I already referred in my previous post (Jedi Wars 2010) how you need to be prepared for 2010 and the steps you can take to do this.

Sadly, most people will do nothing – and at the end of next year, they will wonder what happened to the past 12 months – and where they are going to go from there.

So, what cashflow secrets do you need to know so that you can win in 2010?

There are so many but the ones you need to focus on are the ones which are quick-wins.

This year, I’ve been delivering talks up and down the country and the one thing I’ve has noticed is that there are a lot of people out there that do not have the cashflow that they should have because of some fundamental issues with their business.  If this rings a bell with you, then you’re in luck because my new report is going to change that for you.

Today sees the launch of my “10 Life Changing Cashflow Secrets” report where you’ll learn:

♦ the one forecast you absolutely must have…

♦ the four factors that will make or break your portfolio from Day One!

♦ how to increase your occupancy rates quickly and simply….

♦ how to identify your jedi and avoid the dark side…

♦ how to create specific systems for your business …

And many other cashflow secrets that can make a huge difference to your business.

http://stanfordknight.com/cashflowsecrets.html

It’s a simple direct-to-the-point 30-page report which gives you the information you need to ensure that your business is generating cashflow month in and month out.

To be honest, the information that’s in this report is extremely valuable and I’m beginning to think that I’m crazy offering it out at the price I’m charging but the value you’re going to get is phenomenal.

This information has to be worth hundreds of pounds and I’d conservatively put a value on it of £97.  But the price is nothing like that.  Its actually a mindblowing £0.00

I’ve basically laid out for you the 10 key cashflow secrets that you need to take to get your property business on the right track towards long-term sustainable wealth…

http://stanfordknight.com/cashflowsecrets.html

In Star Wars; the reason the Jedi were wiped out is because they weren’t prepared! And your Jedi type will impact your future prosperity.

Experts such as Harrison, Kiyosaki and Trump are predicting the great depression of 2010; something none of us have ever experienced before.

So, what powers of the force do you need to win in 2010?

Force #1: Wealth profile
Just like the Jedi’s had teachers, diplomats, leaders, traders; you need to understand your wealth profile too.

You need to understand what your wealth profile is and how this differs to others in your team; then find the missing people to ensure you have a successful team – and not fail like 90% of other businesses.

There are two tools you need to understand what your wealth profile is.
1) Your Wealth Dynamics profile from world-renowned wealth creation specialist Roger Hamilton. In a very simple 15-20 minute online exercise, you can identify once and for all what your wealth profile is and what you need to do in order to build your wealth.

Get your Wealth Dynamics profile at http://tinyurl.com/wealthdynamic

2) Stanford Knight has identified 20 key competencies that a property business requires to operate at the optimum level. These have been collated through our years of experience in the property arena and are essential to ensuring that your property business succeeds. This is normally part of our acclaimed Strategic Needs Analysis consultation retailing at £197.00.

We’re going to give you free access to the Key Competency part of the SNA once you’ve completed your Wealth Dynamics profile. We can then drill down into exactly what help you need in 2010.

Once you’ve completed both of these tasks, you’ll know more about how you can generate wealth than 90% of the investors out there. Period.

Force #2: Business Systems
My speciality is in creating systems that work. And then fine-tuning them. And then making them even better. Unless you want another job, then this is the only way to create a long-term sustainable property business.

So, how do you go about making this work for you?

Simple, you use a Mechanic to design your Systems for you. If you’ve completed your Wealth Dynamics profile, you’ll understand what I mean. If you haven’t, then you won’t…

If you haven’t got a Mechanic in your team, then I suggest that you find one or outsource the system-building side of the business to specialists such as Stanford Knight.

If you want to try building your own system, then the first place to begin is with your organization chart. If you haven’t got one, then sketch out all the positions that would be required to run your business in 5 to 10 years from now.

Think about the different facets that make up a business:
• Marketing
• Systems
• Finance
• Information Technology
• Operations
• Human Resources

Create your organization plan and then slot everybody that is currently working in your organization into all of the slots. You may find that it’s a shock that you feature in a lot of the positions!

But now you’ve realised this, you can then create systems and processes that will assist you in creating a business that can run without you.

Force #3: Focus
Having the right plan comes from having your primary aim buttoned down. If you don’t know what your true purpose is on this planet, then try reading authors such as Michael E. Gerber, Timothy Ferris, Jack Canfield or Mark Victor Hansen for inspiration.

This is having your big dream down on paper; it’s understanding what you wish to be remembered for when you’re long gone. Take some time out to meditate and ponder upon this and identify exactly where you are going.

You’ll then be able to create a long-term 10-20 year master plan from this. Once you’ve completed this, then you can drill down into the detailed goals for this year.

This very detailed goal planning session allows you to then FOCUS on taking action and making these goals work for you. But what happens when your mind starts wondering, when life gets in the way and you find that you are not meeting your targets?

Generally, that’s because your primary aim is not congruent with your goals. You’ll probably find that you are not getting up in the morning raring to go and achieve something BIG today.

That’s why it’s so important to take the time out to identify your primary aim.

Force #4: Community
If you’ve identified your Wealth Profile, understand how your business needs to be structured and resonate with your Primary Aim, then you’re ready to go. Well done!

But how do you keep the momentum going when you’re out there on your own?

You basically need to be part of a larger community of like-minded people.
A community that will nurture encourage and support you. A community that will hold you accountable to your goals and help you when the going gets tough.

But this isn’t for everybody. This is only for people who are serious about achieving their goals. This is for people who can commit to a monthly meeting with people who will be looking out for your success as well as holding you to account. This is for people who want to carry on learning from top experts actually out there walking the walk and not just talking the talks. This is for people who want to develop their own personal Business Plan and actually see it delivered.

Launching nationally in 2010 is the Stanford Knight Wealth Association and this is your invite to join with us to create a sustainable long-term property business with established experts and support mechanism.

To apply for membership, go to http://stanfordknight.com/wealthassociation.html

As the great Yoda once said “Do or do not… there is no try.”

Obi-Wan Moody

My main portfolio company (Millenia Property) has been managing properties for years and due to recent staff hires, we are now expanding our services further in:

• Northamptonshire
• Derbyshire
• Cambridgeshire
• North Bedfordshire

I asked our Portfolio Director to put together a few words on why you should consider us for your letting needs and you can read what she has to say below.

If you are interested in our management services, then please contact me for a quick no obligation quote on what we can do for you.

——————————————————————————–

We are experts in HMO property management.

Why not let us manage your property and give yourself a break!

Do you find your rental properties time consuming to manage?

Do you find dealing with tenant issues a large weight on your shoulders?

Won’t it be great just to be paid from your property with none of the hassle?

Well help is at hand, we can do all this for you!

Millenia Property has years of experience renting property and is an expert in the HMO field and have a lot of experience with single lets.

We will offer a service second to none for you and your tenants.

We offer a full property management or lead generation service.

The full property management service covers everything from dressing rooms ready for new tenants to taking action when there are rent arrears or other discrepancies.

Why not hand all the hassle over to us and just take the profit?

Alternatively why not use our lead generation service.

Our skilled and very experienced team will advertise you property and daily search our numerous advertisers for leads matching your specifications.

Our managers will qualify these leads to ensure they match the specification provided by you.

You cannot go wrong with this amazing offer; why not treat yourself early this Christmas?

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Client Testimonial

Matthew from Millenia Management has been managing my properties for a couple of years now. Before Matthew came on board my property business had become a second job, and I had little time for my family or myself. Now I have more time at my disposal as Matthew and his team provide a brilliant service, always ready to go the extra mile in taking care of my business. My rental voids have gone down, and the rent is paid on time ! I would highly recommend Millenia Management if you are looking for a team that will look after your property and your tenants giving you peace of mind and freedom !

Sunita Koshal, Northampton

I’ll hand it other to Arthur to tell you more:

If you own a HMO, you may be able to take advantage of Capital Allowances Tax relief, to mitigate your previous and current year’s tax liability.

Whether you are an armchair property investor, entrepreneur, or own just 1 HMO property, you could mitigate your current liability, and also get a refund from HMRC for previously paid tax!

Capital Allowances – what are they?

Plant & Machinery Capital Allowances, relate to the tax relief associated with certain qualifying items within the communal areas of HMO properties.

Having recently come into the limelight do to a technical clarification by HMRC, these allowances are an extremely valuable tax relief. You can reclaim tax paid up to 5 years previously.

Once these items have been identified, valued and documented, you can reclaim previously paid Income tax, reduce your current year income tax liability, or roll forward the allowances until such time when they are required, depending on how long you have owned the property.

There is no time restriction on claiming – a property you have owned for 10 years, can qualify!

Capital Allowances provide a deduction for tax purposes in lieu of the depreciation charged in the accounts on Capital Expenditure. They are of direct relevance to every legal entity, operating in the UK with the exception of those that are tax exempt.

Capital Allowances tax relief has been around, in one form or another, since 1878. These are widely used by the commercial sector and are also available to individuals who own qualifying properties.  Capital Allowances cover a number of tax relief strategies including Plant & Machinery Allowances Relief.

Plant & Machinery Allowances Relief

Plant and machinery for HMO’s includes:-

• heating and air-conditioning
• lifts
• wiring to fixed plant
• switchgear
• emergency lighting
• fire alarm installations
• sanitary fittings
• hot water installation
• carpets and removable floor coverings
• fittings and furniture
• demountable partitioning used for trade flexibility
• fire fighting equipment
• mechanical door closers
• security equipment
• telecommunications installations
• trade and information signs
• vehicle control equipment
• window cleaning equipment and assets used to create ‘atmosphere’ or ‘ambiance’ in a hotel, restaurant or public house.

This list is by no means exhaustive but provides a guide to the plant & machinery most commonly found in buildings.

In addition, expenditure incurred on certain other assets including fire safety, thermal insulation and building alterations incidental to the installation of plant and machinery may also be eligible.

The rate of relief varies from 100% in the year of purchase (AIA / FYA), to 10% (WDA).

Other allowances are available, but these are largely restricted for companies and are not largely applicable to HMO owners.

Who Can Claim?

• Must  be a UK Tax Payer (Either Income tax, or Corporation tax)
• Must incur the capital expenditure.
• Must be ‘qualifying’ items of expenditure or ‘qualifying’ buildings.

What Can Be Claimed?

• Development of property
• Fit out works
• Refurbishment or alteration works to existing property
• Purchase of property

How much can be saved?

Typically, between 15% and 25% of the purchase price of a HMO property will qualify for Plant & Machinery Capital Allowances Tax relief.

Purchase Price                                   Capital Allowances available (tax free income)

£100,000                                                           £20,000

£120,000                                                           £24,000

£140,000                                                           £28,000

£160,000                                                           £32,000

£180,000                                                           £36,000

£200,000                                                           £40,000

£250,000                                                           £50,000

£300,000                                                           £60,000

£350,000                                                           £70,000

n.b. – these allowances are averages, based on previous work undertaken, your property may attract more, or less capital allowances. Your claim is based on purchase price, qualifying expenditure, and the total communal areas of the property. This is a guide only.

For further information or to arrange a survey on YOUR HMO properties, you can contact Arthur below.

cforms contact form by delicious:days

Whilst the Northern Rock fiasco had rocked the financial sector and sowed the seeds of doubt over cross-collaterization loans and sub-prime mortgage swaps; the main buy-to-let lenders were still happy lending on good solid property deals. That coupled with general optimism in the market that we could ride out the crisis and get back to a solid footing meant that some investors were taking greater risks than perhaps was necessary when considering a long-term strategic investment plan.

Around this time, I had about £0.85 million pounds worth of deals that were sewn up that would have yielded in excess of £1,500 cashflow per month after all costs. Then rumours started to circulate; the banks were finding it tough, they didn’t have the money to lend, they needed to tighten criteria to only lend to “responsible” borrowers (although who knows what a bank terms a “responsible borrower” given their past exhuberence in lending to every man and his dog) and to add fuel to the fire, surveyors were being warned about over-valuing property as it may come back to bite them.

Sadly, one by one by one, the deals started to fold. One was an administrative error by my broker which ended in the offer being withdrawn; one was a solicitor misunderstanding the terms of the deal; one was a surveyor who refused to increase his rental figures despite AST proof and being 25 miles out of area. It was painful, it was costly and the opportunity cost probably runs into tens of thousands if not hundreds of thousands in the long-term.

One did complete based on a refurbishment model which actually was ready within 6 weeks but by that time, the market had completely changed again.

Mortgage Express had ceased all instant remortgages; most lenders now asked for 6 months minimum before remortgage (even if you had added thousands in value by refurbishing a property), lenders now wanted to fine-toothcomb applications and surveys to make sure they were not being exposed, surveyors were automatically down-valuing 10%, available mortgage products dropped by 50%, mortgage brokers didn’t know WHAT was going on; new “no money down” schemes were popping up everywhere; the list went on and on and on.

So, what does this mean for you and me 15 months on?

1) No money down is dead (see July’s YPN article)

2) Lenders want to lend to borrowers who can prove income and deposit

3) LTV’s are down to 70% on average with discounts averaging through now at 25%-30%

4) The amateur investors have left the market

5) Development and refurbishment finance is practically non-existent but with significant conditions attached

6) Lenders are still charging around 6% interest in real terms with arrangement fees and exit penalties increasing significantly

7) Cash is being held within the banking system but not released to the general market

Surveyors are routinely down-valuing any private sales by 10-2%

9) The latest craze is buying houses for a £1 but you’re not buying, you’re “controlling” and it only works on some deals

10) Everyone is jittery and nobody really knows what is going to happen

Now that we’ve tackled these issues and got them out in the open, then what can we do to carry on growing our businesses?

There is only one way – and that’s to change our mindset + look elsewhere.

This is what I started doing back in January of this year. I was fed up of the constant battle to get deals through, valuations to stack and lenders who treated me like a second-class citizen. I knew there must be a better way but where was it and how did I find it?

The answer dropped into my lap one day from a contact of mine who had properties for sale in Michigan in the U.S.A. On paper, the deals seemed too good to be true with $50,000 houses renting for $800+ per month. I knew I had to get out there and do some due diligence.

Several trips later, several thousand pounds of research invested and with a much better understanding of the USA market, I drew several conclusions that I want to share with you.

1) There are lenders who wish to lend to non-US nationals rather than Americans

2) Self-certification is still possible

3) Deposit and closing costs can generally be covered through a variety of methods

4) There are thousands of deals for the taking

5) Cashflow is between $100 to $200 per month from off-the-shelf packages

6) There are certain tax and occupancy benefits to owning through a US corporation

7) The US market is about 2 years ahead of where we are today in the UK – both from a property fall-out and a lending-freeze perspective

Tenant laws are far stricter in the US which allows for fewer voids and damage

9) It is far easier for a UK national to buy in the USA than it is over here – bizarre!

10) It is possible to extract some cash on some deals and get all of your costs covered in year 1

So for now, I’ve refocused my energies and time on purchasing properties within the US. Despite the distance, it’s no different to me than the properties I own in Yorkshire which are a 300 mile trip from my house. I haven’t visited them in years and the letting agents manage any issues for me.

It’s a curious thing property investing but I would recommend that you take a look at your current strategy and ask yourself truthfully; are you doing as well as you’d like to – and is there another way?

I did this 7 months ago and decided that the better way was to carry on investing in cashflow positive properties where I could attain finance with lenders who wanted to work with me.

Due to the buying power our group now has in the USA, we are able to offer ready-made portfolios of 5 units for £3,000 and a $million-dollar value portfolio for just £7,500 with all costs covered in year one and a cashback bonus. For more details and to register your interest, go to www.stanfordknight.com/usadeal.html.