Hey what up? Samuel Leeds here, and in this video I wanted to talk to you about passive
income, and the five ways that you can make passive income through property.
Before I tell you where you can make passive income from in property, let me just explain
to you what passive income is, because most people, they're not taught about passive income.
If you know what it is, it's because you're self-educated, because in my book, "Buy Low,
Rent High, which by the way if you've not read, you really should read this.
I say, when I was at school if I had told my teachers that I wanted to be a property
investor, they would have said that it was risky. They would have told me that if I wanted
to guarantee success, I needed to follow their system, and I'm sure you're all familiar with
their system. I call this the seven lies, because all my life, probably all your life,
we've been told by the government, by our school teachers, by our parents, this sort
of stuff. I call this the seven lies.
One. Study hard at school, as it's important you get good grades. Two, go on to university
if you want to be paid well. Three, get a good job for life. Four, if you buy a house,
pay off the mortgage as quick as possible. Five, save as much money as you can to store
away safely in the bank. Six, the harder you work, the more money you'll make, and seven,
look forward to retirement, because that's the good life.
You probably heard that. That is such nonsense. That is the opposite of passive income. That
is the opposite of financial freedom. That;s called being a slave to a job forever, and
we know what a job stands for, jump out of bed, on a journey of boredom, to be just over
broke. Working 40 hours a week for 40 years, to retire on 40% of what we couldn't afford
to live on in the first place.
To begin to get your mind around the new way of thinking, which is passive income, which
is financial freedom, I say these are the seven truths.
One, most people do not benefit from good school grades. Oops, maybe I shouldn't have
said that, maybe you're offended right now, but hey, this is it.
Two, most people who finish university still struggle to get a job. I know so many people
who when I invested in myself, and went and started going on property courses, I'm like
17, 18 years old, they laughed at me. They went to university, and after finishing university,
after four years of spending like 50 thousand pounds on university, they couldn't even get
a job. It's sad, but it's true.
Number three, a good job for life doesn't exist. Four, paying off the mortgage quickly
is not smart. Five, your money is shrinking in the bank. Six, some of the poorest people
are the hardest workers. I know that because I've been there in the slums of India and
the rural parts of Africa. And seven, if retirement is your motivation, you will be extremely
disappointed.
What is passive income? Passive income is when you work once and you get paid forever.
Active income is when you work once and you get paid once. Therefore, you have to keep
working to keep getting paid. You're trading your time and your energy, you're trading
that for money, whereas passive income, do something once, invest in something once,
and you're getting paid ongoing.
When your passive income equals your living expenses, you're financially free. Not necessarily
rich, but you don't have to work again and again, because your passive income covers
your lifestyle.
There's different ways to make passive income. You can make passive income from network marketing,
from automated online affiliate schemes and all different things. Vending machines, advertising
spaces, there's different ways to make passive income, but I believe that the best way to
make passive income is through property investing, or if you're in America, real estate.
Why is that? It's because it's bricks and mortar. You can touch it, you can feel it,
not only does it give you an income, a passive income, but also, you've got an asset that's
going to appreciate over time. That's why I love property so much.
Also, if you go on the Sunday Times Rich List, you'll see that all the people that are rich,
that are making good money, they all invest in property. There's a common denominator
and it's property. Here's the five ways that I make passive income from property, and I
think you should be too.
Number one is buy-to-let. Buy-to-let is just simply when you buy residential houses, family
homes, and you rent them out. People always need to live in them, you will always get
an income from them, and that is called buy-to-let property investing. It's fantastic. It's very
bread and butter.
Number two is HMO's. If you want to lift the cash flow a little bit, HMO's, great way to
earn passive income. That's when you rent a house of multiple occupation out. You rent
out on a room by room basis to young professionals, or to students. You get a higher income. With
the right management systems in place, that is a very, very healthy form of passive income.
Number three, serviced accommodation. I've done videos about serviced accommodation,
you can check them out just above. Serviced accommodation is almost like a hotel with
no staff. It's when you rent out a property, an apartment, a house, but you rent it out
as serviced accommodation on things like Airbnb, booking.com. You have guests instead of tenants.
Now this needs to be managed and systemized properly, otherwise it's not passive income.
But when it is managed and systemized properly, it will give you probably the highest form
of cash flow and passive income that any of the other strategies give you. Serviced accommodation
is a mine field, you need to get the right training to do it properly, but it's a fantastic
way that we make very, very, high passive income.
Number four, commercial property. We invest in commercial properties. I'm just in the
process of buying a 1.5 million commercial unit at the moment. The great thing about
commercial property is there's real tax advantages to buying commercial. You save on stamp duty,
you can buy it through a SSAS, so your pension can invest in property. Also, the tenants
are usually very, very long term. They'll sign 15 year leases, and they will be responsible
for the maintenance of the property, so it's completely passive. I'll recommend probably
starting out with residential, but once you've got a nice property portfolio ready, definitely
start considering commercial.
Lastly is a property business. You could set up a sourcing company, which is where you
find properties and pass them onto investors. People say their problem is with sourcing
company is its active income. You make massive income, but not passive income, because you
could find a property a day and pass it to an investor and make three grand a day, brilliant,
but it's active. True until you turn it into a business, which is when you have staff.
Some people are really scared of staff, "Oh my gosh, I wouldn't want any staff."
Listen, if you want to get very wealthy, you want to be able to have the lifestyle where
you can do what you want, when you want, with who you want, then there's nothing wrong with
having staff. Again, do it properly, make sure the right contracts and you do it properly,
but if you a property business, and you have staff, it's truly passive income and it can
be passive and massive.
But first steps is to become financially free before you start thinking about taking on
loads of staff. How do you become financially free? Read the books, attend the classes and
the seminars, and implement the knowledge. We run a two day property investors crash
course. If you've not been to the property investors crash course, that is where it always
starts. I have success students every single week. People were leaving their jobs, becoming
financially free, turning into property mode goals, and all of them all go through the
property investors crash course.
You can again, in the description, you can book on to the property investors crash course
and guess what? It's completely free. I don't know how long I'll be continuing to run these
crash courses for free, but it's completely free. People travelling from all over the
world, so claim your free ticket today and I'll look forward to seeing you on the next
video. Thank you so much.