Summary of the BEST Property Strategies | Samuel Leeds


Sergi: Hello, everyone. This is Sergei Tella
speaking. I am going to be the new videographer of Samuel Leeds. I apologise for my English
because, clearly, this is not my first language. Sergi: The thing is that I know nothing about
property investment, so I’m going to ask Samuel if he can teach me the basics of it. I’m going
to film everything and share the information with you, guys. Samuel: Financial freedom means that you don’t
need to work anymore. You don’t need to do a job. The basic definition is, if you got
properties that are giving you a passive income, like a rent that covers your basic living
essentials, then you’re financially free. The best way to achieve financial freedom,
in my mind, is through property. Samuel: Number one, it gives you rent. Say,
if you have properties or control properties you get a really nice passive income from
that. Samuel: Number two is properties are so exciting
because if you own them, they go up in value every time. If you have money in the bank,
the money stays the same. If anything, it shrinks because as inflation goes up, the
money becomes worth less over time. So, investing in property is good because the property value
goes up and you get rent. Samuel: There are different ways you can make
money in property. Number one, basic buy-to-let. Buy-to-let means that you buy it to let it
out. It’s basically the most simple, straightforward … It just means buy-to-rent. So, you’ve
got money and put it into a house, you rent it out, that’s it. Samuel: Next is HMO. HMO stands for House
of Multiple Occupancy. That’s like the house that you live in, which is actually Alastair’s
house. Sergi: Yeah. Samuel: You’re renting a room, and then there
is another room, and another room, and another room, and the landlord or the investor gets
all of the rent. It comes down to more rent. That’s 350 plus 350 plus … That’s 1,400
pounds. That’s a lot more money than Alastair would get if he just rent it out to one family. Sergi: It’s [inaudible 00:02:10] much. It’s- Samuel: But, if you paid 650 and you moved
in, you’d have to pay the bills- Sergi: Yeah, [inaudible 00:02:18]. Samuel: … you’d have to get furniture, you’d
have to … Whereas for you, you pay 350, you move in, and it’s all ready, all up and
running because in 2019, convenience sells. For you to go and rent up a whole house, even
more expensive, more hassle, so that’s why … Not only is HMOs a really good way to
make money, but it’s also a really good product because you’re actually helping people. Samuel: Next, rent-to-rent. Rent-to-rent is,
let’s say, you find this house, it’s owned by Bob. Bob bought the house for maybe 100,000
pound, and it’s on the market. He’s renting it out for 700 pound a month. You say, “Hey,
Bob. You’re renting your house out for 700 pound a month. So, I’ll give you 600 pound
a month, but I just won’t change you anything to manage the house. I’m going to pay all
the maintenance, look after the house, you have no management fees.” You give Bob 600
pound a month, guarantee rent, so Bob’s happy. But then you rent the house out as a HMO. Sergi: Can you do that? Samuel: Yes. Sergi: Is that legal? I mean, you can rent
a property that you’re not the owner. Samuel: Yup. Sergi: I didn’t know that. Samuel: Well, you learned something new. So,
if I rent the house out, if I rent the house and I pay Bob 600, I rent it for 1,400, I’ve
obviously got costs to pay, but any profit is mine. That is called being an entrepreneur. Samuel: Next is lease option agreement. That
is a cross between a rent-to-rent and a buy-to-let because here’s what you do. Let’s say you
do a rent-to-rent and you say, “Look, I’ll give you 600 pound a month guaranteed, but
at the end of that contract, five years’ time, I want an option to buy the house.” Sergi: Like if you do it with a car, or something
like that. Samuel: Yup. Sergi: You rent it for a while and then, at
the end, you buy it. Samuel: Boom. Sergi: [inaudible 00:04:21] that. Samuel: Yeah. Like a PCP contract with a car? Sergi: Yeah. Samuel: Now, the great thing about that is
if you buy a house now, you have all the benefits now, but you pay for it later in five years.
From now until five years, you’ve benefited from all the rent. And, unlike cars, cars
shrink in value, but houses go up. So, you’ve got fixed price, but then after five years
… And if it’s not worth more, you can have it in the contract that unless it’s gone up,
you do not have to buy it. Sergi: Can you do that? Samuel: Yes. Sergi: [inaudible 00:04:53] Samuel: Yeah. So, they have to sell it, but
you don’t have the option or the obligation to buy it. That’s called lease option agreement. Samuel: Next, serviced accommodation. You
know when you rent a house out with buy-to-let and you get a very standard rent, HMO lifts
the rent because you’re renting the rooms out. Serviced accommodation is a way of renting
a property out and getting maximum rent. What you do, you can rent your house out and you
can put your house, you can list is on Airbnb and booking.com and then people will come.
They will stay for one month, two nights, two weeks, but they’ll pay … rather than
paying 600 pound a month, they might pay 100 pound a night, and you can rent houses out
that way. Samuel: You can do something called rent-to-service
accommodation, which is when you rent a house, you pay Bob his 600 pound a month, but then
you turn the house into a serviced accommodation house and you keep all the difference. Make
sense? Sergi: It makes a lot of sense. Amazing. Samuel: Easy peasy. Samuel: Next, deal packaging. Deal packaging
is when you find properties, buy-to-lets, HMOs, rent-to-rents, lease option agreements,
serviced accommodation, any type of property investment that’s a good property investment,
a good deal. But instead of taking it on yourself, you pass it onto an investor and you charge
them a fee. Samuel: An average fee might be 3,000 pounds,
so what people are doing is they’re learning about property and they wanted to invest themself,
but they haven’t got too much money. So, instead, they’re learning about property, they’re finding
deals, and then they’re selling the deals to investors, and then they’re making a living
off doing that. Or more than making a living. They’re selling 10 a month, making 30,000
pounds a month. Then that money they’re then using that to reinvest themself into property. Samuel: Then there is also a strategy, which
is one of my favourites at the moment, which we call BRRR, brrr, which stands for Buy,
Refurbish, Refinance, Rent. What that means is you buy a house and you normally buy and
it’s in really bad condition. People don’t want it because maybe there’s weeds and the
toilet is horrible and there’s … it’s just, eh, horrible, and then you refurb it, so you
make it look beautiful. Maybe you spend 20,000 pounds making it absolutely fantastic. Samuel: Then you remortgage the house, so
you get a new mortgage on the house. What happens is sometimes, I’ll give you an example.
If you buy a house for 80,000, you spent 20,000 on it, but then … So, in total, you spent
100,000, but then it’s worth 125,000 so you’ve lifted the value, you get a new mortgage on
the property and you pull out, pull back out all that money that you put in. It’s a way
of buying houses with no money. Does that make sense? Sergi: Yup. Samuel: So you need money to start with, but
you put it in, you add the value, and then you pull the money back out. Sergi: So, basically you get all the money
from the bank- Samuel: Yeah. Sergi: … then you pay everything, and then
the money comes back. Samuel: Yeah. And then you do it again and
again and again. Sergi: And again? Samuel: It’s a bit like buying, and then adding
value, and then selling it at a higher price. But instead of selling, you keep it, and you
just refinance it. Yeah. Samuel: So, those are the strategies: Buy-to-let,
Buy-Refurbish-Refinance-Rent, HMOs, Rent-to-Rent, Lease Option Agreements, Serviced Accommodation,
Deal Packaging. Sometimes you can combine strategies.

21 Replies to “Summary of the BEST Property Strategies | Samuel Leeds

  1. Rent to rent you need to pay someone to take care for the guest all time or is there any company available to do that and pay based on check in and check out?

  2. Great content as always Samuel! It doesn't hurt to reminded of the various property investment strategies out there.

  3. Great video Samuel! Very good content as always.

    By the way, do you think I can get a job as a wholesaler and sign up contracts on the broker's name? The problem is that I'm not old enough to get my license and this sounds the best way to get into real estate. Or, do you know any method to get into real estate while underage? I don't really want to wait 2 more years to get into it. Here, you can legally have a part-time job at my age.

  4. MAN YOUR VIDEOS ARE ABSOLUTELY AMAZING! I have been INSPIRED to develop my own channel and WOULD LOVE to have some support! Keep up the great work!

  5. Nice 👍🏻 summary Sam! Thanks for your hard work! Keep ‘em coming. 🙏🏻🙏🏻🙏🏻

  6. May seem like a silly question but I’m just getting started with property
    With the lease option agreement, at the end of the contract do you have to buy at current market price or is there a way of buying at the price the house was at the start of the contract? E.g. if I started to rent a house worth 300k now and in ten years time when the contract ended it was worth 500k , would I get to buy it at 300k or 500k?

  7. Why would owner want to offer lease option agreement and lose appreciation? As an owner I would sell it in 5 years at market value instead of the price of today.

    Edit: is like a future where the owner always loses.

  8. 1. Buy to let
    2. House of Multiple Occupancy
    3. Rent to rent
    4. Lease option agreement
    5. Serviced accommodation
    6. Deal packaging
    7. Buy, refurbish, refinance, rent

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