UK’s largest property landlord shares his secrets to making money in property.
Kevin Green is one of the largest private landlords in the UK. Over nearly three decades, he has gone from being homeless to owning a property portfolio estimated to be worth $144 million. Now, he is sharing the secrets of his success through his book, The Rich Rules, and through a series of training events around the UK and Europe.
Sticking with his clear investment strategy and not straying from its principles has been at the core of Green’s success. As part of this strategy, Green opts for two or three bedroom terraced or semi-detached houses when it comes to residential property investment. He seeks out high yield, high cash-flow properties purchased with a discount of at least 40%. The minimum yield on a property has to be at least four points above the minimum bank interest rate. So if bank interest stands at 5%, Green steadfastly refuses to invest in anything offering yields of below 9%.
The formula has certainly stood him in good stead, as has Green’s approach to future-proofing – he fixes at least half of the interest rates of his properties while leaving half on tracker rates, to safeguard against interest rate rises.
When it comes to buy-to-let property investment, Green also has a clear policy on raising a home’s value and then knowing when it’s time to pull his capital out. His usual approach is to purchase a property and refurbish it to raise its value. As soon as the value has risen enough that he can pay himself back all of the capital he has put into the deal, he pulls his money out.
Green is quick to point out that there are many other factors that have contributed to the successful growth and management of his portfolio. He relies on instinct when viewing a property and if it feels off in any way – if it has bad energy – he’ll usually walk away from it. He also trusts in word of mouth. When seeking out a property management company, for example, Green will speak to the company’s other landlord customers to find out the truth behind its service delivery promises.
Finances are, naturally, always at the core of the process though. Green uses a five-point financial test for each property that he purchases, considering its yield, cash-flow, offer price template, return on investment and true rate of return. Only homes that tick all five boxes make the grade.
For those wanting to know more about Kevin Green’s property success strategy and secrets, his next free training event will be a one-day session in Swindon, on Sunday, 3rd June 2018. There is a limited number of Free tickets for those who book first.