- Today I'd like to share with you eight different ways
that you can start building a property portfolio
with no money.
(upbeat music)
Hi, my name's 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 not financially free.
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So the biggest reason people give me to not building
their own property portfolio and becoming financially free
is that they simply don't have the money to get started.
Now I think this is a real shame, and of course,
whilst I accept to having a big pot of cash is,
of course, a massive advantage,
you can get started with little to no funds, and so today,
I wanted to share with you eight different ways
that you could start building a property portfolio now
without needing to put any of your own money into the deals.
Well, though, maybe you're gonna let me off if I say,
perhaps you might need a couple of thousand pounds-ish
to cover any legal costs, but hopefully,
2000 pounds is almost the same as no money.
Just before we dive in, I'm not FCA approved
and so before taking any action on anything
that I'm about to share with you,
it's essential you speak to an accountant,
an independent mortgage broker, and a solicitor
and take their advice over mine.
So the first one I want to share with you is lease options,
and I accept you've probably heard of these before.
Lease options in today's market is a fantastic way
to control property so that you can potentially gain
from any uplifting values
or maybe you add some value to the property.
It goes up in value and you control it using a lease option
or maybe you gain massively from any cash flow
so you control that property again
by having a lease option on it
and you actually gain cash flow
over a longer period of time.
Next, we have joint ventures, which once again,
I accept you've probably heard of before.
Do you know what?
There are so many people out there with money
sitting in the bank earning a pitiful return.
Many of these people would love to earn a far greater return
and maybe get involved in the excitement,
the energy, and the fun surrounding some kind
of a joint venture with you.
Now you've gotta find great deals
and this is gonna be a thread running through this video.
Finding great deals is the key here,
but if you can find a great deal,
there are people out there that would love
to joint venture with you potentially
and maybe they get 50% of the uplift in value,
and of course, you get 50% in uplift in value,
and maybe 50% to the cash flow, something like that,
but they're putting in the money,
and you're doing all of the work.
Next we have personal loans,
which I consider to be very different to joint ventures.
With a personal loan,
the scenario is you have an investor over here
who is essentially an arm chair type investor
and they will loan you the money for a fixed return.
So if you then go in to do a development
where you make an absolute fortune,
they don't actually benefit from that
because they just get their fixed interest return
on the money that they loaned you.
Now to be really honest, with both of these,
there are some really clear and stringent legislation
that you simply must comply with
and I'll put a link in the description box below
to help you in this regard,
but you've got to make sure that you are entirely compliant
if you're using other people's funds in this way.
What about bridging finance?
This could be fantastic if you find the right deal.
There are loads of bridging specialists out there,
which, once again, if you find a fantastic deal
where they put the potential to make a big uplift
or where you've got a potential
to make a big uplift in value,
there are certainly lots of bridges out there
who would be willing to fund the deal, but once again,
it's gotta be an absolutely fantastic deal.
What about vendor finance?
Now this is a little bit of an unusual one.
If you have a seller who is selling up
and is gonna take the money after he sold the property
to you and simply put it in a bank where they're gonna
maybe earn 1%, 1 1/2%, maybe 2% on their money.
How about if they were actually to fund the deal for you?
Speeding through these,
there's a lot more to them to finance them
than I'm going into in this level of depth here,
but some of these people,
if they're somebody gonna put that money in the bank,
could they actually instead fund the deal for you
whereby they act as a kind of bank.
Again, there's lots of legislation surrounding this,
but it can be a fantastic way for you to fund that deal
if all the seller is gonna do is simply take that money
and put it in the bank.
What about crowdfunding?
There's lots of crowdfunding platforms out there.
Now crowdfunding is relatively new
and their securities generally gonna be on the property
that you're buying and certainly it can be quite expensive,
potentially like bridging funding, for example,
but there are many crowdfunding organisations out there
that are waiting to get involved in these types of deals,
but once again, it's got to be a fantastic deal.
What about the retained profits that you may have
within your business or somebody else's business?
Now this is actually something that I'm doing right now,
so I'm really excited, I'm really into this.
I can actually borrow some money from my, from my,
one of my businesses, and I can actually use those funds
to go out and do a deal to make a rather large purchase.
I have to ultimately return that money
back into my business account again,
but please speak to your accountant about this.
Do not take any of my advice on this one for me.
Speak to your accountant.
But for people with businesses,
this could be a fantastic way to fund that deal.
Here's a bit of an unusual one.
How about using a pension pots to fund that next deal?
Now I totally accept that you yourself
may not have a pension,
but maybe you know people that do who've worked
all their lives putting money into a pension
and they're now really despondent
with a return they're actually getting.
Well, maybe you can work with some of these people
and use their pension pots to actually fund your next deal,
but there are limitations as to what
you can invest pensions in, and certainly
you're probably gonna be more commercially focused,
but this means you can give those people a fantastic return,
but once again, mean that you don't have to
put your own money into that deal.
Now although in my own property master class,
I cover a number of rather advanced ways
to actually fund deals.
Hopefully you can now see that funding
really should not be a problem, but the key,
as I've said many times already is just to get out there
and find absolutely fantastic deals.
In my completely free online property mini course,
I teach you three different ways to find fantastic deals.
To enrol, simply click on the link here
or in description box below
and I'll send lesson one straight out to you.
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