- This video is all about investing
in property for beginners.
Which of these three property types
should you consider as your first investment property?
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Hi my name's Tony Law from Your First Four Houses,
and I teach people how to build a small property portfolio,
to generate a great income for them
so they can give up their day job if they wish
because they're now financially free.
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So there are loads of property strategies
out there aren't there?
Let's be really honest.
But I wanna just suggest three different
types of property strategies to consider
if you're a complete beginner.
And I should add these are just my personal
views and you must do your own due diligence
before taking any action on anything here.
So my first suggestion is to simply
buy a run down single let that needs a major refurbishment.
Honestly, I think these make a great
first investment Property.
Now the truth is, you'll learn so much
if you kinda get in there and get your hands dirty.
Not literally speaking.
Although you should actually get in there
and start to do some of the work.
If it's your very first property in my opinion.
But just figuratively speaking,
getting in there, doing the dirty work,
you'll learn so much by doing that.
But you need to focus on deals,
where you can, in my opinion,
put your money into the deal,
but then get it back out again
within a relatively short space of time
so that you can use that money
and go and fund that next deal.
So here for example, I'm talking
about buying properties potentially
below market value, substantially so.
Or buying a property where you can
add significant value, or ideally both
so that you can then refinance
and then pull that money out again.
To find these, can I suggest
that you go onto rightmove,
search for what it is that you're looking for,
but then sort, in terms of oldest listed first of all.
Find the properties that work for you
and then start negotiating hard.
These sellers could be very motivated,
and it is absolutely a numbers game.
For lots more information on this type of strategy,
why don't you check out my free property mini-course
by clicking here.
There's loads of information on this type of strategy.
Secondly, why not buy a one bed flat
and turn it into a two bed flat.
So how would you do that and why would you want to?
Well, what you would do, is you would potentially
take the kitchen and you'd actually make the kitchen
bedroom number two.
And you'd actually move the kitchen
into the loungy type of area.
Now obviously some properties, some flats,
that's never gonna work.
But some flats have huge lounge spaces
whereby if you incorporate the kitchen
into that space it still works beautifully.
But you've just gone and gained a bedroom.
As to why you'd wanna do it,
well you're gonna have big value potentially
by doing this type of work.
So that you can get in there and pull that money
back out of the deal again quickly.
The key here is to get really good
at reading an understanding floor plans.
So go onto rightmove or zoopla,
and search for one bed flats with a large lounge.
Also, once it's done, could you maybe
convert this place into a serviced accommodation?
By the way, if you find this video helpful
I would love it if you could take a moment
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It really helps me if that's okay.
Thirdly, I suggest you take a close look
at a rent to rent based strategy.
HMO's are without doubt a more advanced strategy.
I don't think anybody would disagree with that.
And there's certainly lots to learn
if this is for you.
But rent to rents can be a fantastic way
of kinda of sticking a toe in the water.
You don't need much capital to get started,
and just a few rent to rents
can quickly replace the average income.
But I would specifically recommend this strategy
because you'll learn so much about HMOs in general
assuming that you might ultimately
wanna gone on and actually buy some HNOs.
For example, you'll learn all about the
legislation that you'll need to comply with.
How to fill your rooms.
Even in an area where there's maybe
a little bit of an over-saturation of rooms.
The systems that you need to put in place.
Whether you actually even enjoy
this type of investment.
But above all, you'll demonstrate competency.
When you're sitting down with a potential investor,
he's got 100,000 pounds to invest
and he's thinking about investing with you.
You can just sort of demonstrate your competency
by sort of sliding across the desk that pdf.
Showing your latest investment.
However with rent to rent, can I strongly suggest
you do get some kind of training?
'Cause there is a lot to know
about this particular strategy.
You don't need to necessarily do any of my training,
but honestly I do think you need to do some.
Just before you go, can I encourage you
to check out this video here?
Because in here I share 12 huge tips
that I wish somebody had told me
before I bought my first investment property.
(funky music)
I put together a 50 point checklist
that will run you through all the steps
you need to take before buying
that first investment property.
Simply click the link here on the description box below
to download your own copy today.