It’s no news that the UK property market has been turbulent over the last few years. However, with 2024 marking a strong return in buyer confidence and recent data showing a sharp rise in the number of online searches for ‘property flipping,’ its set to be an exceptional year of growth for investors.
Property auctions have long been the favoured option for developers, with the auction room yielding unique opportunities unavailable to the open market.
Recently, we sat down with Andy Crawford, a Nottingham based developer who runs a property investment and consultancy firm, AC Properties.
Since purchasing his first buy-to-let investment at auction in 2013, Andy has gone on to buy and renovate over 10 properties in his home city and boasts a current portfolio value in excess of £1.5 million.
Documenting his impressive renovation projects on social media, @a_c_properties on Instagram, Andy has also established a thriving consultancy business that offers tried and tested investor techniques and strategies.
Hi Andy, could you share your background and experience as a property investor?
“I have always known that investing in property is a good long-term strategy. My first experience of buying was at auction, back in 2013. At the time the barriers of entry were set low, and for £56,000 I picked up a three-bed semi-detached property here in Nottingham.”
“The property was in good enough condition to qualify for a mortgage and that’s how it started, just a light refurbishment. Since then, I have bought another nine, and some of those have been at auction and a few have been through traditional estate agent relationships I have picked up over the years.”
Can you describe your first experience buying at auction?
“Auctions have always been exciting to me. I remember feeling my heart pounding through my chest, because it was the first time I had bought something that was so expensive, and I realised I was committing myself to buying something on the day. It was good fun and a great experience.”
Over the next nine years, Andy continued to invest in rental properties, always working with a trusted solicitor and a close team of contractors that carry out refurbishment work – all whilst balancing his full-time job in IT.
“There’s a lot of people that got sold the dream of leaving that 9-5 and don’t get me wrong, the older I get the more appealing that is but if you can balance solid reliable income through a traditional employment that gives you the flexibility and financial freedom to buy and continue investing in property, then it’s a win win in my opinion.”
Andy set up his company, AC Properties, in 2022 and has continued to go from strength to strength investing using a BRRRR (Buy, Refurbish, Refinance, Rent, Repeat) method.
What do you look for in a potential investment property?
“What excites me nowdays is a house that is unmortgageable. Straight away I know it is going to need a lot of work, but I also know that I can add some real value to the property through reconfiguration. 44 Kentwood Road was the ideal example of that.”
Andy was searching for his next project when he saw a great opportunity online with Auction House Notts & Derby in July 2022. The two-bedroom terraced house, close to the A612 and Nottingham City Centre, required full modernisation throughout, but with a keen guide price of £70,000 it offered fantastic potential for improvement.
You secured 44 Kentwood Road with a winning bid of £91,000. Can you talk us through the work you did on that property?
“I got keys cut just five weeks after the auction, and it all went back to brick. I replaced all the old windows and doors, fitted a new kitchen and bathroom, new wire, boiler, central heating system - pretty much everything to be honest!”
In six months, Andy and his team of contractors completed an impressive overhaul of the property’s interior.
“By March 2023 all the work was finished, and I spent a total of £36,000 on the refurb. Interestingly, the property was initially listed as two bedrooms plus attic room, however with some reconfiguration it quickly changed to a three-bedroom property, and it was revalued at £165,000.”
The property is still on Andy’s books and has been tenanted ever since.
As someone who has bid in both in-room and online property auctions, how would you describe their differences?
“A huge advantage of online is that you can do it from wherever you are - my most recent property investment I was abroad bidding remotely on the laptop on holiday! It was great to have that flexibility - the whole process is easy, you provide some ID, proof of funds, put your deposit down and fingers crossed.”
Do you think it’s still a good time to invest in real estate?
“Yeah, I do, I bought a property six months ago and it’s the biggest project I’ve ever taken on. There’s a lot of history in the house, its over 100 years old and another full refurb with some extension work involving building control and planning permission. It’s a great project - it’s going to be on homes under the hammer - and, once it’s done, I’m ready to go again!”
“It’s just about being dynamic and making sure you’re taking into consideration some of the legislation changes, the cost of borrowing and mortgage rates. At the end of the day, it is just numbers, and if you can get the numbers to stack then you can still make some great money from an investment. There is still a huge demand for property, and I can’t see that changing anytime soon.”
Thanks Andy! And finally, what advice would you give for someone looking to buy at auction?
“It’s important to have a great team around you. Find a solicitor that you can build a relationship with early on and who can look through a legal pack for you. If you can try and work out your numbers, work them out backwards so to speak. Having a good builder on your side, who can go out to view the property and give you a rough quote on how much it will cost to have this work done, you have a ball park of where you are going to be ahead of bidding.”
“And ask questions! People at Auction House will be there to help and assist If you have questions, that’s always going to be an important one.”
If you’re looking for property investment planning and comprehensive services, get in touch with Andy Crawford at acproperties.co.uk
