Holiday Home Investments #5 Management Company

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Video Transcription: 

Hi guys. So, Holiday Home Investments, the management company. Let's talk about a management company. I think this is the difference between success and failure. You know, you can have the best industry, you can have the best area, you can have the best site, the best of everything, and if your management company is crap, then your investment is going out the door. So, you know, I spent a lot of time getting to know these guys, and doing the research on them, and having a look at them.

And I mean, the great thing is, is we're talking about these guys are... Well, the guys that are backing them, providing the funds, are actually a multibillion-pound. I think it's £27 billion thereof assets under management. So, you know, you've got a massive wealth fund. They have invested £300 million, okay, into the management company, and then that management company has already spent £150 million of that to buy seven different sites around the UK, existing sites.

And what they're doing is they're buying them, and they are upgrading them, okay? Now, they didn't spend £150 to buy them, they spent £150 to buy and upgrade the sites, which is great news, you know. And so what it means is by making them or giving them the boost they need, because a lot of these sites, you know, they are owned by mum and dads, they run them for years, and they didn't have the money to reinvest in the capital they needed. So to get somebody like this coming along and spending $300 million bucks on the leisure industry in the UK, is, you know, fantastic. And really, I think that's, you know, that it's great to have someone backing it. You know, you're not talking about a small company, you're talking about a large company. They're able to hire the right people. Put the right team together.

And so they've got seven sites. And so what we've done is we've partnered with these guys, and I think they've got around 8,000, effectively, opportunities coming through, okay, which I think was it 800. You know what? I can't remember. I think it's 800 potential and the plan is to continue, you know, buy and expand and that sort of stuff. And the model they are operating is, is they'll buy, they'll renovate it, and then they sell off the individual units, and then they create an income stream.

Because let's face it, this wealth management, they're not as worried about capital as if they can get the income over time. Because a lot of these things is pension money. Pension money needs the return coming in month after month after month. It doesn't need huge capital increases. Obviously, that helps, but it's the income...steady income over a long period of time, which is what holiday homes provide.

So if you own a holiday home, really, that pension fund is looking for the income from that. And so what do we get? Well, we get an income out of the property, but they get the income out of the management fee. So that management fee is around 30%, and for that, they organize pretty much everything for you, so you don't have to do any of the marketing. You know, this is a set and forget investment and that's, you know, that's what I'm known for, and it's what I, you know, what I really live for if you like.

So, you know, the model is, basically, they buy the asset. They do it up. Yeah. They then put it back on the market. They sell off the individual units to us, effectively the investors. And then what they do is they then rent it. They market it. They really get the most effective and efficient use of that asset. And so, you know, they'll max out the income as much as possible because they're professional, you know, with the proper people running this.

And, you know, what we'll do is if you jump on the website, you'll see, when you get the brochure that we put together, the people backing it. And, you know, they're fairly big players, okay. These guys have been in, you know, experience in the know, that holiday home industry. So this is not just a startup company that someone just came up with just, you know, yesterday, you know, you're talking billions of pounds, company backing, £300 million pounds invested. You know, so it's a fairly big player and they're looking to become an even bigger player. And, you know, this is the first tranche of that 300 and then there's probably more coming in after that. So, you know, really, and I love their strategy. Buy a run-down park, do it up, you know, and really get the most out of that asset.

And so what you'll see is the income being driven up. You know, fantastic. And that's what you want. And you end up with a new asset, you know, a brand new, flat. A totally renovated flat. As far as you know, you walk in. And when you walk through some of these things, it's like...actually, it could be a buy-to-let, you know, in anywhere that we're selling these sort of things.

So, you know, it's pretty much the same strategy. If you're familiar with our hotel strategy, this is exactly the same strategy is that, or the approach to this strategy, just the asset classes different. All right guys. So, yeah, you can jump online and get more details about the actual management company, who it is, and all that sort of stuff. I just don't want to give it yet. Speak to the team and then, you know, you'll get full details. All right guys, I'll...have a great day, live with passion, and we'll see you on the next video.