- If you want to invest in property
I believe that there's 10 key skills
you should try to master,
and skill number six is working out
how to finance your deals.
And so let me share a few ideas
that I know are gonna help you with this.
(upbeat music)
- Hi my name is 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.
If this is your first time here
be sure to subscribe to the channel
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so that you don't miss out on any of the free content
that I give you each and every week.
So today I want to share seven steps
that I know are gonna help you finance that next deal.
And I'm gonna start off with possibly the biggest challenge
that I think most people tend to have
when they're first starting out.
And that's mindset actually
because people often don't even start looking for deals
because they kind of think to themselves,
"Well I haven't got the money,
so why would I even start looking for that next deal?"
But the truth is, I'm a great believer
that if you find the deal, you'll find the money.
And that's not just some kind of woo-woo claim.
I've seen that happen many, many, many times before.
Find the deal and you'll usually find a way
to fund that deal.
The key is to get really good at finding that deal.
To help you with this,
why don't you check out my free mini course,
which will teach you exactly how to invest in property
without needing to find money
to put into each and every deal,
and as I say, I'll put the link there
or there'll be a link in the description box below.
Next, you need to work out
what your return on investment is gonna be
on that particular deal that you're looking at.
This is really important
because it's directly connected to raising finance.
In particular, if you're gonna be working with JV partners.
Now I'm not gonna waste any time talking about
how to calculate return on investment.
Check out this link here.
This will teach you exactly how to work it out
or again it'll be, a link in the description box below.
Next, you need to consider
what sources of deposits that you have available.
Now in my online property MasterClass programme
I share a load of different ideas surrounding
how to find deposits to put into each and every deal.
But to give you some ideas,
what personal savings do you have
that you could bring to bear?
What equity what might you be able to free up
that you could bring to bear?
Might bridging be an option that would work for you
or development finance.
Could you maybe bring in a family friend
or associate or partner,
and actually use their money,
and give them a fixed return on their savings.
Et cetera, et cetera, et cetera.
And so this brings me neatly onto actually
working with others.
Who do you know that might be able
to help you fund that next deal?
So here we're talking about either joint ventures or loans,
and I kind of see them as two completely separate things
to be perfectly honest with you.
You might be really surprised
how many people you know, who've got some money
sitting in the bank earning a pitiful return,
who would really appreciate earning a far greater return
by maybe getting involved in a project with you.
Sure you gotta find these people,
and you gotta sit down and have a lot of coffees with them.
I always sort of suggest you actually sit down
and have lots of coffees with lots of people
and lots of conversations
because that's what it's gonna take
to be able to find that money,
to actually bring that money into a deal with you.
And you do need to comply with current legislation,
but there are these people right out there, right now,
who can help you.
You just haven't found them yet. (chuckles)
So let's talk about creative solutions
because there are a number of ways
that you can invest in property
without needing to find deposits
to put into each and every deal,
and I cover a number of these
in my online property MasterClass programme.
These can be fantastic in certain situations,
and so you really should learn as much as you can
about creative solutions.
I like to think of these
as being kind of tools in your toolbox.
So from time to time you can bring out the right tool
for the right job.
It doesn't work all the time,
but sometimes creative solutions
can be a fantastic way to solve a seller's problem.
Since we're talking about finance,
how's your credit rating?
Now I always encourage people to go to noddle.co.uk.
It's a great way to actually check your credit rating,
and it's completely free for life.
If your credit rating is in taters,
it's not the end of the world.
There are lots of ways that you can invest in property
even if you've got a poor credit rating.
But obviously it would be great
if we could improve your credit rating, wouldn't you?
And so, why don't you check out this link here
because this will teach you exactly
what I would suggest you do
to improve your credit rating,
and again I'll put the link in the box below.
Lastly, and I know this isn't gonna sound very exciting,
but we do need to consider tax planning.
Book a call now with your accountant or your tax advisor.
Honestly, it will be the best advice you every pay for.
In my online property master class
I have a whole module entitled
how to fund any deal
that goes into far greater detail on this subject.
And so if you'd like to book a 10 minute phone call with me
to find out a bit more about this course
and how it could help you,
why not click on the link here to book a time slot,
and I'll look forward to speaking to you.