If you want to learn how to invest in property,
I think there’s 10 key skills that you need to master. Skill number two is property renovation
or, to put it another way, how to add real, tangible value to a property.
Hi. My name Tony Law from “Your First Four Houses”, and my channel’s all about helping
you achieve financial freedom through property. If this is your first time here, be sure to
subscribe to the channel and click that bell notification icon so that you don’t miss out
on any of the free content that I give you each and every week. As I say, I reckon there’s
probably 10 key skills that ideally you need to master in order to be a really successful
property investor. Skill number two was to add value wherever you possible can.
I need to make one thing really clear straight off the bat. There’s a big difference, I think,
between what I mean by adding value and what potentially other people mean by adding value.
In fact, there’s a golden rule, and the rule is the value you add must be greater than
the cost of adding that value in the first place. What do I mean by this? Well, the truth
is I’m not really referring to giving the property a bit of lick of paint or a bit of
a clean up. I mean you’re going to go out of your way to find ways to add real, tangible
value to that property. For example, in some parts of the country
if you took an existing garage and you converted it into accommodation, be it another bedroom
or a living space or maybe even a granny annex, you’re going to add real, tangible value to
that property over and above what it cost you to do the work. In some parts of the country.
Not in all. You’ve got to do your due diligence, and you’ve got to look at the numbers and
look at comparables. Could you maybe add a bedroom? In most parts
of the country, that will add real, tangible value. Could you maybe take that house and
split it into two flats, or maybe you go into the loft space and get a third flat in there?
That’s going to potentially add loads of value to that building. Maybe you take the house
and you split it vertically into two houses? Maybe you get a third one round the side and
get a third property in there? Obviously, that’s going to potentially add hugely over
and above what it cost you to do the work. Maybe you build in the garden for example,
which I know I’ve talked about before. These are all real ways that you’re going to be
able to add value over and above what it actually cost you to do that work potentially.
Now, there is a huge advantage to taking this, “I must add value,” kind of approach, and
it all comes down to refinancing. Now, I’m a great believer in buying and holding for
the long term, but I don’t really want my money tied up in a property for the next five,
10, 15 years whilst I wait for it to go up in value. I want to be able to put my money,
potentially add loads of value, and then refinance and pull my money back out, so I can go and
look for the next deal and go and put my money into that deal and kind of do the same thing
again. There are opportunities all around you to
add real value. That is my big tip in this lesson. I want you to get out there and walk
around your investment area. In fact, I wanted to share a quick tale with you if that’s okay.
I was recently up in Barnet in North London, which is where part of my family lives. I
went out for a walk. I spent an hour and a half walking around Barnet with the sole intention
of finding places where I could potentially add value. I was amazed at some of the little
opportunities that found to add real value to the properties that I was looking at. I
narrowed it down to I reckon there was … I saw about 20 potential places. Let’s say 10
of them were real goers. Ultimately I reckon I got down to three places where I could,
if I could buy that property and do what I wanted to do, make a lot of money. This is
just from an hour and a half’s walk around a very specific area that I know reasonably
well. Just walking around all the little backstreets. You’ve got to do it. You’ve got to get out
there and look for these little opportunities. I hasten to add, most of these were not on
the market, so please do that. Get out. Walk around your investment area, and look for
potential places to add value. In my Online Property Master Class, I could
teach you a whole load of different ways to add real, tangible value to a property, so
you can potentially refinance and pull your money back out of deals quickly. If you’d
like to book a 10 minute phone call with me to find out a little bit more about this course
and how it can benefit you, simply click on this link here to book a time slot, and I’ll
be very happy to answer any questions you may have.