5 Ways to Make PASSIVE INCOME from Property in the UK
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5 Ways to Make PASSIVE INCOME from Property in the UK


Hey what up? Samuel Leeds here, and in this
video I wanted to talk to you about passive income, and the five ways that you can make
passive income through property. Before I tell you where you can make passive
income from in property, let me just explain to you what passive income is, because most
people, they’re not taught about passive income. If you know what it is, it’s because you’re
self-educated, because in my book, “Buy Low, Rent High, which by the way if you’ve not
read, you really should read this. I say, when I was at school if I had told
my teachers that I wanted to be a property investor, they would have said that it was
risky. They would have told me that if I wanted to guarantee success, I needed to follow their
system, and I’m sure you’re all familiar with their system. I call this the seven lies,
because all my life, probably all your life, we’ve been told by the government, by our
school teachers, by our parents, this sort of stuff. I call this the seven lies. One. Study hard at school, as it’s important
you get good grades. Two, go on to university if you want to be paid well. Three, get a
good job for life. Four, if you buy a house, pay off the mortgage as quick as possible.
Five, save as much money as you can to store away safely in the bank. Six, the harder you
work, the more money you’ll make, and seven, look forward to retirement, because that’s
the good life. You probably heard that. That is such nonsense.
That is the opposite of passive income. That is the opposite of financial freedom. That;s
called being a slave to a job forever, and we know what a job stands for, jump out of
bed, on a journey of boredom, to be just over broke. Working 40 hours a week for 40 years,
to retire on 40% of what we couldn’t afford to live on in the first place. To begin to get your mind around the new way
of thinking, which is passive income, which is financial freedom, I say these are the
seven truths. One, most people do not benefit from good
school grades. Oops, maybe I shouldn’t have said that, maybe you’re offended right now,
but hey, this is it. Two, most people who finish university still
struggle to get a job. I know so many people who when I invested in myself, and went and
started going on property courses, I’m like 17, 18 years old, they laughed at me. They
went to university, and after finishing university, after four years of spending like 50 thousand
pounds on university, they couldn’t even get a job. It’s sad, but it’s true. Number three, a good job for life doesn’t
exist. Four, paying off the mortgage quickly is not smart. Five, your money is shrinking
in the bank. Six, some of the poorest people are the hardest workers. I know that because
I’ve been there in the slums of India and the rural parts of Africa. And seven, if retirement
is your motivation, you will be extremely disappointed. What is passive income? Passive income is
when you work once and you get paid forever. Active income is when you work once and you
get paid once. Therefore, you have to keep working to keep getting paid. You’re trading
your time and your energy, you’re trading that for money, whereas passive income, do
something once, invest in something once, and you’re getting paid ongoing. When your passive income equals your living
expenses, you’re financially free. Not necessarily rich, but you don’t have to work again and
again, because your passive income covers your lifestyle. There’s different ways to make passive income.
You can make passive income from network marketing, from automated online affiliate schemes and
all different things. Vending machines, advertising spaces, there’s different ways to make passive
income, but I believe that the best way to make passive income is through property investing,
or if you’re in America, real estate. Why is that? It’s because it’s bricks and
mortar. You can touch it, you can feel it, not only does it give you an income, a passive
income, but also, you’ve got an asset that’s going to appreciate over time. That’s why
I love property so much. Also, if you go on the Sunday Times Rich List,
you’ll see that all the people that are rich, that are making good money, they all invest
in property. There’s a common denominator and it’s property. Here’s the five ways that
I make passive income from property, and I think you should be too. Number one is buy-to-let. Buy-to-let is just
simply when you buy residential houses, family homes, and you rent them out. People always
need to live in them, you will always get an income from them, and that is called buy-to-let
property investing. It’s fantastic. It’s very bread and butter. Number two is HMO’s. If you want to lift the
cash flow a little bit, HMO’s, great way to earn passive income. That’s when you rent
a house of multiple occupation out. You rent out on a room by room basis to young professionals,
or to students. You get a higher income. With the right management systems in place, that
is a very, very healthy form of passive income. Number three, serviced accommodation. I’ve
done videos about serviced accommodation, you can check them out just above. Serviced
accommodation is almost like a hotel with no staff. It’s when you rent out a property,
an apartment, a house, but you rent it out as serviced accommodation on things like Airbnb,
booking.com. You have guests instead of tenants. Now this needs to be managed and systemized
properly, otherwise it’s not passive income. But when it is managed and systemized properly,
it will give you probably the highest form of cash flow and passive income that any of
the other strategies give you. Serviced accommodation is a mine field, you need to get the right
training to do it properly, but it’s a fantastic way that we make very, very, high passive
income. Number four, commercial property. We invest
in commercial properties. I’m just in the process of buying a 1.5 million commercial
unit at the moment. The great thing about commercial property is there’s real tax advantages
to buying commercial. You save on stamp duty, you can buy it through a SSAS, so your pension
can invest in property. Also, the tenants are usually very, very long term. They’ll
sign 15 year leases, and they will be responsible for the maintenance of the property, so it’s
completely passive. I’ll recommend probably starting out with residential, but once you’ve
got a nice property portfolio ready, definitely start considering commercial. Lastly is a property business. You could set
up a sourcing company, which is where you find properties and pass them onto investors.
People say their problem is with sourcing company is its active income. You make massive
income, but not passive income, because you could find a property a day and pass it to
an investor and make three grand a day, brilliant, but it’s active. True until you turn it into
a business, which is when you have staff. Some people are really scared of staff, “Oh
my gosh, I wouldn’t want any staff.” Listen, if you want to get very wealthy, you
want to be able to have the lifestyle where you can do what you want, when you want, with
who you want, then there’s nothing wrong with having staff. Again, do it properly, make
sure the right contracts and you do it properly, but if you a property business, and you have
staff, it’s truly passive income and it can be passive and massive. But first steps is to become financially free
before you start thinking about taking on loads of staff. How do you become financially
free? Read the books, attend the classes and the seminars, and implement the knowledge.
We run a two day property investors crash course. If you’ve not been to the property
investors crash course, that is where it always starts. I have success students every single
week. People were leaving their jobs, becoming financially free, turning into property mode
goals, and all of them all go through the property investors crash course. You can again, in the description, you can
book on to the property investors crash course and guess what? It’s completely free. I don’t
know how long I’ll be continuing to run these crash courses for free, but it’s completely
free. People travelling from all over the world, so claim your free ticket today and
I’ll look forward to seeing you on the next video. Thank you so much.

28 Comments

  • Chris Invests - Personal Finance Videos

    I make some passive income from real estate but my most recent source that I've been working on is my YouTube channel

  • ricky bobby 78

    samuel can you help someone like myself who worked hard and broke down, body and mind left broken through working myself into the ground trying to just live a life.
    im now in debt heavily and desperate, im not shy to work hard , it will now mean working hard in a respect of going over figures, or looking at or for deals, i can work hard still in a non physical manner mainly but i will work hard.
    if you can help me when im at a low point and unable to fund things then when i can make a passive income and gain some income to a point where i can clear debts then i would be more than happy to return money to yourself whether directly or to one of your charities.
    i just need help getting a start

  • Fish Army

    hey I’m 13 and i might be going to your Birmingham course .
    And i told my teacher i want to be a property developer and he just said “ don’t be stupid it’s risky “ . so i said its risky if you don’t know what your doing . my dad is teaching me about it and i’m gonna try and get a property at age 17 obviously under my dads name tho .

  • Captain Capellini

    I'm living with my parents still, small income but I can save nearly all of it as I'm very frugal and not paying tent directly from my income – should have about £10k saved up by the end of the year for a property. I'd like to get to one of your courses at some point but I'd like to ask, how do I convince my family that I should buy a properly and rent it out while still living at home for a bit longer? I've got about 2 years paid ahead in rent to my parents so I might as well stay instead of moving out and making no money of a property, but I can't seem to convince anybody. It's just if I buy a house and live there then I'll be slapped with a huge monthly committment which will mean it will take a long time before I can save up to buy a properly to make money from. If I get an investment property in first I can always move into it after a while if renting it doesn't work, so it seems like a solid idea – just I can't get them to agree.

    Any advice on that? Thanks!

  • Baran Tas

    Hello Samuel, I recently brought your book and have noticed that there is no content in the book that cannot be found on your YouTube channel, I have already known everything in the book without reading it because it is just a physical summary of your YouTube videos.
    Please when you release another book add some premium content.

  • HamzaMurt

    hey samuel would you please be able to create a video about Rent2Rent

    where you record the phone call conversations and also visiting the property and telling us at the end how long this took you

    thankyou as this will help us beginners out there

  • Calvin Raab Personal Finance Videos

    Great video! I have a passion for Real Estate and it has been really interesting learn about the slight rule changes that vary country to country. Thank you for the video!

  • Thejohnhou

    What happens when you aren’t able to find tenants or your tenants leave and there is no occupancy for couple months? Are you taking negative profit for those months?

  • michal pribyl

    Any suggestions on how to start with property as early in life as possible . I am 18 and i know i need to learn a lot but i was just thinking that if i look to the future of maybe 2 years it would be lovely to start making money from this but i dont know how

  • albi_esports

    Hello Samuel,

    I have no money to buy my own property so how am I able to use your 5 ways for passive income?

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