Cash flow positive properties only
Dave Portas is an investor, consultant and coach based in Birmingham in the UK. Dave started his career from humble beginnings as an electrician and later worked in several industrial corporations in various positions and management. He realised that working long hours for a boss was not enough to make a living and control his future. In 2010 he founded a Property Sourcing Business and has already founded over 300 properties for investors. He specializes in residential buy-to-let and House of Multiple Occupancies (HMO’s) or multiple room lets. Today he has his own portfolio of cash flow positive properties, a successful letting and property management company including the property sourcing company. He enjoys mentoring and coaching potential students and newbie investors to invest in the UK. He works alongside two South African investor partners Andrew Walker and Warren Brusse who also are invest and assist South Africans to invest in the UK market.
Children: Teagan 18, Jake 5, and Zach 4
Who do you consider to be your most important mentors/role models? My business coach. Mark Dalton and Robert Kiyosaki
What are you reading at the moment? The Grunch of Giants by R Buckminster Fuller
What is your life motto? Helping people get what they want helps you get what you want. Work hard and have fun.
What would you still like to achieve? I’m still looking to double my income every year. My goal is to build a substantial legacy for my children and have an abundance of quality and fun experiences through retirement.
How did you first become involved in the property industry?
My girlfriend (now wife) moved in with me in 2006 and we let her house. We didn’t make much cash but in 2008 when the interest rates fell sharply in the UK the property cash flowed approximately £450 per month. This opened my eyes to the potential of rental property and got me looking at how I could get more involved in investing.
Share any highlights and insights gained during your investment journey
Property investment is not a hobby. Treat it like one and it pays you like one. It doesn’t have to be full time but any participation in the arena needs to be done ethically, professionally and diligently. Every deal I buy or find for clients is a highlight as its experience in creating a win/win scenario with someone who needs some help to move on with their life.
Please share your property investment philosophy?
Any deal has to cash flow positively. Ideally high yielding multilet properties that have at least a 20% Return on Investment (ROI) and smaller family dwellings must have at least a 50% ROI. Properties must be in areas of high demand where quality long-term tenants can be found. My ethos is to provide good quality accommodation for good quality tenants, providing homes where people feel happy and comfortable. All deals have to be a win/win for both the seller and the investor.
Describe your first property deal and the most important lessons you learnt from the experience?
The first deal I bought was a 2-bedroom terrace property in the North of England. I bought it substantially below market value, and it needed a lot of refurbishment. The deal worked really well financially. When I completed the refurbishment work I was able to refinance to another lender and release most of my initial funds so that I could invest in another deal. The property cash flowed well at approximately £150 per month.
The biggest learning on this project was finding a cheaper damp proofing contractor to carry-out out a substantial part of the work. We only found out that when he’d finished that he wasn’t qualified and the workmanship was very poor leading to the job being redone by someone else. The learning here was always, do your due diligence on your contractors and be clear about the specification of the work to be carried out.
What do you consider to be your most significant property deal or professional achievement?
My most significant property deal to date was a large 6 bedroom House of Multiple Occupancy (HMO) which I purchased in the North of England extremely Below Market Value (BMV), which when when let cash-flowed approximately £1500 per month. This one deal allowed Rachel to give up her job and focus on our family and allowed us to relocate closer to Rachel’s family. A game changer in our personal journey!
What insights can you share from the experience?
When you are out looking for property you never know what you are going to find. This deal was initially a single-family unit. However, due to its size and proximity to the rail station, town center, bus routes and amenities we recognized that demand was there to let rooms individually. Having the knowledge and education allowed us to see the opportunity and the deal worked perfectly for our income strategy. We only had to buy one instead of 10 to allow Rachel to finish work.