Commercial Property Investment SUCCESS | Mark Banini’s £730k Portfolio On Property Mastermind

Commercial Property Investment SUCCESS  | Mark Banini’s £730k Portfolio On Property Mastermind

– So, let’s put our hands together for our next top performer, Mark Banini! (applause) – [Mark] Wow, whoa, what a rush, okay. I am so humbled to be here, you guys have no idea, I’m a bit nervous. So, kind of, bear with me. Thank you Simon for inviting me on stage. This is massive for me, and thank you guys, every one of you, has seriously helped me. So I’m going to talk very
briefly about myself, my journey, and then, and a few lessons that will help those coming next. So a little bit about me. So I’ve been a Financial
Services Consultant for 25 years. A long time. And I have an MBA from City University Business course, it was then, it’s now CASS. I’m a Qualified Programme Manager and, prior to coming on Mastermind, I had no property experience. So, just a little story about how I ended up on this particular course. So, this would have been November, 2017. I was two years away from
paying off my mortgage and, my current banking client, I’d taken a cut to come there, my boss knew it. So I went to my boss and said, “I gotta leave. I’ve got to find circa $100K, and you’re not paying me what I’m worth, so I’ve got to quit. I’m really sorry to leave my project but I have no choice.” She said, and I quote, “Mark, there’s another way.” “What are you talking about,
“there’s another way”?” I’m gonna quit, you’re not gonna keep me.” “No, no, seriously
Mark, there another way. Come and join me on this property course.” I’m like, “What? Hang on a minute, I’m not
doing a property course. I’ve heard about these cults.” (audience laughs) She said “No, this is,
this is Simon Zutshi.” And I was like, who’s
this Zutshi character? I’m not doing that. Anyway, to cut a very long story short, this was, like I said, November. Between November and February, I joined. I read about 30 books. I don’t like going into stuff knowing nothing. Feeling like an idiot,
so I read about 30 books. Not nearly as many as Valter. (audience laughs) And so I felt I knew something. Interesting enough, I
didn’t read Simon’s book at that particular point. I read it after. But I joined the Mastermind Accelerator course in the February, and I was blown away. I didn’t know you could
do… I just didn’t know you could do this with
property, I had no clue, and it was like a light bulb went off and I thought,
(snaps loudly) that’s my way out, that’s, I don’t have to do a job that I’m falling out of love with
for the rest of my life so, I signed up immediately for the programme. Now, I’m gonna talk very,
very briefly, there is, most contractors will know the concept, well, I’ll use my words, of safety money. So, that’s your, you know, your money you put aside, your living expenses. Six months living expenses or so, in case, you know, work doesn’t come. I spent a big chunk of that and I didn’t tell anybody. So, I decided I was, I spoke to Dr. Tim, who’s at the back. (laughs) Big shout out to him, because I basically did what he did, he took, for a different reason,
but he took a period, six months after paying, and then joined six months later, so I
didn’t join the April course, which would have been MM25. I joined MM26
(pats shoulder) in October. In that period,
obviously I was lucky enough to get coaching with Billy,
but I’ll come on to that. So, why do all this? My reason why: My two babies. I’m not
allowed to call them that. My two daughters, they’re much older than they are in these pictures but, they keep me on the straight and narrow. They keep me on my toes. My extended family, I do martial arts. Also, experiences and I was, and I think that was
Usain Bolt’s final race. And then, obviously, holidays, travelling. So ultimately, all of
this is about freedom. This is about being able to spend time with the people I wanna spend it with, do the things that I wanna do, when I wanna do it. And that’s what’s kept me motivated, because this has been one
hell of a rollercoaster, so, at the beginning of the journey, so, we’re talking April, 2018, I said to Billy, my coach, who, we’ll talk about
him, he’s phenomenal. I wanted to achieve financial freedom within the first year. Cashflow was my priority,
because I wanted to be in a position where I
could quit if I chose to. Purchase, over Rent to Rents, I didn’t really want to do Rent to Rents, but I will come back to that. Buy and hold, and I wanted to be as hands off as possible, and I wanted to build my foundation before JVing with people, so it’s now, I said, it’s April, 2018, and I’m coaching will Billy. So I’m not getting the education. I, the course didn’t
start until October, so, and Billy’s like, “You know, do what Simon said.” So at this point, by
the way I actually read Simon’s book, I have read
it three times since then. I read it in the paperback, because we got it free on
Mastermind Accelerater. I read the Kindle version, and then I read the Audible, which is
actually my favourite. If you listen to Simon, two times speed, it’s incredible. (audience laughs) Anyway, so, I followed Billy’s advice,
which was basically a get up, you know, get out, talk to people, do your viewings, meet estate agents, talk to people, get to know your area, look for those motivated sellers. So… (laughs) I didn’t really do as much of that as I should’ve done. To be fair, I worked 60 hours a week, so I didn’t have as much time, and I know that’s a terrible excuse, but I didn’t have as much
time as I should’ve done. Plus that fact I have a, maybe pathological is
a bit of a strong word, but I do have that fear where, you know, you’re the landlord, you get a call at three o’ clock in the morning. “Oh, my boiler’s gone.” And my typical response would be, “And you want me to do what?” Which I know is not the right attitude, but I just didn’t really want to be a landlord. (Mark laughs) So why am I here? I was struggling, if I’m honest. The coaching’s absolutely brilliant, but I was struggling, so, five months in, and after doing everything
that Billy had said, so, you know, meeting
people, talk to people, go to pin meetings, and in fact, it was at one particular pin meeting that, a chance conversation, and I remember meeting
another guy in the pub. These two conversations, basically got me, so remember, this is month
five of six of coaching, month five, five now. Within the space of about four weeks I got not one, not two, not even three, I got eight Rent to Rent
Serviced Accommodation units. Which kind of blew me away, to be fair. And I was so chuffed, because
I didn’t have tenants. I guests, so none of this nonsense about boilers going, I had guests. Again, that’s gonna come back and bite me, so I’ll talk about that a bit later. So now, the course
is just about to start, it’s October, I didn’t attend the October session, I was away, so it’s November, and we’re
getting all this information. Loads and loads of stuff,
there a lot of talk about HMO’s, I’m thinking In the meantime, I had a
really, really tough time with a couple of my serviced
accommodation units, which some of you know about, and I was losing an awful lot of money. That was a very, very
stressful time for me. So, I I rang Billy, and basically said, “You know my strategy was going to be Serviced Accommodation,
yeah, I’ve changed my mind. I’m going to do HMO’s.” I didn’t really want to, but I was sick to death of Serviced Accommodation. So, yes, I was going to focus on HMO’s, and (laughs) Billy laughed, he
said, “you know, I kind of warned you about Serviced Accommodation. However, what are you going to do?” So I said, “well, you know, given the, the issues I had with
the, one of my operators, I’m only going to focus on HMO’s in the areas that I know the agents, so that, I don’t get, you know, shafted. But I didn’t know anybody,
I didn’t know any agents. But I did know some people here that were doing their HMO’s, and
weren’t going to have an agency. So, I spoke to Valter, I said “I’m gonna find HMO’s in Leeds, I’m gonna brand them, your
brand, you manage them.” I did the same with Will. So he was based in Gloucester,
Cheltenham, Worcester. Red door homes, I said, “Right, I’m going to find properties there, you manage it.” So, I work, as you know, full-time. Difficult, I only got up to Leeds once, and went down to Gloucester once. And obviously, I was looking in London. Didn’t know any agents, but I thought “I’ll manage it, don’t worry about that.” I had to relearn sources, now, (chuckles softly) sources can be really hit and miss. So, I struggled for a couple of months. Didn’t really go anywhere, and at this point, okay, I’ll just put it out there, I stumbled across Commercial. Just bear that in mind for a second. So, it is now June, July, it was late
June, early July, and I had my my mentor meeting with Kirstin who was phenomenal, and it was a game changing meeting, two days. We met in Croydon, since
this was early July. Met in Croydon, I had a viewing that I wanted to show, it was a hotel that I was looking at. Then I took her to one of my Serviced Accommodation
units where we just sat and spoke about my journey, what I wanted to achieve. A couple of things
happened… A couple of things happened at that particular time. She basically said “Look, Mark, when you speak about HMO’s,
you’re kind of down here. But when you talk about Commercial, your energy just goes through the roof. Why are you wasting time looking at HMO’s? You don’t even want to be a landlord.” Again, another light bulb and I thought, well yeah, absolutely. This is my journey. And you know, you don’t
need to feel guilty about not doing HMO’s, you know. you don’t need to feel good
about doing Commercial. I mean, Simon doesn’t
teach commercial, but he doesn’t teach Serviced
Accommodation either. So, you know, just go do it. So that’s what I did. I was very lucky, in that I also met a commercial surveyor who, I suppose took me,
took me under her wing. She’s, there’s this thing
with commercial properties. At least this is my experience anyway. Commercial affairs and commercial agents, they’re like a secret club. So, there’s a lot of deals that you never get to see, they’re just not on the market and they’re kind of shared
in between themselves. So, I think, certainly now, with the relationship I’ve built with the commercial surveyor, and some of the agents that I’ve met subsequently, these deals are coming to me. That’s an opportunity
which I’ll talk about in just a second, because it’s one of my first case studies, so imagine my, imagine
(chuckling) when I called Billy, to say “Hey Billy, do you remember
I said I was doing HMO’s? (faint laughter in audience) I’m now doing Commercial.” I swear to god, he pulled his hair out on the phone, so if you see him now, he’s kind of shaven, a bit like me. To be hair, he was brilliant. He was really, really supportive. And, he’s been, he’s just been my rock. Because see, he challenges me, and makes make sure that I’m on the straight and
narrow, doing the things that I’m supposed to do. There was one other thing, which I’ll talk about just before I come to the first case study. One of the things about HMO’s, and we’ve, we’ve heard some tremendous
stories here about some of the work that some
of the guys have done. For me, it was, I said it was July, and I realised, even
if I was to buy a HMO, particularly buy in London, it’s a three bed convert
to six, because typically, typically the numbers don’t stack. But that’s, you know, buy a three bed, convert to six, then tenant. That’s a six to nine month play. I was never going to make the numbers. I just wasn’t gonna do it. So another reason for not doing HMO’s. So, at this particular point, we’ll move on to my first commercial deal. So this actually came
out about on my birthday. So this is my first property. So this is, a shop, fish and tackle shop. The landlords, or the owner, I should say, it’s a freeheld property. The owner basically wants to retire. So we, I’ve got it on
an Option, for £179,000. We’re negotiating with a tenant now, to put a tenant in,
and the way it’ll work, and this is partly
because of the next deal, is that I will buy
empty, put the tenant in. We’re negotiating a rent of £24,000 a year. And again, without going
into too much detail about commercial evaluations, but with a conservative 10% yield in this area, the evaluation will be
around about £240,000. So, all in. I set purchase at 179, there’ll be £18,000 left in the deal. Net cash flow, and again
this is quite important with Commercial and this
is another reason why I love Commercial, I
think Shaun mentioned it, that basically all your
costs, maintenance, even insurance will be
paid for by the tenant. This is a 10 year, fully repairing, initial and lease. So, basically, your gross, is your net. Less mortgage costs. So that’s going to net
cash flow, £1,100 a month, and that’s a
Return On Investment of 73%. The next deal, and actually, this is my favourite, this particular deal came about post auction, it didn’t sell in a auction. It’s quite funny really. So it’s a bar and restaurant downstairs, with a seven bed boutique hotel upstairs. We got it 385. If you put a commercial property in a residential auction, in London, in the middle of July… I can’t, to be fair I had to Google where Cleethorpes was, but, you know, it’s not going to sell, it didn’t, Which was a huge benefit to us. This is, has a stepped
rent of £49,000 a year. So it’s 48 this year, it
goes up to 49, next year and then up to £50,000. It’s a 10 year lease with
seven years remaining. And again, with the stepped rent, conservative 10% yield, it’s worth 490. So, once we’ve… So I’m doing this unbridging
at the moment, and when I refinance, there’ll
be £42,000 left in. Net cash flow of £260,400,
which is £2,200 a month, at a Return On Investment of 62%. So this one’s my favourite, just because it’s so simple, and
here’s the other beauty of all this, this cash flows immediately. So, this one is the one that I’m desperate to get over the line, and I will briefly talk about this one. So this is, again it came off, off market, Direct to Vendor. This is a large conglomerate that’s looking at divesting a lot of their properties. As I said, it’s seven
new, seven retail units. It’s got a residential upstairs. And six of the units are let, one of them is vacant. The residential’s sold in a long lease to a housing association,
so it’s, you’re not going to get any rent there. Six units currently
generate £62,000 a year. Now, with a bit of asset management, so basically, let the vacant unit, and then there’s some leases that are coming up for renewal, so
five to ten year leases. You can, extend those leases. The income should go out to £70K, and you’re going to get a capital uplift when you refinance it for under £140,000. This deal is ongoing, and, I’m looking for finance,
so who do you know, who? Now, if, so, just go back a second. If I get this deal over the line, this is huge for me and
I will come on to why. So, my numbers for the
year, if we talk about exactly what I’ve got so far, the eight Rent to Rents,
the two properties I bought, and a net monthly profit of just over £6,000 a month. Annual profit of nearly 75K, and a GDV of just under 3/4 of a million. So, now assuming, touch wood, I get the Warsaw deal over the line, ideally within the next
few weeks, give or take. I would’ve done 11 projects, the eight Rent to Rents, and the three that I would’ve bought that would, I would’ve raised, invested amounts around about £575,000. That would bring my net monthly income to just over £9,000 a month. Or it’s £112,000 a year, and the GDV would go up to £1.48 million. That’s a hell of a ride, hell of a rush, and so I’m kind of desperate
to go over the line, so come speak to me after
if you’ve, can help. (light laughter from the audience) So, hints and tips, lessons: So, As Billy would say, you know, and it was mentioned. I’m a managing consultant so strategy doesn’t quite fit for me. Business model. But know it, focus on it. This programme, as been said before, is so much more than property, it’s about mindset, it’s about belief. If you can believe, you
can do anything, trust me. Stretch yourself, step
out of your comfort zone. I’ve done that many times, and I know a lot of people have too. This one’s quite funny, follow the process and use the tools, and I’m
going to say this but I’m, I’m a bit of a contrarian, I kind of don’t do what I’m supposed to, so, but what you should do is, is that use the form,
use the Facebook groups, you know, work with the coaches, work with your mentors, do the webinars. It’s massive, the learning is huge, and use the group. Communicate with everyone, tell everyone what you’re doing. I said it was a chance conversation, a meeting at pin, I got the Serviced Accommodation units which I said I’m pleased to say now
they’ve turned around, because I’ve got a decent operator that’s not ripping me off. Sorry, I should’ve have said that. Never give up, persistence is everything. Never, ever give up. A key thing, you’re going to get some great learning when you join this course. You guys will know that, but if you don’t take action, it doesn’t mean anything. So take action, and do it daily. Because step by step by step, you’ll get where you need to go. And most importantly, have fun. Hell of a ride guys, have fun. So, in terms of Pipeline,
I’m going to quickly rush here because I think I’m, yeah, I’m a bit over. So, this this particular deal is the Carphone Warehouse, unit is, and the lease is, wow, it’s under a year. Which means you’ll need to buy cash. It’s owned by the same vendor, so there’s a potential that you could buy both properties. I’m looking at this one, just because again, the potential with the lease. Either get Carphone Warehouse to extend, or get a new tenant, and it’s huge. So that’s a potentially nice deal, and it’s a nice deal for, one for you, one for me. Which, again, I’ll come into very quickly. This one’s very similar
to the Cleethorpes deal. It is, this one’s on two different titles. It’s got a hotel, and
a restaurant as well. Two split titles, again,
really really good for a one for you, one for me. And this particular one, so, this was brought to me by a very dear friend. It’s a hotel, in Croydon, it’s 18 rooms that we’re looking at turning into HMO’s. You know who you are. (Mark laughs) So, the reason why I think
he brought me in on this is because this is, the
way we’re looking at, rather than doing it as individual HMO’s, HMO rooms, we’re looking at putting it on a long lease. That’s kind of my thing,
I kind of like that. We’re trying to work
that through, so, that’s the Pipeline, so for me
what’s next? So, touchwood, in the next month when my contract ends, I will be in a position where I can say yay or nay, they may choose to renew, they may not, but I will
be financially free. Which is huge for me, so I’m going to take Christmas off. I’m going to have a hell of a party. I’m then going to do some housekeeping, formalise my business, going forward I’m going to be sourcing bigger deals. And as I said, I seem to have been invited into this, sort of,
commercial surveyors club, and it’s, yeah, I’m just
looking at bigger deals. For that, I’m looking at working with partners and
investors. I don’t want
to work with everybody. I’m only going to look for 10. I want them on speed dial,
my little black book. Soon as the deals come in, I need guys that can move quickly, so that’s kind of what I’m looking at next year. I will be doing some joint ventures. The One for Me/ One for You idea kind of works for me because it gives you an opportunity to get to know the people you’re working with before you kind of, metaphorically jump into there with them. So, 2020, my plan, and, so if you think that from, I suppose
my commercial journey, started really from July, I should be able to quadruple what I did this year, and that’s going to be my, target: try and quadruple that. I’m going to continue my education. It’s been huge, and finally, as Valter said, “I wanna be in a position
where I can give back.” So, to summarise, if
you think 18 months ago, I didn’t have a property, I didn’t know anything about property. I’m now in a position
where I’m financially free. I’m, again, touchwood
that everything goes well, generating 9 1/2 K a month. That’s £112,000 pound a
year, and I’ll have a GDV, oh, my portfolio will
be worth £1.5 million. So, if I can do it, you can do it too. So, some very, very brief thank you’s, my family and friends, they, (laughs) I’ve hardly seen them
but they’ve been with me all the way through. Billy, phenomenal coach, and Kirstin, coach and mentor, you know, absolutely brilliant, game changing. And I’m running out of
time so, I’m just going to skip through your names, if you’ve not been mentioned, I apologise. But, there is a big shout out to MM26, to every one of you who’s helped me. I’ve had some dark times,
and you’ve been there To Alissa, thank you. I’m not great on Facebook as you know, and every call that I’ve made,
it’s like, “Can you help me?” You’re very patient with
me, so thanks very much. And lastly, to Simon, for
creating this environment where we all have an opportunity to learn, to stretch ourselves, and to be better than
we can be, thank you. (applause)

6 thoughts on “Commercial Property Investment SUCCESS | Mark Banini’s £730k Portfolio On Property Mastermind

  1. Wonderful to see Mark, well done. Great to see application of the commercial strategy you learned and the network you built. Looks like the public speaking training we did (that you were so uncomfortable with!) paid off too. Delighted to have been part of your journey Mark. Regards Paul

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