Church Street Sheffield: 23-year-old man quits £ 100,000 gold mine job in Russia to develop property
After investing in five rental properties in Burnley and Manchester, Damon Wiseman is about to complete his first major commercial transaction in Sheffield city center. He got an offer accepted for a building on Church Street that previously housed the Cargo Hold restaurant with offices above it.
Damon’s vision is to create a stylish new restaurant with up to a dozen luxury apartments on the first, second and third floors that will be available for rent on sites like Airbnb. He won the support of wealthy foreign investors after convincing them of the merits of the project.
Damon, who lives in Psalter Lane, Sharrow, negotiated the deal hard before pushing through an offer of £ 800,000. He estimates that once construction is complete the project will have cost a total of £ 1.5million.
“In reality, it will take at least a year, but I have done due diligence and the estimated return on investment will be in the range of 30-40%. “
Damon has long had an interest in making money from bricks and mortar and graduated with a Bachelor of Science in Real Estate from college. But he was temporarily drawn to the job offer in Russia, before closing the loop to become a real estate entrepreneur.
The housing estate near Sheffield which was once a battlefield between the strikes …
His first four investments alone have created a healthy rental income and remarkably despite his young age, he says he is already financially free.
Damon admits that delivering his review was a huge call because he enjoyed the work as much as the rewards. Spending six weeks abroad followed by four weeks off in Sheffield meant life was never boring.
Along with his glamorous lifestyle, he learned the language and immersed himself in the culture.
“My stereotype of Russians before working there was completely wrong. I thought they were sturdy and tough but indifferent. However, they are polite and humble people, always attentive to each other and very tolerant of strangers.
Besides having a fantastic experience, Damon also made between £ 90,000 and £ 100,000 a year depending on the exchange rate.
He had originally planned to invest in rentals close to where he studied, but found the prices too high. He then comes across a book that will change the course of his life.
It was written by renowned real estate entrepreneur Samuel Leeds, founder of Property Investors, the largest such training institution in the UK.
Samuel has helped a range of celebrities invest in real estate, including rap artist Krept, former Liverpool midfielder Kevin Stewart, pop star Rye Beaumont and former freestyle football world champion and presenter from the BBC Liv Cooke. He has also worked with Welsh international footballer Christian Ribeiro and top professional rugby league players Jesse Sene-Lefao and Quentin Laulu-Togagae.
“When I read his book, my perspective on ownership completely changed,” Damon said.
“I lived in an HMO (House in Multiple Occupation). I didn’t even know what an HMO was. I did not know this investment tactic.
Damon took a google to find out where the cheapest houses in the UK were and “Burnley showed up. “
“I found out that a university had started there recently, and it made my head spin. I thought I was a student, I had lived in an HMO, what if these students had to live in an HMO? Let me find a house near the university.
“So I looked on Rightmove and found a house five minutes from college. It was like a little gold mine right there. I thought, I need to get it.
The catch was that the property was in bad shape and he couldn’t get a mortgage.
Undeterred, he used his savings and the money he earned from his actions to buy the house for £ 55,000, with additional help from his parents.
The plan was to convert the spacious three-bedroom property into a five-bed HMO, but Damon was also unable to secure bridging funding. Fortunately, with the income from his work and a little more help from his parents, he was able to fund contractors to do the job for £ 50,000.
With legal fees and stamp duties, the total cost of the project is £ 108,000. Damon says the house is now worth £ 125,000 but has a business value of £ 150,000. Since it is now mortgageable, he refinances it and will make a profit of £ 900 per month after all of its expenses. It even takes into account the maintenance and payment of a management company for the rental of the accommodation. All bedrooms have their own en-suite bathrooms and are currently rented for £ 400 per month each to Boohoo warehouse workers.
Refinancing the house allows her to withdraw money to pay off her parents and pay the builders’ bills.
Damon has since bought two more HMOs from Burnley, bringing his monthly profit to £ 2,500.
He also just completed his fourth acquisition in the city which he plans to sell for a quick profit once he obtains building permits for various developments. He will not personally carry out the work but will sell it as an investment opportunity.
In addition to his HMOs, Damon is also making a profit of £ 1,000 per month from another real estate transaction in Manchester.
While creating an income, the young businessman says he is also reviving run-down properties and providing much-needed quality housing at fair rents.
“If done correctly and ethically, it is a win-win situation for the investor and the tenant and can also help breathe new life into residential and commercial areas.”
Damon’s advice to anyone considering following in his footsteps is to first make sure they learn the ropes properly.
Originally from Zimbabwe, he came to the UK in 2016 to study real estate, but says his most valuable training was learning “real investing techniques from real investors”.
“My steep learning curve started with the free crash course for real estate investors and I’m now a member of the academy. I took a variety of courses including a three day sales masterclass which gave me the skills to research real estate deals for investors. I even sold my first contract for £ 2,000 while in Russia before quitting my job. I have now created WiseAsh, my own contract research business that I hope to grow.
Damon’s progress has not gone unnoticed by his guru, Samuel Leeds.
“Damon had practically climbed to the top of his ladder. He went to college, got a job in a gold mine and got a good paycheck, but then realized he was on the wrong scale! Mr Leeds said.
“Now he already owns several properties, mainly in the Burnley area, which provides him with a passive and healthy income and he makes money from ownership in other ways as well. And he is still only 23 years old.