Steve & Linda Hogan
Steve’s background is the corporate world, in which he has held board level positions with some of the major UK and International FMCGs. Following 10 years with Coca-Cola, where he was European Services Director, he spent a number of years in the wholesale and retail sector, primarily dealing with mergers and acquisitions and business recovery.
In 2007, looking for new challenges, Steve and his wife, Linda, looked at a number of business options and decided the PPP franchise could offer them the lifestyle and financial security they were looking for. For the past two years, in addition to growing a property portfolio with Linda, Steve has also been working in a consultancy capacity for the franchise, as Business Development Manager.
In terms of personal objectives, Steve and Linda wanted to fill the financial ‘hole’ between leaving corporate life and their company pensions coming to fruition, plus enhance their pension pot. Having spent most of their married life working apart, they also wanted to make sure this next venture allowed them to spend a lot more time together. They also wanted to extend their portfolio internationally, to allow them to enjoy winters in the sun! Their goal is to own at least £5m of property within 5 years, which generates an annual passive income for them of well in excess of £100k, and some time in the next ten years they intend to build their dream home, which will be funded by building and selling other properties.
Steve explains why, having looked at a number of different business models, he and Linda decided PPP’s franchise proposition was the best match for them:
“Firstly, trust. We were taking a large gamble on embarking on an entirely new business and in such circumstances it is entirely reasonable to wonder whether the person you are talking to is a charlatan – a slick conman. In looking at Steve Bolton and the company, we were struck by the fact that people who had already gone through a mentoring process with them were (a) successful, (b) happy to share their experiences with newcomers to the business, and (c) formed an active support network where people – however experienced they might be – could always learn from someone else. The presence of so many people from diverse walks of life gave us confidence that this was not a one-man band operation that would just disappear once we had handed over the money.
Secondly, there was the cost. Free education is usually painful and we were perfectly prepared to pay for quality advice and support because, in our experience, it pays dividends. But when we first looked at the investment into PPP, it appeared to be expensive and we wondered whether it would represent good value. However, we then did some rough calculations on the number of properties that we would need to invest in to deliver financial independence and on what the risks were to our capital in making such a commitment.
Compared to the size of this property portfolio and associated risks, the cost of education and ongoing support was very small and therefore actually represented very good value. We focused on the ROI against the cost and it made sense to us.
And thirdly, as relative property investment novices, it was difficult for us to fully appreciate and quantify the diversity and depth of knowledge of the PPP team. However, we were very impressed by their ability to explain a variety of investment strategies and opportunities in a manner that we could understand and that made financial sense, based upon our own previous business experience. Having discussed the business model and our expectations and goals with Steve and Nick, we opted to join the Franchise.”
Steve and Linda’s first buy to let property purchase was an extended 3-bedroom semi-detached house, which they bought for £239,000, sale agreed on their second day of the initial one to one mentoring programme. Following refurbishment in order to convert it to a high quality House in Multiple Occupation (HMO), it was valued at £279,000 and a subsequent remortgage meant Steve and Linda were able to release just over half of the £70,000 cash they had invested in the purchase, leaving just £34,000 capital in the property. It currently cashflows £14,000 per annum, giving them a 41% return on investment. The couple recognise that even though a higher level of capital is required to buy HMOs in the current climate, the opportunity to buy at a discount at the bottom of the market means some of those invested funds will certainly be able to be released after 6 months.
Their next project is going to be a self-build, working in partnership with one of PPP’s other Franchise Partners in order to minimise risk and maximise returns, and they are also investing in joint ventures with PPP’s Founding Partners.
In summary, Steve says, “We did a lot of due diligence and research before selecting Platinum Property Partners, which impressed us hugely with the calibre of individuals involved and the franchise opportunity. The fact that they only make profit when we do reassures us their interests are directly aligned with ours and we are confident that working closely with PPP, we are investing in the best way we can and maximising our chance of success.”
