My Property Business Plan of 2019 | Samuel Leeds
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My Property Business Plan of 2019 | Samuel Leeds


Hi, Samuel Leeds here. And on this video,
I’m going to do something crazy. I might regret doing this and this is something that I don’t
ever see any other property gurus, trainers, or any YouTubers doing and that is I’m going
to reveal, I’m going to expose to you exactly what my 2019 property investment business
plan is. I’m going to tell you what I’m planning to buy over the next 12 months in property
myself personally. People told me I shouldn’t do this, I shouldn’t put it out there. They’ve
said other people will try and copy you, other people will try and steal your ideas. Keep
it close, keep your cards close to your chest. Although I understand that, I think that when
you speak something out, rather than being fearful that other people are going to copy
you or that it’s not going to happen, you’ll fail and then you’ll looks stupid, I’d rather
think that when I speak it out, I’m speaking it into existence. People will then cheer
me on. And if people want to copy me and join the club, that’s fine. That’s why I’ve run
this YouTube channel to help people become successful in property. So I’m going to reveal exactly what I’m going
to buy over the next 12 months. So that’s what I’m going to be doing on this video right
now. Please do show me some love by smashing that like button below. Also, subscribe to
the channel if you’re not already subscribed. And don’t forget as well to turn the notification
bell on so that you never miss one of these videos again. So what am I going to be buying over the next
12 months? Well, last year I bought 26 properties. I only anticipated to buy 10 so I was way
above target. And if you want to watch that video and exactly what happened, you can do
that up on the link. I usually on average will buy one property per month. So over a
year, typically, I’ll aim to buy 12 properties. So over the next 12 months, I’m planning on
buying nine houses. It might be a lot more than that but nine properties is what I budget
for and that is just myself personally. I do have an investment company where I’m
business partners with my brother. That company is doing some really great things. We’re planning
on buying some commercial properties, doing some developments. We’re also looking for
our own new office building for all our staff. So that’s going on on the business side but
this video is really more about me personally. And hopefully, you’ll be able to relate to
that because it’s not massive big fancy stuff and I’m assuming that the fact that you’re
watching this video, you’re either just starting or quite early on looking to build your residential
portfolio which is what I’m still doing at the moment. So of the nine properties, they’re going to
be split into three sections. So I’m going to buy three, three, and three. And the first
group of three is going to be service apartments. Service apartments are really great for two
reasons and let me explain why. Let me tell you why I’m so excited about buying service
apartments. Number one, I live in the Midlands and they’ve really bottomed out price wise.
I bought some apartments in Walsall, owned them right in the centre on Bridge Street
of Warsaw. I paid 85,000 pounds for these apartments 10 years ago in Warsaw. Currently,
today, they’re worth around about 75,000 pounds. So over the last 10 years, they’ve actually
dropped in value. We know that on average properties double every 10 years. These have
actually not just stayed the same, they’ve dropped in value over the last 10 years. Now, after a recession will always come an
expansion and after and expansion will always come a recession. Warsaw is an area that has
not been in a big recession. In fact, I’ve got houses in Warsaw that have gone up a lot
but apartments seems to be really low at the moment. They seem to be almost out of fashion. I think the series Friends came in and suddenly
everyone wanted an apartment because they’re watching Friends in apartments. And apartments
went really inflated but I feel like they’ve really bottomed out right now. And I think
that the fact that they bottomed out, I have a feeling that apartments are going to become
back in fashion over time and I have the feeling that the prices are going to go back up because
at the moment they’re right at the bottom. Apartments, I think, I know are really good.
The thing is you need to be careful when you’re buying apartments is the ground rent and the
service charge. You need to make sure that you calculate that in the return on investment.
Service departments, why is service accommodation so good? Well, serviced accommodation is when
you rent out a property or a room or whatever it might be and you rent it out. Instead of
putting a tenant in there, you have a guest in there. So it’s like a hotel without having
stuff. It’s all automatic, it’s all systemized. Rather than buying an apartment for a good
price and then just renting it out for say five, six, 700 pound a month, I’m going to
be buying a property, an apartment and I’m going to be renting it out. My plan A is going
to be renting it out as a serviced accommodation. So what’s going to happen is I’m going to
get guests coming in there which literally can double, triple, or even quadruple your
return on investment and your monthly cashflow. So on that basis, what are the figures going
to look like and where am I planning on buying. Well, service departments work best in big
city centres, really buzzing city centres. So I’m going to be buying … my closest big
buzzing city centre is Lichfield but Lichfield’s very expensive and you’re talking probably
at least 150,000 pounds just for a studio apartment which is the returns aren’t going
to be as good if I went a little bit further afield. Birmingham is the next biggest buzzing
city. Birmingham is about half an hour from where I live. Birmingham you can buy apartments
for as little as 100,000 pounds, yet it’s a really buzzing popular city. So I’m going
to be buying service departments in Birmingham and I’m going to buy minimum of three over
the next 12 months. My advice to you would be if you’re looking
to buy service departments for round about 100 to 150,000 pounds, I would say find the
biggest buzzing, most buzzing city near where you live and buy there. Now, in other videos
I’ve said that don’t worry about having to buy close to where you live. So why am I suggesting
that you buy close to where you live with service departments. Well, a couple of reasons.
Firstly, is if you have to travel far, even just for the viewings in the first place and
the setting up process, if you’re driving six hours each way, it’s 12 hour round trip.
You’ve got to put a value on your time. So I would say if it’s buying service departments,
if you can, if you live in such an expensive area, the returns are going to be so low,
then maybe do look further afield. But I think if you can buy close to home, that’s not a
bad thing. Secondly is I know Birmingham really well because I live close. If I was to buy
in Liverpool, I might be able to buy an apartment a bit cheaper but I don’t know the area and
I’d have to spend a lot of time investigating the area. I’m also going to have to then drive
to view it. So the amount of money I’m going to lose because of I’m spending my time is
probably not worth it. So service departments in Birmingham, I’m
going to buy three. I’m going to be spending between 100 and 150,000 pound per apartment
and I would like to be making at least a minimum of 500-pound profit per month of the apartment.
But I think that’s very conservative. Also, as a plan B, if serviced accommodation becomes
very regulated and I’m not able to do that anymore or become saturated is even if I rent
it out as a single let apartment, the kind of apartments I’m going to be buying, the
return will still be pretty decent. So that’s going to be three of my houses, service departments
and I’m looking in Birmingham. Next, HMOs. What are HMOs? Well, HMOs, House
of Multiple Occupancy, when you buy a house and you split it up and you rent it out on
a room by room basis. The reason HMOs are really good is because instead of getting
rent from just one person, you’re getting rent from multiple people which means the
cashflow is better. Now, HMOs have become pretty regulated over the last few years.
Sometimes you need licences, sometimes you need planning permission. So they’re just
about as regulated as I think they’re ever going to get. Well, while that’s can be a little bit annoying
because of the red tape, it’s also really good because I understand the HMO industry
very well. People are a bit scared of because of the rules and regulations but I can’t imagine
them getting any more regulated. So I think HMOs are very safe. I think that you know
where you stand. If you buy and HMO and you buy in the right area, again, where am I going
to be looking for HMOs? I’m going to be looking in the Midlands, again, because I’ve got a
really good team, a really good network in the Midlands. Prices in the Midlands have
not gone up super high like London, but they are going up. So I think the capital appreciation
is going to be good. I know the area well, I understand it. HMOs work in many different
parts of the country but I’m personally going to be looking in the Midlands, I’m going to
be looking in Birmingham, Warsaw and surrounding areas. Kind of figures I think you’ll be talking
is I said in my book by Buy Low Rent High that you’re talking 25,000 pounds per lettable
room. That was a couple of years ago. Prices have now gone up but also, rents have gone
up. So now, I’m looking to spend a maximum of 35,000 pounds per lettable room which means
if it’s a four-bed HMO, I’ll buy it for 140,000 pound max. And then I should be able to rent
it out for a minimum of 400 pounds per room. So a four-bed HMO, you buy it for 140 and
you’re going to rent it out for 1,600 pounds a month. Of course, you’re going to have costs
involved. But again, your cashflow each month should be very high giving me a return on
investment of at least 20%. So I’m going to buy three HMOs in the Midlands, three service
departments in Birmingham so far that will take me up to six properties. So what are the next three properties that
I’m going to buy? Again, by the way, don’t forget, if you’re enjoying this video, please
do smash that like and don’t forget to subscribe if you haven’t already done that. Thank you
so much. The last three properties as part of the nine houses over the year are going
to be straightforward below market value buy-to-let properties. When I say single-let, buy-to-let,
it just means a house that you rent out to a family. Nothing complicated. You’re not
splitting it up, you’re not doing anything clever. You’re not doing it as a guest house.
Just a straightforward buy-to-let. Why am I going to be doing that? Well, because
I think that when I first started in property, buy-to-let that was the actual bread and butter.
And looking at my portfolio now, if I look across the board, a lot of my buy-to-let properties
have actually made me a lot of money in capital appreciation, they’ve gone up in value. I’ve
had the same tenants in there for five, six, seven years. Very, very little work. My thinking
is while people are scared, that’s when you should be greedy as Warren Buffett says. At the moment with the tax changes and with
all the things that are going on in the country, with the uncertainty and BREXIT, there’s a
lot of people that are quite fearful, there’s a lot of people that are quite scared at the
moment. So it’s a really good opportunity to buy properties below market value because
people are thinking, “Oh, I just want to get rid of my property,” or, “Oh, what’s going
to happen …” and then they’re wanting to sell. So I think right now is a really good opportunity
to buy properties, find motivated sellers, negotiate a good below market value. And if
you think about it, if you find a house that’s valued 100,000 pound and you buy it for 85,000
pound, that negotiation might have only taken you a couple of hours. But you’ve made effectively
15,000 pounds in a couple of hours from finding it and negotiating it in a couple of hours.
I don’t know about you but 15,000 pounds for a couple of hours work is not bad. So below
market value and then just sit on it, hold it, rent it out for maybe five, six, 700 pound
a month. Safe, easy. Going to go up over time. I’m going to go and get three single-let,
buy-to-let properties, that’s my total nine. So to recap, I’m going to buy three service
departments, three HMOs, three buy-to-let single-lets. Of course, I’m always going to
be open-minded and on the lookout for anything else exciting that comes up. Nine is kind
of going to be a minimum for me. Of course, my business is going to be buying properties
as well and I’ll be on the lookout for what comes up. I think as a successful property investor,
really, you’re a problem solver and you have different strategies up your sleeve. Lease-options
agreements, rent-to-rent, development, all these different ideas up your sleeve. And
then you just find people and you see if you can help them and you pull out the cards at
the appropriate time. I’m going to be documenting my journey. I’m sure I’m going to end up finding
other properties as well as those nine. If you haven’t got any money and you’re looking
to do this, you can still do service departments with no money because you can just rent a
property off a landlord and then change it into a service department and keep the cashflow. Now, you’re not benefiting from a capital
appreciation but you are benefiting from instant cashflow and you’ve not put any money down.
If you want to be extra greedy, you can agree to buy it at a fixed price down the line and
have an option to buy it. So there’s many things that you can do even if you haven’t
got any money. You can find good property deals and then you can package them and pass
them on to an investor and charge a fee, and then put that fee in a separate bank account
and keep doing that until you’ve got enough to buy a property of your own. There’s many
things you can do. If you’ve been inspired by that and if you
want to do property yourself and you’re not sure where to start, what I’d like to do is
invite you along to come into our property investors crash course which is two days.
It’s absolutely free. I’ll be there and I’ll be working with you to help put together your
property investment strategy so that you can get yourself on the ladder and ultimately
enjoy financial freedom one day too. So once again, thanks so much for watching
the video. My name is Samuel Leeds and I look forward to seeing you smash your success.
I’m cheering you on in your journey. See you next time.

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