Couple make use of their spare time by becoming 'property millionaires' in just three years

They've built up an impressive portfolio

A couple have shared how they moved from strength to strength in recent years, using their spare time to build a property empire in Derbyshire. David Ford and his partner Katie Cracknell both work full-time jobs and have a one-year-old child, but this hasn't stopped the Borrowash pair from using their spare time to become 'property millionaires' in just three years.

They buy and renovate rundown houses - an idea many of us get when watching a certain daytime television show. They improve each property and remortgage it to its new value, releasing the cash for their next investment project.

So far, they have amassed a portfolio of 11 houses, including the home they live in. Four of the properties are in Nottingham Road, Borrowash, and are all within walking distance from their home - with a fifth property on the road currently in the works. They also own houses in Derby, as well as in Nottinghamshire and Wales, with their assets now valued at around £2m.

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The pair, both aged 35, started off by renovating a modest buy-to-let to provide them with a retirement pot. At that time they knew very little about the buy, refurbish, refinance strategy, but three years later managed to pull about £70,000 of equity out of the house. Encouraged by that success, they decided to learn as much as possible about investment strategies.

Searching online they came across educational YouTube videos posted by multi-millionaire property investor, Samuel Leeds. David and Katie spent hours soaking up his investment tips and later enrolled on several specialist courses.

They immediately put into practice what they had learned and embarked on a buying spree, snapping up eight properties since 2021. “We buy rundown houses – the stinkier the better as Samuel puts it – and we then pride ourselves on creating high-quality refurbs,” says David, a team leader with Rolls-Royce Submarines in Derby.

“We love doing extra special finishing touches which also helps to push the value up.” Before making a purchase, Katie and David do their due diligence by working out the likely gross development value after the property has been improved.

They estimate this by looking at the square footage and then finding out how many houses of the same size are selling within a mile radius of the location. After deducting the refurbishment costs, the purchase price and legal fees they have a good idea of the profit they could make.

Katie works for her family’s kitchen and bedroom manufacturing company which enables her to get competitive prices on products. She has managed projects for clients such as Center Parcs, Lloyds Bank, builders and retailers.

One vital lesson they have both learnt is to remain constantly alert for investment opportunities. Three of the property deals they struck in Nottingham Road were the result of David taking their dog out for a walk.

During his stroll, David noticed a cardboard for sale sign in the window of a house. Sensing a chance to grab a bargain, he contacted the vendor. It turned out the owner not only wanted to sell that property but two more he owned as well.

“They were all just around the corner from where we lived. He never said what he wanted, so we offered £75,000 per property. He then asked for £80,000 and we thought that was a fair deal.”

While refurbishing one of the properties, Katie’s attention was drawn to two others across the road which also looked in need of attention. Feeling she had nothing to lose, she dropped a note through the letterboxes expressing an interest in buying them.

Although she did not expect a reply, it emerged they were both owned by the same person. After giving the matter some thought, she decided to sell up. Both houses have been given a full ‘back to brick’ refurbishment and are tenanted.

They bought each one for £80,500 and then refinanced them at £170,00 per property. Each refurbishment cost £40,000. They bought the houses with a bridging loan and obtained development finance for the work. The deposit came to about £40,000 for them both.

David, says it was a learning curve as they were expecting to receive set increments of funding for the refurbishments which turned out not to be the case. Fortunately, they had a cash buffer and were able to keep going with the improvements.

Their persistence paid off. The new valuations meant they had profited by £100,000 for four months’ work. Rather than selling up, they opted to go for the cash flow by letting them through their company, DK Rental Properties Ltd. Katie, who studied business management at West Nottinghamshire College, says: “We wanted to keep the asset and capital growth as well as the monthly cash flow. Each one rents out for £875.”

In their experience, the best deals are the ones which have not been listed online as there is a lot of competition. “Sometimes for us, it might be worth waiting a bit longer just to get an off-market one. Even if it means sending out 300 speculative letters, there is the chance of getting ‘one winner.’

David says they now keep letters in the glove box of their cars which they have prepared in advance to give to owners. “It says we’re interested in your property. If you don’t want to sell it now, it doesn’t matter. Keep this in your drawer and if you need it in two years come and speak to us.

There’s no pressure, it’s just a conversation.” Katie and David are in the process of adding two extra bedrooms to a three-bedroom house in Porth, Wales, which they bought for £80,000. They have agreed a five-year contract with the local council to provide social housing.

With the improvement work expected to cost £35,000 and a projected end value of at least £172,000, the couple hopes to again be able to recycle their returns. They are also exploring other development projects in Wales, Derbyshire and Nottinghamshire which could be used for supported living and family homes.

Their business guru Samuel Leeds describes the duo as the ‘king and queen’ of the buy refurbish, refinance strategy. He says: “They are finding some brilliant deals and are now looking to scale up by tackling much bigger developments in partnership with other investors. I think they have a fantastic future ahead of them because they have a real thirst for knowledge and are always prepared to take action.”

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