Creative Property Investment Strategies with Motiul Islam
Last updated: 13 Aug 2024
Meet Motiul Islam
Motiul Islam started investing in property at the age of 19 while studying at a university in London. He taught himself the ropes and continued to buy deal after deal using creative strategies. This was before these methods were even taught on property courses. Motiul has added value to properties through extensions, developing, and title splits. After achieving his financial and property goals within a year, he initially retired from property but soon returned due to his passion for deal-making and helping other property businesses grow. He also hosts the monthly PPN networking meetings in Stratford, which are well-attended both in person and online.
“You can always make money from property as long as you provide a valuable service to a vendor, create a desirable place for a renter, or add value for a buyer.”
The framework for creative property investment
Motiul’s expertise includes structuring creative deals, no-money-down deals, and HMOs. His approach involves a four-stage framework: Find, Acquire, Build, and Cash Flow (FABC). He emphasises the importance of systems and processes in property investment, comparing it to the rules of driving on the road.
Real-world case studies
Case study 1: Converting a property into flats
One of Motiul’s first significant projects involved buying an end-of-terrace property with two garages, previously used as a shop. He converted it into a studio flat, a one-bedroom flat, and a four-bedroom HMO. Later, he converted the garages and basement to add more value. Despite buying the property above market value, Motiul successfully added value and refinanced to get all his money out.
Case study 2: Below market value purchase
Another property bought with a joint venture partner was converted into two flats, one of which was used as an HMO. Motiul refinanced and got all the money out, demonstrating the potential of below-market-value purchases and creative financing.
Case study 3: Lease Option deal
Motiul shared an example of a lease option deal involving an 11-bedroom HMO in Doncaster. The property, in poor condition and facing repossession, was purchased on a lease option. Motiul structured the deal to pay off the vendor’s debts while taking over the mortgage, demonstrating how creative strategies can turn challenging situations into profitable deals.
Adding value through title splits in property
Motiul explained how title splits could add significant value to properties. He shared a case where he purchased a block of four flats on one title and created individual leases, substantially increasing the property's value. This strategy allowed him to refinance and extract equity, turning a market-value purchase into a profitable investment. “It’s not always about trying to make all of the money. If I can offer someone else the opportunity to make money, will they take on some of the risk?”
Final thoughts
Motiul's presentation highlighted the importance of creative thinking in property investment. His four-stage framework - Find, Acquire, Build, and Cash Flow - provides a structured approach to making the most of any property deal. By adding value through various means, such as conversions and title splits, investors can maximise their returns and create profitable opportunities. “Problems are not an issue; problems are opportunities. The more problems there are out there, the more opportunities there are as well.”
Problems are opportunities in disguise. By solving problems for vendors, tenants, and buyers, you can create valuable services and profitable deals. Motiul’s strategies demonstrate that with the right knowledge and approach, you can achieve financial success in property investment.
For those interested in learning more, Motiul offers strategy sessions to help you get started or take your investing to the next level. Connect with him for a one-on-one discussion about your property goals and strategies.
