Joint Venture Property | Teacher Michelle Cairns’ £1.5M Portfolio On Property Mastermind
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Joint Venture Property | Teacher Michelle Cairns’ £1.5M Portfolio On Property Mastermind

– Our next presenter is
gonna tell you her story. Please put your hands
together for Michelle Cairns. (audience claps) – [Announcer] Hello, Michelle. – [Michelle] Hello, Vlahees. Thank you so much to Simon
for inviting me onstage, and genuinely thank you
to everyone in the room. You’ve really, really supported
me through this 12 months, and I owe a lot to you guys. I’m just gonna start by giving a bit of background about me. One of my biggest passions is languages, and since a very young age, I’ve always loved learning languages. And when I was 18, I
decided that the best way to learn French was to go
and live there, in France. So that’s what I did. I went and lived there for three years, and then also lived in Spain as well. So that led me on to being a teacher. And I taught English as a foreign language when I was living abroad. I taught French; I taught Spanish. And I remember the moment where I got my first job as a teacher, and I was so excited, and I
was so happy, and very nervous. But I thought, “Finally, I get
a chance to make a difference “and do something I
love at the same time.” I gave everything to that job, really did. I just threw myself
into it, and I loved it. I’ve done about eight
years now of teaching, but very quickly I realised
that, although I loved it, it really wasn’t a sustainable, until I was retiring at 68, job. I realised that I wanted
to stay in teaching and stay in schools but
I needed a backup plan. So, at that time, somebody out of the blue I don’t really know very
well, a guy called Tim, had just, he gave me the
“Rich Dad, Poor Dad” book, and that changed everything. I know it’s a bit cliche, but it did. So from that, I googled
property in Chester, and that started me on
a five-year journey. The first year I just
learned as much as I could, I worked for a sourcer
and worked for free, learned the ropes, did
lots of admin for him, did the leaflets, so my summer
holidays and my turn times in the evenings and weekends
were just about learning and working and just
learning the trade, really. Through him, I bought a
couple of single lets, and I was in the environment and I was coming to these pin meetings. And Simon asked me, the
other day, he was like, “Well, you’ve been in the
environment for a while,” and I’ve been volunteering
at the local pin meetings for a couple of years, and
I’d seen people come onstage and seen them come and go, and I guess I mustn’t have
believed that it was possible for me to come and do Mastermind. I don’t really know why,
but I was so focused on the teaching, I wanted
to do that really well. I was just struggling
to juggle, I suppose. The thing that changed things for me was a friend of mine who, he invited me into the Acelerator and that changed everything. A couple of you in the
room were there as well. At the Accelerator, I
realised how much I knew, and it was almost a little
bit embarrassing me, because the content was
so familiar with me, I sat there and thought, “Why is it that I’m not
achieving all these big things?” That was a game changer and that led me to come into Mastermind. This clicker isn’t working. It’ll come up in the slides in a second. The other thing that I’ve
been doing this year, thank you, is my investment area is Chester, in and around the area,
so North Wales, Wirral, and around the area. You have the privilege of working with “Your Property Magazine,”
which has been phenomenal, that has been amazing experience as well, and I’m really very
grateful to be part of that. So, my why. I’ve got my family. A big reason for my why was
moving away from teaching and being financially free. With my family, I want to be able to support them financially. I want to be able to spend
more quality time with them, but also, another big reason why is I’d like to go back and
work with young people, but not in the capacity
of the French or Spanish. I’d like to be able to work with them in personal development skills
and emotional intelligence and help them with life skills. So that’s a big reason for me. Thank you. Thanks. Okay. I’m on the right, by the way. It’s my mom and my sister. (audience laughs) (Michelle laughs) People get confused sometimes. My mastermind journey. Since the start of the Accelerator that was when I signed up, it’s when I paid and
I started my coaching. Alyssa, can you do the
slides for me, please? (Alyssa laughs) Okay. (Michelle laughs) The first one was a
development of the four flats. I’m gonna come onto each one individually. The second was a seven bed rent to rent and a freehold to leasehold. And the final one was the 10
bed purchase lease option. So there’s me, yeah. Also, one of the
highlights of this year is being able to go on Sky Property TV and pitch to the investors there. That was an amazing achievement. I’ve done two joint ventures,
private financed 156,000, bridging finance, I’ve
used a SSAS pension fund, which was an experience, (Michelle laughs) an empty homes loan, which I’m gonna come onto in a little bit, and the Sky Property TV
that secured the 200,000. So, development of the four flats. This has been an experience,
it’s been a long process to get this to completion. I found it on RightMove. It’s in North Wales. It’s a freehold, and I learned the
strategy on the Accelator. Simon said about looking for properties where there’s a freeehold
with different flats inside it that haven’t been split. There were four existing flats, so we didn’t need change of use, we didn’t need planning, because it was existing four,
but it was in a real state that had a prohibition order on it, which meant that the
courts had closed it down. Now, I’ll leave to your
imagination why you think they had closed this down. It was a really, really bad state. I went to a joint venture part, he wasn’t at the time,
but I went to a friend in my network and said to him, “Would you be interested in
doing something like this?” And he said he would and we’ve
decided to do a buy and hold. This was at the start of the Mastermind. There is no way that I
would have gone for this without being on Mastermind. Just knowing the fact that I
had coaches, I had mentors, I had you guys and the
wide Mastermind community really gave me that courage to say go for it and I’ll figure out later. A bit on figures. The purchase price is 60,000. Now I called the agent and I said, “Are you sure that there
isn’t a zero missing here?” (audience laughs) And she said, “Yeah,
actually, let me go check.” The development costs
were estimated about 85, as you should probably over
project a little bit on that. Private financing, we
raised 50,000 to buy it. And the Empty Homes Loan, if
you’ve not heard about this, make a note now. This was from the local council. It’s an Empty Homes Loan. Each council is different
and some of them have got grants and have got
loans, so this is a loan that’s got to be paid back, but it was 25,000 pounds per unit. So, because there’s four flats, we have achieved the 100,000 pounds. It’s naught percent for five years, so this is really worth looking to. And one of the surprising things is the property only needs to
be empty for six months, in my case, so how many
properties are just sitting there for longer than six months? The other bonus, cherry on
the cake, was the stamp duty. According to our tax
advisor, if you buy property that is uninhabitable,
and you can prove it, and we had the prohibition order, so we could prove that
it wasn’t habitable, then the stamp duty is exempt, so we are claiming that back. The duty we are looking at, 250,000 pounds worth, conservatively. At the end of it, its a JV 50/50, so the net income will
be split, 650,000 pounds, no money left in. The seven bed rent to rent came up next. It’s through a landlord letter. There’s seven bedrooms,
but on this property, there’s actually four
bathrooms and four kitchens, like kitchenettes, they’re small. It’s in the city centre of Chester, and I made this slide the other day, so six out of seven rooms, actually all the rooms have been taken, and the guys are there painting it today. For anybody who’s doing a refurb, I used a picture of another property that I’d refurbished. It was the same furniture,
the same colour in the paint, same carpet so I could say,
“This is what you will have.” And they’ve taken it all already, so it’s fully tenanted,
which is phenomenal. I have seven-year agreements
with the landlord, and a private investor came
on board with me with this, to make this possible. The income is over 2,000
pounds because I’ve been able to structure the loan
over the seven years, so it’s made that possible. Freehold to leasehold. This is one that I found in auction. There’s three flats on one title, but what we’re gonna
do is split the top bed and split the basement as well, essentially getting and extra
two, three flats from it, by allocating the garden to the back flat and the exit strategy
is to split the titles. This one I’ve come on
board with a JV partner to do this one. It was fully funded with a SSAS investor, who I met a pin meeting, I might add, and he’s funded everything. The purchase price and
the development costs, and the end GDV we’re expecting to be 445, and that’s conservative. Finally, the fourth one is the
10 bed purchase lease option. I found this through a sourcer, and it’s actually on the
same street as the other one, so it makes life very convenient for the tradespeople going up and down. I’ve agreed the purchase price of 350,000. It’s five-year deal. The refurb is 25,000. Private finance, again, and I’m looking to add
value by adding bathrooms. I have opened the process
of ripping out the kitchens and renovating it throughout. Net income about 1500 there. Overall, there are the figures. The flats GDV 250, freehold 445, and 10 bed 350 on the end values. Total net month income
4,000 and annual 55,000. Next project, if anyone is interested, is then exchange with delayed completion, ’cause I haven’t ticked that box yet. (audience laughs) and that’s what we’re
gonna do with the building. It’s purchase price 150. Yes, property is very cheap up north, (Michelle laughs) so 150 gets us a whole lot. Development, about 20. I need some money for the deposit, and the GDV will be 260,000 ’cause there are four flats and two shops. If anyone’s interested in
coming on board with me, I’ll looking to raise
the finance for that. Finally, top tips. Prepare for a roller coaster. If you come on a journey like this and if you continuing as well, every day is just up and down, more than you’d ever believe, and you need some grit to
get through that as well. Which leads me to invest in your mindset. For people who know
me, they know that I am really passionate about
personal development, You have got to feed your mind. You have got to feed your mind every day with positive things to keep you going and keep you going through
the highs and the lows. A “Slight Edge” book, I put that in because there’s hundreds I
could have put in, but this one. Some people, they’ve got
the target that they aim for and that’s what pulls them, and for me, it was all about just
get through the next day, just get through and just keep going and keep chipping away. And then the compound effect of that, I put that down, too,
that’s why I’m here onstage. I’ve put be a farmer, because
what I mean by that is in that same idea of
just keep chipping away, a farmer plants the seeds and then they go off onto
another field, do something else, and they come back and watch it, but they don’t come back
a week later and say, “Why isn’t this plant here?” They trust the process,
which is Simon’s key phrase. Trust the process and
trust what you’re doing. Every letter you send is a seed, every phone call you make is a seed, every meeting with an agent,
they’re all planting seeds and, like we’ve heard
today, there’s some people that a letter comes
back from two years ago that somebody had kept. This is downhill, stay out of
trouble and plan for double, which I think is self-explanatory. Plan for double on costs,
plan for double on time, and then you won’t be frustrated. (Michelle laughs) This is my biggest one here, key environments, key people, key ideas. By us all being in this room, we’ve all had to bet on ourselves, we all put our chips down
on ourself to be here, and that’s what I’ve done. It dawned on me Accelerator that I had to be in this environment, had to be here, surrounded
by people who are on the same journey as
me with the same goals and same aspirations. And I think, when you put
yourself in that environment with key people, you
become like the people you spend time with. That’s what happens when
you’ve got those ideas, and come to those shifts in how you think. My mindset has changed so much this year, and people have commented. But it really has, I can’t
even explain it, but yeah. To wrap up, thank you. Thank you to Simon for putting
this community together and inviting me onstage. My joint venture partners,
which were David and Andrew. I couldn’t have done this without them. My investors, I couldn’t
have done this without the investors. My coach, Gille Barlow, who really help me shift on really important decisions, shift the way I was looking at them so it completely restructured deals and have different
conversations with investors and landlords that has made this possible. That’s my 26. It’s been a journey, and I really, really
thank every one of you. And even those tiny
little conversations that, in the corridor, have made a difference. My mom, who’s always been there from, she’s always supported me,
through thick and thin. My friends and my networks
and my networking groups and the wider community. I think everyone who’s had a part to play will know what they’ve done. Thank you very much. Thank you, Simon. (audience applauds)

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