11th July, 2013 BACK TO ALL PODCASTS

We did it! We recorded the podcast in front of a live audience, the technology didn’t break, we didn’t make ourselves look any more idiotic than usual, and we answered a boatload of listener questions.

Much like the Sex Pistols at the 100 Club in 1976, it’s one of those events where thousands of people will claim they were there, but the few who really were will know the truth. Still, if you want to blag it effectively when telling your future grandkids, just listen to the recording in this podcast!

Here are some of the questions we answered:

  • What do you think the best way us to get started in property investment for a total beginner?
  • How do you buy in order to recover cash from the deposit for futher investment?
  • Is there an optimum portfolio size? (that balances income/time to manage/risk/ and achievability?)
  • If I had £50,000 and wanted to get into property investment what would each of you do if you were in my position?
  • 22yr old currently in first job but want to get into property full time. What should I do in the meantime to transition into property? Would it be helpful to do part time work at an estate agent?
  • How to find good deals? Does the american “flip a house” concept exist in the UK market?
  • Do you support buying life insurance on buy to let mortgage?
  • I’m a first time buyer who will shortly be buying a property. At first I plan on living in it but longer term I plan on renting it out and buying another. Will not buying this property with a buy to let mortgage stop me from renting it out?
  • Are there ways to reduce capital gains tax when selling a property?
  • How can I finance properties when I am self employed (May 2013) and have lived in Australia for 12 years? I am a UK citizen
  • How do you define how an investment project will be viable or not?
  • I am new to property investing. How do I get to learn how to find/source deals?

Resource of the week

Rob B brought Unroll.me to the table – a tool that collates all those semi-useful newsletters and stops them from cluttering up your inbox, and makes it dead easy to unsubscribe from any you don’t find valuable.

Of course, you wouldn’t want to give this treatment to the Property Podcast newsletter, which you should subscribe to now so you hear all about our next live event…

This week’s mentions

As we were being asked about getting started in property, we couldn’t help plug Rob D’s book: Property Investment For Beginners.

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Ric:                         Welcome to Property Podcast, the home of news and debate while building long-term wealth with property investment for beginners and experts alike. Now for your host – I keep asking if I can say “real estate” but they tell me that’s not how you guys do it every day – it’s Rob and Rob.

Rob B:                   Welcome everybody to The Property Podcast episode 17, the live edition. Can everyone give us a scream? Now there’s a reason you can’t hear anybody because it’s only our audio are up. But welcome to everybody that’s joined us this evening. It’s fantastic to have you. We’ve got loads of questions lined up. We’re looking forward to more questions firing across to us as well. Rob, how are you this evening?

Rob D:                   Sweatier than usual but I’m holding up pretty well. Maybe we can get requested drops and cheering sound effects and jeering if we need to make it sound more impressive

Rob B:                   Yeah and sound like a cheesy American sitcom with the fake clapping and cheering in the background. Right, Rob? We normally will do our reviews, but we’re going to have a pardon this week just because it’s a live episode. So, we will carry on as normal, but please continue to send your reviews thru. But as we’re missing that out Rob, what do we have coming up?

Rob D:                   Coming up, we have got nothing but listener questions. Really, really, really excited about this. We invited everyone to ask a question at the point of registry. We have absolutely loads so we’re going to get thru all of those. We’re going to bash thru them pretty quickly giving you enough detail hopefully. For the people who are live on this call, then you can go ahead and ask your questions live and hopefully we try to get around to as many of those as well. We don’t have any news this week. We do have a resource at the end if you stick around to the end. But other than that we’re just going to get straight to the questions because there are absolutely loads of them

Rob B:                   The first one, we say thank you to Sophie. Sophie Cooper. She asks, “What do you think is the best way to get started in property investor for a total beginner? So, if you’re a new property investment, what’s the best way to start?” What a great question to open this up. I’ll chip in first, Rob.

The first thing you need to do is clearly educate yourself. Before you go and withdraw all your money from the bank and buy somewhere, you’re probably best to educate yourself on the whole process and what’s going to happen. That’s the property market in general. That’s mortgages, strategies, what are you going to do long-term, your goals, your plans. There’s so many different things you need to research and start to educate yourself on and there’s a lot of ways fortunately you can do that for a little or no money at all. Clearly, this podcast, you got Property Geek, you got Property News Radio which is coming soon, and of course the one and only Property Podcast. You got books—many of them. You got blogs. Rob’s got a blog. I got a blog. There are plenty of other good blogs out there. You got resources like Property 118, Property Tribes, great forums, the list goes on. So, first of all you want to educate yourself. There’s lots of areas you need to educate yourself. But the more you know, the easier it will be for you to invest and the more confidence you have.

Rob D:                   As you’re doing, you’re learning. There are lots of decisions you can make along the way. So, if you’re going to make your very first investment, there are lots of choices to make. A lot we’ve actually covered in the podcast already in previous episodes. The first choice to make is do you go for buy to let or buy to sell. If I were a first timer, I’d be going down the buy to let route because it’s less risky and you learn to experience the joy of making a profit every month. But you might have a different strategy. You need to decide where to invest.  You need to pick an area. You need to decide whether to do that near where you live or further away, or think about the type of tenant you want to attract. Think about another topic we’ve covered which is the fundamentals for long-term demand—that’s transport, a good mix of local employees, shops, education, all that kind of thing. That’s before you even start getting into the actual details of individual properties where you can use Right Move to establish what the market prices are, figure out what numbers matter to you which we’re going to come into later.

There’s actually tons of research as you go along. If you’re looking at getting started, I think the key message is not to get overwhelmed by all this research and all this options and to not overthink it too much. You’re not going to do the deal of the lifetime your very first time. You’re just not. It doesn’t matter because you’re going to get used to the process. You’re going to make some mistakes and do things that aren’t optimal, but they will sort themselves out over time, and you’re going to do better the next time you invest. So, the best way to get started is to just get started

Rob B:                   That’s it. Take action. I know it sounded like there are 101 things you need to do before you take action, but actually it’s not that hard. If you said to yourself, “Okay, I’m at point 0 and I want to be moving my tenants in in 3 months’ time.” Although that’s a stretch I’m sure, you could do that. It’s possible. You don’t have to do it in 3 months. It’s up to you. But the main thing is once you’ve started implementing the education and looking at your options, take action. Don’t mess around. Don’t just sit on the information you have. Move forward. Okay Rob. Who have we got next?

Rob D:                   Next we got Peter, I think. That sounds Irish again. It’s a very nice man who asked a question. I’m really sorry for mangling your name

Rob B:                   Funny how I gave you that one, Rob.

Rob D:                   Funny how these things work out. This nice gentleman asks, “How do you buy in order to get your deposit back out again to reinvest? So, if you’re putting your money into a property, how do you get that money back out to use for another deal?”

This is a big topic obviously because there were the days when property values were going up so fast that you could just wait a bit and you’ll end up with all this equity that you can withdraw and buy the next one. In a market that’s flatter than it was, you’re going to need to actually do something to earn getting your cash back out. There are two ways of doing it essentially. You can either buy a property below market value. I’m sure Rob can talk a bit more about that because that’s a large part of what he does with his clients. Then, there’s forcing the appreciation. That means doing something to add value to the property in terms of refurb or an extension or something like that.

Before I pass over to Rob, I’ll just give a few numbers as an example because it’s not the most straightforward concept to grasp necessarily if you’re completely new to this. The essence of it is if you buy a property for say £100,000, you’re going to need a deposit of 25% so maybe £25,000 deposit. If you spend £10,000 on refurbing—that could be a new kitchen or a bathroom, that could be an extension, that could be many other things, then 6 months later maybe you’ve added some value with your refurb and you can remortgage based on a new market value of £150,000. If you do that, the if you can keep the same loan to value which is 75% then you’d be able to borrow £112,500 which basically means you can pay back the money you borrowed in the first place and pull out the £35,000 you put in for the deposit and the refurb funds. So, now you won this property, you still got 25% equity in that and you’ve taken all your money out ready to do it again. We’ll put those numbers in the show notes because it’s much easier when it is written down than when it is read out loud. But essentially, that’s the gist of it. There are complications because you need to be able to prove that you’ve added this value, and you should really be using a bridging finance, lender or a specialist mortgage product but that is the gist of it

Rob B:                   Remember the show notes will be available in a couple of weeks’ time when this has been broadcast at the propertypodcast/17. But to add to that, Rob mentioned below market value. Word of warning. Below market value is not an asking price. Let me explain what I mean. Some people say they got deals that are available that are below market value and they’re not really. some may say, “The asking price on this property  is £100,000 but you can get it for £75,000. The problem is they used the term asking price. An asking price is just one person’s opinion. That person may be duly unqualified to give evaluation. They might have been drunk when they picked up 100,000. Let me give you an example. If I had a byro I could say to you, “Rob, you can buy this byro off me. It’s worth £100 but I’ll give it to you for 20.” It may sound like I’m giving you the deal of the century but actually the [0:08:22] was only worth 50 pence. Just because I said the asking price is 100 doesn’t mean it’s a good deal. The way to get around it—what we do in RMP Properties is we’ll send a surveyor out, establish a value so we get a surveyor’s report and we’ll then negotiate down from there. So we’ll have a professional tell us what the value is and we work backwards from there when we do our negotiation. That’s the only way you can establish whether you got below market value or not.  And asking price might be right but it may be way out so you can’t rely on it. It’s just something to be aware of especially when you see a lot of marks in the material out there.  I’m not saying they’re being evil but they’re certainly not showing the full picture.

Next question. [0:09:01] asked, “Is there an optimal portfolio size?” He goes on to say that, “balance in income, time management, risk and achievability”.  There is an optimum portfolio size for you Richard and for every single one of our listeners but what is right for you will be different from the next person. Let me explain. If someone is 30 and someone’s 60, their goals and aspirations and time frames and strategies will be completely different. Their optimal portfolio size and your optimal portfolio size will be very different. So, I can’t answer today and go, “Yes, it’s 6. That’s how many” because 6 properties might be perfect for some of our listeners but for the other 95% it might not be. How to find your optimum portfolio size is to establish a goal, a time frame for that goal and put strategies together and that will tell you portfolio size. But I’ve picked holes a little bit in the terms you’ve used. I’m sorry Richard.  But what you actually should point out is it’s not the size of the portfolio that matters; it’s the value. You can have 10 properties that are worth £50,000 or 4 properties in London that are worth quarter of a million. I’d rather have the 4. It’s not that more is better. People often refer to how many properties they should own but really it should be the value of that portfolio. It’s something to be aware of. Can you add to that, Rob?

Rob D:                   I’d say that again before the crunch whenever the madness is in full swing, there was very much the idea among the investors they got a number of properties in their head. Some of them got a number in their head as well like ‘Oh, I want a million pounds of property.’  [0:10:31] that’s what I want. That wasn’t based on anything other than being a nice round number. It didn’t really answer any questions about what it would mean to them in terms of their goals. It’s only 100. Let’s zoom in on the risk element for a minute. If you did have 100 properties, then depending on how you feel about risks there are pros and cons to that because if you’ve got 100 properties and 1 tenant stops paying, then that’s only effective 1% of your total income. If you got 2 properties, that halved it. In that case, it’s risky to have fewer. But then if you got 100 properties, that’s 100 boilers that can blow up. In that way, it’s more risky. In every level it comes down to your own personal preferences and your goals.

The next question is from Andrew Edgerton. He asks, “If you had £50,000 and wanted to get into property investment, what would each of you do if you were in my position?” Kind of echoing the previous question, the answer to this one is we don’t know your position really. It very much depends on your goals again. It’s at what income do you want to make from property. What kind of time scale are you investing over? Just to give you a few contrasting examples, if you had 50,000 you could buy 2 houses for 100,000 each somewhere around Petersburg or something like that, reinvest your rental profits every month, wait for inflation to erode your debt, wait for property prices to go up, then use the money you’ve saved and the equity to buy more. That might be totally unsuitable for you.  You might be in a mad rush to get your income up as high as you possibly can in which case you might be doing what we were talking about earlier and investing in such a way that you can pull that £50,000 back out again to use in the next deal. If you didn’t do that, you need to have a plan B of course because for your first investment you might not get it exactly right. If it were me, I might want to buy 3 houses in Liverpool and [0:12:21] use if for cash flow because cash flow is what I’m focusing on right now. But that’s just me and it’s not you. It’s working out exactly what your position is, not just financially but in terms of everything else that goes along with that

Rob B:                   There’s not much more to that, Rob. The simple answer is it depends on your situation. Are you employed, unemployed, position to get a mortgage, your age. There’s so many variables that it’s hard to answer.  Andrew you probably would have wanted an answer to your specific circumstances but if you want to get in touch with either of us we will happily run thru that with you. I think I recognize your name anyway and I think we’ve spoken over the phone. Maybe we are talking about that.

Next Calvin. Calvin says he’s 22 years old. He’s in his 1st job. “I want to get property full time. What should I do in the meantime to transition? Should I work in an industry for example as an estate agent?” That depends. I did. I started in property investment about 8 years ago and then a year later I became an investor. So, I’ve been an investor for 7 years. That’s me and not worked that well for me9. However I had an investor who she didn’t work and she was happy to do some part time work and wanted to get more involved in property. So I suggested for her to go work at the letting agents.  That was 3 or 4 months ago. She hates it. She absolutely hates it.  She doesn’t enjoy it whatsoever. It’s not for everyone. Ditto thing Calvin.  If you’re a trained doctor then I certainly wouldn’t work in an estate agent’s.  That’s not the only place you can gain experience, is it Rob?

Rob D:                   I definitely wouldn’t want to work in an estate agent’s but that’s just me. It’s not necessarily a bad thing to do. There are other alternatives. If you wanted to get into the industry another way, you could consider training as a mortgage broker or a surveyor or either of those things would give you a really good overview of the market as well and give you a bird’s eye view on what other investors are doing, what’s working, what’s happening within property. That’s another way of learning.

If you really want to work in property, don’t just think about high street. Think about all the different people who are involved and all the different ways you can do that. Without actually working in property, you can still be doing all the things we talked about earlier. You can still be reading, learning, networking and saving of course to get the deposits you need. That’s all the stuff you can be doing after 5:00 and at the weekends if you decide not to go down the working in property route.

Next question is from Antonio. Antonio asks, “Where do you find good deals? Does the American flipper house concept exist in the UK market?” I think my answer to that would be yup, flips do work. Actually, I’m speaking to someone next week for my other podcast, the Property Geek podcast who has done a few really successful flips while working full time which is why I really wanted to speak to him because he’s actually just in the last month become a full time investor.  But before that he was doing flips while working I really want to get his take on that. That might be worth a listen for you to find out the details of exactly how he did it.

In the UK, I suppose it’s not really any different from the States except you need the market to actually be active. If you’re going to be flipping, then normally you got a time scale in mind like you got bridging finance which is quite expensive. So you want to sell in a certain amount of time. That means you have to be in a market where there are actually people who can buy that you bought and you’ve done up. There’s lots of different ways of doing it. For the most part, it comes down to adding value. There’s also pull ribbons strategy we’ve spoken in the past which is where you buy something and put it straight back into auction. If you know what you’re doing, it can work.

As for finding good deals, I’ll let Rob take that one because there’s a million and one different ways. I suppose to sum up, the way of getting a good deal is to either be in the position to buy when no one else can or get someone in a tough spot. Or by knowing stuff that no one else does. You can see the potential in a property when everyone else has missed it. That can be a good deal.  Over to you, Rob.

Rob B:                   Hopefully I’ve got an idea we’re getting good deals otherwise the business isn’t going to last long.  Yeah, there’s plenty of ways. You don’t always have to go thru R & P Property to get a deal. There are ways of doing it. These are some of the options. You can network. You can speak with people who are in networking groups, find out what they’re up to, where they’re getting their deals from.  You can also network with local letting and estate agents. Let them know you’re serious, prove it to them if you can because they’ll have a lot of people who walk in to their office everyday and tell them they’re investors that will never have any intention of doing so. So, it somehow proves them you’re serious. You can also negotiate direct with new builds. The builders of these properties, particularly the 40 listed companies.  They are, at the year end, will have told the stock market that they will achieve x amounts of sales. Now, if they don’t hit their target or close to hitting their targets which is quite often, they’ll then contact companies like R & P properties and others and say, “Can you shift these properties at a discount because we can’t hit our targets.” How you can take it to shift that is look at when it’s year-end for these property companies and go to them 60 days before and explain to them you can move quickly and that you are prepared to do a deal if the money’s right. You’ll be surprised. The reason I know it is I started in property investment. I used to work for a builder twice a year and we used to do silly deals and we pretty much would take any offer just to get them off the door.

Also, if it’s a development site, if you’re first on, you can get a deal. If there’s any few units left, you can negotiate for deals as well. Finally of course, you can work for companies like R & P Properties if you just want someone else to do the leg work running around for you. I have somebody who sources for me full-time. It’s down to the individual how they approach it, but the good news is there’s not just one way of doing it; there’s plenty of them.

Next, Barry asks, “Do you support buying life insurance on buy to let mortgages?” Personally, no. I have life insurance. “Does it cover all my buy to lets?” No. “Would it cover some of them?” Yes. So, what I mean “cover”, would it pay off all the mortgages?  My life insurance is pretty hefty. It would cover quite a lot but not enough for all the properties.  It’s the same with any insurance. It’s personal preference. I don’t personally take out landlord’s insurance. That’s not to say it’s not a good idea. May people swear by it. The thing with insurance is it’s your risk profile. Would you feel better, would you sleep easier if you had some sort of insurance to protect you? If the answer is yes, go and get it. If it doesn’t bother you, don’t worry about it

Rob D:                   I will freely say I know very little about insurance is general, life insurance in particular. I did see a presentation recently by someone who pointed out that if you’re doing joint venture kind of deals, then life insurance becomes a little bit more important because otherwise you could leave a real load of mess if the worst does happen. That’s not something I really something I know anything about, but it’s something which I am brought up recently.

A lot of things you can self-insure of course like putting money aside. This isn’t one of them. It comes down very much to personal preference.

The next question comes in from Mark Benson. He says, “I am a first time buyer who will shortly be buying a property. At first, I plan of living in it, but longer term, I plan on renting it out and buying another. If I’m not buying this property with a buy to let mortgage will that stop me from renting it out?” This is a pretty easy answer.  If you’re buying with a residential mortgage, then you can’t rent it out unless you do one of two things.  One of them is to speak to your lender and get consent to let. That’s where you tell them you want to rent it out, get their permission and they will normally agree to that for a set length of time. They might charge you a higher rate of interest though. So, they might say, “For the first 6 months you can do that and after we’ll charge you an extra 1 ½ %.” So it’s getting consent to let. That’s not really a long-term solution though. The other thing is to remortgage onto a preferred buy to let mortgage. That is not a difficult thing to do. It’s just of course you need to make sure if that’s your plan,  you don’t want to be tying yourself in. If you get it on a 5-year fixed residential mortgage and in a couple of years’ time you want to switch to buy to let products that could be tricky. So it’s a good thing you got that plan now so you can bear in mind not to fix for too long when you get your mortgage in the first place.

It’s not a restriction. It’s not a big problem but you do need to make sure you do the right thing by the lender because you can’t be renting out a property on a residential mortgage on commission or doing the opposite which is where you get buy to let mortgage and live there. Either of those is a big no-no.

Rob B:                   Okay. Who have we got next, Rob?

Rob D:                   Next up is Sarah Geiger. She asks, “Are there ways to reduce capital gains tax when selling property?” This one falls under the ‘don’t know’ category basically much like insurance earlier. This isn’t something that I know very much about at all. We can give you the broad brush strokes. But for any of these specialist things, it’s always best to speak to an expert. When it comes to things like tax and insurance, I’d get very much an investment speaking to an expert rather than a cast. I do know you get a certain allowance. If you buy with a partner, you can split that allowance between you so you might be able to creep in under the threshold. That is the limit of my knowledge. Rob, do you know any more? Can you cast any light on this?

Rob B:                   You’re right, Rob. You do get an allowance. That’s there every year that you can use. If you buy as a couple and both names on the property, then you combine that allowance together. You’ve nailed it. We also want to use experts. We’re very good at buy to let, strategies, goals, building a portfolio. That’s what we do. We’re going to have an episode on mortgages soon. We both know quite a lot about mortgages but it’s not our day-to-day. There are experts out there who know better than us so we’re going to be liaising with a mortgage broker to put that episode together just so you get the best knowledge. I could go and source my own mortgages because I got a good idea what the best products are, but still I pay a mortgage broker to do it for me because they know better than me.

The point I’m making is things like tax, mortgages, insurance, anything like that which is specialized, bring in an expert. Utilize their knowledge because they’ll not only save you money, they should hopefully earn your money.

Next Lee says, “How can I finance properties when I’m self-employed from May 2013 and I’ve lived in Australia for 12 years and is a UK citizen?” I’ve kind of just semi answered that before about mortgage broker and use experts. However Lee, I do work with a lot of expats and a lot of people overseas, so I got a fair idea. I need to know more about your particular circumstances to say, “Yes you could go on a mortgage and I know you can’t.” One of the things we do in R & P properties, we’ve worked commercial end before and they’ve looked at the group of properties we’ve worked on and have therefore lent on a non-status basis. So you would have been able to, I’m sure, taken advantage of that.

Also, if you’re listening and you’re an expat overseas, if you’re investing on the mortgages of a hundred thousand or more, then you should be able to get a mortgage on it. There are a few options. When my investors come to me overseas or they’re foreign nationals or what have you, I still put them in touch with an international mortgage lender specialist. If you actually want to get in touch, Lee, and you want me to introduce him to you, then absolutely I can do that.

It’s interesting, Rob. I got someone who does the UK stuff. I got somebody who does remortgages and I got somebody who does the international stuff. They’re all experts in their individual field. It really hits home the point that we just made

Rob D:                   Definitely. All about investing and expert opinions. I’m very glad you’re here because you definitely got more expertise than I have on that. I wouldn’t have been able to answer that question at all.

Moving on, our next question is from Richard Hudson. Richard asks, “How do you define whether an investment project will be viable or not?”

That’s a pretty broad question. Investment projects can be many different things. If you’re talking particularly about something where there’s going to be a big development or a heavy refurb involved, then that’s a specialist thing in itself. In fact, for that there’s an episode at the Property Geek podcast I did with Sue Elkington a few weeks ago. So, I highly recommend listening to her because she really broke down a lot of the factors behind that. But then investment project can be lots of different things to lots of different people. For the purposes of answering your question quickly now, let’s break it down to buy to let and buy to sell. They’re the two most common overall classes of property investment. So, establishing viability on the buy to let side, it’s all about what makes it viable for you. That’s when you’re looking at numbers like gross yield, net yield, return on investment all that kind of thing. You’re going to have your own number that you use to judge whether it’s going to work for you. I know someone who completely does it on the basis of net yield. I like to look at return on investment and imagine how quickly my money is coming back to me.

Again it comes back to goals. So, you’re going to need to know what kind of numbers you need to be achieving and what numbers are important for you in order to get you closer to your goals with each investment. Rob, I don’t know if you have anything to add on that. Then maybe you can talk about the buy to sell side of it as well

Rob B:                   It’s a very broad question. There are lots of different types of projects, lots of ways to savor the viable. But on buy to sell, the first thing you need to do is make sure the market is vibrant where you’re looking because you can get a great deal but if it’s not going to be selling, then you can’t really execute your strategy. You then need to assess what the average market value for your particular property or project you’re going for is if you’re doing buy to sell. Then you need to decide what’s the maximum you’ll go up to when you’re finding a deal. So if the selling rate is 200, then you may say, “After work, I’m only willing to go up to 175.” So, you might buy for 150 and you’re willing to spend 25 on the refurb. You need to work the numbers.

Generally, broadly speaking to decide how any investment project is viable or not is the numbers. You got to research. Find out what the market is doing wherever you’re looking and get your pen, paper, calculator out so you can crunch numbers. That’s the only way to see whether an investment in viable or not. I hope that answers your question, Richard. Again, as I said to everyone else if you’d like further clarification and discuss your unique circumstances then please do get in touch. We’re happy to get thru that with you.

We’re coming to the end.  We’ve got a few questions left.  This is going to be probably our longest episode yet.  So we’ll move on.

Leon asks, “I’m new to property investing. How do I get to learn or find where the best deals are?” We’ve answered that Leon before previously. Just do whatever rewind if you’re not here live this evening and you’ll get the answers. It’s things like networking, approaching builders at the right time, property investment companies like myself and individual sourcing people, speaking with… Auctions as well. I forgot to mention that one earlier. Make sure you do your research because you can lose a lot in auctions if you get it wrong but you can also do well. There are plenty of places. Just do your research and network and speak to the experts and you’ll find them. Last one, Rob

Rob D:                   Yeah [0:27:32] you’ve asked my favorite question of the night and you’ve unlocked a massive can of geeky worms. “What books should I be reading?” Paul asks should I get my plug-in first then we’ll move on?

Rob B:                   I’m just going to smoothly go. Rob, haven’t you got a book?

Rob D:                   Funny you should mention that, Rob. I do. I got Property Investment for Beginners if you’re a beginner in property investment, I highly recommend that.  It’s a book that I wrote to answer all the questions I had when I started and it talks about lot of the mindset and goal setting stuff that we bound about all the time.  It talks about all the strategies you can use and many other wonderful things. There are lots of terrible jokes as well. If you want to get ahold of that, it’s propertygeek.net/beginners.

Moving swiftly on, there are many other things we can recommend as well. Rob, have you got any specific property ones because the ones on the list that I’ve jotted down are actually not about property at all but about kind of things more broadly

Rob B:                   Just to add up to yours Rob.  You’ve got the plug there.  But I have to say and as I’ve spoken to quite a few property podcasters this week who’ve called into the office for different reasons. A few of them have mentioned they’ve read your book and they rated it really highly.  So, that’s some [0:28:37] whatever the kids say

Rob D:                   It’s not that.

Rob B:                   It’s definitely not that but it’s something that rhymes.  Basically it was all good. Well done, Rob. There seems to be a lot of positive feedback to your back from people who’ve been buying it and reading it. So, that’s really good.

To answer your question, I think Successful Property Letting is a very good book. It’s not a whirlwind tour of a book. It’s not particularly exciting. But if you want to learn, it’s a fantastic book. So, Successful Property Letting. Really Rich Dad, Poor Dad which is loosely related to property would be the other one.   There are lots of investors that I speak to started because of that book.  He’s unbelievable.  If I could get an advert in the back of that book, I’d be a very, very wealthy man.

Rob D:                   Away from property, I’ve got a few things here. We talk about systems all the time. One book about systems is E-Myth Revisited by Michael Gerber. I struggled with that one. I found that a bit dry but there’s another book called Work the Systems which is by Sam Carpenter which I found much easier to get into. If you’re interested in systemizing your business, that might be a good one for you. Another book. I think I mentioned it on the podcast recently is The Power of Habit. I think I talked about that in the goal-setting episode that just went up quite recently because if you can take things you need to be doing to move you towards your goals and turn them into habits, that’s really powerful stuff. That book got so many fascinating examples and that’s just really interesting.  Anti-Fragile by Nassim Nicholas Taleb is another one that is a beast of a book

Rob B:                   I’ve not heard you mention that one before.  That’s about your 10th mention in this podcast

Rob D:                   I’ve just finished reading it. It’s an absolute beast but it’s fascinating and I’m writing a blog at the moment about how to sort of apply some of the lessons from that about property investing. The last one—I could go on all night is Anything by J. Abrahams How to Get Everything You can out of All that You’ve Got. I always mangle that title. J Abrahams has got loads of general points about the mindset of business in general and you can take loads of that and relate it over to property

Rob B:                   I’ve read nearly all those books and I agree with everything you said including the E-Myth being a little bit difficult. I’ve never heard anybody else say that before. We were meant to be podcast partners. Probably it’s meant to be

Rob D:                   Clearly

Rob B:                   I would add to that list. Delivering Happiness. What a fantastic book that is. I base a lot of my business on that book. Just a bit of a background, it’s a company called Zappos in America, a very big company that was bought by Amazon for I think a billion dollars. Tony Hsieh who wrote that book is just brilliant. It’s just how all businesses should be run. It really pisses me off when I don’t get good service because I’ve read this book. You definitely want to read. That we mentioned recently. How to Friends and Influence People. That’s a game changer. That could change your life, that book if you’ve not read it before. Ultimate Sales Machine, I think.  I don’t have it in front of me- the book I mean, Rob

Rob D:                   That’s the one. You’re right. Ultimate Sales Machine

Rob B:                   Don’t be put off by the title. It’s not about cheesy sales tactic. It really isn’t.  This is more of a business owner’s or about making sure you got the right systems. Just loads of clever tactics to make sure you have the right team and so on. Just a really clever book. It’s not particularly about one thing.  It’s just lots of business principles.  Really interesting book there. I could go on and on and on. We could probably do a 2 hour podcast on books but we shall not.

That, Rob, was our last question. I know some people have typed in questions. Unfortunately, we are running way over. What we would do is we will answer your questions in an upcoming episode. Don’t worry. If you’ve typed in a private message to us with a question, we will answer them in due course and subsequent episodes.

But thank you so much for your questions everybody. I hope everybody learns a little bit there.  There was a lot to cover, lots of different angles. But I think it was really good, Rob, because we clearly got to answer some of the questions that people want to know and understand and get answered

Rob D:                   Yeah, definitely. I really enjoyed going thru all those. Thank you to everyone who’s submitted a question either in advance or live and hasn’t had an answer yet. I’ve noted down all the questions that have come in during this recording and we’re going to make sure we get to all of them in the next few weeks. So, you’re just going to have to keep on listening to the podcast.

Rob B:                   Scout’s honor

Rob D:                   We couldn’t let it go without doing resource of the week. We’ve dropped all the regular parts of the show but this one had to stay because it’s the thing we get the most feedback on. I think people say they love the resources. This one, I was getting berated for not using before we started recording. Rob, tell me why I should be using it and tell everyone else as well

Rob B:                   I can’t believe you don’t use this. You’re going to use this after today. It’s called a unroll.me.  That’s the URL so type it in your address box unroll.me and they’ll bring it up. Basically, it’s for gmail uses. If you’re not using gmail, you should because it’s by far the best mail application out there for your email.

What it does is it takes all your newsletters that you receive everyday and rolls them up into one email. So, every lunch time, all those groupon emails that come thru and emails about holidays or books or whatever emails you get on, it puts the all into one email that gets delivered to me at lunch time and I can quickly scan thru them all. I might get 12 emails and I can look at them and go, “No, no, no. I want to read that one and that one.” What it does is it stops me from getting distracted throughout the day when emails trickle in. You know this right? When you’re in the work flow and an email comes in that’s mildly interesting and somewhat more interesting than the spreadsheet you’re working on, I’ll spend a 10 minute on that.

It’s s a great productivity tool. It’s really useful. I swear by it. It makes a big difference to me. The other thing it does is it allows you to quickly unsubscribe to emails as well. You can go to their interface and say, “Yes, I like this email. I like this. No that’s been boring” and unsusbscribe from 3 very quickly. It’s a great tool. To get a little bit more productive, get some time back to your day, not get distracted and save time in general. That is a fantastic app. I use it all the time on a daily basis

Rob D:                   Alright. I’ll use it. You’ve won me over. I do need to get better than that. I’m pretty good at unsubscribing manually but it would be nice to have everything collated for me I suppose.  I always seem to end up in an unholy number of mailing list for people selling in property investments and stuff like that, and why they think I’d buy property when I’ve never heard of them before, we’ve had no relationship, I don’t know. But I’ll be using unroll.me, unsubscribe from some of those

Rob B:                   What’s even funny Rob is I get them.  Well, no.  My deal is [0:35:20] so I’ll just go to you. My email address is—I’d better not say it in public but it’s @randpproperty. So maybe when they look at the title when they sort of cheekily sign me up that I might not be that interested but they still try

Rob D:                   I think that just about wraps it up. We got thru it. I hope you enjoyed it. Thank you to everyone for being here live. If you’re listening to the regular podcast, thank you for sticking with us all the way thru. This is definitely going to our longest yet.

Next week we’re going to be talking about leverage. We’ve had quite a few questions about mortgages or finance in one sense or another. So, it’s clearly something people want to know about. What is the right level of leverage? Is there such a thing? What are the things you should be thinking about when you’re borrowing money to boost your investment return? That’s on next week’s episode. We’re back with [0:36:07] and we’re going to be talking about leverage

Rob B:                   Before you go, just a reminder especially to people who joined us live this evening to go and leave a recording. Go to the propertypodcast.com. At the top it says ‘Get on the show’. It tells you exactly what to do. But we’ve had recording through now Rob. We’ve actually had more than one which is fantastic. What we’d like to do in a few weeks’ time when we’ve had enough is do a whole episode of your recordings. So, we play your question out and then we answer it.

Hopefully, lots of people got value after today’s episode where you’ve come in with your questions. We’d like to actually play your voices as you ask the questions. Please get involved. Go to the website. Follow the instructions. Leave a recording. It’s really simple. We’ll edit it if you’re rubbish. Don’t worry. We will play it on the show and answer it for you. Get along and do that. If you’re not in the mailing list, why not? Go on to the website and sign up for that, too.

Rob D:                   Don’t go and unroll me and unsubscribe yourself later because we only send one weekly email and it’s going to be all killer, no filler

Rob B:                   I like it. Right, Rob. That goes for another week. Let’s get off the air before we disgrace ourselves. We’ve not done too bad. Thank you everybody for listening. We’ve really enjoyed it. As always, [0:37:20]. Have a great week everyone

Rob D:                   Cheers. Bye.

Ric:                         Thank you for listening to The Property Podcast. Don’t forget to check out the show notes and join the mailing list at the propertypodcast.com