- In today's video, I want to talk about,
how to invest 10,000 pounds in property
and I've got seven different ways that you can do it.
(upbeat music)
Hi, my name is Tony law from your first four houses
and my channel's all about helping you
achieve financial freedom through property.
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So let's really quickly set this up.
Let's imagine that you've got 10,000 pounds to invest
and you want to build a passive income,
IE not an income that's based on you flipping properties
on a regular basis.
It needs to be relatively passive
and you want to actually replace your job based income
within, say, a couple of years.
So the first thing to recognise is that sadly,
10,000 pounds, it isn't a huge amount
of money to get started.
And so that 10,000 pounds needs to work really,
really hard for you.
You can't afford to lose it.
So I see this whole process as having two distinctly
different stages.
The first is to build your investment pot.
So by that, what I mean is you're going to take
that 10,000 pounds and turn it into 15
you retake the 15 reinvest it and turn it into 20
the 20 into 30, the 30 to 50 and so on and so on.
Only then should you move to the second stage,
which is to build your cashflow.
So by that I'm talking all about you not focusing
on your cashflow today.
So if you want a job that you hate, sadly you'd guessed it,
I'm suggesting that you stay in that job that you hate,
at least for now at least until you built that pot so you
can start investing a little bit more cash
into better cash flowing, cash flowing top deals.
You see, in my opinion, poverty is never gonna
be a get rich quick scheme.
I know other people say that it might be,
I don't think that that's the case.
If it takes you 12 to 24 months to replace your income,
I think that's okay.
It took me 18 months to replace my income
from my kitchen business as an example.
And as I say, I think that's okay.
So first things first you at 10,000 pounds,
I'm gonna suggest that you carve off a thousand pounds.
So you and you, and you're going to use that thousand pounds
to cover things like expenses.
So you're gonna put that in the bank.
And you gonna use it to cover things like your business
cards, maybe attending some property networking events.
So in the business events for that matter,
there's usually a cost associated with that.
I would love you to pay for a conversation with
the property savvy accountant for example.
So in reality, you've actually only got
9,000 pounds of investible cash.
So what can you do with 9,000 pounds?
Well, first, the really obvious one,
you could flip a cheaper house.
And there are places in the country where you could take
your 9,000 pounds and buy, as a deposit
and buy a cheaper property.
But please be really pessimistic.
Really dare I say negative about the numbers cause
so many people get caught out in this regard
and if you're a single person there I say,
is there an argument to move to that area?
So move into that new location so that you can really
be on the ground and actively finding deals in the area
while other than that may be being four, five, six hours,
drive away from where you are.
Could you perhaps turn a one bedroom flat into a two bedroom
flat there by adding massive real value in some areas.
You could do this with 9,000 pounds working capital.
So here, I know I talked about this before,
but I'm affirming to you find a place with a really big
lounging kind of area and you'd take the kitchen
out of the kitchen space and you put it into
more of an open plan kind of lounge, kitchen, living area,
and you turn what was the kitchen into the second bedroom.
This can be a fantastic way to add real value.
Could you perhaps control a property using a property option
and then add some real value?
Now, I if you're not aware of what a property auction is
very briefly, it's the ability
to actually control a property.
So you have the rights to buy that property,
but not the obligation to do it, to buy it.
There's a lot more to it than that, but very,
very briefly, that's what it is.
And it is a great way to actually control properties,
meaning that you don't necessarily have to put a lot of
money into the deal.
And then once you've controlled it, you add some real value.
And so here are not talking about, you know,
a lick of paint.
I'm talking about real value.
You're gonna maybe get planning permission to build
in the garden, maybe turn the property to two houses,
two flats, etcetera.
In fact, if you want some really great examples
of how you can add real tangible value,
click on the link here and it will take you through
to my property mini-course.
It's completely free.
And in there, I want you through 12 really detailed ways
that you can add real tangible value to most properties.
By the way, if you're finding this video in any way helpful,
it'd be awesome if we could just click on that like button.
It really helps me if that's okay.
Could you perhaps do 2 Rent To Rents now?
I know I mentioned earlier on that right at this first
stage, it's not about cashflow.
Well, I still think this applies here.
I'm suggesting that you do 2 Rent To Rents
for a different reason.
I want you to do a 2 Rent To Rents or 2,
cause you could just about do that with nine grand
because I want you to document everything that you
do with that, with those two projects.
So I'm talking, you're going to film,
before and after walkthroughs.
I want you to do before and after photographs.
I'd love you to get on camera.
You know, like I kind of do it.
Do it it's great fun,
but do it.
And that way you're going to be building up your kind of,
your meet your social media presence,
your presence in the world that's out there
in the property world.
And it's a great way to kind of attract investors,
to work with you.
But more importantly, by the time you finish that project,
but somebody's got PDFs showing us before and after photos,
some before and after videos, as I mentioned,
maybe before and after floor plans and so on.
When you're sitting down opposite a property,
obviously an investor's got, say, a hundred grand
in the bank and they, they sort of look at you
and they say, do you know what?
I like it, we think about what you're saying to me,
but what have you done before?
That's when you could bring out those two examples.
It's a great way to demonstrate that you,
that you're walking the walk.
You could use that 10,000 pounds to advertise
for motivated sellers.
Now again, if you're not sure what a motivated seller is,
please check out my mini course cause
I talk all about it in there.
But this is a fantastic way to find really awesome deals.
And after, when you're working with a motivated seller,
you're going to be using creative solutions that don't
require you to put in a big deposit.
Again, there's a lot that I could talk about here,
but we don't really have time in that regard.
And to be honest with you, that's how I built my portfolio.
I used to work solely with truly motivated sellers.
And it's a great way to build your portfolio really,
really quickly.
Could you JV with the seller?
This sounds like a really weird one, but in some scenarios,
if the owner of the property is just going to take that
money once he's sold it and he's simply going to put it in
the bank, could you maybe actually work with them
and just simply add some substantial value to that property?
So they're gonna be doing most of the funding here.
You're gonna use your money to maybe control the property
using an option, for example.
And it's a great way to actually work a win-win solution
with a seller of a property.
Maybe somebody who's been sitting on the market for 18
months, for example, without being able to sell.
So again, here you've got to be looking at adding real
substantial value and you're gonna use your 9,000 pounds
to pay for things like the legals, like the planning,
maybe surveyors, this kind of thing.
And then again, you split that uplifting value.
Once you've added the value with the seller,
maybe do a kind of 50 50 win-win deal.
Could you maybe become a deal sourcer?
Now you're going to use that 9,000 pounds now to actually
secure deals, I would suggest with regards to options.
Plus you also then use at 9,000 pounds to pay for any
marketing costs and so on, so that ultimately when you sell
that property on, your money's going to be absorbed
into that.
It's a great way to actually, again, build your product
really, quickly by making smaller lumps of capital,
smaller lumps of cash really quite quickly.
As an example, I once pay the sourcer
a 10,000 pounds for a deal.
And to be really honest with you for the same deal,
I do that every day of the week if I could,
because it was a fantastic deal.
It made me a lot of money.
So that is another really good example for you.
So there you go.
That's seven different ways that you can take 10,000 pounds
and invest in property.
And if you want to check out my mini course
and you click on the link here on the description box below,
and I'll get this number one straight out to you.
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