In this episode of The Engaging Marketeer, Kieran Toner, founder of KIEBA Property, discusses his journey from a novice investor to a successful property entrepreneur.
Kieran shares his experiences, strategies, and insights on building multiple income streams through property investment. He delves into various property strategies, including buy-to-let, Houses in Multiple Occupation (HMOs), and service accommodation. Kieran also touches on the challenges of property investment, the importance of networking, and his views on the political landscape affecting landlords in the UK.
The Start of Kieran’s Property Journey
Kieran Toner began his professional life far from the property world, spending his twenties travelling, teaching snowboarding and windsurfing. His entry into property investment was unplanned, starting after he moved back to the UK and explored various career paths. Kieran’s interest in property was sparked by reading “The 4-Hour Work Week” by Tim Ferris and “Rich Dad Poor Dad” by Robert Kiyosaki. These books shifted his mindset towards alternative income generation, prompting him to invest his savings into his first property.
“I spent my twenties snowboarding, windsurfing, and travelling. Moving back to the UK, I picked up ‘The 4-Hour Work Week’ and ‘Rich Dad Poor Dad’, and that changed my thinking about making a living.”
Initial Challenges and Learning Experiences
First Property Purchase and Early Lessons
Kieran’s first property was a £65,000 ex-council house in Birkenhead, purchased in 2010. With no formal property training, Kieran relied on self-education through books and online research. He aimed to buy, renovate, and hold properties as long-term investments. Despite the absence of significant capital appreciation, the rental income proved substantial, setting the foundation for his property portfolio.
“My first property was a £65,000 ex-council house. It didn’t appreciate much, but the rental income was strong.”
Networking and Mentorship
Initially sceptical about property networking events, Kieran realised the value of learning from experienced investors. He sought mentorship to refine his investment strategies, particularly in buying properties below market value and negotiating directly with vendors. This approach allowed him to acquire multiple properties quickly and cost-effectively.
“I was sceptical about networking, but mentorship opened up new strategies for buying below market value and dealing directly with vendors.”
Exploring Diverse Property Strategies
Below Market Value and Direct to Vendor
Kieran successfully applied the below-market-value strategy by engaging directly with motivated sellers. He emphasised the importance of understanding sellers’ motivations and offering solutions that meet their needs. This approach not only allowed Kieran to acquire properties at favourable prices but also built trust with sellers.
Expanding into HMOs
After achieving his initial income goals with single-let properties, Kieran ventured into HMOs. This strategy involved leasing properties from landlords, guaranteeing them a fixed rent while Kieran managed the properties, rented out rooms, and handled maintenance. This approach provided a higher cash flow and leveraged economies of scale in property management.
“With HMOs, we guaranteed landlords a fixed rent, managed the property, and profited from renting out individual rooms.”
Service Accommodation
Kieran further diversified his portfolio by investing in service accommodation, particularly in tourist areas like Chester. This model involved renting properties on platforms like Airbnb and Booking.com, catering to both leisure and business travellers. Despite the challenges brought by the COVID-19 pandemic, Kieran adapted and maintained a profitable service accommodation business.
“Service accommodation offered high cash flow by targeting tourists and business travellers, though it required more hands-on management.”
Navigating Political and Economic Challenges
Government Policies and Landlord Challenges
Kieran criticised the UK government’s policies that he believes unfairly target landlords, such as Section 24, which restricts mortgage interest relief. He argued that these policies increase costs for landlords and ultimately lead to higher rents for tenants. Kieran called for more supportive measures to encourage property investment and alleviate the housing crisis.
“Government policies like Section 24 unfairly penalise landlords and push rents up, without solving the housing crisis.”
Development and Future Plans
Kieran is now focusing on property development, looking to convert sites into multiple units. He is interested in small development projects that can provide more housing and meet the growing demand. Kieran also expressed a desire to maintain control over his investments and avoid strategies that rely heavily on third parties, such as social housing.
“We’re looking at small development projects to create more housing and address market demand.”
Conclusion
Kieran Toner’s journey from a novice investor to a seasoned property entrepreneur highlights the importance of adaptability, continuous learning, and networking in the property market. By employing various strategies such as buy-to-let, HMOs, and service accommodation, Kieran has built multiple streams of property income. His insights into the challenges faced by landlords and his proactive approach to property development provide valuable lessons for aspiring property investors. For those looking to enter the property market, Kieran advocates for thorough research, seeking mentorship, and being open to diverse investment strategies.
“Adaptability and continuous learning are crucial in building multiple streams of property income.”
“Seek mentorship and explore diverse strategies to succeed in property investment.”
Connect with Kieran
KIEBA Property: https://www.kiebaproperty.com/
Facebook: https://www.facebook.com/kiebaproperty
LinkedIn: https://www.linkedin.com/in/kierantoner/
Instagram: https://www.instagram.com/kieran.toner/?hl=en
About your host:
Darren has worked within digital marketing since the last century, and was the first in-house web designer for video games retailer GAME in the UK, known as Electronics Boutique in the States. After co-founding his own agency, Engage Web, in 2009, Darren has worked with clients around the world, including Australia, Canada and the USA.
iTunes: https://podcasts.apple.com/gb/podcast/engaging-marketeer/id1612454837
LinkedIn: https://www.linkedin.com/in/darrenjamieson/
Engaging Marketeer: https://engagingmarketeer.com
Engage Web: https://www.engageweb.co.uk
