How I helped a client build his property portfolio FAST!

A client came to me looking for advice on how to invest in to property. The client had some cash to work with and owned their own residential property, with a mortgage on. At first, the client came set with the idea of buying a buy to let property but was put off by how slowly this method would work for him as he wanted to build a property portfolio.

The client asked if there were any other options of what he could do in his situation if he wanted to make money in property fast but grow wealth at the same time. I advised the client that as he has equity in his property, as well as cash, he could take on some refurb projects, utilising short term finance - bridging loans.

I explained that if he was to take one bridging loan, secured against both the new purchase property (the project) and as a second charge behind the mortgage on his home, he could afford to buy a property outright and then complete a refurbishment. The great thing about this method is that as soon as the property is ready to be refinanced or sold, you can realise all of the profits from the work you have done.

The client said that he had been looking at some run down properties that day but didn't realise he could secure finance on them as he thought they were unmortgageable. He came back to us a couple of days later with an offer accepted and it was time to go for it! The client took on a light refurb on a terraced house, which needed a new kitchen, new bathroom and a few walls plastered and painted.

Three months after he completed on this purchase, he refinanced this property on to a buy to let mortgage and got all bar £2500 out of the deal, meaning he has effectively bought a buy to let investment property with a £2500 deposit. He has now fully let this property and his limited company is receiving passive income monthly.

The same client is just about to complete on his second refurbishment project and will repeat this process as many times as he can, building his passive income and wealth as he goes.

Thanks for reading - Connor