Hi, Samuel Leads here, and in this video I'm going to reveal to you ten ways, the ten ways,
that I get paid from property.
So, the first way that I make money from property is through rent. Tenants pay me rent. I know
that's kind of obvious. There are ten ways, but it's really important. You can get more
rent through a property by being creative. For instance, by turning into a HMO. You buy
a house and, rather than just renting it out to one family, splitting it up, renting it
out on a room by room basis. Tenants pay me rent. I see my tenants as my customers. It's
really funny actually because sometimes people will stop me in the street and say, "Samuel,
I saw you on the BBC landlord show. Oh my gosh, can I have your autograph. You're amazing.
You're such a nice landlord. You look after your tenants so well."
Then, two minutes later, I'm continuing to walk down the street and someone will shout
out to me, "I saw you on that landlord show you scum." I'm like, wow, where did that come
from? It was the same show. It's so crazy different people's perspectives. My customers,
my tenants, I love them. Rent is fantastic because it's pretty much passive. Where it
is passive is you've got it systemized. So, that is number one.
Number two is capital appreciation. That's just where the house goes up in value. I've
been in property now for ten years. I've gone through quite a bad recession and I've still
received a lot of capital appreciation. In fact, just in the last six months I've made
like 250 thousand pounds, just under. So almost a quarter of a million pounds in six months
just in capital appreciation. One of my students, I was chatting with him last week. He bought
a house in London. It wasn't even a house. It was an apartment in 1999 right in London
centre for 75 thousand pounds. He got it on a 100% mortgage. It's now worth 700 thousand
pounds, 18, 19 years later. It's timesed itself by ten in 19 years, which is just insane.
So capital appreciation is a really good way that I make money from property. It's how
most people become millionaires by mistake. I'm happy to be an accidental millionaire
as well as a deliberate millionaire, so that's number two.
Number three, and this is different from rent because they're not tenants but serviced accommodation.
Serviced accommodation is like a hotel without staff. So service accommodation property is
one way you rent it out as a hotel, but you don't have to employ staff. It's all systemized.
It's something I'm doing a lot at the moment. In fact, the castle that I'm buying is probably
going to be done as a luxury serviced accommodation property. It's just a really good way of getting
a sky high income from property. The cool thing about serviced accommodation is that,
when you systemize it properly and you buy in the right area, it can be extremely lucrative.
Multiple of my students are doing serviced accommodation very successfully. If you'd
like to watch Leslie's story of how she's making 15 thousand pounds a month within four
months of becoming my student, you can watch that right here.
Next way I make money from property is a strategy called rent to rent, which is not something
that I actively really look for anymore, but it was quite helpful in the earlier days.
It's something that my students do really, really successfully and I've done many times
as well. That is simply where you take over a property. You don't buy it. You make money
from it, but you don't buy it. You control it. So you take over a property and you rent
it off the landlord, but then you add value to the tenants and you make it like ... For
instance, let's say you rent a single let property and you pay 500 pounds to the landlord,
but then you rent it out on a room by room basis and rent it out for 1500 pounds. Then
any different the profit you make you keep. It's a really cool way to make some instant
cashflow from property without really putting any money down or much down to begin with.
Rent to rent, really cool and you can tie that in with HMO serviced accommodation, whatever
you please. Just make sure, if you do that, you use the right contracts. You don't use
a normal AST contract. You need a special rent to rent agreement, which you can get
drawn up pretty easily for very inexpensive.
Number five is my favourite, or one of them, lease option agreements. What is a lease option
agreement? It's simply where you buy a house today, but agree to pay for it later. Completely
legal, wendom rights. People say, oh that sounds a bit dodgy. No. If you use the right
words, the vendors will go for it. If you do it properly, it's completely legal. Lease
option agreements have been around for decades, and decades, and decades. So how does this
work? Let's say I find a house, it's on for 100 thousand pounds, but they can't sell.
They're having issues. They're in negative equity. It's an inherited property. They don't
know want to do with it. They're stuck, whatever. I say, "I'll buy it off you for 100, but I'll
pay you in five years time. In the meantime, I'll take over the mortgage or I'll pay you
a small monthly sum, maybe 100 pounds a month or whatever."
Then you take on the property, you benefit immediately from the cashflow, the rent from
the property. You're also gaining from any capital appreciation. You haven't put down
any of your own money apart from maybe drawing up the contract. So lease option agreement
is fantastic. You can also do them for really big deals. It's something that I've done for
many, many years and I'm actively still doing lease option agreements today, and many of
my students do lease option agreements as well. So, that is number five.
Number six is commercial property. Commercial property is something that I'm beginning to
get into more these days. The reason is, is because what is commercial property? It's
instead of buying a residential house and renting it out to tenants, people that live
there, a commercial property is when you buy a property or a building which is used for
commercial purposes. For instance, if it's a shop, if it's offices, anything, if it's
a garage, anything that's used for business purposes. The reason commercial is so awesome
is because, instead of having a six month contract with a tenant, you tend to have a
ten year, five year, ten year, fifteen year contract with a business. The business usually,
depends on what the contracts are, but typically with commercial property is the business,
they will deal with any repairs, any issues, they will deal with it. It's a very long contract
and you can kind of switch off.
So when I had my conversation with Lord Sugar, he was like, "residential? How do you deal
with all the boilers breaking and stuff like that" because he's used to commercial. So
I think commercial is good, especially if you've got lots of money or you've been in
residential for a while. You're financially free and you really want to just really grow
your portfolio and take it big, but you don't necessarily want hundreds and hundreds of
residential properties. It would make sense to just buy a big office block.
Here's the thing. A lot of people think that commercial property, the returns are a lot
less, but it's more stable. That's not true. Some of my commercial properties are giving
me 24%, so commercial property can still be high return. Capital appreciation is usually
not as quick to go up. I don't want to give tax advice or anything like that, so speak
to your accountant, but you can buy commercial property through a pension and there's very
strong tax advantages for buying commercial property, so loving, loving commercial property
right now.
Number seven is to buy refurbished, refinance and rent. You don't have to quite do it like
that, but that's typically the standard way that we do it. What that is, is if you've
got money but you don't want to put it into a property and just dump it in and leave it
in, you can put it in and them pull it back out. Now some people, some trainers, make
it sound much much simpler than it is. This does come with a little bit of work and even
a little bit of risk because, when you're relying on builders sticking to budgets and
timescales, and value is being in a good mood, it can always get down valued or things can
always not happen quite the way to plan. However, we have got many of our students doing this
successfully that come through the crash course, especially the ones that have gone on to join
the academy.
The first house that I bought, I bought it below market value, and then I refinanced
it and pulled out all of my money. Now that was ... around 2008, so it is different now.
The best way to do it now is to buy and add value and then refinance. Kent Reliance, a
mortgage lender who are very very well known and popular amongst investors, have just banned
the six month rule, which means that you can literally refinance straight away. There's
no rule. So as soon as you've bought and added value, you can refinance and pull your money
out straight away which is fantastic. So this is a strategy that's becoming more and more
popular with my students. You could literally buy a 50 thousand pound house, spend 20 grand
on it or 15 grand on it, and then, if the value has gone considerably up, you can refinance
and pull all or most of your money out.
Or you can do this with the castle. The castle I'm buying, I mentioned a couple times because
it's a castle and you've probably seen the videos. We're going to add value and refinance,
and we're going to add value to that buy turning it into apartments. You can buy a property
and split it up. You can title split. You can refurbish. There's so many ways you can
add value. Once you've added the value, then you can refinance. So that's number seven.
Number eight, which is kind of similar to number seven, is to buy and sell. Buy a house,
add value, and then sell it. At the moment, I'm doing this to a piece of land. I'm buying
a piece of land. I bought it for 100 ... or I'm buying it. It's not gone through yet,
but I'm buying it for 100 thousand pounds and then I'm going to get planning permission
and sell it for a whole lot more. The problem with buying and selling is that, again, it
can come with a little bit of risk because what happens if you can't sell it. So you
usually need an exit strategy or a plan B. Also, the other negative with it is that it's
not passive income, but it is massive income and massive income can very quickly become
passive income. If you do a deal to make 100 grand or half a million or whatever, or even
20 grand, you can then, with that profit, put it into just buying a buy to let or a
HMO or whatever. So it's nice to have two ores, massive, passive, massive, passive going
on together, which takes me onto the next way.
Number nine, which is deal packaging. Deal packaging. What do I mean by that? That is
finding property deals that might not be suitable for yourself. You might not be able to afford
to buy them. You might already have too many deals going through, but then you package
the deal, package it up, and pass it onto an investor. You marry an investment property
with an investor and you charge a fee in the middle. It's just a fantastic way to make
money, but also get experience of being out there finding deals. I personally think that
most investors, certainly most of my students end up doing this to some extent. Do make
sure, if you do this, that you do pass only good deals, and also that you're complaint.
There is a compliancy issue you need to go through which is very straight forward.
One of our academy members called Al Astair, he is sourcing successfully. I did an interview
with him last week, which was videoed. Last month he made 27 thousand pounds. That's right.
Two, seven, zero, zero, zero just buy packaging and passing deals onto people. He's doing
that consistently every month. If you want to hear his story and see how he's doing that,
then you can check out the interview with him just right here.
Finally is number ten. This isn't quite how I make money from property, but this is also
how I make money, which is from training people how to successfully invest as well. I teach
people for free on YouTube or semi crash courses free. I have my book, which I give out for
free on my website, but then some people want to go further and want to get maybe mentored
or coached. I also run a training business. I have a very successful property training
business and it kind of shocks me and makes me laugh when people say, "If you're such
a successful investor and developer, when why do you train people?" I'm thinking, that
comes from such a stupid person, or maybe not stupid but certainly a broke person.
I had dinner with Richard Branson maybe six months ago. Imagine if I'd said to him, "So
Richard, if you're plane business is making so much money, then why do you run trains?"
He'd slap me right across the face because he's an entrepreneur. I love teaching. I really
enjoy it. It gives me a real buzz. I've seen people succeed, and I also will happily take
the money because I'm an entrepreneur as well. Money is a certificate and, if someone gives
you money, whether that be a tenant or anybody at all in business or someone that you're
training, they're giving you money as thank you certificate for adding value. So I'm very
happy to add value and help people and take their money because, if I've helped someone
make 100 thousand pounds and they've given me 10 thousand pounds, then they're 90 thousand
pounds up and I'm 10 thousand pounds up. It's win, win. So that's another way.
Hope that video has been helpful. Hope it's inspired you. If you've got questions let
me know. Also, I'd love to know which your favourite strategy is amongst the ten, and
which one you want to really smash this next year. So please comment below what is your
favourite property investment strategy, your favourite way to make money. Comment below.
Please do share and subscribe. Like the video. Thank you for your support. Love you always.
See you next time.
Thank you so much for watching. If you've benefited from that video, please do share
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like to spend two days with me at the property investors crash course, watch this video,
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you next time.