Steve Bolton, founder and chairman of platinum property partners, explains how he developed a successful property investment model
It was the best of times, it was the worst of times.” And so starts the classic novel ‘A Tale of Two Cities’ by Charles Dickens.
Just like the Dickens novel, my own personal and professional journey has been punctuated with moments of the best of times and the worst of times.
This year marks an important milestone for me personally. It was two decades ago, in 1994, when I started my first business building and selling high and low ropes courses. And it was one decade ago that I purchased my very first House in Multiple Occupation (HMO).
During my first venture into business ownership I learnt some valuable lessons that led me to where I am today:
### Follow a tried, tested and proven system in business ###
My business partner and I did not do this first time around. We had an idea, worked hard and tried to create something unique. While it was highly rewarding when things were going well, the lack of a proven system proved to be devastating when factors outside of our control went against us.
### Build your business with underlying and appreciating assets ###
The businesses we had built always rented the premises and offices where we had worked. The irony is that if we had bought these premises, which would have cost almost the same as we were paying in rent, the value of the underlying properties would have given us a much better financial cushion when we hit hard times.
### Stand on the shoulders of giants ###
I made the mistake the first time round of learning from my own mistakes. A good friend of mine likes to say: “You are going to have to pay for your education whether you like it or not, either by making expensive mistakes or by investing in learning to avoid mistakes from others who have paid the price already.”
### Make sure your business is both profitable and sustainable ###
The major flaw in our business was that we did not have a sustainable income stream. We would build a high ropes course, get paid for it and then have no real way of earning any more money from the same customer. The property equivalent of having a sustainable income stream is buy-to-let. And if you can do buy-to-let and make a significant trading profit from each property, it’s a very robust way to build a business.
After spending two years researching, attending training courses and surrounding myself with some of the best mentors in the world, I’d come up with a new strategy - letting out houses to young working professionals and key workers. High quality, but low cost accommodation was the concept.
In July 2004 I completed on my first HMO in Bournemouth. From then on, I knew I had found something big. Within three years I had bought and owned 20 more properties - a portfolio worth £6 million. Life was once again great. I had achieved what I’d set out to - financial security for my family, a great income and pension and more time to spend doing what I wanted.
Taking inspiration from my own personal mission, which is to ‘Be More, Do More, Have More and Give More’, I franchised the highly profitable system so that other people could reap the benefits of their own successful businesses. That was in 2007.
Today Platinum Property Partners (PPP) is the fastest growing premium franchise in UK history. We have more than 200 partners operating their own successful buy-to-let businesses across the UK. Together they own a property portfolio of 552 HMO properties, worth an estimated £175 million and housing 1,727 tenants.
This amazing community of like-minded, ethical, honest, professional and dedicated individuals all work together and help each other ‘Be More, Do More, Have More and Give More’. This family includes our amazing team of staff, inspiring group of partners and our wider supply chain and professional advisers.
Together we have developed personally and professionally and will continue to help each other be successful for decades to come.
