Today, I am delighted to share a conversation I had Steve Bolton an ‘Eight Figure Founder’ of Platinum Property Partners, which I understand is one of the most successful franchises in UK history. He has other business interests as you will hear but he is also an Impact Investor & Philanthropist, so has a very real giving heart as well.
I am going to be honest…I think you are going to like this one, just listen out for gems such as ‘Losing everything was the best worst experience in my life.’ and ‘Take personal responsibility – as we are all self-made…self-made successes or self-made failures.
Podcast: Play in new window | Download
Resources mentioned
Find out more about Steve Bolton HERE
Property Deal Tips & How to Reach me By Telephone
Link to the Podcast feedback survey
TPV Apprentice Programme info HERE
Today’s must do’s
Subscribe to and review the show in iTunes…and while you are at it please help us to spread the word by telling all your friends too!
Send in your property stories, questions or moans to podcast@thepropertyvoice.net and we will try and feature YOU on the show too!
#PropTech: A guide to how property technology is changing how we live, work and invest – a link to the latest book.
Property Investor Toolkit – here is the book link on amazon.co.uk & amazon.com in case you would like to get yourself a copy to accompany this series
Get talking!
Join in the discussion, either here in the comments section below, or by emailing us at podcast@thepropertyvoice.net
Start a conversation on Twitter with us @PropertyVoiceUK or on our Facebook page
Transcription of the show
Hello, and welcome to another episode of The Property Voice podcast. My name is Richard Brown and as always, it’s a pleasure to have you join me on the show again today.
Today, I am delighted to share a conversation I had Steve Bolton an ‘Eight Figure Founder’ of Platinum Property Partners, which I understand is one of the most successful franchises in UK history. He has other business interests as you will hear but he is also an Impact Investor & Philanthropist, so has a very real giving heart as well.
I am going to be honest…I think you are going to like this one, just listen out for gems such as ‘Losing everything was the best worst experience in my life.’ and ‘Take personal responsibility – as we are all self-made…self-made successes or self-made failures.
So, let’s not waste any more time and get straight on with our conversation right now…
Property Chatter
Steve Bolton
From Bournemouth, left school at 16 and stacked shelves in a supermarket.
Got an apprenticeship in outdoor pursuits aged 17 and at 20 became a centre manager.
Passion: coaching, mentoring, training & teaching ‘stand on the shoulders of giants’
Mid-twenties started a business – no money, knowledge or skills but did have a natural flair for marketing. Went into business with a friend and within 3 years were the European market leaders. Early thirties a paper millionaire.
The rise was followed by a fall…his house stopped Steve from going bankrupt. A small amount of equity enabled a move into property.
HMOs were where Steve began – 20 HMOs between 2004 to 2007 creating financial independence.
Franchised the business in 2007 – like-minded, high net worth investors with >£0.5m to invest. 1,000 properties, 7,000 rooms and the fastest growing premium franchise in history.
Diversified into other businesses (hotels, services office, digital marketing company). Now an impact investor, making a difference where I can with social investments made.
Hard graft or grit – will it get you there? It’s an important part of being successful, although 95% of what Steve does, he loves and he only works with people who he likes and trusts. So, you need a strong moral compass, understand your values, mission, purpose and operating principles. Know yourself. Find things that you enjoy…love what you do.
Gamify the system by finding ways mentally to enjoy the things you don’t really enjoy. For example, with finance and the numbers – not Steve’s forte…so learn these skills or have a partner that does enjoy this. Pretty spreadsheets.
The real aha moment, was when their business grew to half a million pounds a year in net profit. This came to an end, but the best investment is an investment in yourself. Switched to become an avid learner, reader and action-taking course junkie.
Two-year search to find a business model Carnegie said 95% of the world’s wealth is made or held in property. So, why start anywhere else?
Find giants and copy what they do…then work out how to generate an income through property. Also, planning to avoid risk in any circumstance. High-interest rates, house price crash, high voids.
Researched for 2 years before deciding on HMOs. Whilst doing this, Steve also set up another business to generate income. The entrepreneur in Steve kicked in. ‘Losing everything was the best worst experience in my life.’
1 in 20 in the world are born entrepreneurs…became creative to generate c£100k a year.
Then, invest in own training and development with the available cash and time. Got mentors and upped the game in terms of personal development.
Founded PPP by synthesising the best ideas he could find and then taught others to do this.
How the initial investments were funded? #1 was personally funded from the house sale. Bought first HMO before buying their own home (which came after buying 3 HMOs). This is about delaying gratification.
Money…make more, spend less or save more of what you have.
The second property was ‘self-financed’ with a low deposit in the heady days before the credit crunch.
Buy, add value and then refinance – capital-raising as a result. 2007 bought 12 properties with own funds and with other investors. Did this by creating a system, which he now teaches this. £20m raised in private investment. Build the track record first.
Started PPP in 2006/7 Jerry Maguire moment…seeking to make 100% of people trained successful. 94% of franchises are still trading profitably after 2 years.
Surviving the financial crisis was ‘predictable’, not the credit crunch but if it sounds too good to be true, then it probably is. Steve knew that the market would fall, so adjusted for this with a long-term view, focusing on income. The values had fallen as had the LTV lending, but interest rates went down and occupancy went up. The main driver was access to alternative sources of funding.
Then developed a scheme to access pension money from 2010 (SSAS & SSIPs). Risk management, defences and also contingencies with alternative sources of capital.
Another step-change after Platinum…what created that shift. Systems in Steve’s DNA (Michael Gerber) – systemising PPP was not easy and took some time from 2007 to 2013…the trigger was to make more of an impact. 355 families becoming financially independent (94% success rate). What else can we do?
More philanthropy works as well, alongside his business interests.
The second driver was the desire of partners to invest in other things. Diversify into alternative property strategies like serviced accommodation, hotels, offices, gyms, hospitality, etc.
Digital marketing (Bolt Digital) – a defensive response to a threat from traditional marketing to digital and social. Decided to own this business instead of buying in the resources.
Investing in social impact investing as well, showcase ‘The Impact Profile’ social media for social good.
Values…have you maintained them for always. They have evolved over 30 years and is still evolving. Howard Gardner’s 8 forms of intelligence. Intra-personal intelligence…how well do you understand yourself? Garry V…number one thing is self-awareness. Know yourself.
Joy, truth, love peace freedom legacy & abundance – this is Steve’s checklist for everything. Steve’s personal vision is to: be more do more, have more, give more.
It’s a process that has taken a long time and is a labour of love at the same time. It is also hierarchical…start at the bottom. So, you need basic security first.
Aborigines – 5 generations’ time. So, Steve thinks about his legacy ALL the time. Committed to The Giving Promise similar to The Giving Pledge, where they will give away at least 50% of wealth to make a positive impact. You can do both in terms of making money and doing good.
Insights for the future of the property market
‘It depends’ – get on the property ladder soon, then try and think about places to live in that you don’t have to sell when you move out (can you rent it out). Investing, think about the downside risk…what is the exit in a down-market, interest rates, bad tenants. It’s now a professional investor’s market due to political pressure. So, this has come down on amateur landlords and has also led to other problems.
Money, system and support to get involved. You do need money behind you…if you have some, along with money and skills it’s a great time to be involved and buy.
General tips and advice
What drives personal success?
Motivation – you must have this, driven by pain and pleasure. There are mental tricks you can play to enhance this. This is a fundamental necessity.
Core principles:
- Stand on the shoulders of giants – get mentors, coaches and support
- Invest in yourself – foundations of us as human beings, values, become an avid learner, etc.
- Upgrade and expand your network – copying behaviours of people close to you does have an influence on you, so it does matter who you spend your time with.
Can anybody be successful?
Wow…what a response! Can everybody with the desire to be more successful, yes they can. Personal responsibility – we are all self-made…successes or failures. Successful people have successful habits…master forming good habits. This is the one thing that will help you the most.
Think, act, behave differently by creating new habits if you want to achieve anything in life.
Remember, if you want to talk about anything from today’s show, or just talk property investing more generally, email me at podcast@thepropertyvoice.net, I would be happy to hear from you! The show notes can be found at our website www.thepropertyvoice.net
All that is left to say, is thank you very much for listening once again this week and until next time on The Property Voice Podcast…it’s ciao-ciao.