Hi, my name's Samuel Leeds. In this video, I've got eight ideas that maybe things that
you've not thought of, maybe things that will surprise you, things that you probably should
be considering if you're starting out as a property investor. Number one is to rent out
part of your existing home. Now you might think, "What are you crazy? Why would I want
to rent up?" Here's the thing, and this might not be for you. If you've probably got space
in your house to rent out a room or something in your house, and let me tell you why this
is so powerful. Number one, and please check this out with an accountant, I don't want
to be sued or anything. I believe it is tax free up to a certain amount. I think it's
like seven or £8,000. So if you went out a spare bedroom in your house, the money that
you get is yours to keep.
If you'll spend it, you don't have to pay tax on it up to a certain point, which is
really cool. I think the reason it's so powerful is we had a lady, we'll call her Sarah because
I don't know if she'd want to be made known. She came onto our Crash Course programme two
days and she just said, "I just don't know. I'm a bit scared about property. I don't understand
it. I've never done it." I spoke to her and what she decided to do was she decided, she
lived in the centre of London or near the centre of London and she had a spare bedroom
in her apartment. She decided to rent out the room in her apartment, and she rented
out for £700 a month. She said that that money from just that spare room that just
had clutter and stuff in it, she said it was life changing. Life changing.
£700 might sound like a lot of money, it might not to you but she said it was completely
life changing. Not only was that money life changing, it made her life a lot easier because
now suddenly she wasn't going slightly further and further into debt each month, because
she could pay her bills comfortably and relaxed, and go out. Not only that, but also she said
that she understood tenants and property investing more, because she's singly moved someone and
signed a contract with them. It gave a real confidence and she saw money from tenants.
She then got the bug for it and once she had the bug for making money from renting stuff
out, she went on to get some rent to rent deals, and also she's now bought a place to
rent out because she saw the power of rental income. So I think that if you're starting
out, renting out a space in your house is a really, really good idea.
Number two is consider moving area. Now I'm not talking about you moving house. I mean,
maybe you might want to do that, but I'm talking about you've probably got a preconceived idea
in your mind of where you should be investing. Now you might be thinking that you have to
invest in your hometown or where you live, but actually you don't have to because your
hometown might be a rubbish investment area. As long as you have a management company in
place where you buy, then it doesn't matter. So potentially just open your mind up to moving
out into a different area where you're currently thinking. Now I spoke to one guy, he lives
in Belfast and in his mind he was thinking, "I have to invest in the middle of England.
I have to invest in the middle of England."
He was thinking that because he knows that's where I'm from and they just thought well
to be an investor, you have to invest where Samuel is based. Which is complete nonsense.
Actually I spoke to him and I said Belfast, there's a lot of opportunity there. So now
he's now moved to Belfast where he lives. So sometimes your own area can be a really
gold mine area, but it's just under your nose and you don't see it. Just be open to moving
area of where you're thinking to invest.
Number three is to be creative with maximising rent. So what I mean by that is just starting
out as a property investor, you might just be thinking in the mindset of I buy a family
home, I rent it out. It can be much more lucrative and exciting than that. You can maximise the
profits of the rent by doing things like renting out on a room by room basis, which we call
a multi or an HMO, or renting the property out as serviced accommodation. Be creative
about how you can maximise the rent when you're looking to buy.
Number four, if you're starting out in property, I speak to a lot of people, in fact there
was one lady who I met. Good friend of mine. She came along to the Crash Course and she
said, "Samuel, I'm skimped. I've got no money, I'm really struggling to even afford to just
pay the bills. I've got four kids and I can't invest in property." I had a little conversation
with her and it turns out that she had almost paid off her mortgage. To me, if you've almost
paid off your mortgage, you've got money. Now in her mind, she's thinking all her life,
she's been told by her parents she has to pay the mortgage off as quickly as possible.
She's still not even paid it off, but in my mind I'm thinking, "Why don't you just refinance
your house and pull out the money?" She had £350,000 equity in house and she's saying,
"I'm struggling to live. I'm a skin, I can't do property."
After a little conversation, she realised light bulb moment, that if she refinanced
the money from her house and pulled the equity out and then reinvested that into properties.
Although she's obviously further off paying off her mortgage, she's similarly got way
more cash flow, monthly cash flow. Sometimes people feel like I don't want to do that because
then the money that I've pulled out of the house are then lost it. You haven't lost it.
At any time if you wanted to, you could sell off the investment properties and put it back
into your own home. In fact, by the time you'd done that and sold them, the house prices
would have probably gone up and then you'd pay your mortgage off [inaudible 00:05:02].
It just makes sense. So potentially you're sitting on a home where you've got equity
in there, or you might have a family member who's got ...
So just think, how can I raise finance to invest in property? Do you have assets? Do
you have stocks, bonds, shares, dividends? Do you have a company that you could potentially
sell, or do you have things that you could sell? Could you downsize and sell the house?
Could you refinanced the house? Do you have partners or family members that have got money
sitting in the bank, but you can invest for them? So it's just thinking creatively about
what you can do with your money. Now, of course you're going to need to know how to invest
that properly, so I'm not suggesting that you just go crazy and become a motivated idiot.
There's nothing more scary than a motivated idiot but just think, have I got untapped
money that I could invest?
Number five is become a window shopper for property. Sometimes people get scared to book
viewings and go up because they feel, "Oh my gosh, the estate agent's going to pressure
me into buying and I might not be ready to buy." Just relax. Book some viewings maybe
in your hometown or in an area where you're thinking of investing in, and just go and
view some houses and have some fun. See it as a day out. You know what? Make friends
with the estate agents. Most estate agents, they're not like property experts. They're
just young, fun, friendly people. I even used to be an estate agent. I don't know if that's
a bad thing.
Just go and view houses and when you're doing that, and you're looking at properties, and
you're talking to agents and you're beginning to understand the market. Yes, the estate
agents, they won't give you really good investment advice and they won't even show you the best
deals and things like that, but hey, it's free and it's fun and you should be doing
it 100% if your starting out in property.
Number six is if you're starting out in property, maybe consider buying a deal from a deal sourcer.
So someone who's packaged it all up for you. If you're going to do this, I would say just
because someone's packaged it and they're charging you for the deal does not necessarily
mean that it is a wonderful deal. It's probably better than you could have found if you're
just starting out and you don't know what's what, but make sure if you're doing that,
number one, the deal sourcer has a good track record. Number two, the deal sourcer is compliant.
Number three, just go with your gut feeling a little bit.
Not only the deal sourcer, but just generally what the deal is because ultimately if you're
buying it, you're responsible but I think it's definitely a smart decision for busy
people that are in jobs that don't understand the market that well, that don't really understand
property. They might not understand all the different areas, it makes sense to pay two
or £3,000 to have somebody find a deal, negotiate the price down, package a team, get a power
team around it. It just makes sense. Definitely something to consider if you're just starting
out in property.
Number seven is go to property events. Go networking, go and meet people that are doing
it. The reason it's hard for people starting out is because no one they know, none of their
friends are investing in properties successfully. If it's something that you don't know and
you don't know people that know it either, then it's almost foreign. Whereas if you go
to property events, I mean we run something called the property investor's circle. There's
pin meetings and ... There's all different types of property mix that go on across the
country. So I would just say get down and have fun, and talk to people. The language
of property investing will just begin to become something that's a little bit more known to
you, which will mean that it's less daunting when you do buy your first investment property.
Lastly, number eight is I would strongly advise to get trained. I'm a property mentor, you
can always reach out to me. I run something called the Property Investors Academy, which
is a 12 month programme but just get knowledge. If you're starting out in property, the number
one suggestion would be before you invest in property, invest in yourself because that's
something that no one can ever take away from you, and you'll be able to use it again and
again, and again, and again when growing your portfolio. So there are my eight ideas for
people just starting out in property. I hope that's been really helpful.
If you found this video useful, please do drop it a like, maybe leave a nice comment
below and share the video. I'd really, really appreciate that and I hope to meet you in
person real soon. God bless. See you next time. Thank you so much for watching. If you
benefited from that video, please do share it with your family and friends. Some more
videos like it, you can watch right here. If you'd like to spend two days with me at
the Property Investors Crash Course, watch this video, see what happens. Whatever you
do, don't forget to subscribe right here and I'll see you next time.