Property Market Slump? For Platinum Property Partners it's the fast-track to Financial Freedom...
Platinum Property Partners franchise partners are reporting flourishing business despite the weakening housing market, thanks to significant discounts at the time of purchase, extremely high monthly cashflow and 13 per cent plus Rental Yields! Finally 'Property is on Sale' say PPP
'The credit crunch has been good news for the Platinum Property Partners (PPP) business,' says Judy Mizen, who runs her Basingstoke franchise with her husband, Chris. 'In fact, the credit crunch is the best thing that could have happened. The lowering of house prices has meant that it is a buyer's market and we are getting properties at lower prices than we were before. The only downside is that lenders are being more cautious with their money, which means that we have had to put down bigger deposits but this is made up for the fact that we can refinance out most of our capital as long as we buy with 15 per cent or greater inbuilt discount. This may sound hard to achieve but following the PPP franchise system this is more than achievable. Overall the credit crunch has been good news for us.'
The Platinum Property Partners business model enables franchise partners to gain revenues from cashflow positive houses in multiple occupation (HMOs) purchased and operated in a way that consistently outperform how others operate these properties. In addition to the PPP cashflow positive model of investing, franchise partners can also operate the PPP buying below market value system (BMV), self-build system and high growth, low risk international investments. Judy confirms: 'We have two properties up and running, which are making £2,000 a month net profit, so £24,000 a year from just two houses! And, we own the underlying assets which, medium to long term, will once again see a rise in value. We are not overly concerned with static or declining values. You just have to make sure you buy right and in the current market, you have to buy your equity up front so that if the market falls 10 per cent in value, but you buy at 20 per cent less than the property is worth, you are still quids in. Remember, we are buying mainly for cash-flow. With the PPP system, capital growth is a bonus and not a necessity.
'We have a specialist workshop every two months which covers all aspects of running the business as well as having one of the most professional teams of property advisors on hand whenever we need them. There have been some major changes that have arisen over the year, such as a toughening of planning and building regulations, tightening of environmental housing standards and challenges with regard to buying property below market value and recycling your capital quickly. However PPP as a franchisor has been very supportive and helped us through all these things. They are able to mobilise significant resources to help us address these challenges which means that while others are still floundering or are stuck, the PPP network is buying very aggressively and making superb returns. I would really not like to be on my own in the current property market.'
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Northamptonshire-based franchise partner Simon Mackaness, who runs his business with his wife Anna, also rates the PPP support very highly. 'Before we launched our business, Steve Bolton, one of the founders of Platinum Property Partners, mentored us. In addition to the mentoring sessions we also discussed in depth what we wanted to gain from our business - and how. Steve worked with us as we researched the properties in our area and we were taught both basic and advanced aspects of buying properties as investments in a way that was simple to take on board and backed up with a very comprehensive operating manual and systems.'
Simon and Anna have been running their PPP franchise for just over a year and they will achieve a first year turnover of £145,000. In addition, they now own over £1 million worth of cashflow positive investment property in the UK and have also made investments internationally through PPP and its sister company, Platinum Investment Partners. 'The international purchases have seen outstanding capital growth returns. Having a balance of a UK income generating portfolio, as well as achieving large capital gains in high growth, low risk markets are two of the key benefits,' says Simon.
'What I enjoy the most about running my business is the independence of being my own boss, setting my own targets and limits, but with the guiding hand of the PPP staff to help me whenever I need them. Also, I no longer have to spend hours commuting every day, which means I have more time to spend with our young children.
'We have spent our first year laying down the framework for our future, which is to grow our business by buying more properties. We are looking to expand into another location and as we continue to grow we will need to outsource some of the work - bookkeeping or showing people around the properties, for example.' Platinum Property Partners is looking to recruit more high quality franchise partners to aid the brand's expansion. The qualification criteria for potential franchise partners include:
- Having £300,000 or more in savings, equity, investments or other collateral
- Buying into the PPP Mission: 'BE More, DO More, HAVE More and GIVE More'
- Business management skills - for example the ability to manage people and projects
- Being a team player with good people skills
- The strong desire to succeed in property with the right support
Sarah Walker reports