I had success yesterday securing a cracking property prior to auction. I knew for various reasons that there would not be many takers for it. I made an offer before the legal pack was published, and I was very quick to see it at the very first opportunity. The seller accepted 'in principle' and the auction house rightly insisted that I read the legal pack before finalising the contract. All very sensible and everyone was happy as contracts were exchanged. I know the area very well, so it was only the Special Conditions of Sale I needed to read, as I already know the other information like searches, title, charges etc...

The property has a few issues that can be easily fixed. The gross yield is 28% on the purchase price plus costs (costs about £4,000) and the net annual operating yield on total costs is 22%.

It's not bad. This adds to two similar examples in 2025, though the net operating yield is 33% in the other cases.

The numbers are huge; the cash payback period is just 3 years. I will use these properties as 2025 examples in my forthcoming talks at the Property Investor Show in Excel, London, on 11th and 12th April 2025.

Invest in boxes

Those who have been on my workshops in London will know that I treat properties as boxes which produce cashflow for specific purposes, such as school fees, supplementary income, retirement pot etc....I don't believe in spending money on them unless it's essential. The original kitchen will do as long as the property provides a lovely home for a tenant. Focus on keeping costs down and income up, and the cashflow will look after itself.

Above all else, buy distressed assets wholesale, not retail, through estate agents, Rightmove and Zoopla. The numbers speak for themselves.

I look forward to seeing you at the Property Investor Show next month. We're on Stand 10, and I have a few speaking gigs, including an auction panel on both days.