B4R Property Investing Model

1. Introduction: Welcome to the property discovery masterclass. I wanted to thank you so much for taking the time to find out about me and my property investing journey, which I genuinely hope inspires you, say the first step in your own property investing journey, which has led me to financial freedom and more importantly, time of freedom. If I can do it, there is no reason you can't do it too. 2. Why I Started Investing in Property: Why I started investing in property, wealth creation. I started investing in property part-time in 2010 whilst I was working at one of the big full professional services firms in the city and state. Young as a trainee accountant, I wanted to build up a property portfolio. As I realized that many wealthy individuals tended to invest in property for the long term. I was working full time, but I wanted something in place so that it wasn't fully reliant on my job as my only source of income. If I decided I wanted to do something else, was fired, fell ill than I had something to fall back on so that I wasn't fully reliant on my job. If I did lose it, then I wouldn't feel under immense pressure to try and find another job. Again quickly, I realized that property investing would give me the following monthly cashflow. This was the difference between the rent. I would receive an a mortgage cost, capital appreciation. Historically, property prices have doubled every ten years in this country. I wanted to invest for the long term for capital appreciation, it is an asset class which is in demand and therefore short supply, meaning that prices in the long term tend to increase, resulting in capital appreciation, leverage. I don't really hear this talked about a lot, but it is so important leverage money in any other investment. I realized that I needed to put in 100 per cent of the initial investment. So for example, if I decided to buy stocks and shares, I would need 100 per cent of the initial investment or outlay. Whereas if I buy a property, I only need to come up with 25 per cent of the value of the property as a deposit. For example, if I wanted to invest £100 thousand in the stock market, I would need £100 thousand. Whereas if I wanted to invest in a property worth £100 thousand, I would only need £25 thousand as deposit as a biter, let lender or lend me the remaining £75 thousand. And depending on what I do to that property, I can further reduce or limit the money I have left in leverage skill sets. I love the fact that I can leverage other people's skill sets. I don't have to be the expert in property. I use a knowledgeable brokers, qualified solicitors with many, many years of a convenience and experience, architects, fully qualified electricians, plumbers, and builders with years and years of extremes, leveraged time. I can leverage the time of estate agents. They have the knowledge of what's coming on at how much and what the situation of the owner is, how much their property might be worth once you let them know what you plan to do with the property, what it currently rents for, what level of rent you might achieve once you've completed the works you are planning to complete, they will have a good idea of what is happening in an area and be able to drastically reduce the time I needed to do my research. Passive income. I actually hate the word passive income because I genuinely feel it gives the impression you can get something for nothing with just isn't the case. If you wanted something that was completely passive, then you could invest your money into a savings account or an ICER. However, the big downside here is that the returns are very small and it does require you to have the initial deposit to start earning this return width property. You are able to do a lot of the work up front. For example, find the property, reconfiguring it, refurbishing it, renting it, and then refinancing it. But you only require minimal monitoring on an ongoing basis, on a monthly basis. If you are using a netting agent, for example, you are literally checking that the rent has come into your bank account. I liked the time freedom that property gives me. I can build up my portfolio part-time overtime I miss will in the future Give me more time, freedom to pick and choose where I spend my time and energy over time. What you enjoy or thought was fun at the time changes. I remember when someone said to me, Just get good a level grades and the world will be your moister than it was. Get a good degree from a good university, and then you'll be set for life after university. It was a good graduate job. And as soon as I landed a job at one of the big four accounting firms, it was just pass your exams and then you could end up in an investment bank. Once I had landed at an investment bank, I wasn't quite sure what was next. It wasn't as exciting as I thought it would be. After awhile, I got tired of the same old routine and it was literally starting to feel like Groundhog Day. I wanted a change and a new challenge. I think I realized that every three years I have this desire to do something different. And what property has allowed me to do is feel less guilty about making that step or transition as it's acted like a safety net with property. You can take it one step at a time. You can start off by doing a vanilla by two. Let's then you can move on to converting a house into two flats. And then look at converting mixed-use commercial buildings into say, four flats like I have Azure experience and confidence grows. You can do bigger and bigger projects if you wish. I personally wanted to buy up a number of bytes. As these were less risky than moving into conversions or new builds. I wanted to build up a portfolio so that I had a solid base from which to progress from. I remember learning about Maslow's hierarchy of needs in his theory, maslow's suggests that people are motivated to fulfill their basic needs before moving on to more advanced needs, property investing can be applied in a similar manner. For example, starting off by building a biter let base, that will meet you basic needs. Moving on to small conversions, such as houses into flats, moving on to medium-sized conversions such as mixed use, commercial conversions, and then moving on to large-scale conversions or land developments over time and your experience, but more importantly, your competence grows, which means that you feel more competent to do bigger and more challenging projects where the payoffs can be even greater. 3. Traditional Methods of Investing: How I started investing in property, that traditional investor, I started buying properties the traditional way wherever I was slowly saving money from my salary. And once I had enough, I would buy a property. But this was slow and tied up a lot of money. When I first started to invest in property, I was scared of the following. I was scared I was going to buy the wrong type of property. I wasn't sure if it was better to buy a house or a flat. I've been on lots of properly training courses and I don't know why, but they always seem to suggest buying houses over and above flats. So when I first started, Guess what? I decided to buy a house. I was scared I was going to buy it in the wrong area. I wasn't sure if an area was good or bad. How to tell the difference. When I first started to look for investment properties, my main criteria was the price. I was literally looking for the cheapest houses in Birmingham. I decided to invest in Birmingham as I was familiar with the area, I studied at the University of Birmingham for three years. And so to a certain extent was familiar with the area at the time. I was living in London and I couldn't afford to buy an investment property there as they were so expensive. So I thought even in Letchworth where I grew up, it was a small town. And again, properties were more expensive when compared with investment areas. I decided to invest in Birmingham. Like a lot of people that start investing in Bipolar, I was literally looking for the cheapest properties I could find, which looking back wasn't the best idea, I did view a couple of properties that were on the outskirts of Birmingham that were really cheap. But when I read them, I had no real idea if the area was good or not. I call the ancient, asked if I could view the property, viewed the property, and then thought, What's next. I did this a few times before I realized I was wasting my time and I was really scared that I was going to buy in a bad area. I'm not really sure what the definition of a bad area is, but I guess it's one that doesn't fit you objectives. I knew I was looking for reasonably priced properties in Birmingham, but I also wanted to have working tenants and families in an area that was desirable and in demand. So I went into a letting agent. I said I was looking to invest in the area and had some questions. I was hoping that they could answer and developed a criteria checklist, which I still use to this day. I would always speak with at least three different letting agents in the same area to get a good feel for what they were saying and making sure I was hearing the same messages again and again, which gave me confidence when selecting that area for investment purposes, I developed an area checklist and this was off the back of one of my friends, asked me why I had decided to invest in that particular area in Birmingham, which I think is a good way to look at it. Imagine your friend asking you the following questions. Why did you decide to invest where you have? I decided to invest in Birmingham as I was familiar with the area, I studied at the University of Birmingham for three years. And so to a certain extent was familiar with the area. I decided to focus on symmetric and hands worth, as I knew, their houses were in demand from working tenants and families. A yield in these locations was good and there were lots of developments taking place in the centre of Birmingham, which would lead to good capital appreciation in the future. Even in the immediate areas, there were new housing developments going up and use super hospitals in the pipeline. I'd spoken with three letting agents and they had a waiting list of tenants looking in that area, and the area had strong rental demand. Once I completed the checklist, I was at less fearful when it came to invest in in the area, less fearful when it came to finding new investment areas such as central London. I was scared of negotiating with estate agents. I genuinely thought you had to pay what the property had been marketed for, that there was little room, if any, for any negotiations. And even if there was I felt embarrassed putting in when I first started to put in offers for properties I was interested in. I would usually do this over the phone or a member, my heart would be pounding when I was putting in an offer. I felt nervous and to be honest, I was just scared of what the agent was going to say. These were some of their reactions. I had my first used to put in office over the phone agents, sorry, unfortunately, we have had higher offers. Are you able to increase? My usual response on the phone was let me call you back agent. There is no way the vendor would accept that and I would feel embarrassed to put that off for forward my response. Okay. Thanks, agent. I can put your offer forward, but it's not what the vendors looking for. I thought you were very keen on the property. I am I mean, I was I really like it, but only able to offer the sediment over time, I decided to stop offering on the phone. I felt like I was personally insulting the estate agents and owner at the same time and really started to be scared of their responses. When an offer did get rejected, the agent would say, Would you like to make a revised offer? And on the phone, I would say yes. Sure. Then they would usually asked me how much I usually offered another £10 thousand and any subsequent offers where usually increased by the same amount. Over time, I decided to develop a framework when it came to negotiating with estate agents. I would never offer on the phone ever offer over emails or to make a call to the agent after viewing and say the following. It works in terms of what we would like to do with it, but only at roughly in this level. And I would quote the figure from the negotiation template wide created. And if the agent said they would put the author forward, then at that point, I would send a formal email with the initial amount including might offer pack, the author pack I created has become a game changer and it makes me look very professional when presenting my office as it gives the estate agents everything he needs, again, saving them time and effort. The author pack, I developed a simple yet effective check it out. If my offer was subsequently rejected by the owner, then I would use the negotiation template to progress to my second offer. Using the negotiation template and offer pack together, reduce my fear massively. As now, all I had to do was follow a process. Previously, I would spend days coming up with the revised offer amounts and in my own mind, I would be justifying any subsequent increase in trying to justify that to the estate agent. For example, I would say that the property needs a lot of work and the agent would say the pictures and description said it needed a complete refurbishment. And he knew that when we spoke on the phone and when you book the viewing, I would be like, yeah, but okay, Thanks. Now I can use a negotiation template to generate the first, second, third, and final offer. And also like don't make it personal. For example, I will say that I really liked the property and it works for what we're looking to do with it. But my business partner has concerns regarding the area or any other issues identified on a viewing. This is a great way to negotiate as the agent is a less likely to take it personally, as you've said, you like it. 4. Case Study: My First Investment Property: I purchased this three-bedroom house, but £84 thousand in Birmingham. I found this property on right move. And what attracted me to it was that it was with Express estate agency. This is an online agency based in Manchester and they usually sell properties at a discount as the owners tend to be motivated. When I first went to view this property, that guy was keen on selling it, but still wanted a really good price. As you can see from the floor plans on screen, there wasn't much scope for adding a significant amount of value in relation to this property at the time, all I wanted to do was buy something that was twenty-five percent below market value. As that's more all the courses I had been on, we're saying get the property at a twenty-five percent below market value, discount or refinance at the market value in order to get all of your money back out. I just want to show you the photos of the property. I didn't take any photos, but what I did to this property was as follows. I painted it upstairs and downstairs. I've put on a new roof, thinking it would add lots of value to this property. I've put down new carpet upstairs. That was it. No new kitchen, bathroom, ammonia, boiler, rewire, no additional runs added. Nothing. How did I finance this house by purchase this house on a biter, let, mortgage and put down a 25 per cent deposit. It cost me £21 thousand. How did I refinanced this property? I didn't. I left this property on a biter let mortgage. The purchase price was £84 thousand, the deposit was £21 thousand, the refurbishment costs came to £10 thousand, and the legal fees were £1500. The total costs on this property where £32,500, the rent per calendar month was £575, resulting in a rent per annum over £6,900. The money left in was £32,500. The gross yield on this property was 8.21%. The return on investment was ten per cent. Why did I leave all my money in on my first investment property, dipping my toe into the water because this was my first bite. I wanted to make sure I wasn't taking a big risk. So I decided to buy a cheaper property. So if anything went wrong, my exposure would be limited. No stamp duty at the purchase price of £84 thousand, there was no stamp duty to pay, which at the time I thought was brilliant and value-added. I didn't do too much work to this property, and so I felt at the time there was no point on re-marketing the property onto another bite of that mortgage. When looking at the financial metrics, the only metric are used to see people talk about was the yield and so on this, the yield was 8.21%. So I felt like it was a good investment, traditional investor at the time, I was working at Ernst and Young. And so it wasn't funny uncommon for me to be working ten to 12 hours a day and sometimes seven days a week in my network of property was seen as a long-term investment, something that you invested money into in order to earn a return on your money? Can anything creative was carried out by developers and I didn't feel like a developer. I had purchased the property, completed minimal works. And why is it forget about it so I could carry on with my day job. Why was the traditional or armchair investor what I could've done? Looking back, what I could've done is purchased properties like the one you are seeing on screen. These properties were on the same road, would have been even cheaper to purchase. I would've been able to create the uplift as I was creating another bedroom, the size of the bedroom might seem small, 2.10 by 2.57, which is 5.40, but I would have started the entrance to the bedroom a lot earlier and incorporated the color space and some of the cargo space into the bedroom, adding potentially 2.10 times one, which is 2.10, therefore resulting in overall size of 7.40. I have seen a small bedroom in these three bedroom houses being roughly 6.93 square meters. So the one I created would have been even bigger. I would have shifted the bathroom downstairs and added a small extension at the back of the kitchen for the bathroom. 5. BRRRR Property Investing Strategy: How I now invest in property before our model, what happened investing in property since 2010 and from 2010 to 2015, this was, as a traditional investor, I would be putting down a twenty-five percent deposit, paying a stamp duty, legal fees, and undertaking a cosmetic refurbishment which used to include painting and decorating their house throughout a new carpets. I didn't refinance any of my properties just because I didn't feel like I had added a significant amount of value that justify any significant uplift even though I didn't manage to buy them at a slight discount, I was looking for three-bedroom properties. I hadn't even considered two-bedroom properties. I always thought the sweet spot was 34 bedroom properties were a lot bigger and therefore more expensive. I realized over time that if I wanted to supercharge the growth of my property portfolio, then I would have to do something different. I wanted to find a way that I could tie up less and less money in each of the projects I was completing. And so I realized that I needed to do something over and above a normal refurbishment. I didn't want to do anything structural or it's required planning permission because I was risk averse, but still felt there must be other ways I could add significant amounts of value by then came across a two-bedroom house that I thought I could convert into a three-bedroom house. No planning permission needed because all the works were internal, minimal structural works in bold. So I purchased a two-bedroom house and converted it into a three-bedroom house in Bedford on the refinance. Once the works were complete, I had no money left in that project. It was amazing. This was my first before our model project. I then took that concept and wanted to see if I could apply it to flats in central London. Getting big discounts like I was taught on property courses proved a challenge in central London. So I needed a way to get a small discount, but also be able to create a lot of uplift at the same time as well. Over time, I started to look for one-bedroom apartments with a separate kitchen that I could turn from a one-bedroom apartment to a two-bedroom apartment. Realized, I needed to look for problem properties in order to get a discount. And also ones that I could reconfigure and go from a one-bedroom apartment to a two bedroom apartment. The first before our flight conversion I completed was in Battersea. I purchased a one-bedroom flat, the £237,500, and applied that before our model, I reconfigured and refurbished it and wants the works were complete, refinance this apartment onto a biter let mortgage. That value as a two-bedroom apartment came back at £320 thousand of only six months of ownership. I then started looking at projects locally to where I live, given the onset of COVID, it was difficult to get into London. So I started to see if I could apply the before our model locally. Eventually I found a house that I could convert into two flats. I purchased a three-bedroom house or £265 thousand, which are converted into two one-bedroom apartments. The overall valuation for the two one-bedroom apartments came back at all, £110 thousand, which meant on the refinance, each apartment ended up costing me £21 thousand. Once this project was completed, I wanted to find an even a bigger project. And so I came across this mixed-use commercial building. It was on sale, being advertised to investors as a mega HMO or development opportunity to develop Two flats. There was already a three-bedroom flat upstairs, but the owner had secured planning permission to convert the ground floor commercial unit into a two bedroom flats or property again, was ripe for the B for our model. Having viewed the property or realized, I only needed to find an additional ten square meters on each floor in order to get or one-bedroom apartments overall. So I agreed to buy this property and after 15 weeks, I got planning for for one-bedroom apartments. 6. How to Invest on a Part-time Basis: Why I invest in a property part-time experience or my first few projects mainly realized that I could do nearly everything online and part-time. For example, vine property deals online buying a broker, online, buying a solicitor, online, buying and estate agent online, bind a letting agent online, find a builder and tradespeople online on my first bite of their property, I made the mistakes. All beginners may, and the one I was told I would make, but I still made that mistake. My mistake was that I got emotionally attached to the property and decided because it was my first one, I wanted to gain as much experience for me as possible and so decided to take part in the refurbishment myself. I absolutely hated the experience. I wasn't sure if I was putting enough paint or putting too much paint on the walls, as is always the case when you first start, you want everything to be perfect and you spend more time in the first room than the rest of the house combined? I found it incredibly boring probably because I wasn't sure what I was doing. And again, I wasn't sure if what I was doing was correct. I went two weeks so many times and sometimes I would have to go to other weeks doors as the paint I had initially purchased was out of stock every time I'd finished for the day, I absolutely hated it with a passion. Clean the rollers and the paint brushes so that I could use them the next day. I obviously wasn't doing it correctly as the next day I would use them and they would be paint peels pall over the walls and managed to get the paint all over my clothes and also managed to get the paint somehow in my car. I felt massively disappointed and learn a very big lesson that we pay the professionals. In the end, I managed to get the house completed. It wasn't amazing, but it was okay when I walked around like a C, all of the issues, but by this point, I didn't care. I just wanted to get back to work on my last day as I finished up, a local agent was walking paths and asked if I was looking for a tenant and asked if he could look around. I said sure. I told him I'd been refurbishing the property as it was my first one. And he said if I ever needed any good contractors to let him know, I thought to myself, if only I had met you on day one, I realized that I needed to look at this as if I was at work more professionally. I realize my role as a property investor was to find the properties online, find a broker online, find a solicitor online, find a builder online. I realized that I was trying to become a painter decorator without any experience, I would train it. I assumed it was as easy as going to Wix, putting on some paint and then just throwing it around the walls. Was this really the best use of my time? 7. Tax Benefit Strategies: Life-changing, money, tax-free, owning property in my personal name, I purchased a two-bedroom apartment in London Bridge for £250 thousand. The reason I purchased this apartment was that myself and my wife were working at more London place in London Bridge. And so it seemed to make sense to be near work rather than commuting from Letchworth, which was costing each of us all thousand pounds per year plus the three hours spent commuting. I re mortgaged this property and it got valued at £500 thousand, I go to seventy-five percent loan to value mortgage. So my solicitor was at Advanced £375 thousand my solicitor paid off my existing lender, who is owed £187,500. This was the 75 per cent of the £250 thousand, meaning that I was transferred the balance which was £187,500, which was tax-free, no tax to pay as it was held in my personal name. And because I hadn't sold the property, there was no actual gain made and therefore, no tax to pay. This was one of the reasons I decided to buy more apartments in central London. Life, changing money tax free since moving out London, I've been renting this apartment out so that as well as earning a monthly income from it, I'm also able to benefit from the capital appreciation. What I also realized was that this apartment used to be a three-bedroom apartment. It's 77 square meters. So my plan on the next refinance will be to apply the before our model and reconfigure this apartment into a three bedroom apartment. I found another flat with the exactly the same floor plan as my current flat. Check this out. My current apartment, The previous owner, ten bedroom three into a kitchen and turn the existing kitchen into a bathroom. The bathroom into a storage area with cupboards. My plan would be to turn it back into a three-bedroom flat, at which point I would have it revalued and refinanced onto another by two let mortgage is a three-bedroom apartment worth more than a two-bedroom apartment in London Bridge, five-minutes from the Shard. I can't wait to find out where my wife and I initially purchased the flattened London Bridge. You really want is to build up a portfolio in this area. But with apartments costing 250 to £300 thousand, it would mean that we would have needed a deposit of £62.5 thousand to seventy-five thousand pounds plus the stamp duty, which could have been 10 thousand to £14 thousand. And legal costs say roughly £2 thousand. That could have been easily reached, £75 thousand to £91 thousand, which we just didn't have. Looking back, I'm glad we didn't buy any more than given now I'm able to buy more than 2.5 for every one I would have purchased the traditional way. For example, I purchased this one-bedroom apartment in London Bridge for £330 thousand. I received a call from the agency and they had found a flat matching the criteria I discussed with him. The apartment was located between London Bridge station and Boris station. It was an amazing location. And when the agent said to me didn't have any photos or floor plans, I didn't care and I wanted to view it as soon as possible. When I went to see the apartment, the apartment had lots of stuff in it. The person that used to live in it passed away and the apartment was full. I think he might have been a hoarder as it was difficult to see how much space that actually was given the amount of stuff in that before photos, as I walked into the apartment, there was a toilet on the right-hand side and a small cupboard after it, directly ahead was the first bedroom, which was a good size. We then walked into the living room and again, this was a good size. The apartment was very tight and dated. It had lots of different colors in each of the rooms. I was definitely in need of that before our model applied develop the one thing that I was sold on this apartment straight away was the view out of the windows. They view from the bedroom, living room, and soon-to-be bedroom window was up the shot. If you also look down onto the park opposite the development, it was an amazing view and for me, I was salt straight away. I wandered into the kitchen, which was just up the living room, and it must have been at least 30 years old. I was very tired and dated. The bathroom was much the same. It was a bright red and blue color with wood paneling on the wall to match. It had blue tiles on the walls which had this old school mosaic on it. I can see that the apartment ticked all my boxes in relation to the criteria I'd in place. And so I offered on the property and eventually might offer got accepted at £330 thousand. There was a lot of interests in his apartment, but because I said I would be buying on a bridge, the owners seem to like that there were higher offers on the table, but these were from owner occupiers who needed a mortgage. Let me show you the floor plan and how I use the before our model on this apartment. As you can see from the floor plan, the kitchen was 9.97 square meters, which is more than big enough for me to convert it into a bedroom. And a living room was 16.77 square meters, which again, was more than big enough for me to convert it into an open plan to kitchen diner. The works took about six weeks and my buildup also managed to turn the toilet I mentioned as you entered to include a shower. So this apartment and went from being a one-bedroom apartment to a to bed to both apartment. If I decided to sell the apartment wants the works were complete than assuming the cell would have taken four to six weeks, I would have made a £47 thousand profit. So that's £47 thousand in three months. Or blows me away about property investing is the time required by view disappointment at once. And the next time I viewed it was when the refurbishment was complete, I literally went to this property twice. All I had to do in the background was engaged, my solicitor, broker and builder, an interior designer, and let them take care of their parts of the puzzle. All I had to do was review the report from my solicitor, review the evaluation and bridging quotes, and finally review the bicep mortgage offer. Also WhatsApp my photographer to take before and after photos. Let me show you what the apartment that like once I applied to be for all model, this photo is often converted kitchen that I convert it into a bedroom. I love the way this turned out. There's so much space and natural light. The surveyor who came out when we apply the consent actually said to me, Why don't I add an entree into his bedroom. He said it's big enough. I was tempted, but thought of the room would feel small and decided not to. The second photo is of the open plan kitchen diner. I created an L-shaped kitchen under the Window, which meant this room still felt quite spacious. I really like how this room turn down an exponent you are seeing is of the existing bedroom which was refurbished. Again, we have lots of space and this room felt light and spacious with lots of functionality. The bathroom came out really nice to. The final photo is of the small toilet and cupboard that I convert it into a toilet and shower. And I used an interior designer to make sure I was using the space in the best possible way. Like Kurt, I looked at color palettes and furniture selection, as well as lighting. Let me show you how the numbers worked in relation to this project. The purchase price was £330 thousand. The reverb costs were £26,850. That bridging costs were £20,487. A stamp duty was £16,400. The legal and other fees with £3,226, meaning that the total costs were 396,967. The valuation of the apartment came back at £450 thousand, assuming I had sold it at that point, I would've made £450 thousand less selling and legal fees of £5,850, less total costs of £396,963. So a profit of £47,187. I was a little disappointed with the evaluation, if I'm honest, but because this was a real mortgage onto a biter let mortgage, I feel the £450 thousand valuation was conservative. I personally think I would have gotten a lot more if I decided to sell the apartment, and therefore, I could have made a lot more than just forty-seven thousand pounds if I decided to sell. As it happens, I use the before our model to buy, reconfigure, refurbish, rent and refinance all the apartments I purchase in London. And even outside this model I've developed, it allows me to buy nearly three times the number of apartments when compared to the traditional way of investing and the way I used to invest in this example, a traditional investor would have invested at £143 thousand into this two-bedroom apartment in London Bridge, they would have been earning a gross yield of 4.8 per cent plus a return on investment of six per cent. Using the beef or our model on the refinance, I had £61 thousand left in with a return on my investment of 147. The difference is mind-blowing and it's for the same apartment. It just shows you what's possible when you get creative. The real increase in value in relation to this apartment was created by going from a one-bedroom to, uh, to bed to bark apartment tax-free money in limited companies. I also discovered that if I owned property in a limited company and re mortgaged property in the future than the proceeds of that ray mortgage would go to the limited company, again, tax-free because no sale had taken place. I could use that money to buy another property, therefore, growing my portfolio even faster. Director's loan to my limited company. Any money that I personally invest as a director into my limited company is basically like me learning my limited company money. I can charge a commercial interest rate on any money, so I lend my company and so over time can recover my initial loan and any interests that is due. This would not have been possible if I'd purchased the property, my personal names. So again, this is another advantage of using the limited company structure. Any monies you lent to the company, you will receive back. And you can also charge a commercial interest on that money so that your personal money is working hard for you. If you decide to invest at the interest on the loan is treated as a business expense so you can take it off any profits that business makes, therefore reducing your tax liability as well.