How Property Millionaire Russell Short made his Fortune with BMV Properties

By June 22, 2017BMV properties
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Sometimes the situations we go through in life help shape the way we think and even get us more determined to take risks to get out of them. This is what the now property millionaire Russell Short had to go through to get him from zero to where he is now. After cohabiting with three other students in a rat infested property in Royston for which he had to pay £1,500 per semester while at Barnsley College, Russell was determined to be in the landlord’s shoes one day. It is this willingness to take risks and determination to be more than a one property owner that drove him to invest more.

How he started

With a huge debt accumulated after university, Russell was lucky enough to land a well-paying job with a local web company. This allowed him to live a decent life, buy a car and clear some of his debts. Even with such first success, we cannot deny the role of luck and fate. He later moved to Northern Spain on holiday with his future wife and he returned back to Sheffield with a whole new and different perspective.

At the age of 26, having quit his job and yet with no cash on him, Russell took a huge bet with two credit cards which he used to buy a luckily very cheap run-down end terrace in Dinnington. The reason it was cheap was that it was in need of a whole lot of facelift which he accomplished by selling off his Audi TT for £11K and with the remaining money, bought a cheap van. This was not just the beginning but the start of his landlord career.

With No experience

Ideally, one would want to buy a house at a low price and not have to spend much on refurbishing but sell at a much higher price to make a profit. However, this is not such an easy task as it requires experience and some sort of guidance hence the need for real estate agents sometimes. Russell, however, did not have the luck of having one and given that the house was in such bad shape, he spent six months turning it round and yet he ought to have spent only six weeks. However, this did not dampen his spirits as he kept on going even with the house falling apart twice during the reconstruction. He was lucky though to sell and he made around £30K in profit. This was the first door opened for Russell in the property business. Soon after, the property market rose enabling him to buy more and more properties, renting out some and selling others.

Ambition

Buying and selling off a house is no such easy task. Even with the growing market then, Russell was not having it all his way. He admits that the first three years were all about hard work, long days, stress and getting his hands dirty. In 2005, he attempted Off-plan ski apartments in Bulgaria but the build dragged to 2007 and the project crashed collecting him a huge loss of up to £28k. Of course, there are dark days of no sell or even selling for less. But even then, he did just end here because he was in need of more than capital and a nice living,

Buying below market value

With the buying and selling, Russell would, of course, get his money back, but that was not enough. It was not until a friend of his introduced him to buy below the market value concept that the business greatly kicked off for him. Below market value is purchase or sale of property at a price that is lower than the current market price. With the knowledge he had acquired, he was able to combine forces with a team of investors using this technique and they purchased thousands of UK properties. It was easy then because all they had to do was offer 30% below market value for the vendor which money would be used to cover legal fees on both sides. With all costs settled even for the seller, he or she could choose to stay in the property as a tenant. The investors could then choose to refinance, sell and get their money back.

Unfortunately, it is not this easy lately ever since the financial crash in 2007/8. The criterion for buying and selling has been made longer and more complex by mortgage lenders and regulators. For example, you can’t refinance or sell the property for a minimum of six months.

Russell Short now 38 has a portfolio of up to £6.5 million in addition to running a lettings agency, Property Partners in Crookes, and boiler installation, repair and servicing company Home Team. He admits that life is easier now but it was all hardcore work in the beginning.