Transcription
Here's exactly what you should do if you've got £60,000 that you're looking for invest. Don't buy an ordinary house for 250 Grand and use that 60 Grand as a deposit, because then you're going to have a big mortgage. Your interest payments are going to be about £1,000 a month on that big mortgage, and your rent is barely going to cover your mortgage payments, and you're going to be left with a liability instead of an asset.
So if you got £60,000, you want to find a really rundown house, and you want to buy it for about 39 Grand. Now, right now, you're probably thinking you can't buy a house for 39 Grand. How that standing outside was just bought by one of my students, Damian. How much did you buy this house for? We bought this one £38,000. Oh, 38. 20 grand on the refurb, two grand on the legals. So all in, 60 Grand including legals. Once he's put his 60 Grand in, he's now renting it out as service accommodation. How much rent does this bring in? Uh, it brings in about £2,800 a month. It's now worth £100,000. You got it revalued, refinanced, and you pulled out 75 grand. So now he's got £15,000 cash and a house, and he's renting it out for over two grand. And the mortgage payments on this are how much? 343. Am I right in thinking it was the cheapest house on Rightmove at the time? Yeah, literally. I was sat at home and I thought, well, you know what, if I should find the cheapest house on Rightmove, maybe that's a good stepping stone. This was on there. It was the cheapest house on Rightmove, the cheapest three-bed house in the UK. You did the buy, refurbish, refi-nance Master Class where you learned how to buy, refurbish. You did that, bought this, then rented it out, then came on the service accommodation training, because you were renting this out as a single, weren't you? For a... yeah, yeah. It's an, they gave, they gave the notice in literally the day before I came to the course. So I had the headache of trying to find a tenant, and then came on the course, I was like, no headache. Yeah, I've got the answer.
Just hear this. Buy-to-let investors, if you're renting this out for £595, that's not bad. But your mortgage is 343. Yeah, so there's only a couple hundred profit. The time you pay for management, maintenance, insurance, you've not really got any profit. So it would have still been a good deal. It's still a property that's going to hold its value. It's going to, you still got 15 grand from the refinance. But the fact that you learned how to do short-stays. People think short-stay is just tourist areas near the beach. No, we're in Gainsborough. This is not a tourist area. It's not a super nice area, but you're still getting over two grand a month for rent.
Can I have a little look? Have a look upstairs. How are you getting people to stay here on a short-stay basis? Because if you just took this on Airbnb and with no strategy, it would maybe sit empty. Yeah, we, we to be fair, we've done quite well. We've used sort of various marketing techniques that you teach. This is like, right in the middle of various different big building projects where people have traveled all over the UK from Scotland and all sorts to stay locally. So we sort of marketed them areas, got into it with a few contractors. It sort of rolled on from there, really. You can't just stick it on Airbnb. This is an actual business. You need to be able to market. Ultimately, this is your product, and that your guests that coming in or your customers. So you're running a business.
So when we purchased this property, we'd seen it, and they said, look, it's on that price, but we're about to relist it, and we're going to relist it a lot more. We basically had 4 days to complete. So we didn't look at it. It already had the searches done. We literally spoke to a solicitor who's very good and got us over the line 4 days later. Wow. So I'd never seen it. Then I sent the builders in to assess it, and they'd had a gap in what they were doing, so they started the work. So I actually didn't see this property till we plastered the walls. How many times have you been here since? Third time today. This is your third time. Third time. That is mad. Most of you guys watching this video right now will be saying, I can't find houses where it's 30% below market value. Yeah, that's because if you did, you wouldn't be ready to move. You wouldn't be ready to complete within four days. You wouldn't have your lawyers. You wouldn't have the finances. You wouldn't have the team. So you're there worrying, I can't find deals like that. They don't exist. It's because you're not ready. It's because you're not prepared. It's because you're not positioned right. Damian positioned himself right.
So with that being said, how did you negotiate to get it for 38 Grand? Still, he was actually on the market for, um, 35 when I contacted the estate agent. They said, literally, no, no offers less than 50. I asked the question, why is it 50? Why is it so high? Etc. And it turns out the guy who owned this was moving to Thailand, and he wanted it complete before he flew out on the Thursday. And I said, so if I can complete before Thursday, what's the real price? 40, 45 Grand. It went from there.
If you want to buy gold, silver, stocks, shares, Bitcoin, most purchases, the price is the price is the price. With property, if you find someone that needs to move quick, speed, and you're prepared to move quick, that's how you get bargains by being prepared to move quick. And then with property, you can't get a mortgage in 4 days. So what you do is, instead of trying to get a mortgage, you buy it cash. And if you haven't got cash, you tap into my cash, Samuel leads Fin. And then after you bought it, you go get a mortgage and you remortgage the house. You do the mortgage and all that nonsense. You do all that slow stuff after you buy it. You buy it first. You push the value up. Then you refinance it. Now you got a mortgage. Oh, no, I need to pay off the mortgage. No, don't pay off the mortgage. Rent it out and let the guests pay the mortgage payments and pay you a nice big... How much? What does this profit you every month then? Uh, so net profit on this property is about...
Now, maybe you're thinking, but Samuel, I, I haven't got 38 Grand to buy a house. I haven't. You know what? If you can't get your hands on 38 Grand, you probably deserve to be an employee for the rest of your life. You probably deserve to work until you die. If you can't get 38 Grand, because last year they printed billions and billions and billions of pounds, you have to tap into that. If you go to the bank and you say, can I get all my money out, please? I got a million pounds. They ain't going to give it you because they're investing it in property. Lloyd's Bank, their personal mission is to be the biggest private landowners in Britain. Interestingly, when you tell Lloyd's Bank, can I get a loan, please? They'll say, what for? If you say to invest in property, they'll say, that's too risky. So you finance this to a loan? Right? Yeah. I got a loan just before I was going to do some work on my residential property. So I got a loan for £40,000. Going to build a big extension. Did you say you got a loan for home improvements? Yeah, yeah. And they gave it to you? Yeah. And then you used it to buy this? If you'd have said to the bank, I want a loan to buy a house, I found a house, the cheapest house on Rightmove, and it's 38 Grand, and it's a loan. They would just said no. Did you use the whole loan to buy this? Yeah, you literally put the £40,000 into 40 Grand loan. Have you now paid that loan off? Yeah, yeah. We refinance this, paid that off, left me some money left over. Banging. House. You moved quick.
Key lesson that you've learned, because this is not your only property. How many properties do you have currently? Either you've bought it, or you've joint-ventured, or you've taken on under your control or management. How many? How many properties, including management and everything? 30. And what do you make a month from property? About 27, 28 grand a month. This guy is so successful. I want him to come be a mentor within the academy. I'm like, Damian, because I've been working with, you know, for 18 months, two years, you've built up a whole portfolio. I'm like, bro. So if you want to meet Damian, or you want to meet me, you want to be around other people doing this, I'd like to invite you to come and spend a day with me. And you might not even like me that much. You might think I'm arrogant. You might think I'm this, that the other. But there's one thing I'm very, very, very good at, and that is making money and training people to make money in property. So come tap in. It all starts at the crash course. I'll leave a link in the description. There's one. It's the best investment you can make. It really is. Like, I've gone from spending one pound to further education and now making all this money a month. It's, it's, it's just the winning formula. Exactly. Step by step how you got to do everything, and then you make an absolute fortune. Another thing is people, people say it's too far. Oh, man, I live in Bedford. It's an hour away. Stop making excuses. I'll come to your house. I'll find you. I'll leave a link in the description. Get booked on, and I'll see you at the crash course.