Entrepreneur, 24, Buys £10k House And Increases Value By 550 Percent
A young property developer has revealed how he was able to buy a cut-price house and refurbish it to increase its value by a whopping £55,000 – having also shared some of his key tips to help others follow suit.
Jake Knotman, 24, started out in property when he was a teenager, having joined a ‘fast paced estate agency’ at the age of 17.
After learning the tricks of the trade, which included selling below market value properties to investors, Knotman went on to buy his first house at 21.
Within just a few years, he’s since been able to forge something of an empire for himself – now owning seven properties, having even recently purchased his first commercial building to be transformed into eight offices.
Speaking to LADbible, Knotman, from Manchester, said the project he was most proud of was a derelict three-bedroom home in Burnley, which he and business partner Gary Kay managed to buy for just £10,000 after building ‘relationships with the council’.
“This was bought through the council.” he explained.
“We turned a boarded-up property into a newly refurbed property for people to live in.”
Rather than flogging it on, Knotman has decided to rent the rooms out for £85 each a week, giving himself a steady stream of extra income to channel into his other projects – which have also seen him snap up another four-bedroom house for £55,000, spending £17,000 on doing it up before having it valued at a not-too-shabby £90,000.
After spending £26,000 refurbishing the property, which included adding another bedroom and a new kitchen, its value rocketed to £65,000.
And in 2019, Knotman even managed to build a complex of 10 apartments in the centre of Manchester, which he says was a ‘great achievement’.
“It was actually my first development project which gave me some insane lessons,” he said.
Having become a ‘full-time entrepreneur’ at 18, Knotman said he’s ultimately been able to ‘create the lifestyle’ he wanted to live.
“It’s been a dream since being a young guy to travel the world and at a young age I did that, from China to Hong Kong several times, all the way to Qatar, Singapore and Dubai,” he said.
“It’s honestly been incredible to meet with some interesting people all around the world who are also in property.“
He also takes pride in housing homeless people in some of his properties, adding: “From individuals literally living in a tent to living in a newly refurbed property within a few weeks is something I’m glad I can help towards.”
Knotman, who has set up a podcast to help teach others about property and has also shared a free location guide for aspiring developers, said people need to be willing to put the graft in if they want to succeed.
He continued: “Everyone is looking to be a property investor these days, but not everyone is willing to put in the time and effort to make it happen. Look, if a property or a portfolio of properties is going to pay you forever then best believe there’s a lot of upfront work when it comes to making it happen.
“Property can pay you every single month, every single year for the rest of your life, but only when knowledge, experience and the right vision come together.“
Knotman also shared his top tips for aspiring developers:
- Learn from others who are already doing the thing you want to achieve.
- Get practical with your learning, there are two parallels when it comes to learning in property and knowing what needs to be done to achieve great things. Don’t just watch videos, read books or attend seminars, get out and about and travel to new areas, meet new contacts and make connections.
- Property can make you a lot of money but it can also lose you a lot of money, your team and experience is everything in making it a success.
- Be willing to invest in your education, if something is going to pay you for a lifetime, investing in your education will make your journey much easier.
- KPREIT deepens interest in property development with US$16m…
- Why Buying Property in These Vacation Destinations Could Be…
- Jeff Bezos Backed Real Estate Investment Platform Fully…
- Frisco teen is "America's Top Young Entrepreneur" | News
- Wash sale rules could apply to bitcoin and ethereum in…
- Interest in Real Estate Investments in Spain Grew 400%, With…