Transcription
When I came to your one-pound event, whatever I tried learning from other different areas, you were kind of dropping it all in the one-pound course. I felt so much value. The first property which I took on rent-to-rent was a seven-bed. The second one was an 11-bed. So mine were massive properties. So your cash flow coming in is good now. Cash flow, I'm making about three thousand pounds a month, but with so many deals available, that's going to make around seven thousand pounds. Wow.
So I was lucky enough to convince an agency. Now, you were skilled. You were skilled enough. Most of my landlords are from the agency to whom I stayed with them when I came to the UK. You were a tenant in an HMO. I'm flooded with more deals which I cannot take on.
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Samuel Johnson, Mr. IT engineer from India, came to England for your job, which you now quit? Yes, that's true. Because you go into property instead? Yeah, that's it. I think property is one of the things which I wanted to do for a long time. Yeah, operating IT is one of the, I think it's a good thing. So a few years ago, when you came to England, did you have any idea that you were going to end up doing property in England? Never, never. I thought I'll be just working here, saving money, sending to India, buy some properties. That's what I never thought that I'll be starting some business in the UK. Yeah.
So you moved to England? Was it around 2017? Yeah, 2017. And how did you meet me? What happened? So I came across you through your YouTube videos. So I actually wanted to start something. I was like, okay, let me start in India. It was my plan. I wanted to start there, but I kept on working on here. And then I thought, okay, why not buy a property in the UK? So the first place was, let me buy a property in the UK. But when I started Googling and finding out like what are the other ways to do it, then you popped up and said, no, there's so many other ways to do it. There's so many strategies available. Then I was so interested in it. I was like, okay, let's do it. And that's how I ended up meeting you and came to the one-pound course.
So you came to the one-pound course about how long ago? Maybe in June last year. Okay, June last year. So almost a year ago. And then what happened? So I came to the one-pound course. And I actually, before coming to the one-pound course, I went to some of the other events. But I went and joined in training, something similar to this one, but I couldn't get enough value out of it. So, but when I came to your one-pound event, whatever I tried learning from other different areas, you were kind of dropping it all in the one-pound course. I felt so much value you were adding in. And I definitely joined up to the advanced program and said, okay, let me proceed with it. But when I started knowing more about it, then I'm like, all I needed was the support. It's like, like the inclusivity within the academy is like that, what pushed me to join the academy. And I was like, okay, that's what I want to do now. So let's join, be with the people. And you, you are part of the furniture. Everyone knows who you are. You're on all the events, you're on the masterminds. And the great thing about you, Samuel, is you are a big thinker. Your first property was, well, you tell me, what was your first property?
The first property which I took on rent-to-rent was a seven-bed. And the second one was an 11-bed. So mine were massive properties. Wow. Yeah. Seven beds is your first property? Yeah. And then your second one is an 11-bed? Yeah. And you've got two more properties. And you've also, you're in the process of securing now to purchase lease option agreements? Exactly. Yeah.
So your cash flow coming in is good now? Yeah. The cash flow, I'm making about three thousand pounds a month. But I have a target of, with so many deals available, that's going to make around seven thousand pounds. About seven. So at the moment, it's three. Okay. But once everything comes through and is live and everything's full, we'll be around seven thousand.
When did you come to the decision to quit your job as an IT consultant engineer? That was a plan for last year. So when I came and joined, learned all about property, came onto your mastermind and all the academy, I was like, okay, the target what I want to do is quit my job in six months. Because I don't want to do this for the rest of my life. So anyway, I don't want to do it for that stuff in my life. So why can't I quit immediately? Yeah. Then, like, if I'm not going to add value there, let me work on myself and add value for me. So that's what I wanted to do. So six months, I took a target, like, let me do it within six months. So first deal over the line, second deal, then I got three thousand pounds cash flow, then I said, let's quit the job.
So you're making three thousand pounds a month profit, just from your first two deals? Exactly. Yeah. Wow. One and a half grand a month each? That's awesome. So the other two, then, they're not quite live yet? No, you've totally secured them. Contract signed? Contract signed. And for 18 more beds, which is contract signed? Yeah. So 18 beds plus the ones that you've got, which is how many beds currently? I'm having 18 beds. Then there's 18 more coming up. 36. And what are these? Are these HMOs then? Yeah, these are existing HMOs. But both these are bigger HMOs. Which patch is an Article 4 area. So we have quite a lot of HMOs in that area. So there are multiple coming up.
So what's your service that you're offering to landlords? What is it that you're offering? I'm offering kind of a hands-off experience to the landlord. And also, the ones which I'm taking on, we are doing light refurbishments to the property as well. Because these properties, the existing ones which I'm working on, are student properties. So they've been as a student property for so many years, but it's kind of a rundown state where nobody wants to stay in it, or the landlords are finding it difficult to rent out.
See, so I was lucky enough to convince an agency. You know, you were skilled. You were skilled enough. Exactly. Skilled enough to convince an agency because all the trainings and all the mentoring calls which I always keep on having, people were suggesting me what my script and how to find it out, how to go about it. So that's what kind of took me to that line. And I'm doing actually in those HMOs, I'm refurbing the HMOs, investing some money, and then I'm specifically focusing only on professionals rather than focusing on students. So my target clients are specifically from tech background clients. So I don't have any problems with my tenants. So yeah, that's my main.
So what you're doing is you're finding big student houses, exactly, where they're a bit run down, the landlords are a lot, fed up with them, and then you're coming in. How long of a lease are you signing with these properties? The minimum ones are three years, which is what I'm signing. And there's extendable up to five years as well. Yes. Since I've done it up nicely, the landlords are quite happy with what I'm doing. So they just want to give away more properties. And sometimes you're negotiating an option to buy the property at the end? Exactly. So that's what we've been doing for both the properties. Two of our properties which we have already placed a lease option on them because the landlords are already suffering with it. And we are kind of taking on and managing it. So we placed a lease option to buy them at the seventh year. Okay. And if they agreed, they haven't agreed. They're working on it. As we said, you back. You're in negotiation. Yeah, we are in negotiation in terms of the price and what value we are giving to them in seven years. But yeah, strategy.
And where are you doing this? Uh, in Leamington Spa. So how are you finding these landlords? Where are they? For me, landlords is direct interactions. I go to some of the networking events. But most of my landlords are from the agency. One of the letting agency whom I stayed with them when I came to the UK. So that's how it happened. You were a tenant in an HMO? Yeah. When I came to the country, so I stayed in one of the HMOs. Yeah. And when I was going behind so many agencies, trying to convince so many agencies, I just found a reason how I can get involved with the agency. I stepped inside to the agency and said, I'm looking for HMOs. And they're like, oh, are you looking for rooms? I'm like, no, I'm looking for HMOs. I'm like, for you? Yeah. I stayed in one of your properties, if you remember. They said, yeah, yeah, we remember you. We have seen you before. So like, what do you want to do with that? Then I said, no, I would just want to take on completely as a lease agreement and then I want to run it as a professional HMO, as all bills inclusive. They're like, okay, we have worked with companies before, but we have a very bad reputation with the company. So we are not working on it. But I kept going there almost once a week and kept being persistent about it. Ah, in that way, they kind of, okay, just do some viewings in couple of properties. We placed offers in couple of properties. Then they convinced the landlord for me that this company will take it and run it up.
So you knew that, I imagine, because you rented a property, but you were just an HMO and so on. You pitched them on rent-to-rent. And I said, no, no, that a bad experience, isn't it? Awkward coming back the next week and asking them again when they already told you not. That's fine. Because all they want to know is an agent would want to work with someone as long as they knew and trust the person, right? It's more about how are you building trust by just going back again and again? Like, what are you saying? Just saying them that what I'm what I'm trying to do. I think the story behind me coming as an IT consultant, I'm working in that particular and I'm focusing on a different market. I know tenants were coming from different countries. I know professional tenants already because I am a professional as well. So I just want to run it up as an all bills inclusive. So for them, they didn't focus on the professional market, their target was student market. Sure. So for them, there's one less property to worry about. Yes. So they're like, okay.
So when when I sent you, yes, to you, how did you afford to get through like the referencing and everything? Because a big seven-bed HMO, that's a big deal. Luckily, they didn't do any referencing for me. Oh, I didn't do any references? No, because they had the trust because I was a tenant. Then they know me because I stayed in one of the HMOs. So it's like me going back every day to them. I literally know everyone from the agency. But the thing is that they normally do like affordability checks. Did they not do that? They didn't check on anything because, uh, they know with the company which I was working for at that time. So. So they know you're in work. And they just said, all right, fine.
What was your salary as an IT consultant? Uh, it's 45k. Okay. So you're a decent salary. And your goal was to replace that through property. So when when you got this first property and you signed for it, were you scared that it wouldn't work? I'm sure I was scared, to be honest. Because I didn't know what I was doing. I have all the training, I have all the knowledge. That's what the power of the mentoring calls, I would say. I kept on booking mentoring calls, asking them what I should do, how to go about it, what number should I place, or how can I find tenants for me? So those were the things which kept on going to me.
So you're being guided? Yeah. On what to say. And I know I'm kind of teasing you about going back, but we were saying that at the time, we were saying, be persistent. I was saying to you like, turn up again, say, hey, it's me, you know, what you got for me this week? That's what you gotta do. And then people, they'll begin to think, man, I'll give him some property just to get him off my back. Exactly. Yeah. And then once they're giving you one, and it works, did you get the same properties on the same agent? Yeah, almost all my properties are from the same agency now. Yes. So that one, yes, opened the floodgates. Exactly. Because the reason behind it is, they said when they handed over to me, they said, we don't want you to fail. So we know it's a risk we are taking from our side. So we hope you do better. But when I did the refurbs, I spent around 2,500 pounds, which I credit card wiped. Everything turned up nicely. Then I sent the pictures to them with before and after. So they sent it to the directors, and they sent it to the landlords, and everyone was happy. And I was able to fill those rooms within two weeks. Nice. So then they understood what I was trying to do and understood the market. And then, like, Sam, can you do the other one? So, can you take this one? Can you just place offers on this one?
So why would the landlords not just spend two and a half grand themselves and just rent it out themselves as a professional HMO? It depends on the landlords. Because if it's, if the landlord, sometimes the landlords are tired. Sometimes they are used to the student market. Sometimes they just don't want to do it. They just don't want the hassle. They don't want the hassle. So they've neglected the property. Exactly. They're busy. And you're coming along and you're saying, I want your crumbs. You're not bothered about putting some elbow grease and redoing it up and remarketing it. You don't want to do all that. You don't want the hassle. Let me do it. I'll give you a guaranteed rent.
How much rent are you paying that landlord? Uh, the seven-bed, I'm paying 2,200. The letting agent are presumably getting their commission, so they're happy. The landlord's getting his rent, he's happy. And then you're renting it out. How much do you rent it for? I'm renting it out for 575 and 600 each room. So you're renting it for about 4,000. And then you, who's paying the bills? I'm taking care of the bills. And how much are they? So the gas and electricity is around 700 pounds. The council tax is about 100 pounds. And the other charges, cleaning and everything is at 100. So a thousand pounds all in. So you're making about a thousand pounds profit.
And then how much rent are you paying for this for the second one? The second one for the 11-bed, I'm paying 2, just 2,000. Yeah. And there's 11 bedrooms? Yeah. Exactly. So that one's even more profitable. Yeah, that's making me around 2,200 profit. Damn. How much did you have to spend on it? I spent around 6,000 pounds on that one because it was in a very rundown state. But I'm making 2,000 pound profit on it. Yeah.
How's life changed then? Like, when you saw the money coming in, what did you think? Were you shocked? I was working at that time. When I kind of consistently did all these properties and when I see the money coming in every month, I'm like, I don't want to do my job anymore because I can make that particular money when I'm without doing anything. So I decided to quit the job and said, I can make still more because I had a consistent pipeline and I can make more. So why not? Why not spend my time efficiently in your business? Yeah, exactly.
And then when you quit your job, I was expecting you to go really hard on the property thing, but you didn't. You just booked off to India. We didn't see you for like, at least a month. What happened? You know, actually, when I resigned my job, I was like, let me go back to India for a month to set right the things whichever is happening there. And then I came back. I kind of had a break and bear the holiday. Was the money still coming in from the properties? Yeah, money was still coming in. I was making profit. I think I just had two calls when I was in India from my tenants saying that one of the switchboards broken or something. I just sent to my electrician to fix it. And it was completely passive. And I was like, yeah, it's really working. Wow. So not only are you making 3,000 pounds a month, but it's pretty passive? Yeah, pretty passive. I kind of work, uh, one hour on both the properties, just visit them, do the numbers. And yeah.
And your next two properties that are going to be going through next month, they're going to be making a similar sort of profit? All that? Yeah, exactly. So we have signed up an eight-bed, uh, we have signed up a 10 by 10 on suites, and also we are currently working on a six-bed and a seven-bed as well. So it's like in four. Do you miss your job? No, no, not at all. Because I think I'm more happier now working for myself. Yeah. Even though I'm putting in more efforts, I'm getting to meet people in a more strategic way in terms of have a focus on what I want to be achieved, where I want to go. Even if I work for a job, it's going to still give me 5% or 10% every year. But working for myself, I can make 300% or 400% more grow the business. It's kind of an asset for the family and for anybody whoever is coming in.
What do your family think, and your wife, about how you're doing in property? They're pretty happy. In terms of it, not all my family members know about it yet. It's just my mom, my brother, and my first circle know about it. I haven't opened up anyone to anyone because they're all back in India. So I don't want them to worry about it in terms of what is he trying to do and stuff. So I'm keeping it close. Now, I thought I'll help them all around in terms of once I go back and try to do that.
What's the long-term plan then? Are you going to start using the money and then buying houses? Yeah. So the long-term goal is to get into BRRRR to HMO. Yeah. Because you could buy rundown HMOs, student ones that are really tacky, and you can buy them, and then you could do them up and then get a commercial valuation, refinance them, and grow your actual portfolio as well as controlling properties. Exactly. So that's the plan now. So I've, since I know the agent, since I know a couple of landlords, I'm I'm kind of flooded with more deals now. Really? Yeah. I'm flooded with more deals which I cannot take on. So damn. Pretty much in talks with some of the investors to kind of joint venture and deal source.
Finances for you are good now? Yeah. That's awesome. Been working with me over the last sort of six months. That's been it. Completely changed my life, to be honest. That's what I would say. Because whenever I meet, I crew some of the events and whenever I meet some people, they have that doubts in them like whether can they achieve it. So I said, take me as an example, who came into this country five years before, no contacts, nothing. So being in the academy, being around the circle, it's like, academy is like a second family to me now. Like everybody I speak to, everyone once a week, and I meet so many people, help around, everyone just pulling each other up. So yeah, I would say it's life-changing. Boy, you've done extremely well.
What will be your best piece of advice for somebody wanting to get started and do what you've done? Best advice would be to be persistent. Learn what you want to know. It's like the knowledge, the network, and being persistent in taking actions. So that would be it. And you mentioned about the one-pound course that he went to, what was that like? One-pound course is really amazing because when when I came into that course, that's where I saw the inclusivity of everyone. The people around there, everybody trying to help you, trying to help you to get to that level. Yeah. So that's the reason immediately I said, I needed the support. I needed the people. I needed the knowledge. So it's best to be in the circle, get inside the circle. Then all this left up to you is push yourself to the limit and then take action. So if you take actions and be in the circle, then obviously you're gonna win.
Boy, you did so well, man. Big respect to what you've achieved, Samuel. So if you want to come down to the one-pound property investors crash course, like a man Samuel did, you're gonna have your mind blown when you see what's possible in this market this year and what you can achieve. It's incredible. So I'm going to leave a link in the description. Get booked on. It's literally one pound, no catches. Come and spend the day with me and the team. I'll see you there. Enjoy.
Thank you.
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