#AskShafLive How Much Money I Make From YouTube | Property & Business | Question & Answer Shaf Rasul
Hello everybody and welcome to this week's episode of ask shaft, life now this is the first time you've ever seen one of my videos the, first time you've been on my channel let, me tell you a little bit about myself I'm a serial, entrepreneur I'm, a former dragon on BBC Dragons Den online and I rate a weekly business column, for a national, newspaper and, this series I answer. My viewers questions, on business. Property. Finance. Personal. Finance and entrepreneurship. For some of these questions I'm going to be joined by Adam PI from John PI auctioneers, I also, have, a lot of ever surprise for you guys because, I'm gonna give twenty of you 200. Pounds to go and make some money and at the same time bust. Some Foos so. Let's, jump into the first question but. Hang around so you can see how, to get 200 pounds. Okay. First, question from LR I haven't, raced do you make any revenue, with s youtube channel I've, heard people say having a channel is a good way to make some additional income but, I've never heard the numbers you can own with a channel with your tomato subscribers. LR. There's three ways I understand, of making money from a YouTube channel the first one is advertising. Where you switch on advertising, interview honest with you I haven't bothered switching, on advertising because my. Youtube, channel as I've explained in previous videos, originally. Started off as answering, a few questions that, I was accident a regular basis, by. Either. The, readers of my column so my readers of my column, would email, then with business problems ice things like chef handler a brand a business chef hey let's think out of the box and, rather than answer them all I create, a little YouTube channel with. A video on how to think in a box and I just send them a link so that's how used to deal with my business problems, that. Came into my column, when the lockdown came, basically. I decided, to. Put, a lot more effort into my YouTube channel because I quite enjoyed it so. Basically, I'm doing this as a bit of a hobby so I haven't turned on the advertising, but, what I won't do is I'm, gonna throw up a screenshot from social, lead which, I'll highlight how much money I can make from advertising, the second, way you can make income from a youtube channel a sponsorship. Now I have got absolutely no doubt whatsoever I. Could. Get lured to sponsors for this channel so this half a dozen legal firms that would sponsor this channel there's half a dozen firms, of Chatard severe set of sponsors channel, there's probably half a dozen financial, advisors that sponsor this channel but that would've caused a bit of a conflict for me because. What, it would do is for. Example if I use one legal, firm to sponsor this channel on my view and ask me a question, where, they need legal advice and the. NEEMO of particular, legal firm comes up I think that would be a bit more conflict, so I haven't really bother speaking to anybody about sponsorship, and I've really got a less additional intention of doing that the, third way you can be money from a YouTube channel is obviously. To sell courses you'll see a lot of the property duties that are out there they've. Got a channel they give you a little bit of information, and then they say oh come, and get my course and here's our discount, to get X, amount of money off so, none of them worse for me notwithstanding this, I haven't decided what I'm doing with my channel at the moment because other woman as what Lords are free time so I've got water free time have one Norma Thames devotee or anything like that so, I can spend time creating content, like I'm doing right now but, when. I go back to what properly, when the more clearings I will, be able to do this so. The opportunity, cost of me, actually doing this is gonna be phenomenal Stowe, will have a youtube channel I just need to decide what I'm gonna do now I've been speaking to the.
Other Members of my team and some of them are saying perhaps you should get somebody in the fuel tank to manage your YouTube channel, to. Deal with the comments etc because, at the moment ideal, were the most of the comments so, if I do that I mean we'll turn on the advertising if we, just say not to do that I want I just haven't, decided at this stage but, in terms of am I making any money from this YouTube channel at, the woman I'm not will. Let's change in the future it may well do depending on what I do what, I do in the channel cow fielding, good, video chef you, should get make win it on and talk about foodies I shot an activity with them before the walk then I'm sure daily editor at some stage and it'll put it up that's. Regular and I actually talk about food news and all that sort of stuff and there's. A few eat food whose story that haven't revealed yet which I'm I'm telling make your boat so I think it's well worth the watch even, Liberty High chef do you limit your investing to property, only or do you invest in stocks and shares I kiddin, what you've got to remember is basically, how, you run a property. Investment, company, in fact no I run a number of property investment companies over, and above that as several. Water companies investing on the businesses so that's what I do okay or that's, what my companies, do and I am the. Shareholder. The founder, and the director and. Some of these companies my companies, as a rule do not invest in stocks and shares because, the property investment companies or the take take investment companies however, me personally. Remember my company or premio age so, me personally I still. Have a portfolio I have as their support, for you I have, my, personal wealth, the, money that I get in wages my personal, wealth displayed. Out in various posts so I've got a small share portfolio yes, I do invest in stocks and shares but my company, store Krieg's, Europe I, to buy and what my apartment and divine 2018. It's. Currently going down around 30% and follow you I'm thinking of buying a second property in the UK but I don't live there do, an average day and buy a second, property in Dubai I go for a more established market Creek and starting. From about 2004. On what I had a lot of on my company channel or property in Dubai and the, losses we suffered, in the last recession were, absolutely. I watering. A friend of mine once told me when, i spoke to him about a similar situation and this is a really, well known entrepreneur who's. But lots of experience, he told me chef the, first loss as the best loss so, under the circumstances I probably. Would advise you not to buy another property in Dubai I would probably advise. You to buy animals to establish market like the UK and that's, why I would do personally but I am slightly biased in that I don't particularly like Dubai anymore because I've lost so much money in there and the last recession Dan. Lindsay and a couple of your videos, you mentioned good readest I in property is to buy a property that needs work or has the potential to be split up and built, the second property on the same plot to secure a property, like this would, you need to purchase that in cash or would, you be able to get a mortgage done. The first thing is remember, the why suggested, as you - as your principal, residence and, you might as your home so you don't need to purchase for, cash because you would just get a mortgage essentially. You're buying a property that needs some, work done - or it, has a large garden where, you can build a second house and no. You don't need to pay for any we just get a mortgage that's the beauty of what, I was suggesting and, what a number of people that I know have done as their. First step to get into property if you're getting a mortgage what would be the best option in terms of reducing the amount of homework Freeman charges when, you come to selling it I think to answer that question you just need to go to a mortgage broker explain, to what you're trying to do and I'm sure they will come up with something that works for you third, one also, if you build a second property and sell both properties separately. Would you pee any capital, gains tanks right, okay this is where that gets slightly, trickier and I think what I'm gonna do is because in this episode I've had a number of questions to do with what, I've suggested in, the past as I would do a simpler venue from us I'll just add it on to my to-do list so it's probably.
Number. Six on my to-do list which, has been suggested and, they asked shaft lives but don't worry the very first one will be coming out in the next week attendees, but. What I would say to you as if, you saw the port, by itself, and my, opinion, there would be no capital, gains tax however. If, you built a house okay. If you built the house and, then, sold the house that would be capital gains tax but. There is a number of ways you can get around this and one of them is to create an ace PV, I think it's over the Rhema an S venue because it's, quite a lot of explaining, to do and I need to throw up a few diagrams and the screen etc and show you examples, so, I say when they leave it a less video but what I will do is I will do a dedicated video, so, please subscribe to the channel have an off occasion Bell and as soon as it goes live we, will tell your matrix straight away but I'll definitely get off my to-do list okay thank you Danny Murphy Sharon what's your opinion on assistive, Hall seals this, is where someone has, a higher value houses, or for need of modernization and, development under. An assisted seal the owner moves they and their developer takes control of the property modernizes. And built an extension the property, is then sold and the proceeds defined, as, upon the agreement to me this looks like a potential when when because the seller gets a better price than the share of the profits from the redevelopment, the investor seems to some duty plus the heavy cost of financing and the property obviously this is all done under a legal of the city, exit plan only I'm working ten skills what do you think Danny, and principal, this can what I don't want to be sick we see yeah this is great because there's, a number of caveat seven pattern there as in, crushed of all the homeowner needs, to get independent. Legal advice they need to get advice, from a Sofia providing. They've got genuine. Independent legal advice they've, got advice from a severe, basically. As to what the end value and the market value is and the, homeowner is protected. I think this can work as a strategy, and I, think it's just a soft spin off off the BRR strategy, which I've also said in the past once again, I'm planning to do our video on the be on our strategy of whatever my to-do list and I'll. Get on tend to course grander, Vega hi, chef you mentioned the base we to get into property with this Maya, house renovated. Leavener, and then Saylor and benefit. From the proceeds. We can let's process it be repeated, unlimited, times good. Idea what I'm gonna do is I'm gonna through all the official guidelines from, HMRC, on the screen that's them coming up now so while answer, your question, you'll be able to see the guidelines now can, this be repeated, unlimited. Times yes. It can be yes. It can be one. As. You can see from the guidelines I've just highlighted the relevant bets from you here if your purpose is to, do this as a way of avoiding tax, it can't, be so I've suggested in the past as your first home that you might cut, your teeth in the hole by buying something that's slightly run down the, renovator, when you do eventually sell it you benefit, from the profits, Angi gain experience, so, subject. To the caveats I've put in the screen it can be repeated unlimited, times instead. Of minimum length you have to see in the property for it to be considered your main residence or do you just have to be living in it while selling in now basically, there's no actual hard and fast guidelines, here it's down to the quality of the residents so there's some guidelines, there's some previous case law I think it's meant to the quality in the reason some accountants, is six, months other CSA, year and let you need to stay in it so genuinely it needs to be your principle, home you can't just get around it by, you know moving in for a couple of these while you're selling it that doesn't want it generally, needs to be a principle, home but, I think hasn't been asked so many questions about, this what, I will do as I will do a detailed, video about less so you guys can understand, what I'm talking about can this be done through a limited company, absolutely.
Not It has to be your principal home and if it's a limited company that, saw laws that argument at the water can, this be done with three people pulling the money together again. Just refer back to my answer for the previous, question as I've said I'm getting so many questions about this there I'm gonna do a detailed, video but this'll watch it for the guys and you escaped a property in da way I have, a small residential portfolio, how would I meet the first step to finding someone to talk to about commercial. And my area okay I feels about weird calling you the idiots guide so, I think the first thing you have to do as realistically. You, need to make an appointment are to go and have a meeting or a call with a chartered severe and I would just drop them an email because remember, suvir's, and commercial. Property to see when your business that's what they do for a living so I would offer them an email come my call would say look, my, name's such-and-such this. Is why I do I've got a portfolio or three four five six residential, properties, I want, to get into commercial, explain. What you're trying to do and, have a chat with them and see what they're at Isis I think the next 18, months is going to be a great time to buy commercial, property because, commercial, property comes down first and value especially if it's weaker than a recession, so I think it's gonna be a great Empire and providing, you can add value turn is a great opportunity so what you want to be doing is just trying, to a commercial agent chaptered. Severe about what you want to do and then take it from there and possibly, even retain, them I've talked in previous videos, about how you can retain a commercial, agent in terms of your second question you, know any commercial property experts in south wheels I don't, but I'm sure I can deck what I'm sure there's better be somebody on my leg ten so I can deck one out and get them on the channel not a problem I told care, artists for ad carries. Are join up he's, been ready for renovating, a late night property for some time he's, done a few new boats from land he always plays where they can add value is. Now finding it more difficult to get properties, as there are so many people knew people trying to get there he's got great cash flow for him use beta less, and. He's finding, all the tax implications and I just making margins a lot smaller they, said any other avenues, you can recommend have, good contacts, from lawyers and agents but basically what in hire it comes from my hard work okay, first I care as a remember, I try, and think about commercial, property slightly differently let's just look at the projects I'm currently working at so I'm working on my cloud kitchens, I'm gonna make some. Money basically, I bought our building I renovated, a split up into four parts I'm gonna make some money from their best a, similar to what you do but, where I'm, gonna meet a substantial.
Amount Of money as from, running the chrome kitchens, okay, so I'm gonna make quite. A lot of money there so my prop call has, made a similar profit, I imagine and percentage. Terms to what you make okay, so that's done then, my prop call is going to rent it out to my operations, company which is going to be running the current kitchens and the all permissions company, will be generating, significant, amounts of profit so, what I would suggest doing as saddle. All that thinking in the box are some of the opportunities, you're looking and c-can. I run an operating, company be simply a mess can, I do something different, which, will increase my profit that's the first thing of a city the second, thing is where. There is going to be a lot, of opportunity. Over the next 18, months as mine, distressed, assets, okay because we're. At the start of what is looking to be the worst. Recession, we've ever had in history I mean that's the impression I'm beginning to get a no so we're either start there I'm gonna do a video and the next couple of weeks and, I don't push this to the front of the queue because I think it's quite important, about, how I source distressed, property, and that, is often a great way of doing it I'll do a case study of, some, distressed, property, that I purchased, ok for that because I think that could potentially be a very very good way of increasing. The amount of profit you make from property G, make all PPP, I've been watching your videos on cloud kitchens and lemon Cornwall there are no cloud kitchens but we have lots of chefs and restaurants, just some advice how would I conduct market research to, see if than as an opportunity, I've, previously talked, and some of my previous, mask chefs about, hi I did the research for micro kitchens but you know what I would do in your case G, Michael as essentially. I would go on to Bernice, I'm going to deliver a and, I would try and order some food in your local area and I'll give you a list of all of the companies know. These people and your target, clients I would just pick up the food to them or drop them an email give em a call hi this is who I am this, is what I plan on doing would, you be interested in renting a crow to capture and that, will, give providing the marquetry so she does as simple as pick, up the phone to them and you've. Got a list of prospects, straight, away by just went to these house jordan. Brain I'm currently looking to meet my first investment, when the rent 20 key and weed up investment, in Wolf's and the stock market and property. Would love your recommendations, and on what asset class I should be a went to I've talked about this in this video already in terms of my personal. Portfolio. Let's. Leave aside my property, companies and my investment, companies in terms of my personal portfolio, I trade diversity, find my rest if you're not interested, in becoming their property, investor, and you're just looking to advise the funds I would suggest splitting. Up into a number of asset classes you should refer back to my previous answer. I found that will answer your question for you right keV keV. Rs-485. Office. Conversion, Jeff's question is do, I need to get a new name or treat under my own name I've been thinking about buying in the mean for some time my, Facebook, and LinkedIn are in, my own name so essentially, what, you're asking me as how, do you use a trading, name so, my company was called net computers, limited but treated, as email, distribution so. Enoch computers, was, the name in a company but then what you do and only stationery, and your website you've kept treating us in. A distribution so that's a treating me so another example I can give you we walk to Burger King and it's got the big burger can you sign and you think you're dealing with Burger, King but you, look at a small print on your receipt and it says Caspian. Foods Limited trading. As Burger, King okay so that's just a trading name so using a trade agreement it's not a problem at all and that's how you do it there's no forms, to fill and there's nothing of the sort you shared that used you double to estimate, the credibility of a company before doing any business you know a useful, website to analyze the, areas for residential property investment.
Constantine, To be honest with you I have, substantial. Residential, portfolio, but, my deals for, residential, generally, brought to me by agents, so, from traffic smears properties, both solicitors, etc, they. Will basically do, all the research for every innocent provide me the details so I don't really need to use these research tools so, I've been lying to you if I said there's this one on this that one but if any of my viewers they know of any research tools please stick them in the comments below really, appreciate that thank you look. This, is a brilliant channel what's a good advice what's your opinion on the by reefer Matt refinance, and range strategy, do you think this is a good option for someone that is just getting started with property investment, to build rapport for you can, you recommend any other good sources of property education as, an alternative, to listen to the property crews okay, let's do this one at a time, BRR. Is a good, strategy yes to, an extent every. Single property entrepreneur. Does less okay, I'm a previous, episode I've. Had John McClane then and we've talked about the strategy, and essentially. That's what he does that's what I do as well now, a product did you offend you on this I have an ask shelf life special, when you're coming up in the next probably, 10 DS and, this. Degree, exam is VNR I will do a detail, beyond our video but, check out the ask shelf-life, special, ones coming up and. That, will be second a look at a strategy do you think this is a good option for someone that's just getting started with property investing to build a portfolio absolutely. Because last one I did that's, how I bought my portfolio. That's, how most, successful. Property entrepreneurs. Build their portfolio as, well so I think it's. A good strategy yes. Could. You recommend any other good sources of property, education as. An alternative, to listening to property, figures I would, look at YouTube videos and read books and you know the best property, education I have had is from having coffee with. A chartered, so we have an education, I have had as for. Free book ever you've got any questions you need to ask me I'm absolutely, delighted to, answer them for you and.
Have Suddenly not gonna charge you anything Matt feel I'm willing to get started in property, as a site to my day job and have a couple of questions I have quite a bit of equity in my house and was, thinking about taking a secured, loan to buy a second, property outright and then, refinancing. Once the tenants Evan would, this be wise given, the current climate also. When. Financing a Michael a would you get an interest only to, give you more cash flow or capital. Sort, of things effectively, people off the underlying asset, mortgage and finally. What, due diligence both residential, and commercial do you do when, looking at a property by Claire and what criteria would determine whether you buy now or walk away first, question, you've got quite a bit of equity in the ocean you're thinking about taking some of that out and basically, putting on a bite of it it's, this a good idea and the current climate I think it's a good idea but I think what you need to do is you just need to just we're and see. When, the bottom of the market is now, a lot of the food see it's very difficult, to tell when the bottom of the market is I don't, believe that okay. You might not get a rate at the bottom you might just get it there before it hits rock bottom or you, may just get it before it sort of bounces back up so I think you need to just wait until you see where the bottom of the market is and I have seen in the last few, days and I've seen that why I regardless horrific, price reductions, 20. 30 % now these are all via our commercial, a says this, will eventually solve folk debate into residential in a recession, its commercial assets that I had first, so I have seen some horrific price, drops so, that's my view yes, it's, a good strategy but, before you embark on it let's just wait and see where the bottom of the market is also. When financing a buy-to-let when you get an interest-only on a capital repayment mortgage so, ma'am and my previous video a serious, property, investor, a person, that is building up a portfolio will, always get interest only because it gives them more option and gives them more income if this east of the only mic like you're never gonna have you never gonna get another one you mean what to look at perhaps the repayments a sense, of why advise people you, can get a different view of somebody else from this but this is my personal advice, it's an FSU home yeah, make it capital repayment is, an, investment, do, it interest only because, no day you will want a second investment some, stage and you just want the additional income to be able to reinvest into your second asset so, that's my personal, view when, you make me one again somebody else is for you as well third. Thing is what do you diligence, both residential, and commercial do do when looking at property to buy and terms, of commercial and residential, this. If I start to go through the due diligence process this would probably take up the whole this video in terms of commercial due diligence, check, out might get real estate cities which, is on my youtube channel I've already said I will do a video about how to buy a bike to let what due diligence to do etc is probably third, or fourth or my less I will get a renter I'm sorry I'm just a bit behind in terms of videos, because I promised I'm going to play a few of them but you've got to remember being a youtuber, it's not my proper, job I'm definitely. Definitely a renter so, as, soon as I do that I will stick it on the channel okay so please subscribe, Heather notification, bail and I, will give you a detailed video on that subject I remember you saying that guarantee, commercial property was difficult, i cuddly. Rent a couple of my select properties, what, would you recommend for, me to get into commercial, property, and previous videos and might get me OCC's I've said getting into commercial property as difficult, the reasons why it's difficult as one, if you had a new entrance in the market they, will want to ask you in. Terms of LTV. For quite a high percentage or LTV maybe 50 years so it's difficult and that sense the, more of a track record you develop, the easier, it will become so. You know that's the first thing to remember now, I talked about my friend my friend has. A huge, residential. Portfolio, and he saw that I was doing quite well and commercial property now, you had a lot of equity, at his residential, port for you and he had a chat with his lenders and he sat down with his lenders and he started talking about commercial property, and he's, talking about yeah I want to buy a vacant property I want to do this I want to do that I want to do miss any talk from he. Thought was the process and it wasn't, and his lenders, became very very nervous, about it you became very nervous and he was asking for a substantial, amount of money in his letter saying look we've, got no problems, in lending you money for, a residential, property but were not comfortable with lending you this event of money from commercial property so what my friend is named done he has bought a fairly, very small, commercial, property, literally.
Front Kennish, I think he's paid about 80,000. Pounds for this property, no, he's bought this at the beginning of the year and he's. Planning on refurbishing, the property, letting. It once he's later and going tenant in there the first thing I would do as I, reached a hub of a home with two or three charts at 7 years in your area I've, got the phone to them and explain to them what you do just see it work my name is Mike I'm a landlord, I've bought two or three residential. Properties, and went to get into commercial and I am looking for ex explain, to them exactly what. You're looking for first level how much they will charge you to, find that property, they will wear and friend that property for you don't charge a fee for doing it at maybe 1%. Of the purchase price it may be 2 percent of the purchase price so choose, the Chartered, Sofia that, you think you're, going to get on with the best or the one that impressed you the most they. Will go out and find that property they will give you a number of options I've addressed this and my previous video so they give you a number of options they'll. Give you a detailed report usually. Obviously, you want to go far that's, what i'ma do that's how I would start in a commercial property like, anything else and I've said this before and this particular video as well you want to start off sort of small and you want to build up one small when followed, by a slightly better when followed. By slightly bigger when full of a slightly bigger one and at the same time you're building a track record as well and has evolved more of a track record your. Lenders, will be more likely to lend to you and you will see the LTV, will come down as well that's, the way out again so guys think, paprika. Hostage and yet. Adam pie on a zoom, when, he's on the zoom I've been a proposal, to him to see if they will help me open my battle, against, the food oohs by giving my viewers two, hundred pounds each so I've. Been less it thank you for coming, on the, YouTube channel so, my, viewers, probably don't, know who you are and what you do so do you want to just tell us a little bit about yourself, and then about your business or your business custom innovate yourself. Around. The UK including, Scotland. Wales, and, we. Sell, mostly. Government assets, or returns dot and properties, how, long maybe be new much palatable yet. From the business we've been going since. 1968. And a lot of people associate, auctioneers, with either the sort of beers or the Christie's of the world or even in, capital markets and. I went probably a mixture of in-between so we've, had a place. On Bond Street for five years where we've been selling jewelry and, watches give me some idea and, with also souls for the biggest factory, clearances, that you can imagine and some of the high street names going, to receive, more recently as well and with the type of organization, of gets instructed by the banks to sell those assets and. Also. If you to the order of parcels say from Amazon it. Doesn't get delivered or it gets lost after. A period song then we will get that parcel, just to generate, some income yes.
So. Anywhere between 300. To 500, thousand ounces every week all. Clients, that use you to sell their products, sorry. I'm gonna break it up break down the B section. Specialize. The different assets that we've got the property barman, who, typically, will get bankruptcy, instructions, the bank instructions, and, then anyone private lenders who wish to sell, their. Properties, by auction, for in a distressed state whatever reason because they either need to cash or just not do that property, or even maybe a deceased estate I'm trying to realize their, funds will against the property department, then. We would have a business, assets Department which deals manners. Of administration's. From plants machinery, to, printing companies, to, the. Main that, the transiency, advanced and restaurants, that are close enough to obvious reasons and we will be dealing with the assets of that business whether it's the tangible assets or the IP ease of the the, company, our biggest department is the auctions, with every. Week with this this 45. Altering. The controller the biggest auction is of general, stock, in. The country you can go into any one of our sites as one just outside Edinburgh in. Bowness and you'll see a plethora of stuff which could be supplied from the likes of Dixon's. John. Lewis is popular up there hammers and so on one of the biggest clients up there but we deal with all the major high. Street retail and online retailers for either over stops returns, and. Parcels. Non deliveries, and then we have the step pretty polished just deal with all the government contracts. So, if you don't pay tax on your car, we're the guys that sell that car legally seize, the vehicle and, then they give it to absorption, and, on paying it back at anything for that, we're. The guys that get, called in to do with the company. Assets of that, Pacifica. Organization. That hasn't think of that you're. Probably dealing with easily. A third of all the UK bankruptcies. That, have assets, connected, to the bankruptcy. And. That keeps us busy that's fine around, 500, settle so keep busy, yeah s3 takes no for food disclosure I've used you guys in the past you know I've bought a business and, I perhaps what the IP and I've ended up sending you guys all of the stock I remember I've, sent, you about 30 trucks, of cool then once you. Know and, that goes split amongst all your depots, and everything so I do you know just so my viewers, understand just a fruitless closure I do have a working relationship with, you guys that's one of the reasons why are basically, going, you on here I've got number of questions for my viewers the mark Whaley, sheriff, recently, I am receiving lots of commercial, units in Scotland going to auction what are the steps you take to decide, what is a good deal, buying and would, you buy it in the current climate would. You consider doing a video to answer this question I'm gonna do a firmware video to answer this question at some point part and, to, get from your point of view not, with your option you're hoping. My hey, can my viewers, be, secondly, pick up a few bargains, what the pitfalls watching for what yeah that's this question a lot by various associations.
As Well and I've, always said I'm buying a set regardless, of whether it's a prophecy or its machinery, or even stopped by. Looking. Physically. Into, the market first do you research is, it a good area is the property, of good property why is it in a distress sale firstly, find, out all the attributes, in the leader to the sale so, it's, a location good is it got good title, would you personally and buy the property, yourself, as an, individual, suppose as a business transaction is. Always a good steering means, you like the property and if you like the property then. Loudly many other people is gonna like that property, and I. Would, also look, into things, which the eye can see you. Know is it possible that this something wrong with the property that hasn't declared, that nobody else has noticed but yet only. The seller is aware of so for example, is this sort of Japanese knotweed, which, is in a garden, which, he sounds like nothing, but Japanese knotweed if you're not familiar with it as a plant which just grows over, everything, and anything and it's really hard to get away from it because a real big issue so. The, principle. Here is do your research before. You buy any type, of property do your research beforehand. Investigate. It online investigate. It physically, and then be afraid to ask the neighbors or anybody connected with that sort of sale and get different bits of information back for you to make your messages. I've. Bought a lot of properties and, auction, previously, my processes. I will, pornhub will put the property man that's up for sale I will. Help myself I'll, speak to the need bars see. What the area is like and then, if I'm interested I will get a chartered surveyor to. Do a structural, surveyed, equate what your plants do that. Is. Why. You're in you're, in that's. A real good piece, of advice. I. Tell, you another business model which I've noticed a lot of people, a property, from one auction, put, it on another have. You friend that. Will. Sell, a property personal. Committed by that property believe they've got bargain, but, what they won't do their own due diligence that, won't bring the local counsel for example, to understand, it's, actually a conservation, area and, certain, tiles that you must used to re-roof the roof must be XYZ. And which are often more expensive since, the window frames that must be worn and not you know a cheap replacement and, what, happens there is where they bought. This property through an auction they, mend and the research afterwards, to, understand that it's going to cost more than the original to do the procedure to resell, to make the Knology and and. Then, they've realized I can't afford to doing the that cost involved and put it back to auction, so that often happens. There's. Also the point whereby you're, led to believe that it's gone through an auction that possibly hasn't made the reserve so. The vendor themselves. I've. Been given my egg on the online auctions, recently, I've got been looking at our commercial, property options and the, prices, that they've been achieving, recently, are quite bad and do you see this court carrying, on that vendors. Are not gonna meet them reserves, or they're gonna go for a lot less than the reserves is there something you see going on more forward this village trend with small commercial. Properties, being. A little bit more unsettled, in the marketplace, people, don't know whether they're going to be able to open up they did they shot the cafe retailer, those small high street side shots everybody, knows the high street should be in anyway so it's a real challenge to try and get things, running, again the small trade in the stage they're also going through IHS of, the minute this isn't an ideal time to sell a property for obvious reasons that's, how many destruction of the property market that's wrong our sort, of agency point view well, we are seeing a difference is that there's been a massive change, for, all businesses, even even fun to do this whereby online, sales are going through the roof so you'll probably find in, your area somewhere that there will be a pub where you can order online for beer and, if we they're waiting for you on the morning pick it up but, say that's one extreme warehouses. If, you can get a decent size warehouse, they. Are so hard to come by in the first place anyway but, more people are going through, line channel selling, roots and they're realizing they don't need a shop and they, need a warehouse and abuse and website and then Watson exits behind that website to drive train I'm, not trained necessarily and people that come interview, you, know stocking, in it certain premises or not they're, picking, them off the, shelf from the warehouse through a you know a digital, channel so, warehouse far we use a bomb through the roof people.
That Are renting, to. Warehouse as you can see over, the next sort of years eighteen months or so again, a steady increase in in, rental increment, so if you were an investor I, would much, advise some way to try and go for warehouse and space and clear space not, only because it is a warehouse in each place where you speak also got more opportunity, it's probably change plan definitions, to get change abuse and things of this nature, and at the moment that the council's. And planning officers. I don't know whether you've seen the same shaft are really, lenient to, warrant getting, properties, to get change of use to encourage employment, and to get the economy up. And running again then. As far as investments, are concerned there is definitely, the. Smaller properties, there is a little bit of a strange. -, a strange time I'm not just talking in the last couple of months I'd, say literally, from Christmastime, and, I think this is going to last realistically. And probably change the worse up, until August and, September time if, you've got properties with sinned in Sin City and tenants tied into the lease agreement cause that's completely different and we find that the, value of the lease is opposed to the the bricks and mortar solar but. That's the best guidance and, yeah. I tend to agree with your comments on warehousing, we had a warehouse, where what about tenants run, a business letting, it come province so people can basically rent a camper van Doorn holiday so I Drive about Scotland and the. Email doesn't said like our business is this initiative would you let us everyone Reese so, clearly there's no point in are suing, the the business or anything like that and we said look we're happy to do that not a problem at all and. We put the property up for rent and it was actually opened with n illegals within 10 days I'll just stick on went Optum huh I'll just stick a link up to that but that was just next. To your auction house in bonus we've also got another warehouse, at, Newbridge, and the, new bridge is just a say the number next to the airport and, it's a quite a substantial whereas it's 32,000. Square feet. We're quite picky. About who we want as a tenant so we keep on rejecting tenants. That's what I read so it's 200,000, pounds of yeah so, if we don't get the read covenant, we're just not accepting, them but then all of a sudden what we've seen is the amount of inquiries, that are coming through is absolutely. Going through the roof so I do agree with you as regards what, you're saying about warehousing, so the market for warehousing is very very buoyant has absolutely, moved that later so the other thing I was gonna speak to you about was. A stock, assets what happened with us and the last recession, was. And I've done a video about this I'll just Chuck this up on it up on the screen but in the last recession there. Was a whole, horse, of people, I'd started, eebee, an Amazon, businesses, now, what these businesses as the recession eased up they stopped doing it and the bittern the principles, behind and got jobs but other ones have, just grew into huge businesses, are you seeing that starting to happen yet yes. Particular. Story of a regular. Auction, buyer only. Work. For printing company, they're they're, printing business unfortunately. Went into administration about. Three months ago that happen. I. Got a swarm out of redundancy and he was it was it first, we used to conceal chance only enjoyed, eating and doing the spot that was going through and buying. The stock and used to sell it through eBay and Facebook and, all these other channels and he. Was making a small profit but it was enough for him to make enough, money for him and his girlfriend. To you on holiday one to do with so, is another income and he was going away. With the profits who's making all to the one seen. Recently. Is more people doing this they're realizing that looked like a huge social media, social media is now a big, marks and channel and big marketing plays eBay. Is huge anyway and there. Are other channels like country things this nature and if you can find Sally. And go, through our type of auctions which is a reputable company, we're, selling mass values, for all the biggest scale see clients, that is such a big variety of stock you, are going to find things that you are, used to, no one product, is and be able to buy at a reasonable price, since SLR, and we've, seen it's a slow trend of that just through the nature's of us that chat lines and.
Chat Lines are saying is it possible that we can come in and view the items, and seeing the items unfortunately. We can't on file our viewing so we've got support more photographs, and video, on an English major but, the point when that is people, are a little bit scanning still haven't been able to see the good and, there's a result more people have purchased them and then by the same token week later the same criteria, you've. Got another you. Know five iPhones, up or you, know three last week I've sold them already I want some more so if this is a repeat and, repeat, enquired, to us to say we've got any more but the website that we have is so big, is. That all to see but, there is a definite, trend is a relatively, cheap way to start, and Entering. So have you ready tips for anybody, wanting, to start off doing this as a side hustle let's call a sign house. Invest. In a particular item yourself, for yourself and you know what the item is all about research. Research. The, marketplace. Are you go onto eBay go on to Amazon see, what similar. Items are being sold for and do your research you. Don't necessarily need to buy straightaway. You first auction, if it was to our auctions you were to come to say because. They're there every week and we know you, know 30 to 40, auctions every week then when you're confident, that you notice how trends and, prices. Are being made, for one week to the next, then get comfortable in making rent purchase so, that's the first thing that you product research product, and then research the page let me get something from and, make sure that you're able to get your goods safely and, also have a space to deal with your goods when you receive yeah, there's a number of software. Tools you. Can use which. I'm going to throw up on screen when, it comes to do research on Amazon, and eBay as to what products are sale and what volume they're selling on so I'll throw them up on the screen as well for you guys so, I've got three or four questions do you want to give me a hand date with them.
Share. From your experience, what is the maximum number of employees, and a company you, would recommend, to run without a dedicated, HR, manager when, I first happened best etc we had 50, employees and I didn't have a HR manager then. Fairly, very quickly I realized that, I needed to get HR. So what we do now is every business that we invest then we, just get a HR, consultant. That serves up a part-time, heat jar manager so it doesn't matter if they've got three employees, or they've got your two employees, or a hundred employees, so this heat chart consultant, will be secondly said on company, inks I spent. Half, my be this month under one voices for that so, my point of view every, business I'm involved in I just want a hitch our manager so this heat chart consultant, acts as a heat chair Manager bus had I would do it I don't know I don't want your viewers around, five hundred we have in-house accountants, we have in-house lawyers, we, have the in-house, IT. Coding. Teams the. Most important, person that we're glad was at ahead of our HR user only a team of four or five but. Through these changing times reading new legislation, which since has been changing, daily has, been the most important, person in our organization. And I think this would have been the case as well whether you had twenty staff or 500, staff so. Well I would strongly suspect, that there's. Not ask the question, is at that point now of thinking, should, I get HR, advisor in, or consultant. Or employments, be HR officer then, I would strongly suggest yes, so here's the question some be good to get your teeth on this as a general, principle of, casual. Promotes, would, you advise capital. Or interest, only mortgages, with, the option of pink capital, what, would you recommend for an investor, capital repayment restore. Me. Signs. Where it goes down you'll, have recessions, where property values go down but, over a period sign proxy, will always go up and, I will suggest if, you want that cash flow I would only pay interest, only in trucks has never been so low but. I will suggest, interest, only because. If you've got enough, cash you, might be able to bike to properties, and afford to pay them, both back on an interest only the bank are willing to lend you on that and I'm you for keeping up the closet down rather, than just buying one so. It, gives you a bigger opportunity your cash flow is there it also gives you in cash planets, are be able to do business. The property also in. We do not for example, or you, know doing more marketing on that potters get a tenant in or to reality, and or whatever you brought it for we, also have our own separate property, company, we own, around. A million square foot properties. Up and down the the. British. Isles so, familiar. Glassy and all our properties are interesting, Lee said one where, our head office is what we paid for that is. Probably five times what it's worth now he'll only be paid interest only so, the, fact is we haven't want to sell it we've still got that that mean you. Know chunk of what he should have been when we first for two years and years ago but the reality is it's worth four times more, than that and in all that time we've. Been paying a proportion, of what we could have been paying on repayment, only albeit, I do know that the the main piece. Of capsule would have gone down but not enough to, his warrant sister to pay the cattle back Borromean. Yeah here's a question did you buy that property in option. It. Was it. Boiled down to in the end. Next. Question you already had some best bargain ask you again do still fuel commercial, properties, that we table. With. Domestic, product is that said there are so many people that make so much money in domestic, processes. Properties. It's too personal, where, this, properties is is it a lot more and then the. Decisions are made by you, know group of, born. Or shareholders, etc blue becoming a tenant, what they want to purchase it off you so, the decisions, are usually more judge and you. Can also get more issues with tenancies. With with smaller, properties, more, headaches and there. Are more health and safety restrictions domestic. Properties, of me personally but good I want, to stay as commercial, prices wrong any noticing sure, yeah. My portfolio, as I have a prop, call which, owns residential. Property at one stage and heard at. One stage and HUD camera, let me just take this call. Marie. Can I call you back me I'm just dumb on a zoom at, one stage I had a by 200 apartments in Edinburgh I've sold three. Quarters, of them off and I've just kept, a really poor portfolio. Budget has, got really you know sets in it now and then, the bulk of my portfolio now, is commercial, and they, try and buy property. Where I can, buy it and add value, to it so for a core commercial portfolio. Which, we just keep for, income it's just good solid tenants, then, I have a trading.
Portfolio When. I try it buy property, that I can add value to whether it's by dividing. Up, renovating. Our renegotiating. Wishes whatever and then what's, up done that I'll then decide do I want to keep this as a core asset or do I want to seal it and generally, I end, up selling them because I've walked up with the purpose of treating so the planner habit I want to get in and out of that, particular property, talks. Within five years so that that's the strategy I work on I think. There's. A lot more people with lesser, pounds. In the pocket. So. Smaller residential. Properties. There's, always going to be a bigger market for them as well as opposed to you know a million power mansion for example so, if you you're able to get it the margins might be smaller when you buy to flip, the sale quickly. As you just mentioned. But, there are a lot more people, willing to buy and able to get more. As. Well yeah I. Think most property entrepreneurs, that I know we start off doing residential, and then after a period of time then, they do a small commercial, deal and a slightly bigger commercial deal and a slightly bigger commercial, deal and they've made good money doing the commercial deals so they're like do you know what I'm going to get the residential, property, or reduce the size of my portfolio and part, morning to commercial I think that's the general soft, we. Have seen this happening, over, the years right here's another question Michael. Emilina I'm. Going to start some treating businesses, with an assumed profit, of twenty to twenty percent in the final price I said what's the hustle I have, what to do but it's mainly processing, orders and posting them twenty-eight percent. Twenty. To twenty percent but he. Doesn't see that he doesn't see that it. Was net profit definitely. Do. Valuations, for the trading business if, that's a mean over a a net, profit of sort, nine percent upwards, after. All cost etc then, that's a good trading business and, so. If, they're suggesting that they're going to buy nice and four hundred pounds they're selling three hundred and twenty pounds is that worth doing, well yeah, it is if it's, in volume that you can make it make yourself in it whatever you think, is a reasonable and minutes, a day. For. Them, to. Be honest with you if it's a net profit phenomenal, one of my business is a net that used, turned over sixty, million pension recollection, of net profits a two point three million so. That you know that was a phenomenal business, net. Profits, bro in gross, profit yeah I know people like what and gross profits to twenty percent but, they do huge, huge, huge volumes.
Which. Is made you just a small percentage. Point. One percent. Would. You prefer to have you. Know a hundred pounds profit from, buying something, for fifty pounds and certainly 450. The, other thing Michael. Touches on he says all I have to do is process, orders and post them now I've got an e-commerce business that they're for an investment and they, don't post the order we have source slaps so it's a really easy business, it turns over a lot of money this, stuff do not touch the store, it's the third-party fulfillment, company and that does all of that at, twenty, percent profit, I don't think there'd be enough money in it unless it's a high-value item, you, know if it's something, that sells for a pound and you're getting twenty P, there's. No way you can use the third-party fulfillment, company but. If is, something, that sells for a hundred, pounds and you're getting twenty percent so you're left over with twenty pounds in a, piece expense to your fulfillment company so, you left the with with fourteen, and essentially all you're doing for that fourteen pounds is. Literally. Doing a bit of customer, service and maintaining a website that, could potentially watch, so, that so that's good um. Michael's, also a property question, I answered, something, very similar last week but I'll be good to get your take on this I'm. Going to put an offer a 50%, percent. Below for, a residential, property. To the current situation, uncertainty. And credit rescue as listen and salt for a sailor well I can always say no. I. Feel. Embarrassed with, a first offer I'm all for too much yeah. Well, that this is it and if you weren't to get challenged, on your first offer then there is something wrong with your offer in my opinion, so, I wouldn't wait to go in at all at first percent, less they they might say well I'm not gonna pull that to the Klein however, you, must remember that all agents, have got a legal obligations, for any offer forwards to their their, their client, so, it doesn't matter whether it's even a pound or whatever, very super so unless they, offer still has to go forward so I was made the estate agents, or surveyors work for their money that's for sure but no I think that's reasonable and there are different, properties where of, course if you were to go for, the third reduction, they're just gonna laugh it in your face but if you've got broad shoulders and, you. Make sure you in isn't negative blast that's fine go make go for this is a feud one Chad Daltrey, I have. A question about pricing, and what Lord I'm starting. My first business but, it requires a lot of customer service and organization, and stuck on pricing, I've calculated all, the costs, and my profit margin but, the real question is will they be able to handle the volume of my customers, so here's the question is it better to, price higher to, be able to get someone to help or just go slowly but. Surely until, I understand, the what rule so I can price the service accordingly, I would suggest if. You start off low. And then, increase your prices thereafter there will be certain customers that drop out if you, take the, mobile app, marketplace. I don't have people crammed in the work but when apps first came out was these very clever people, who went to the extent of developing, an act which, was all in advance and, I don't know if people can remember this but every, app that you had to get, you had to purchase it. Was like $1.99. Or $5.99 or, whatever it was but you had to make a purchase, soon. Every period of time and I mean within 18 months what. Tends to happen was, free me and crept, in so, rather than charging for the app because. They were avoiding, the sale people. Were doing it for free to get the custom, to gauge the costs and the volume of customs and then put in add-ons it into the app to get their income in fashion, the point being is it's always good to get your customers on board and, relate with the customers, and then, change your prices accordingly, in. My opinion if you go into your high you don't get any customers you haven't got the feedback either from those customers that you've lost because you don't know you've lost them that's, my opinion mighty Khan this I said what easier to drop your price then, it is to put your price up for, a service that you're providing so.
If It's an ongoing service, it's really, hard to, put your price up because. You just lose clients so, my view is you, should have a high price okay, and then you could bring the price down whether. You do that and the form of features, or special, guest codes but, your headline price should. Be higher and you sort of bring it down if that makes sense that's, my view I suppose I'm looking this is from an auctioneers, point of view because everything, starts off at nor. Feud. Rate that we do disagree because, it just shows that this is one way of doing something there isn't one formalized, to do property. There isn't one formula. To set up a businesses, and there's a number of ways to do it he's fought to change to the circumstances, but my view has always been, keep, the prices high and be sickly bring them down now as I've, said previously I, write the business column from the Sun I bought this a lot when the dollar it collapsed, because of brick said you know my prices, have gone up how to explain, to my customers, that I have to put the prices up and they're just having a meal but I'm trying to explain to their customers, but, if the price had been hired the first place and. We don't you know it would be it would have been a different, story so plan prices up is quite difficult but, putting them down it's dead easy. Recognize. Why you put in the, price, up and good communication is, also. Now. It's one of the things actually I see it look you've got to pick up the phone to, your client explain to them exactly what's, going on the reason for the price increase, so. That's how I explained it for them brilliant, so let's, see what other questions ever got I plan to watch the market buy my own house from the bottom of the market I file, you and sell when the market goes, up however, the, mortgage LTV, has increased significantly and, my deposit I've saved up will not be enough I love. Her in London I'm living in a nice area is important, to me which makes property. Prices so expensive hence, all of a sudden my deposit, does not buy me a house where I want to buy it how should I changed their selection strategy, of buying your own house adding. Value sell, an inclusive market, repeat strategy, when my deposit, is it enough as the. LTVs, have significantly, increased so, I think the central question at here is there. Has been an increase in LT B's recently do you think it's permanent or do you think it's temporary.
That's. Because the nervousness of the marquee of course, I. Would. Suspect it's, temporary, but the temporary, when I say assembly before Morris anybody ask me temper you'd be like few months I think temporary, in, today's climate could be up to 24, months easily, and the key point here cash is king and people. Are understanding, at this moment inside they can't bought a true value on key, assets, including, properties, that bank expand their nervous they don't know what the market trend is going to be for then an amount of an employment there's going to be so, whether people give out a loan at this moment but don't know what your job saved they, starts a particular future that's what is. Changing, I think that there's been a bit of a knee-jerk reaction my, friend runs a company where they do bridging finance and his LTV, used to be 60, it's now down to 45, and it's just a knee-jerk reaction because. He's saying it's 45, that said take it or leave it and I was chatting to my beta and he said well as, far as I'm concerned, if I'm lending something, less money, I get something that's worth a million post it might only actually be worth six, hundred thousand pounds so, I don't know what the valuation is gonna be like and I thought when big 450,000. Against it I've still got a bit of coverage in there so that's the attitude and I think this is the attitude for banks across the board so, why would I would, say I think in the, short term the LTVs, are gonna be, at this level, Anders unfortunately. I think see that's just gonna have to put her plan, on hold for a while but we'll be more distressed since, the market place as well for obvious reasons, there, will be a, situation, where, unfortunately. In the UK down in Portland and, you've seen houses go up left right and centre new, house buildings and they always go on as you've done actually my. Price and when it's a premix is easy to come down so, I think there's going to be more new, boxes coming down that's residential, as well this isn't that type of market at this the experts and acquiring well they went by do, some work on a property and make the marginal, it done referring to new classes but I think now which time to 70 million wait and be sadly and see how, much new proxies go to the marketplace there is a lot, of old Cheniere activity, around properties, at the moment that this quite a lot more coming to the market placing, it's good just to get going of your own area as well to, see if that trend is in the public areas of the country, so, you can understand, that actually it's just not variable to the place that you like and love is, a general trend actually videos.
About These feat property, news, yeah, I have. Stay. Wide and clear of those and what you preach about them is right I don't know how they get away with what I say I'm sure you'll, have seen that there's a lot of feet Beauty does not say you need to do a course to, sell stuff successfully. Online, what do you what do you see mmm. What. Would you need to go on a course in to to buy and sell products, you just got to be savvy, yeah. No I know, so I've got a bit of an idea and I want you to put your money where your mouth those okay, okay you feel if I said to, 20, of the viewers of my youtube, channel that, we will give them 200, pounds. To buy product from your, company, okay, so we give them the money to buy the product so they get over 200, pounds each and then, they have to do a video just, showing how to buy and sell product. That's. Exactly, right it. Is easy to buy self product so you're saying to me that we. Gave. 20, of your subscribers 200. Pounds, to, be a Dell, boy type person, if you like to come and buy do the research I think cheap haha, and then sell on a. Diary. Of it for you and see. Me make some nice money out of the 20 so they keep the profits obviously so we give them 200 pounds, to keep the profits, and then, the winner will give them on