back to answer the question he asked, that's great! Thank you Ken.

[@TheHumblePenny]

Fair point. I mentioned earlier to someone else that we told James to be super casual and keep this as a conversation. So that might have influenced things a little as he went above and beyond in explaining things in an attempt to give a fuller answer and I did my best to make sure we still got our answers as one can easily get lost in these conversations and forget the original question 😆. We're very grateful to James for contributing a lot of value on this interview overall.

[@thediaryofaninfluentialfather]

Thanks Ken for the Brilliant questions,

[@ItsMe-ko6sz]

I don’t think it was a bad thing at all. It doesn’t have to be perfect. James was just himself and is probably not used to doing KZbin interviews. The information and honesty James shared about his story was great. Much appreciated 👍

[@TheMoneyParadox]

Sorry for not answering the questions directly at times. From memory, I was trying to point out key bits of information that I thought was useful to note. Are there any questions you would like me to go into in more detail here in the comments?

[@fooddweller]

@@TheMoneyParadox all the questions were answered in the end, thank you. My personal question for you is STOCK MARKET vs REAL ESTATE investment which one is the best?

[@blessingsbest6838]

I appreciate his ‘personal development’ from 15 👏🏾👏🏾!

[@TheMoneyParadox]

Thanks for the kind words! I've found that those that have had difficult starts in life often have their personal story of how they've overcome this and used those learnings to help them prosper later on in life. I find it best to make the most of the cards we are dealt

[@blessingsbest6838]

I definitely agree! You fuelled the situation into a positive outcome!!!

[@ellea2541]

Interesting stuff! I wouldn't personally do it because I wouldn't sleep well at night (I dislike debt! 😅) but I'm so glad it has worked well for James, especially given his humble beginnings. Wishing him well in his FI life! ☺

[@TheMoneyParadox]

I'm glad you found the interview interesting Elle! You can invest in property without debt though it does reduce the returns for sure. Many share your view of not liking the idea of having debt so very understandable. A great way to look at debt is that there is 'good debt' and 'bad debt'. Good debt is that which is invested safely into assets that produce a higher return than the interest charged on the debt. Bad debt is that which worsens a person's financial position, eg by using it to maintain a higher standard of living than is sustainable for a person's income.

[@princhipehdesigns5922]

One of the best interviews I have watched about being financially free

[@TheHumblePenny]

I'm glad to read that you saw the value in this interview. Thank you for watching :)

[@drmarumo]

i love your channel Ken & Mary....how does one calculate financial independent amount?

[@TheHumblePenny]

Hey, thank you 😊. Take your annual expense and divide it by 3.5% (if you're in the UK) or by 4% (if you're in the US).

[@invalidcode21]

Thoroughly enjoyed this interview and thanks James for answering all the questions with such humility and as always Ken & Mary well done for bringing out this brilliant content

[@TheMoneyParadox]

I'm glad you enjoyed the interview! Feel free to respond back with any thoughts or questions and I'll be sure to reply back.

[@TheHumblePenny]

Thank you for watching 😊

[@olliepowell6011]

Very interesting video. It is good to see how this route to FI has been achieved, and I love the snowball analogy. One thought of my own that stands out is that having lots of private landlord's exiting the market causes more problems and ultimately makes the renting market more stable so I wish James well on his journey and I celebrate his success

[@ubpropertymanagement5807]

Thanks for sharing this great conversation from both

[@nameisamine]

I’m in two minds if celebrating landlords owning 25 properties during a housing crisis sends the best message? Personal development and financial freedom aside…it’s hard not to be aware that landlords are partially fuelling the cost of living crisis for millions. I personally struggle with this ‘crisis of the conscience’ so-to-speak on my journey. I mean, is it supposed to be accessible and aspirational for all British adults to own 25 properties? I’m a fan of the channel but the channel is called ‘The humble Penny’. I’m afraid there’s not much humility in what some would see as hoarding property or hoarding wealth.

[@davidcheckley3773]

Come on be really real🤣 you would if you could 😉

[@user-bz8zq4mk3l]

Sound a bit salty mate aha 😂😂

[@nameisamine]

@@user-bz8zq4mk3l I feel a modicum of guilt owning extra property. All my friends give me shit for it. I can’t imagine owning 25+. Im also not raising rates through this period…at all. I refuse to be part of the problem and Im lucky enough to be able to afford to do so. Im also young still living with my parents. So it’s not ‘salt’ it’s a fair commentary. 🤷🏾 However my point still stands, the name of the channel is “humble penny”. 25 properties doesn’t scream “humble” in any language.😅

[@TheHumblePenny]

It's about the journey. There is much to be learned from someone who started life with very little in a single-parent household and has managed to radically change their lives financially (after a lot of hard work and creativity).

[@user-bz8zq4mk3l]

@@nameisamine fair enough mate thought you was on of the guys who cry about not having anything in life and come on socials and chat bollocks

[@davidhoughton779]

Thanks for this info, great to hear your story. Wondering whether you have a limited company per property or several properties in one limited company or a mixture?

[@TheMoneyParadox]

It's a mixture

[@masterl14]

Great interview with the right questions asked!

[@TheMoneyParadox]

Thanks for the kind words Lazza. If you have any questions following the interview, let me know, and I'll make a point of answering it.

[@ianwhittaker3041]

Wow what a fantastic video guys, so much good content for us all in the Fire community to think about and mull over! Over an hour long but I was transfixed from the first question, to the last. Nuggets of great information were just flying out from all 3 of you for us to sweep up. A lot will resonate with the trying to save enough money to put in the stock market (4% rule), and that property perhaps with its leverage, has a powerful way of creating that income needed to Fire more quickly. I will certainly now give James a look up to see what other advice he has to give. Thank you guys once more and look forward to future interviews from the Fire get together you're at!

[@TheHumblePenny]

Hi Ian, very constructive comment. Thank you 😊. We appreciate up watching.

[@TheMoneyParadox]

I'm glad you found the interview helpful Ian! Feel free to respond back with any thoughts or questions and I'll be sure to reply back.

[@ianwhittaker3041]

@@TheMoneyParadox Hi James, the interview was really helpful, thank you. I have a question please. If you wanted to buy just one property that would generate a 10% ROI/Yield, equating to a net £30-40k annual ROI figure, whereabouts would you be looking (e.g. which town. city, postcode), type of property (flat, house, semi, terraced etc), the number of bedrooms, the approximate purchase price, and who would the property be aimed at (e.g. families, professionals, students, HMO etc.)? Thank you for any insight you're able to give. All the best!

[@TheMoneyParadox]

@@ianwhittaker3041Happy to help Ian. ROI and yield can mean different things, so I'm going to assume you mean the typical definition of ROI (net profit per year divided by capital invested to buy the property). Due to where we are in the property cycle and the recent growth in property prices since 2020, most vanilla buy-to-lets around the country won't produce a 10% ROI on rental profit alone. The ways to achieve 10% or above is by picking a path that is a little different, eg: - Higher yielding property areas like those in the North East - HMO (renting a property to more than one household eg students. Be careful with this as the build-to-rent market for students has made this a more difficult area to operate in) - Short-term lets (Airbnb etc. It's important you work with a highly experienced and trusted agent as you will need to work with them to understand expected revenue and ensure a professional service is provided) - Buying below market value and then fixing any issues with the property to unlock the 'real' value (this can be done through sourcing companies but it's important you due diligence everything they tell you to ensure the information is accurate and the returns quoted are accurate) Having said that, most money in property is made in capital appreciation. And my personal opinion (and those that I respect in the industry) is that we still have around 5 years of strong property price growth to come (though the next six months or so are likely to be slower growth due to recent BOE rate hikes and an expected recession. So it's important to factor that in and buy areas that have a high potential for property price growth. This tends to be in areas that get the sweet spot between high demand and affordability. Places like London and the South East have already gone up a lot so areas that will likely do well in the coming years are cities that have good fundamentals but affordability (local salaries vs property prices) is high eg Liverpool, Nottingham and Sheffield. Hometrack is a good website to check for city performance. To obtain £30k per year at a 10% ROI you would need to invest £300k. Assuming you buy with a 75% mortgage, you would be buying around £900k's worth of property. In practice, that would involve buying a number of different properties to make up that value. It's best to avoid buying properties less than around £100k as things like repairs and voids can eat up most of your ROI unless you know what you're doing. Best of luck with the journey!

[@ianwhittaker3041]

@@TheMoneyParadox thank you kindly James, lots of things to think about and unpack there. Can I ask you a favour, or give you a challenge, depends on which way you think about it ;) ? Would I be able to send you a clear & detailed snapshot of our financial position (income, assets, liabilities etc) and ask for some feedback? If that sits well with you let me know where I need to send it (email etc.) and I'll be as structured as possible with the information so you won't have to make any guesses. Thank you kindly in advance. All the best!

[@Samuels691]

Good on him! Agree on his compounding comments. Has helped me massively in saving. Looking forward to your commentary on new base rate set by BoE tomorrow. Also potential Stamp duty cut this FrIday 👀

[@TheHumblePenny]

The update will drop in a couple of hours 😀

[@TheMoneyParadox]

The rapid increase in the BoE base rate is certainly unsettling for many and will cause significant changes to many areas of the economy. Though a good to thing bear in mind is that the base rate is still markedly lower than the inflation rate. So when someone is invested in something that broadly goes up with inflation, even with debt against the asset that is affected by the BoE base rate, the overall picture is up. That isn't to say that the BoE base rate couldn't go higher than the inflation rate. It's just that would cause very painful ripples to people within our economy and so it is unlikely to occur. And if it does, it will only be for a short period of time. That all being said, it's important to set up your financial position such that it can weather harsh storms, even those you think are unlikely to happen.

[@TheMoneyParadox]

Thank you for the kind words Samuel! Although the BoE rate has gone up again, it is important to remember that inflation (at 8.6%) is still far higher than the BoE base rate. And property prices and rents in the long run goes up at least in line with inflation.

[@rakchoudry3343]

Brilliant interview. Well done to him. Progress well and on to more properties.

[@pauljamesdidit]

I like the way James explains things and the questions are great. Property can seem overwhelming but with the right strategy and due diligence it can bring a healthy roi. Is James on Linkedin? I'd be interested to have a conversation.

[@TheMoneyParadox]

Thanks for the kind words Paul. I don't use LinkedIn but I'm on most of the socials, including YT, and have a website too. Feel free to get in touch here or elsewhere with any questions you may have

[@pauljamesdidit]

Thanks James, i may be in contact soon.

[@TheMoneyParadox]

It's great to see so many people commenting below with their thoughts. Please feel free to raise any questions or points you may have, and I'll respond to as many as I can.

[@TheHumblePenny]

It was awesome having you drop a lot of value on this video. Thanks for answering questions 😊

[@BeastProSHADOW]

Hi James, Thank you for your time in taking part in an interview. May I start by saying I'm not an expert and still new to Ltd's/ Buy to let philosophy etc. I'm trying to wrap my head around whether or not this is still applicable in today's economic environment or for myself. I'm relatively young, started investing at 23 in 2019 and very interested in property investing. To recap your journey, would it be accurate to say that you leveraged the money saved from Accounting/Tax freelancing (75-85k+ income est.) and friends, to buy and start renting out your own living residence and then your first 2nd property. You then used further money from said freelancing and renting to buy more property appropriate to your capital requirements. Some more friends may have invested with you seeing your success adding to available capital. This then allowed you to start getting more rental income and enabled more flexible working hours via freelance and in turn gave more time to focus on further potential property investment and income ventures. Rinse repeat with sound yields, logical strategies and absorption of property industry expertise along the way? This is an observation but looking back over the past 10 years those with capital were given the opportunity that was one of the lowest prolonged interest rate environments of the past 50 years after a housing and credit crash took place. You did state that you were still under a bullish sentiment but do you still see value property investing competing with historical yields given our new macro environment ? It is hard to tell if I could still today, follow a similar path unless I earn a high income with low expenses given how much initial investment capital is required to purchase these assets. I'm very much interested to know more and would prefer to converse with you directly if you have the time to spare.

[@Tasucu-b4j]

Hi James Could you please tell us who your mortgage broker is?

[@TheMoneyParadox]

@@Tasucu-b4j Fodi Christodoulou - Sirius Property Finance

[@champion4000]

Thanks for sharing your knowledge with generosity, James. Really inspiring!

[@DanielSquires]

Wow, thank you for sharing your insights and journey! 🔥👌

[@TheHumblePenny]

Brilliant interview for sure

[@funmitaiwo4002]

What an amazing video. My husband and I are en route to being financially free, and this reinforced the many conversations around this topic that we have had together. X

[@TheHumblePenny]

Is property your main route to financial freedom?

[@videostoviews2262]

Excellent conversation James. Lots of value and some great points raised! Thanks Ken and Mary. Looking forward to more videos 🙂

[@TheHumblePenny]

You're welcome 😊

[@user-bz8zq4mk3l]

Fair play james , am half your age and am gonna be in your shoes one day pal 😎

[@TheHumblePenny]

Half the battle is belief. You're on it!

[@TheMoneyParadox]

Exciting to hear!

[@dammydays]

This was a great interview, thank you!

[@TheHumblePenny]

Thanks for watching

[@DejiBestGB]

Great episode! Lots of gems shared

[@TheMoneyParadox]

Thanks for the kind words Deji. Were there any specific gems that resonated in particular? And were there any specific questions that came up for you that you would like me to give my thoughts on?

[@TheHumblePenny]

Yes indeed 😀

[@darkangel686868]

James, don’t be harsh in reference to your mother being bad with money. As you may discover yourself one day, parenthood, never mind single parenthood can be the hardest job in the world. A reason why many single parents can’t excel financially is because all their energy and time is going into raising their children. They simply are stripped of the time and energy to make money for at least a decade of their life. Even single parents who work 40+ hours per week to try overcome this, get done by childcare costs, that can sometimes cost more than a mortgage. The only way making money works as a parent is A) You’re a high earner (doctor) and pay a nanny to look after your child B) You have healthy and retired parents who are willing do the childcare for you for free C) You’re in a couple, and one of you takes the hit in their career for a decade, and does bulk of childcare, while other earns most money Your mum was broke, probably not because she was ‘bad’ with money. It’s because she was a single parent raising you. Time that she could have spent working and building wealth, she spent raising you.

[@TheHumblePenny]

Truth. Thank you for sharing 😊. Parenthood is no joke.

[@delightfular9200]

I was hoping to hear James has now housed his mum in an awesome property where she gets to fulfil her own dreams. It was another great interview. Thanks for sharing 👍🏽

[@TheMoneyParadox]

@@delightfular9200 It's a good point and I'm glad you raised it. I do help my mum with housing and I ensure she lives a long, healthy and fun life. She currently lives in a beautiful home that she loves. Both I and my brother help her financially and in other ways to ensure that she is able to maintain the house and have a great life. I agree that it's important to ensure that those close to you are looked after and doing well :)

[@TheMoneyParadox]

Thank you for the candid feedback. I love my mother greatly and I wouldn't be where I am today if it wasn't for her. She dedicated much of her life to giving me the best start in life. I am in awe of what she has overcome and the sacrifices she made for me. You're right that much of her financial situation is due to the circumstances we were in. I can only begin to imagine how difficult that would have been. I only raise the point around my upbringing to help others understand that those with similar circumstances can still improve their financial situation with the right principles.

[@darkangel686868]

@@TheMoneyParadox Sorry if it came off as dig as such, it was just a point to reflect upon. Glad to hear your mum is well looked after and appreciated. You’re right, people need hope in these dark economic times, the story of the poor single parent household ‘underdog’ making it against the odds, rather than the silver spooned Etonian graduate, simply inspires hope.

[@EUU100]

Thank you

[@cobrafinancialsolutions1039]

Great video!

[@JanBanJoovi-ol1qv]

What a success story. Wish I could do the same. Indeed you have no choice how you were born (if you’re born a peasant nothing you can do about that) but you certainly have the choice on how you live your life, you either lay in your couch and blame everyone else but you about your miserable situation or get your lazy ass up and try to work to improve your life.

[@dj796]

Will be interesting to see the re financing model with BTL @ 6% .. this young guy hasnt experienced rates that high ... just knows rates at 1% and easy gains. Pain is coming, its game over. The Flips will start reversing.. just imagine the carnage. " I bought loads over covid" Anyone who bought in the last 2 years will be seeing negative equity by January 2023... get some popcorn and watch it unfold !

[@sandanista2002]

I wonder what type of Landlord he is.

[@TheHumblePenny]

We'll let him share :)

[@TheMoneyParadox]

I do a mix of different strategies, including BRRRR (buy, refurb, rent, refinance, repeat), resolving distressed properties (eg buying unmortgageable properties and making them mortgageable again), short-term lets, and simply buying properties that represent good value from a rental and capital appreciation perspective based on the property's fundamentals, such as location.

[@zaynabraji4194]

My take a way is that it is pissible, if its never a goal it will never happen

[@TheHumblePenny]

💯

[@tommmymm]

Don’t know what it is, but something seems fishy with this guy. May be because how vague he is, comes across like a politician! 😂 Anyway appreciate the content as always ✌🏻

[@TheHumblePenny]

Hey Tom, thank you 😀. We told James to be relaxed and share casually, so that maybe why some answers are vague but he eventually made the points and added lots of value of the 1 hour chat.

[@tommmymm]

@@TheHumblePenny fair enough, probably a bit harsh from me really assuming the worst 😬😂

[@TheMoneyParadox]

Sorry if at times my answers seemed vague Tom, that wasn't my intention. Is there a specific question you had or that was asked that you would like me to go into in more detail?

[@atsutorkornoo8578]

Thus guy never really answered the questions you was asking him 🙄

[@TheMoneyParadox]

Sorry for not answering the questions directly at times. From memory, I was trying to point out key bits of information that I thought were useful to note. Are there any questions you would like me to go into in more detail here in the comments?

[@blessingsbest6838]

James is HOT!!!!! 🔥 Are you single lol 😂! I am into property myself 😊! Beautiful lady here x.

[@TheMoneyParadox]

Unfortunately, I'm in a loving relationship. Thank you for the kind words though :)

[@blessingsbest6838]

@@TheMoneyParadox ❤

[@TheHumblePenny]

😆 Good on you!

[@evilzzzability]

Personally I don’t find this inspiring, I find it rather sickening. Houses should first and foremost be for living in.

[@TheHumblePenny]

Thank you for sharing. It's an interesting debate. Do you think people should never own an investment property (if they can) after buying a home?

[@TheMoneyParadox]

Hi Van. Thanks for sharing your perspective. For those that want to rent rather than buy their own place, how would you suggest that is done?

[@evilzzzability]

@@TheMoneyParadox why don't you ask all your tenants which of them would like to own their own home instead of renting, and then sell each of the homes to those who said they would like to own - that way we can determine how much private renting there should really be.

[@catseyes8377]

​@@evilzzzabilitypeople that rent cannot afford to buy a house. If you get rid of landlords. Then the renters will be living on the streets. Simply as that. Be grateful people can afford to buy homes and give renters somewhere to live. Its not a birth right to own a property.