It looks at the current climate of borrowing and getting started on property investment. Well worth a read if you have some spare time.

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Property Mentor has certainly let the property market know they mean business with their latest campaign.

In the wake of the nationalisation of Bradford & Bingley just one week ago, hundreds of buy-to-let mortgages have been withdrawn from the market. A cut that has had a profound effect on the property investment market:

• • As the leading lender of buy-to-let mortgages, the collapse of Bradford & Bingley has resulted in the loss of 20% of buy-to-let mortgages
  • UCB Home loans and The Mortgage Works have withdrawn all their buy-to-let range, leaving behind only inaccessible loans that no investor can access.
  • Bristol & West and BM Solutions have cut their lending options by 75%.

Yet despite these reports, Property Mentor is confident that their system will see them out throughout this market upheaval, and will keep their investments safe:

“What many investors forget is that history repeats itself and it will keep on repeating itself. Wasn’t it only 18 years ago that the market went through this very same transition? We know, we remember. That is why we are confident that if investors stick to their guns, they will come out of this credit crunch stronger then ever. It is only a matter of time before the market shifts again.” – Matthew Lauchlan, Property Mentor Director

With the launch of Property Mentor Finance just a few months ago, Property Mentor are now opening their doors to other investors – experienced and new – in a bid to help them beat the statistics and avoid having their homes placed under increased debt.

As Property Mentor Director, Matthew Lauchlan recently stated: “The last thing any investor wants to do is dip into the free equity in their own home. Not only does it increase your chances of losing your buy-to-let property, but can put your own home at risk too.”

Continuing on this topic: “At Property Mentor we understand that the temptation to sell – especially within an ever constricting financial market – can feel like the only choice you have got left, but it doesn’t have to be. Through our workshops we can help investors to safeguard their properties and actually achieve better deals – yes even when the press is saying otherwise.”

And their deal is simple. Anyone who attends their 2 day course will be given instant access to 20 mortgage lenders who will not only accept their unique system, but will also offer them better than the going rate. All investors will have to pay for is the extra legal expenses and stamp duties. Nothing else.

This is great news for many investors who are struggling to bring their buy-to-let mortgage down to 60% in order to break even. Instead, the Property Mentor system enables them to access low interest rates as well as a higher LTV on their mortgage.

And this is not all they have done.

In a bid to prove to investors that their system is the real deal, Property Mentor are inviting investors from all over the UK to come to their FREE 2 hour seminar, so that they can witness first hand that their system works.

Here in this workshop, real estate developers will be able to meet past Property Mentor delegates who have used the system, created the portfolio and have invested even though the media has told them that there is no market:

“The goal behind our courses is to promote confidence. To prove to investors that no matter their experience, or the state of their property portfolio, they too can continue to invest and make real sustainable profits from the buy-to-let market,” quoted Matthew Lauchlan, Director of Property Mentor.

As he continued to explain: “It’s true that many investors due to poor choices are now having to subsidise their properties in order to pay the 7.4% SVR, but we can provide them with the tools to turn this around and escape the pressures to sell. Investors can beat the statistics.”

And this new approach to their course has certainly left its mark.

During these 2 hours, investors will be given access to FREE expert advice from a team of trainers who have been in the property business for over 20 years. No strings. No catches. Just the exclusive opportunity to share their fears and doubts with a group of like-minded people.

“All it is takes is one action… one decision and we can turn this around. The buy-to-let market can survive.”- Matthew Lauchlan, Property Mentor Director

Some of the topics that will be covered are:

• How to structure your properties for long term success
• How to earn a guaranteed £500-£1,000 per property in just as little as 30 days
• How to invest in the right properties

For more information on Property Mentor’s forthcoming property investment workshops, visit www.propertymentor.co.uk

You see for any investor, new or experienced, when you invest in a rental property you want to be able to keep it sustainable. Never empty. Never cutting into your profits. But always working for you.

That is why picking the right lease is so important – especially in commercial real estate.

Pick the wrong one and they could end up looking elsewhere. You need to get it right.

So ask yourself this question: what do you need out of your lease agreement? Simple. A guaranteed rental income, plus the means to control the costs of your property.

And your tenants? They will want to be able to peg their rental costs as closely as possible. Why? Because no one wants to pay above and beyond if the property is not worth it.

You need to prove it’s worth pursuing.

To help you choose, we have compiled together a list of the UK’s 3 top commercial real estate leases:

The Gross Lease

This is sometimes described separately from the full service lease, but their differences are not that much. Essentially what they both involve is the landlord/owner taking full responsibility for all the building expenses: taxes, insurance and maintenance.

All your tenants will pay is a fixed rent, which can be used to pay for the expenses that may incur.

A point to remember here is that costs increase over time. And if costs increase, so will your expenses. That is why it is important to keep yourself covered by including an escalation clause in your lease. This enables you to increase the rent owed from your tenants, so that their fees will continue to cover the costs.

Of all the commercial leases, this is probably the least favourable to you as an investor. Here your tenants only have to pay the rent, the rest is on you as their landlord and if some expensive maintenance is required, it could leave you with negative profits.

The Triple Net Lease

This type of lease requires the tenant to pay a significant share of the expenses, as well as the taxes and insurance related to their rental unit.

The triple net lease is commonly used in multi-tenant industrial and retail properties, and works quite favourably for you – the landlord. Why? Because their expenses will vary: electricity, plus the taxes, maintenance and insurance can all work to boost your profits.

This admittedly though, makes many tenants resistant to enter into this type of lease. It gives them no control over the increases in their expenses, and prevents them from budgeting their costs. It is completely shared, even down to the cost of roof replacement.

The Modified Net Lease

Is essentially a compromise between the gross lease and the triple net lease.

Here, how the property is maintained is decided between you and your tenant. As the landlord, you will take most of the responsibility, but your tenant too will also be in charge of caring for certain aspects of the property.

And the taxes and insurance? That will be your tenant’s job too.

This type of lease is great for industrial, retail or multi-tenant office properties. It is uniquely versatile in its flexibility, and allows you to both come to an equal agreement on what is required of each of you.

And we have to admit, it is very promising.

Of all the real estate commercial leases, the modified net lease works to benefit both your interests, allowing you to control and generate a positive cash flow, whilst giving your tenant an element of control that will boost their confidence as a successful company.

What more can you ask for?