Son’s plea inspires career change
It was a review of his pension plans and a request from his son that inspired Mike Anderson to become a Platinum Property Partners franchise owner.
When he left his job as the Managing Director of the UK division of an American car corporation, Mike Anderson decided to look at his financial position before choosing his next career move.
He was shocked to discover that after 20 years contributing to his pension, it was worth no more than the amount he had paid in. By contrast, when Mike had his Stockport home valued for re-mortgage purposes at the same time, it became apparent that the amount of equity he had earned over the last eight years was double the amount in his other investments.
“Considering my wife and I hadn’t made any massive improvements to the property, this was a huge surprise,” Mike explains. “Particularly when I compared the gains in the value of our home against the lack of appreciation in my private pension plan. It made me realise that I had to do something different – and quickly.”
Another inspiration for Mike pursuing a career in property was a conversation with one of his children. When Mike explained to his son he was looking for a new job, the nine-year-old asked: “Dad, is this the job where you stay at home? I miss you.”
Having spent the previous 20 years working 80 hour weeks – often overseas – Mike realised not only did his pension provisions have to change, but his lifestyle had to as well.
“I wanted to be able to do simple things, such as collect my children from school or take my wife to a coffee shop to just sit and chat. I felt if I didn’t get off the corporate merry-go-round and actively pursue a different route, I would just be existing, rather than enjoying life, and my family wouldn’t get the best of me either. That’s when I came to the conclusion that starting my own business would give me more freedom. Given that I’d also realised property was a viable option, I decided to combine the two.”
In early 2010, thinking that buying into a franchise would offer a ready-made infrastructure, he started to explore franchisors operating in the property sector. At this point, he discovered Platinum Property Partners (PPP), who he then met at The National Franchise Exhibition in Birmingham a few months later.
One of Mike’s main criteria was to find an organisation to work with that matched his own ethics and strong values, and also where he could play an active part in the development, not only of his own property portfolio, but also, by using his corporate skills, assist others with their businesses too.
Mike adds: “The fact Platinum encourages this network of like-minded, entrepreneurial people to help each other is fantastic, and that played as big a part in my decision to be a franchise partner as the financial and business side.”
Within months of joining the franchise network, Mike had bought his first House of Multiple Occupation (HMO) in Stockport, and seven months later a second. With two properties renovated and fully tenanted, Mike bought a third in September 2011.
Comparing the amount of equity he has earned in the last two years as a PPP franchise partner, Mike says: “I would never have achieved this level of financial freedom if I had stayed within the corporate environment, paying each month into an under-performing pension. Now, not only do I have a healthy monthly income, I am also building significant capital by redeveloping properties, so I have met both my short term and longer term monetary goals with PPP.
“But the best thing is that I now have a lifestyle I could never have achieved previously. If the family want to go on holiday, these days it’s a question of how long would we like to be away for, rather than can I get the time off.”
Written by Fraser McKay
*Your initial investment plus working capital will total in the region of £300,000.