In 2008, as the financial crisis plunged property prices into a tailspin, many shied away from the real estate market. However, for Markella Mikkelsen, this was a golden opportunity. The Telegraph tells her success story. With reduced competition and lower prices, she saw a chance to start her buy-to-let business. Fast forward to today, Ms. Mikkelsen, a former NHS scientist, earns a substantial £11,700 monthly from her nine properties. This income has empowered her to leave an unfulfilling job and venture into entrepreneurship.
The Journey Begins
About nine months before purchasing her first property, Ms. Mikkelsen immersed herself in the world of property investment. She attended networking events, learning from experienced landlords and gathering as much knowledge as possible. She was determined to handle all aspects of her business independently, without relying on external help for viewings or decision-making.
Networking and Learning
Networking events were crucial in shaping Ms. Mikkelsen’s approach to property investment. At one such event in Manchester, she received invaluable advice from a seasoned investor: write down your goals and develop a clear vision for your portfolio. This advice was instrumental in helping her form a strategic plan.
Overcoming Gender Stereotypes
Ms. Mikkelsen faced challenges as a single female landlord in a predominantly male-dominated field. She often encountered assumptions about her husband’s involvement in her business. Despite this, she persevered and encouraged other women to venture into property investment independently.
Capitalising on the Financial Crisis
Her second networking event coincided with the Lehman Brothers collapse, a period marked by declining property prices and skepticism about real estate investment. Ms. Mikkelsen, undeterred by the negativity surrounding her, pursued a “no money down” investment strategy, which allowed her to start building her portfolio without significant upfront capital.
First Property and Beyond
Ms. Mikkelsen’s first investment was a rental property purchased with equity from her home. She focused on below-market-value properties, often targeting distressed sellers or estates. These properties, mainly terraces in Manchester, were rented out to middle class professionals.
Evolving Strategies
As market conditions changed, Ms. Mikkelsen adapted her strategies. She used ‘options’ to secure properties at specific prices and refinanced based on their real values. Her ability to understand property values and negotiate effectively played a key role in her success.
Trust and Transparency
A key factor in Ms. Mikkelsen’s success was her approach to dealing with sellers. She won their trust by being upfront and transparent, differentiating herself from other investors who might have seemed more opportunistic.
Expanding and Diversifying
Today, Ms. Mikkelsen owns eight properties, with one operating on a rent-to-rent scheme. This diversity in her portfolio has provided a stable income, allowing her to launch her own health company.
Dealing with Challenges
Despite facing issues like a cannabis farm and property damages, Ms. Mikkelsen has managed to navigate these challenges effectively. Her experience with higher mortgage rates in the past has also prepared her for the recent increases.
Future Strategies
Her current focus is on buying and converting properties into HMOs (houses in multiple occupation), aiming to increase rental income. By targeting rundown properties and refurbishing them, she plans to maximise cash flow and continue growing her portfolio.
Conclusion
Markella Mikkelsen’s journey in the property market is a testament to resilience, strategic planning, and the ability to turn challenges into opportunities. Her story is an inspiration, especially for women looking to make their mark in the property investment sector.