Buy-To-Let Properties for First Time Buyers
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Buy-To-Let Properties for First Time Buyers


Hey, what’s up? On this video, I wanted to
give a real practical video explaining how to get your first buy-to-let property investment.
The thing is, we’re getting people watching my videos. We’re getting people come onto
my two-day Property Investors Crash Course. They’re finding fantastic property deals,
and they’re like, “Great. How do I buy it? What do I actually do? What are the ABC steps?”
Let me go through that on this video. I hope this is super helpful. Don’t forget to smash
that Like button if you’re enjoying this video or these videos. Also, subscribe as well.
I’d really appreciate that. What’s going to happen is, you’re going to first find the
deal. You’re going to find the property probably on Rightmove, assuming it’s through an agent.
You’re going to go and view it. You’re going to work out the numbers. You’re going to work
out the return on investment. You’re going to check that it’s a good investment property.
Buy low, rent high, with a property manager nearby. I’ve done other videos explaining
this. If you want the property, if you’re interested
in securing the deal, ring up the agent and put in your offer. Now, before I ever put
in an offer, I always try and get an idea of what the landlord or the seller will actually
want, so if it’s on for £100,000, I’m not just going to ring up and go, “I’ll give you
£100,000.” I’m going to ring up and say, “I’m interested. I like the house. I don’t
want to put in a real cheeky offer, but I am an investor, so I’m looking to get a bit
of a deal.” What might they accept? Sometimes, they’ll just say, “You need to put in your
offer. We cannot give you a figure.” Start embarrassingly low, I’ve done this on other
videos, and put in your offer. Now, as soon as the offer is accepted, as
soon as they’ve said, yes, they’ll accept that, and it’s very easy to get to that point,
the estate agent is going to need five things from you, so you might want to start getting
these ready now before you even go out and view properties. These are, this is what you’re
going to need. First thing is, they’re going to need your
photo ID, this is going to be a passport or a driver’s licence, to know that you’re a
real person. Secondly, they’re going to need your proof of address, which will be a council
tax bill, maybe a utility bill or a bank statement that shows your address in the last three
months. That’s easy-peasy. Next, they’re going to need to see your proof
of deposit, so if the property is £100,000, your deposit is typically going to be about
£25,000, so then you’re going to need to screenshot of your bank. It’s going to need
to show your name, and it’s going to need to show the amount of money that’s enough
to cover the deposit on this house. They’re going to need a screenshot of that. Next, they’re going to need to know that you
can finance the rest. Now, if it’s buy-to-let, here’s the cool thing. Buy-to-let mortgages
are very easy to get, and sometimes people think, because they maybe have only got experience
of owning their own home and not owning a buy-to-let, they think that in order to get
a buy-to-let property, they’re going to need to be on a certain amount of earnings, they’re
going to need to be really good financially, they’re going to need to be in a good, well-paid
job, yadda yadda yadda. That’s not necessarily the case, because when
you’re financing a buy-to-let property, i.e., one that you’re buying to rent out, the property
should be able to finance itself, because you’re renting it out. You’ll find it’s quite
easy to get a mortgage on a basic buy-to-let property even if you aren’t in a well-paid
job. Even if you’re self-employed earning £5,000 a year, you should still be able to
get a buy-to-let mortgage if the property can clearly demonstrate that it will pay for
itself, which is very easily to do. If you’ve been on my Crash Course, you’ll be able to
find houses like that all the time. Getting a decision in principle should be
as easy as ringing up a good mortgage broker and spending 15 minutes max on the phone.
He should be able to give you a decision in principle, which is all the agent is going
to need in order to then take the property off the market once your offer’s been on,
so you’re going to need a DIP, a decision in principle, from a mortgage broker. Now,
if you don’t know a mortgage broker and you haven’t been to my training programmes, and
you’re brand new, and you’re just starting out, there’s nothing wrong with using the
estate agent’s in-house mortgage broker. They’ll usually have an in-house mortgage advisor.
In fact, there’s an advantage to doing that, in a way, because that means that the estate
agent, you’ve got an opportunity to go into their office, have coffee with them, let them
get you the mortgage. That’s the advantage. It’s good for building rapport. Now, the disadvantage is usually, if you get
a mortgage through an estate agency in house, the rates might not quite be as good, because
they haven’t got as many lenders to choose from. They’re usually more limited than a
free, independent mortgage broker would be, but that’s something you’re going to need.
It’s very easy to get, so just get yourself a decision in principle. Lastly is, who’s going to be your solicitor?
Again, they will sometimes do this in house, no problem using their solicitor. I would
just recommend speaking to someone, speak to someone who’s an experienced property investor
and just ask them who they would recommend, because solicitors tend to be either really,
really slow, or they just don’t do anything at all. Having a good solicitor is good, but
you need to give the estate agent your solicitor details, and you can’t always change solicitors,
so don’t be like, “Oh, my gosh. Ah! I need to give the solicitor that I’m going to definitely
use and that I’m going to be married to forever and use it for every proper … ” No. Just
give them a solicitor. Speak to a solicitor. Give them a solicitor. You can always change
it. Those are the five things you’re going to
need. Once you’ve given those to the estate agent, the estate agent will take the property
off the market, and then the estate agent will then liaise with your mortgage advisor
who’s financing the deal, and your solicitor, and they’ll do everything, and all you need
to do is just phone them up every couple weeks and say, “How’s it going?” Don’t chase them
and be a dick. Don’t be like, “Hurry up! What’s going on? I’m paying you to … ” No, no,
because then they’ll just be annoyed with you. Ring them up regularly and say, “Is there
anything I can do to speed this up? Can I do anything?” Here’s the thing. When you’re
investing in property, when you do your first buy-to-let property, typically it will take
two to four months for the house to go through before you view it and you get the keys, which
is an awfully long time. Here’s my rule of thumb. When the ball is
in your court, i.e., you need to sign something, or you need to send off a bank statement or
show your proof of ID or whatever, when the ball’s in your court, get it out fast, but
when the ball is in other’s people court, you got to be patient. You got to be patient,
because if you get super impatient, you’re going to annoy everybody. Welcome to the game
of property investing. It takes time. Hope I’ve been helpful. Please do smash that like
button if that was really useful. Don’t forget to subscribe, share the video, and put your
comments below. I’ll try and read every single one. Peace out. I’ll see you next time.

100 Comments

  • Mi6Bagpuss

    Oh this was super helpful! Thank you Samuel! I smashed the like! You know, the UK really needs to speed up the buying process. It's actually quite rediculous! I'm abroad at the moment and here, we can buy property in maximum two days. There's no such thing as a surveyor here mind you but still, UK is like pulling teeth in comparison. Heading back to uk soon to start my property empire:))) Thanks again!

  • Henry Persoon

    Hi Samuel, I have two studio apartments in South Beach Miami, I would like to sell to invest in another part of the world. $200k for each. I would like to sell them for Bitcoin, any recommendations from you?

  • Shaun Flynn

    Went to see an accountant today for property and managing my ltd company i am in the process of setting up but he didn't seem to know much about property sourcing processes or buy to lets, does anyone recommend a good accountancy tax service that i could get in contact with?
    Thanks!!

  • oshen williams

    I'm 17 years old from Toronto Ontario, I have been watching your videos for a while and was wondering if these concepts would apply here.

  • onevibe1

    Superb video. Easy to understand. I'm seeing tax advisor tomorrow, mortgage broker Friday.
    Samuel leeds in your book you say that you can plug people into your power team if investing in Midlands.

    Would you be able to recommend a good solicitor for buy to lets and HMO's?

  • Chris Peters

    Thanks for the info Sam. Looking forward to seeing you at your Birmingham crash course in March! Just getting started with R2R and SA and can't wait to be up and running. See you soon bud..

  • Mark Grosskopf

    Thanks for that Samuel, really useful stuff! I see all the crsh courses are booked up except for London. Are you planning to do in any other locations in the near future?

  • Alex 9

    Great Video! Probably the most informative, useful property investment video I've seen! A fantastic step by step run through. Keep up the great work!

  • Graham Barker

    one of th best videos ive seen in a while….how about a video on the best way to approach joint venturing, how to get a JV on board, what to offer them, how to sell the deal to them….

  • Avdarmaly

    Can someone let me know the price of crash course without me giving all my biography personal details? On your website you ask all my info even before saying hi!

  • David Fionda

    Hi Samuel, great advice, thank you. I am a British expat living in the Middle East. Already have 2 BTL properties but bought them when I was a resident. Can you do a video on how expats can get buy-to-let properties, finding solid information on this isn't easy

  • Pentru Barbati

    The minimum income requirement is usually £25,000 for a buy-to-let mortgage application. Besides the income requirement, you'll also have to meet other affordability criteria set by the lender. …. So it's not that eassy

  • roberto c

    When are we backing the mortgage up with rent coming from the property itself, how do we prove to the bank, lender or whoever that it is going to be rent as we expect? Are they going to do a research by themselves on the market area that we plan to buy-to-let? Hope somebody can answer it, cannot make it up my mind around it…

  • Connor Clark

    Brilliant post!! Can’t wait to get my first BTL property under my belt. I’ve got some equity on my home I can free up for it, would be great to have a quick chat at the PROPERTY CRASH COURSE!🏠🔥

  • Josh Pickles

    Sorry but I cannot get my head around why anyone would buy property in the UK. It hates landlords and you pay tax on your mortgage – which is a tax on debt. Tenants hold all the cards and can sit in your property for three months without paying any rent and trash it before leaving while getting off Scott free. Then you add licencing schemes and the average yield of 3-5% in an enormously over inflated market you'd better be in it for the long run. There are far better places to buy. The UK sucks to own property in. Sucks so bad. In fact I can't think of anywhere worse to buy which is exactly what the UK government wanted to achieve.

  • j baker

    Enthusiasm is great. But please think long and hard about getting involved in being a landlord. Make sure it's really really what you want to be. Sleep on it think about the shit side not just the money. This comes from a veteran of btl.

  • Sam.S

    I've been looking for information everywhere and it all seemed a bit vague. This video gave me the information I was looking for. Thank you so much, subscribed!

  • UBR Plates

    We have some great property marketing number plates available including JU57 BMV
    JU57 HMO and SO1O BYU ubrplates.co.uk

  • Addyy Brown

    🤔I am new to property investing. Pls let me know how to start as am interested in buy to let. Are u organizing a seminar any time soon? Am in London

  • Lisa

    Perfect video for what I was wanting to know Samuel!
    I love how you are totally transparent and give all the details and processes.
    Makes it so much more motivating to take action when you know the details!

  • Armani

    I don’t have to own my own home for a minimum of 6 months and earn an income of £25,000 before I can get a buy to let mortgage????? Every bank I’ve looked at shows those requirements…

  • OOreegO

    Quick question, would you get a repayment mortgage or an interest only? Also how long would the usual mortgage term be?

  • peteq1972

    I really can't be arsed with tenants, i only want to buy to sell again, eventually a big bank balance, and no houses owned, all that maintenance, whingeing "my washing machine don't work" etc etc, na. Lol

  • Ekin Sumer

    hey samuel , love your videos and got a question for you..ı am from cyprus and want to purchase a house in uk..do ı still need a proof of address in uk? and what else would ı need on top of these 5 things you have mentioned? many thanks mate

  • Rod Champ

    I have a few buy to let's – currently trying to remortgage one – problem is I live in one of the others ones – will the underwriters Definitely check this? They've already instructed valuation and only asked for bank statements

  • Arthur Daily

    Hi Sam I am a new fan of your channel.
    Most of the information I understand and looking to apply some of it to my third property.
    Where I live has lots of low priced family homes so hopefully in the next few years I should own 8-10 BTL’s.
    Buying homes in my area means I can manage them all and cut out the property maint costs.
    I aim to be a multi millionnaire in 5 years so keep up the good work 😉

  • Fatima Zaeem

    Hi Samuel, I am told that I cannot buy any property as my residential property is through help to buy scheme. Unless I don’t pay off all the loan , I cannot proceed. Can you please consider my situation and advise, thanks

  • Kenny Chim

    Amazing video. Can you advise if it works the same in Scotland as the rule seems to be different from England? Thanks.

  • Paul Stone

    Loved the video! Straight to the point and makes me feel more confident. My only concern is the minimum income requirement from many lenders – it's always at £25,000 per year minimum? Do you mind commenting on this please? Thanks!

  • Farris Latief

    Nice vid Sam, what's the deal with getting loans for Build to rent ie financing purchase of land and building flats/homes?

  • Robert Price

    Hi samuel im looking at investing in student accommodation in Lancashire with a company called HMO property designs. Have you ever used them ?

  • WatchMeGlowUp

    I want to get on the property ladder by having my own house and having another property to rent out and have a second income … however I wanted to know is it better to join the buy to let scheme or would it be better to get buy my house( mortgage) and rent it that way would ? Would I save more money doing it that way rather than joing the scheme?

  • Chris Richardson

    Great video. If I were to do this, how I would I then get my second property? I ask as my money would be tied up in the first property.

  • Arzoo Kabul

    Mate. My friend on 5k self employed. Its impossible. U know ways , can you make video on this topic only , ( for self employed). How to get mortgage.

  • Westtopher

    As a mortgage broker having been in the industry for 8 years, I still find so many investors don’t understand that working with the estate agents will actually help them to build a relationship, and ultimately help them become more successful.

    Its always refreshing to find good videos that help people understand what they need to do.

  • Spend Time, Save Money, DIY

    Just found your channel, love your advice!
    Set up my own channel to bring in some extra cash to invest with but it's a slow game 😔

  • R X

    I’m a commercial investment mortgage broker.

    Let’s find the problems
    1) own your own home first – not mentioned.
    2) Get a 25% deposit.
    3) Have a job
    4) speak to an accountant and look at companies in particular SPV’s or doing it in your personal name.
    5) phone a broker – this I agree with. That’s me.
    6) stamp duty and other costs?

    You don’t need a guide to do this. It’s common sense.

  • Hamstering Around

    I love your enthusiasm mate Do you drink a lot of Redbull? I'm hoping to invest in my first buy to let property in the next year or so. Wish me luck!!

  • Love You life

    Hello Samuel Leeds, is any chance that you do course around south Yorkshire please, I'm really interested and I would really love to learn more about. Many thanks and God bless you.

  • 80RedRock

    Seriously. Best video of its kind. Clarifying the ease of mortgaging buy to let properties made everything seem so demystified. There's not much left of the like button here because of how hard I smashed it. Top-notch work.

  • K n K

    Great tips Samuel!. Hopefully buying my first buy to let through auction soon. 👍🏼 You ever brought through auction? Could you do a video for buying through auction? (Subscribed, liked and shared !)

  • DanHan35

    This might be a really silly question but how do I get to ask you more personal questions around my circumstance? Can I message directly or do you do Webinars or events? Great vid BTW, very helpful…

  • Adnan Chowdhury

    I have booked tickets for your property crash course in Birmingham, really excited.

    I hope i will also achieve my dreams like others have in the past through your mentoring and guidance.

  • ALEX LAMB

    Id absolutely love to meet you ! I'm a self employed electrician, a 25 year old dad and religiously watch your videos trying to get myself firmly on the ladder I can do most renovation in house aswell 😁 . Thankyou for your help hopefully I can make this happen!

  • Andrew Barrett

    Are you talking about hmo because I carnt see a 100 grand buy to let with a deposit of 25% making any money when the rent would probly bring about 500 pcm where I live however if it was hmo 3 bed that would bring in 1200 pcm also u r making out that it's so easy if the tenants move out u are responsible for that rent until u find a new tenant I think u should tell people this because u making sound we don't need any money it's ok for u as u are a millionaire u can afford a few losses just saying i admire what u r doing and having the balls to do it

  • Inasya L

    Hi Samuel . What do you think is the best to get first property for ourselves and than buy to let or stay in rented apartment . Get property to let and than after get our own?

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