Hi Samuel Leeds here and in this video you're going to learn about rent-to-rent deals. In
fact, you're not just going to learn about rent-to-rent deals, you're going to see me
clinch a rent-to-rent deal and you're going to go inside one on this video. So stay tuned.
Okay so I'm here driving on my way to meet a rent-to-rent prospective landlord. I've
pretty much sealed the deal over the phone, but now I'm driving to their house, all the
way in Kidderminster and hopefully it'll be a little bit less of a wasted trip as my last
video in Manchester. I'm here with Amanda. So say hi, Amanda.
Hi.
So here's the situation. We're gonna hopefully get the keys, sign the paperwork when we get
there and once we've done that, we're going to go and check out the house. So we're here,
sat down on the sofa, about to collect the rent-to-rent keys. The beautiful lady Sarah,
who's got a great voice but hasn't got her makeup on, so doesn't want to be on the camera.
I've just been explaining why she's passed this to us on a rent-to-rent. Why have you
passed this on to us to a rent-to-rent? You're looking for a guaranteed rent?
Guaranteed income, you don't have to deal with it, we don't have to think about it.
Won't ever get a phone call about it. It's just there in the background earning us money.
And you don't mind ... You're not necessarily looking to make a load of money? You'd rather
a small amount of money, which is fixed, than a lot which is unfixed, is that right?
Yeah, definitely. Having that guaranteed income takes the weight off your shoulders. It's
peace of mind.
Yeah. Peace of mind. So she is beautiful, despite you not being able to see her face,
so great, let's have the keys. Boom. Wow, that is a lot of keys for just one ... Oh,
what is this? Look at this. Look at this. We're gonna have fun going over to the house
now, won't we Mandy?
Yeah.
Right, Sarah, good to see you.
Thank you.
But ...
Let us know what you decide to call her.
Ruby.
Oh Ruby?
Yeah. Ruby Joy.
Oh, that's beautiful.
Yeah. God bless. See you soon.
See you later.
Bye now.
Okay, so. We've go the keys, we've got the contract signed, let's go and have a look
at the house. So I'm really looking forward to seeing the house. Sarah said that she doesn't
want the hassle or the responsibility of the property. But the thing is we're going to
be passing it over to a really good management company anyway, so there's very, very little
for us to gonna have to do as a rent-to-renter. Our options are, we can either keep the property
and make a gross profit of 500 pounds per month. Could be a little bit less than that
once we've outsourced everything.
But still for nothing up front and practically no work, just a quick drive to Kidderminster,
that's not bad. The other option would be that we pass the rent-to-rent deal onto somebody
and make a quick four, five thousand pound fee. But then we've not got any passive income.
So Amanda, you'd rather do the quick, pass it on, have a baby.
Yeah.
Wouldn't even use the money to go on holiday. Whereas I'm all about passive income, so.
We'll find out when we get there. What would you do? Would you rather make 500 pounds a
month passive income, or make a quick five grand? Let us know, comment below. When you've
investing nothing, that's not really that bad. What you thinking, Mand?
Yeah, I'm just like thinking or ...
You'd rather pass it on for a fee, wouldn't you?
Yeah.
And just get a quick five grand.
Yeah.
Rather than have it on our portfolio? Oh, I'm not sure. You know what? When you're creative,
the world is your oyster. You can make so much money in property without starting with
any money. Okay, here we are. Feeling pretty excited about this. Let's ... Let's have a
look. This is my first time looking around this place, so. Oh! All righty, come on in.
Okay, so. This is the lounge. This feels pretty decent, yeah? It's on the bare side. There's
no TV or anything but the sofas are good. And it seems like it's been decorated recently
to a decent standard.
Good. Now I'm praying that the kitchen looks good, so no one's seen this yet. Let's see
what it looks like. Oh, nice. Very good. Come have a look, Manda. What do you reckon?
Nice. Very nice.
It is pretty [crosstalk 00:04:37]. Obviously this is a new kitchen. New boiler, very good,
this has just gone in. Couple of months ago, they've clearly done this up to rent out.
But just want a guaranteed rent. Bathroom is nice. This will rent out a dream. Assuming
the bedrooms are all good. This will rent out a dream.
Yeah, also it's really close. I mean, you could probably walk to the Centre in about,
what would you say, Mandy, 10 minutes?
Yeah.
10 minutes. And you in the Small Hampton City Centre. It's nice. The downstairs bedroom
to begin with, let's have a look at that. So this is nice. It's a small double room.
How do you know if it's a double room or a single room? What size does it have to be?
Well the easy way is, if it's got a double bed in there, it's a double room. So this
is a double room. And they've furnished this exactly as they should, exactly as we furnish
it. Ready for an HMO.
So we've got downstairs, we've got a nice bathroom, communal bathroom, communal kitchen,
nice lounge, and we've got one double room. So I'm hoping for three good rooms upstairs,
let's have a look. Ah, this is good. Yeah, I might just ... I might just stay here for
a little bit. Just think about life. My goodness! Another massive room. So we took in three
doubles so far. We've got a little built-in wardrobe, we've got a wardrobe, chest of drawers,
a bed. This is great.
Okay. So it's not a big room, but it is a room. Let's have a little measure. Have you
got your tape measure, Amanda?
Not on me, no.
Geez. Okay.
I might have one in the car, but I'm not sure.
Have we got one in the car?
Possibly on your dashboard?
Shall we have a look? All right, pause it. If I haven't got one, I've failed as a property
investor. Oh goodness, there's lots of my CD's. Ah, oh yes! Come on. And that's 'cause,
I'm a professional. Hey.
Well done.
Right, this is yours?
Yeah.
No, this is mine.
No, it's mine.
All right, let's measure up. So it is 10, 10, by ... Get this nice and accurate. By
six, six. So 10, 10 by six, six should be just about okay. Now listen, if you can fit
a bed, a chest of drawers, and a wardrobe in it like this, it will rent out all day
long. However, if it's less than 70 squared foot, and the Council look into it, change
the rules, or anything, you just want to make sure that if you can, it's 70 squared foot
as a minimum.
So how you can do that, is we can go onto just Google square foot calculator. And here
we go. So it is 10, 10 by six foot six. Which gives us a total of 70.4, so we're okay. So
this room is plenty big enough, so you've got one single, we've got three very large
doubles, we've got a communal kitchen, a communal lounge, and a communal bathroom. So we should
easily get for this property 1400 pounds. I think it would rent out like that for 1400
pounds. It's furnished, we haven't got to spend a penny on it.
Which would mean that if we're going to ... Yeah, 1400 minus 550 pounds to go to Sarah. Which
is gonna give 850. Minus 300 pounds for the bills and renting costs. I've got a lot of
HMO, so I know how much they cost and in this kind of area, 300 pounds, very realistic.
Leaves us with 550 pounds per month. Now off that 550 pounds, we're going to pay somebody
to manage it and look after it. So I think realistically we'll probably be left, maybe
250 pounds on management and maintenance. All of it, you're talking 300 pounds a month
profit, after paying everybody, without having to touch it.
So not bad. What do you think, Amanda?
I really like it. I think it's a great house. I love the big double rooms. I think we should
go back to this one back here. I mean, really nice and nicely done out as well. Really,
really nice. I don't know. I think we might have to have a child right when we get back
home.
And decide if we're going to keep it or pass it on?
Yeah. It is nice, though.
It is nice. And I think it should rent out like a dream, do you?
Yeah, yeah, yeah. Definitely.
Because you've been involved in HMO management, I mean what are your thoughts on the area?
The area seems really good, and it's close to the Centre, like you can walk to the Centre,
so. I think it will-
I understand why Sarah has passed it on. Because she doesn't want any hassle whatsoever. But
do you think that we've got a pretty, a steal here?
Yeah. Definitely.
Yeah, I think so.
Definitely.
I think so. Awesome. So in conclusion, no money down deals are possible. You don't need
money to make money in property. You can do rent-to-rents, lease option agreement sourcing,
but this is a real-life live example of a rent-to-rent deal that we've just secured
today. Hopefully that's been helpful and useful. Also, another tip is always bring a tape measure
wherever you go.
So if you'd like to watch more videos like that, then don't forget subscribe right now
below, and I look forward to seeing you next time.