- Today, I'd like to share four different ways
that you can get an infinite return
on your next investment property.
Okay, one of the ways is pretty rubbish,
but three are amazing.
(jazz music)
Hi, my name's Tony Law from Your First Four Houses.
And I teach people how to build a small property portfolio
that generates a great income for them
so they can give up the day job, if they wish,
because they're now financially free.
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So before we dive in, I am not FCA-approved,
and so before you take any action on any of the stuff
I'm about to share with you, it is essential
that you seek the advice from somebody
who is indeed FCA-approved.
So today I wanna share four different ways
that you can potentially get an infinite return
on investment on that next property investment
that you're about to buy.
But before I show you these four different ways,
we should probably just clarify how to actually calculate
return on investment.
You take the annual profit that you're gonna get
from the deal after all expenses.
You then divide this figure by the cash left in the deal
after it's all done and dusted.
And you multiply this figure by 100.
And this gives you the return on investment.
So to take a real-world example here,
imagine you find a deal that's gonna generate
an annual profit of say 10,000 pounds
after all expenses.
But when the deal is done and dusted,
probably after refinancing, you need to leave
100,000 pounds in the deal.
So we divide 10,000 pounds by 100,000 pounds,
and then multiply this by 100,
and that gives us our return on investment,
which in this case is 10%.
But now suppose you could do a deal whereby once it is
all indeed finished and probably refinanced,
you don't actually have any money left in that deal.
What kind of return on investment would that give you?
So again, let's imagine we found a property
that's gonna give us an annual profit of 10,000 pounds.
Once the deal's done and dusted, however,
we don't have any money left in that deal.
Well 10,000 pounds divided by zero multiplied by 100
gives you an infinite return on investment.
Okay, so now let me show you four different ways
that you can do deals where you don't leave any money in.
And let me quickly get the worst of these out of the way
straight away, and that is to wait a very long time.
So here you're gonna buy a property,
probably at market value, and you're probably gonna put in
your own deposit, your own money that is,
and then you're gonna wait many many many years.
And as the years pass, that property should,
in theory at least, go up in value.
Well though of course, as we know,
there's no guarantees here.
When it's gone up enough, you can refinance
and finally pull your deposit back out of the deal.
But this is not a very intelligent way to invest in property
in my opinion.
It takes way too long.
And so let me quickly show you three different ways
that you can get an infinite return on your investment
within a very short period of time.
So the second way is to buy a property
that's seriously below market value,
also referred to as being BMV.
So here you're gonna find and negotiate a BMV-type deal.
You're gonna smarten it up, nothing particularly major,
not gonna do any major works on it,
just sorta bring it up to a much more cleaner,
modern kind of look.
You're then gonna go back and refinance this
back to its full market value,
because don't forget, you bought it below market value,
didn't you, and you're gonna do this maybe
within six, 12, 18 months, something like that.
And so in this way, you can pull most or all
of your money back out of the deal.
Now the truth is, I did not believe,
I did not believe that this was possible.
I really didn't, and anybody that knows me knows
that that's the case.
But I've now done this many many times.
And for some real-world examples of how you can find
these types of deals and crucially where you're leaving
the seller entirely happy, can I suggest
that you check out my free property mini course,
because I give you some real-world examples in there.
Now the third way is to add genuine value.
So here, we're gonna buy probably at market value,
or maybe we're gonna buy the property
a little bit below market value, but we're not getting
a major discount in this particular example.
But then, crucially, we're gonna add some genuine,
tangible value to that property.
And we're then gonna refinance it
based on the new uplifted value now that we've added
that genuine, tangible value.
And then once again, we're then gonna be able to refinance
and completely pull all or most of our money back out
of that deal.
But the crucial point here is that you must add
real, tangible value.
A lick of paint and maybe doing a little bit of decorating
or maybe putting in a new kitchen,
that's simply not gonna cut it.
And again, for 12 real examples of what I would consider
would add genuine value here, again,
can I encourage you to check out that free mini course.
I'll put the link here
but also in the description box below.
Because in there I share 12 different ways
that you can do this.
And the fourth way is to work with investors.
So here you're gonna find a property that gives
a higher return on investment.
You're then gonna find an investor who wants to get
a great return on their money.
The investor then probably funds the deal
in its entirety, probably.
But you organise all of the work.
The investor is then either remunerated via
a fixed-interest loan or they get a share of the deal,
a piece of the deal, obviously depending
on what you negotiated.
But in either case, you've put no money in,
and so for your part of this deal,
you get an infinite return on your investment.
Now the truth is, there are loads of people out there
with money sitting in the bank earning a pitiful return,
and many of those would greatly appreciate the opportunity
to earn a far greater return by getting involved
with a competent investor, a competent property investor,
and maybe kinda working alongside them.
But if you are doing this type of deal,
you need to be very aware that there are some clear
and stringent guidelines that you must adhere to.
In my online property masterclass,
I teach you a whole load of different ways
that you can fund your deals without needing
to put in big deposit money.
And so if you'd like to have a 10-minute phone call with me
to find out if this course might benefit you,
simply click the link here to book a time slot.
(jazz music)