Hey, what's up? On this video, I wanted to give a real practical video explaining how
to get your first buy-to-let property investment. The thing is, we're getting people watching
my videos. We're getting people come onto my two-day Property Investors Crash Course.
They're finding fantastic property deals, and they're like, "Great. How do I buy it?
What do I actually do? What are the ABC steps?" Let me go through that on this video. I hope
this is super helpful. Don't forget to smash that Like button if you're enjoying this video
or these videos. Also, subscribe as well. I'd really appreciate that. What's going to
happen is, you're going to first find the deal. You're going to find the property probably
on Rightmove, assuming it's through an agent. You're going to go and view it. You're going
to work out the numbers. You're going to work out the return on investment. You're going
to check that it's a good investment property. Buy low, rent high, with a property manager
nearby. I've done other videos explaining this.
If you want the property, if you're interested in securing the deal, ring up the agent and
put in your offer. Now, before I ever put in an offer, I always try and get an idea
of what the landlord or the seller will actually want, so if it's on for £100,000, I'm not
just going to ring up and go, "I'll give you £100,000." I'm going to ring up and say,
"I'm interested. I like the house. I don't want to put in a real cheeky offer, but I
am an investor, so I'm looking to get a bit of a deal." What might they accept? Sometimes,
they'll just say, "You need to put in your offer. We cannot give you a figure." Start
embarrassingly low, I've done this on other videos, and put in your offer.
Now, as soon as the offer is accepted, as soon as they've said, yes, they'll accept
that, and it's very easy to get to that point, the estate agent is going to need five things
from you, so you might want to start getting these ready now before you even go out and
view properties. These are, this is what you're going to need.
First thing is, they're going to need your photo ID, this is going to be a passport or
a driver's licence, to know that you're a real person. Secondly, they're going to need
your proof of address, which will be a council tax bill, maybe a utility bill or a bank statement
that shows your address in the last three months. That's easy-peasy.
Next, they're going to need to see your proof of deposit, so if the property is £100,000,
your deposit is typically going to be about £25,000, so then you're going to need to
screenshot of your bank. It's going to need to show your name, and it's going to need
to show the amount of money that's enough to cover the deposit on this house. They're
going to need a screenshot of that.
Next, they're going to need to know that you can finance the rest. Now, if it's buy-to-let,
here's the cool thing. Buy-to-let mortgages are very easy to get, and sometimes people
think, because they maybe have only got experience of owning their own home and not owning a
buy-to-let, they think that in order to get a buy-to-let property, they're going to need
to be on a certain amount of earnings, they're going to need to be really good financially,
they're going to need to be in a good, well-paid job, yadda yadda yadda.
That's not necessarily the case, because when you're financing a buy-to-let property, i.e.,
one that you're buying to rent out, the property should be able to finance itself, because
you're renting it out. You'll find it's quite easy to get a mortgage on a basic buy-to-let
property even if you aren't in a well-paid job. Even if you're self-employed earning
£5,000 a year, you should still be able to get a buy-to-let mortgage if the property
can clearly demonstrate that it will pay for itself, which is very easily to do. If you've
been on my Crash Course, you'll be able to find houses like that all the time.
Getting a decision in principle should be as easy as ringing up a good mortgage broker
and spending 15 minutes max on the phone. He should be able to give you a decision in
principle, which is all the agent is going to need in order to then take the property
off the market once your offer's been on, so you're going to need a DIP, a decision
in principle, from a mortgage broker. Now, if you don't know a mortgage broker and you
haven't been to my training programmes, and you're brand new, and you're just starting
out, there's nothing wrong with using the estate agent's in-house mortgage broker. They'll
usually have an in-house mortgage advisor. In fact, there's an advantage to doing that,
in a way, because that means that the estate agent, you've got an opportunity to go into
their office, have coffee with them, let them get you the mortgage. That's the advantage.
It's good for building rapport.
Now, the disadvantage is usually, if you get a mortgage through an estate agency in house,
the rates might not quite be as good, because they haven't got as many lenders to choose
from. They're usually more limited than a free, independent mortgage broker would be,
but that's something you're going to need. It's very easy to get, so just get yourself
a decision in principle.
Lastly is, who's going to be your solicitor? Again, they will sometimes do this in house,
no problem using their solicitor. I would just recommend speaking to someone, speak
to someone who's an experienced property investor and just ask them who they would recommend,
because solicitors tend to be either really, really slow, or they just don't do anything
at all. Having a good solicitor is good, but you need to give the estate agent your solicitor
details, and you can't always change solicitors, so don't be like, "Oh, my gosh. Ah! I need
to give the solicitor that I'm going to definitely use and that I'm going to be married to forever
and use it for every proper ... " No. Just give them a solicitor. Speak to a solicitor.
Give them a solicitor. You can always change it.
Those are the five things you're going to need. Once you've given those to the estate
agent, the estate agent will take the property off the market, and then the estate agent
will then liaise with your mortgage advisor who's financing the deal, and your solicitor,
and they'll do everything, and all you need to do is just phone them up every couple weeks
and say, "How's it going?" Don't chase them and be a dick. Don't be like, "Hurry up! What's
going on? I'm paying you to ... " No, no, because then they'll just be annoyed with
you. Ring them up regularly and say, "Is there anything I can do to speed this up? Can I
do anything?" Here's the thing. When you're investing in property, when you do your first
buy-to-let property, typically it will take two to four months for the house to go through
before you view it and you get the keys, which is an awfully long time.
Here's my rule of thumb. When the ball is in your court, i.e., you need to sign something,
or you need to send off a bank statement or show your proof of ID or whatever, when the
ball's in your court, get it out fast, but when the ball is in other's people court,
you got to be patient. You got to be patient, because if you get super impatient, you're
going to annoy everybody. Welcome to the game of property investing. It takes time. Hope
I've been helpful. Please do smash that like button if that was really useful. Don't forget
to subscribe, share the video, and put your comments below. I'll try and read every single
one. Peace out. I'll see you next time.