Transcription
[Music] welcome to momentum investing property investing made easy one of the world's top podcasts on property investing bringing you the top experts in the field so you can learn first hand what it takes to create passive income and take control over your financial future.
welcome to the momentum investing podcast and welcome to today's show. my name is daniel wood and i'm one of the founders of momentum property education. today we have a very exciting show for you. we have none other than mark lloyd, a very experienced investor who's going to share with us what it takes to become successful as a property investor, what kind of deals is he working on right now, and what does he believe is the smartest way to invest given the overall economy.
so thank you so much for joining us here today. make sure you subscribe to the momentum investing podcast or follow us on youtube because we come out with exciting interviews with top experts from all over the world every single thursday. so you can find us on youtube, spotify, on google podcast, apple podcast, pretty much anywhere where you listen to podcasts. and we make sure to bring people like kim kiyosaki, jordan harbinger, meb faber, and of course, today's star guest, mark lloyd. so we're very excited to have you here.
if you have any questions, either if you're on youtube, you can comment on the video, or if you're what if you're watching or listening on another platform, just join us on facebook. we have a facebook group called the international property investors facebook group. you can find it by going to momentum property education's facebook page and you'll see it as a linked group. that's international property investors. and feel free to ask ask questions there in the group for over 1500 investors who are all looking to grow our portfolios, learn together, and find new ways to expand. so again, welcome to our show. thank you so much for joining us and i will see you on the other side.
welcome to the momentum investing podcast. i'm excited to be here with none other than mark lloyd. mark, welcome to the show.
hi daniel, good to be back.
yeah, great to have you back on the show. we had you back uh last year and now we're on year two of the momentum investing podcast. so what better to come back and kind of see a little bit what's going on. uh you've obviously, well, if you want to quickly just give everyone a background to who you are, where you're at, and then we'll start looking at what kind of deals you're working on right now. and of course, we have the big subject we're going to talk about in a moment about the crowd fund and how you can use that to get financing on your deals.
sure. okay. so um, i'm based in the uk. i've been in business now for, i think it's 33 years. i started um investing property investing in 2005. prior to that, i had no property investing knowledge whatsoever. made a few mistakes between 2005 and 2009, and that's when i eventually got educated. and uh by quite a well-known uh company in the uk. um, and yeah, i've built up quite a large portfolio since then. uh throughout the uk. i only only focus in the uk. i don't invest abroad at all. um, and i've built up a training company as daniel's aware, and also a crowdfunding platform, which we launched last year, which is expanding quite rapidly in various parts of the world. in fact, we've just gone live in new zealand as of yesterday.
oh wow, congratulations, congratulations. so before we get into the details on the crowdfunding platform and what we've been doing there, um, talk about kind of the deals you're doing right now. obviously the uk economy has been through the ringer in the last uh 12 months with covid, brexit, the uh, you know, all the quantitative easing, and now starting to see some inflation. you know, there's so much going on. so what, what are you working on right now and and why are you working on those type of deals?
yeah, it's quite interesting. i mean, with the the massive gdp drop we had last year, last year, which is the largest since the second world war, and now this year, it looks like we're going to be the fastest growing of the g7. so um, a big, big, big turn around. um, in property terms, i i don't tend to add to my portfolio individually now. i'm more looking in clusters. so i've got uh three, four, four projects on the go at the moment, which are three are land deals and one is a commercial conversion. so if i talk very briefly about the land deals, so we've got a plot of land in dover in kent, which is in the south coast for those of you not aware, south coast, southeast coast of england. and that is going through our second prehab at the moment. so our pre-application process before we actually apply for full planning. and we're aiming to build 24 new uh units there on a roughly six acre site.
oh wow, cool. not sure what that is in square meters, but anyway. um, we've got another one in surrey. so this is uh within the m25, which is just outside london, basically, you know, where london is, a little bit south, about 10 miles. and that's where the plot of land is. so it's in a high demand area. again, that's about six, seven acres. um, we're currently going through a lot of issues on that one because it's in metropolitan greenbelt. so it's got a lot of issues. but the gdv on the site is between 50 and 60 million pounds. so um, yeah, quite, quite excited about that one. but it has taken a long time to get to where we're at at the moment. i've got a commercial conversion. i should say the dover deal, by the way, has cost me no money whatsoever, apart from architects fees at the moment. the deal with the vendor is that the vendor put the land into the project and he gets paid at the very end. so not planning when we sell. maybe deal. sorry, one is not too dissimilar then. the i've got another surrey one, which is uh happens to be a relative of my my business partner, jackie. um, and that we've got by the looks of things about eight houses to be built on that. so that's in the expensive area of the country, guildford, which again is south, which is where i'm based. so i'm expecting around about a million and a half profit on that one. and then lastly, the commercial conversion. um, this is an off market. once all of these are off market, by the way, that not got through agents at all. um, and the commercial conversion here, um, the vendor wants 3.8 million for the building. um, it's already got permitted development prior approval to build 30 flats, convert into 30 flats. but we want to go up another floor and add another 10 to make it 40. and um, again, what we've done here, there's no money of mine going in this one. i love these kind of deals. so the vendors got one billion pound mortgage on on the prop building. and i said, well, a 3.8 million for just 30 flats, it doesn't work. but if we can add another floor on, it will work. would you be happy to to jv? so what we're going to do is finance the whole thing. so we'll be able to finance to repay his million if necessary, and we'll be able to finance the bill 100. so no money apart from some architects fees uh going in. so i'm really excited about all those kind of problems. i always look for um wherever possible, the creative way of doing doing the deals. and in each of those projects, it will allow will actually build my portfolio anyway, but in big chunks at a time, rather than one year on there, not one bite to let at a time. it's blocks.
so our is the idea to keep these and uh refinance them and rent them out, or are you flipping them on and selling them?
i think we're gonna do a mix. um, we're definitely gonna build. uh certainly for dover, obviously, the commercial conversion and the one in guildford. the larger one, the big site, and the 50-60 million pound one, we're going to need a bit of help on that one. it's quite, quite a big site. so um, i haven't quite worked out what we're going to do yet, but we're some way off from that yet. so but we are talking to some big house builders on it about homes in particular are very interested in the site. and they've already offered around about 10 million um for the site as it is, without planning.
so you might just take that and run. yeah, very cool, very cool. and but is the idea to to then kind of sell some, get your money out, and keep the keep the rest? is that how you'd go about it?
yeah, we're probably going to sell at least 50 percent. right. um, that's the idea. i mean, you're aware yourself, danny, the market in the uk at the moment is really good. prices are increasing quite well. i think that will happen for the next four years, maybe four and a half years before we start to see a dip. so we want to take advantage of that whilst we can. and if we can do that in that time frame, then we will sell a large proportion of them. yeah.
now the market has gotten real, really exciting. as as you said, the uk are in is complete bounce back right now, going through the roof. and but at the same time, we see inflation increasing. so it's gonna, that's obviously gonna have a good impact on on for us as property investors because, you know, properties go up in value with inflation. it's going to be very interesting to follow the economy over the next few few months and and years for that matter.
yeah, absolutely. i agree. it's going to be going to be exciting. the rest of 2021 is still a little bit uncertain because we don't know, you know, the government measures once they start to fizzle out. so there's, you know, the measures they took, the same stamp duty, the furlough scheme, once those, those are finished, we've got a little uncertainty to know what's going to happen there. and we've got a huge shortage of stock at the moment in the uk, which is why, you know, year on year now, i think it was 10.9 growth in the past 12 months, which is, yeah, that's that's just incredibly high. and obviously, there's a lot of questions to what, what will happen when the stamp duty holiday goes away. will that kind of let the air out of the balloon a little bit? but at the same time, with, i mean, they've really, the government's really focused on, you know, the development sector. they wanted to boost the development sector. that's why they took the stamp duty holiday. but now with the the first, the first time buyer mortgages, the 40-year mortgages, it's obviously giving people that much easier a time to buy and and making it that much more affordable, which of course means that what they do is they then pay more for the property and it becomes just as unaffordable again. but the benefit goes to us as developers who are building and selling. so that, that is really, really cool.
yeah, i agree. it's exciting. quite exciting time. so yeah, we'll see. very good. and now, of course, let's let's get into really what, what here the momentum property education community can really get get from you and mark. because one of the things you've been working on for the past couple years, you've been working with max crowdfund, building the crowdfund platform. and now i financed one deal through the platform that went brilliantly. i got another three that are in the works on the way to kind of come up. so talk about that. how did kind of max crowdfund come about and and what do you see max crowdfund doing here going forward?
yeah, i mean, max crowdfund um came about, well, if i go back about four or five years when we originally started the company, max property group. um, it was a property investment company and we had representation in germany, netherlands, and the uk. and essentially, we were just buying properties and issuing bonds that investors could invest in. and we were buying portfolios essentially in the uk, netherlands, and germany. um, now that's a lot of work and quite a lot of hassle. um, and so we took a decision really to to stop that and just focus on what, what the core activity was, which was finding investors and finding projects and then matching the two together. and so we started a couple years ago to start building the platform. um, several hundred thousands pounds have been spent on developing the platform. um, and and it's built on the blockchain as well. so it's, it's kind of the latest technology, totally transparent, so you can see everything that's going on. um, and the idea behind it was literally to say to focus on our core activities, which was finding investors, which we have. i can't remember what the current figure is, but it's somewhere between 60 and 70 000 uh registered on our platform at the moment in 120 countries. um, and we kind of had a lot of issues with platform. i mean, you know, try just trying to get the tech right, um, trying to link it into the blockchain, trying to get the multilingual as aspects. i think we're now got 25 countries and i think we're going to have swedish translated soon. i think that the swedish is already translated.
yeah, okay. we've been through and done that. yep. that uh, it's, it's always um, fun uh translating, but once it's done, it's very, very nice. yep. so so that makes it makes it multilingual as well. multi-currency is just around the corner. all at the moment, we can only take euros. we've, i'm sorry, and new zealand dollars because that's now just hit the the platform. so that means the other currencies will now come into play, particularly obviously the british pound and uh, the us dollar will come in. so with multi-currency and multiple things you've got to do on the platform, not only loans, but joint venture equity kind of financing and trading within the platform itself, where some, if someone wants to pull out of a project, they've got potential to sell that project, that portion, that project under somebody else as well. so there's quite a lot of things happening over the next.
yeah, i mean, just just kind of highlight those things. that's really, really cool. i mean, first off, we can use it as a way to fund our deals. like i did. i funded about 80 percent of my entire property project. not just the purchase, but the actual entire project i financed through the deal at a pretty fair interest. i think we're paying 7.5 percent per annum interest. so that's really nice, considering it was a purchase and now we're going to refinance off of that and and be able to pay that back. so that's been huge. um, but then now you're you're launching that we can actually use it as a joint venture tool. so instead of me going out and finding joint venture partners, i can essentially just go to you guys. you already have the investors and we set up a joint venture, which is really, really cool. and then of course, the the the last part there with that you can actually trade on the platform. i i that is to me, really, really exciting because that means that when an investor, they might invest whatever it is, say they invest 10 000 euros or pounds soon now into a project, and then six months later, something happens, they need their money back. thanks to the blockchain technology, they can now trade that with another investor. and another investor can come in, take over their mortgage position or loan position. they get their money out. that is that is huge. i mean, that's not available through pre. you've essentially made property investing a liquid asset, which is really, really cool. and especially in the joint venture space, i think that is going to be truly unique because, you know, if i have a joint venture partnership, usually the only way to get out of it is either fine, go out and try to sell my position to another investor or, you know, or essentially dissolve the partnership. and now all i need to do is click a button and say, all right, i want to get out of this this partnership. i need to free my capital. so that's that's really, really cool.
yeah, i mean, i think it's um, it's something i think i think that, you know, it will grow quite rapidly. i think um, uh, the because, you know, like obviously providing loans is one thing, and then you get the obviously the interest rate you've got to pay. nothing investors get paid an interest rate. but there are a lot of investors, there's some more serious ones that would like to have a share of the equity. and then they're more and they don't want they don't want an interest rate. they're just happy to put money into the project. obviously, you know, they're high risk individuals. so it is restricted to certain types of investors to invest on that side of things, whereas the loans is not.
well, that's and of course, i mean, just look at it. i'm borrowing money now at a 7.5 interest. i'm doing it because i see how much more i make off of my deal. i mean, it's for me, it's it becomes very cheap money. but uh, some investors, larger, more experienced, they know that i'm getting that upside. so obviously they'd rather take an equity position and say, look, daniel, you're making 30, 40 percent. why would i take 7.5? give me a bigger cut of this whole deal.
yeah, exactly. that's that's exactly it. so yeah, it would be limited to certain types of deals, i think, to begin with. what, just like like with the loans, we need to kind of test it a bit more and see its practical use and see if there's any glitches within that side of it. but now i'm quite excited about that. that will certainly be available within the next quarter.
very cool. yeah, we're we're definitely going to keep talking about that as that comes out because i know both myself and i know the community wants to wants to get access to it. um, so when you're gonna apply, i'm just gonna for anyone listening, right? so the way you gotta apply is obviously you gotta prove that you have a proven track record as a property investor. one of the great benefits with being a part of the momentum property property education community is that that kind of becomes your free ticket into that. so if you want to use the crowdfund, just reach out to us and we'll help you go through that process and and get get that type of lending because it's it's such a huge opportunity.
yeah, i think a massive opportunity. and you know, it's something that your your mentees and students really should take full advantage of. uh, you know, it's a, it's a relatively easy product for you to apply for. and i know a lot of you invest in the uk, but yeah, it doesn't have to be the uk. it could be germany, netherlands, virtually at the moment. i mean, we are looking at the moment, a project in mexico.
wow, okay. for a uk-based developer. so it's more about where the uh, developer is based. so if they're based in the uk, or you're obviously based in sweden, but you've got british interests, then then potentially the project could be anywhere as long as we can get the the basic groundwork. so we, you know, the qualified people at the end are working in our interest in terms of lending the money. so that we may know the money secure, that we know that's not a fake project, and all those kind of things. yeah, then, um, you know, potentially that's that's possible. and this uk developer, he's, he's, you know, loan to value is quite low because obviously the risk element. you know, we want to make sure he's got a lot more uh to lose than than than otherwise would be the case. so but, you know, we're looking at um, somewhere near cancun. i can't remember the name of the place, but it's never near cancun. we're looking at uh at the moment. so that could be exciting as well.
yeah, very cool, very cool. that sounds amazing. well, i know everyone wants to learn more. i mean, obviously you yourself are working on really cool projects. max crowdfund is super exciting for us at a more egotistical level because it benefits us directly. but how can we connect with you? how can we follow you? how can we follow the project and and your progress? you tend to be very, very active on social media and sharing kind of what you're working on.
yeah, sure. well, um, my first of all, terms of the platform, obviously they need to come back to yourselves and get themselves registered. i i what i would say is even if your listeners haven't got a project yet, is to get registered on the platform because that's, you know, sometimes that has a few glitches where people aren't aware of that, where their, you know, the passport doesn't upload properly or their id doesn't upload properly. and that can cause unnecessary delays. so register on the platform. it doesn't cost you anything to do so. daniel will provide you with the link for that. um, but yeah, in terms of um, following me, so yeah, i'm on uh social media. so i'm on facebook. you can follow me. uh, i can provide you with the links. obviously facebook, linkedin, instagram. i'll add the links to the show notes so everyone can easily find you. um, and yeah, i'm really recently active. not as much active as i used to be, but, you know, and you'll also see the stuff that max's merc, max crowdfund is working on. you'll see the stuff that i'm working on as well from my own perspective. and sometimes you just see a few things in there like i posted a bottle of champagne the other day.
well, we have to celebrate our wins, don't we?
yeah, absolutely. well, mark, thank you so much for joining us. this was awesome. i am super excited and i hope everyone takes advantage of this. so just send us a message at momentum property education, either through our website, which is momentumpropertyeducation.com, or just support at momentumpropertyeducation.com. we'll help you get you signed up and ready to go with max crowdfund and these amazing opportunities that exist there.
all right, thank you so much, mark, and i'll speak to you again soon.
yeah, cheers. thank you so much for joining us here today. i hope you enjoyed that interview with mark lloyd. next week, we got a very, very exciting show with you for you because we got terry liggins. now terry is is a unique individual because she is a ghostwriter, meaning she's written books for people like les brown. their books that you've probably read were actually written in large part by terry. terry is an amazing person. she knows some of the most successful people in the world. and on this episode, she will share with you some of the key lessons that she's gotten from working one-on-one with les brown and other amazingly successful people, so you can take those same lessons and put into your life and to expand. she's got one really exciting story, especially that i know you're going to want to hear about how les brown used the law of attraction to bring an opportunity into his life that changed his life forever. she's going to share that in the episode next week. so make sure you subscribe, either follow us on youtube or follow or subscribe to the podcast on any podcast platform. and please, if you had any questions, make sure you comment on the youtube video or go to the international property investors facebook group. you can ask your question there. we're here to help. we're here to support you. thank you so much again. my name is daniel wood. i'm one of the founders of momentum property education. thank you for joining us and i'll see you next week.