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8 Ideas For Starting Out In Property | Samuel Leeds


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.

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