Transcription
Hey, what's up? My name is Samuel Leeds. Let me tell you something. You do not need deposits to buy houses. Most people think you've got to save up loads of money, buy a house, rent it out. In this video, I'm going to show you exactly how you can acquire properties using a strategy called lease option agreements. I've done dozens and dozens of these myself. My students are now doing these, and you can do it too.
So, do me a favor. Before I show you around this house, before you see exactly how this has been structured and financed, smash the like button, subscribe to the channel so you don't miss a future video. Let's go around, have a look, and I'll show you what's what.
So, this is a big old house in Huddersfield, and this was actually acquired by one of my students, JL Spooner, who I'm going to introduce you to. How's it going, JL?
Hi, how are you?
So, this property, like, just give me an idea. If you were to have bought this property just the traditional way, how much money, I mean, what's the property worth right now?
£290,000.
Okay, so you need about 25%. That's going to be £25,000 approximately per 100. So you have £25, £50. So you think about £75 plus legals plus stamp duty. So realistically, to buy a house like this, you're gonna need about £100,000 of cash.
How much money did you put into this house?
Well, I didn't have to put down a deposit or stamp duty. I did pay a few months' rent up front. So I, all in all, I put about £6,000 into the property.
Which you paid for via through sourcing properties?
I actually got it through sourcing, uh, properties, and then I used that money to, to pay for this place.
So, let me get this right. So you packaged? You found some deals, not this house, but you found some other houses, negotiated them, yes, sold them to investors, did that a few times, made £6,000. You then use that £6,000 to acquire this property. Now, this is not rent to rent. No. You're actually on the, on the, on the title deeds, not as an owner, but as someone who has the option to buy it. Yes. Okay. Well, we're going to talk you through exactly how this works, how it's structured. But firstly, do you want to give us a little talk?
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So, this property then. So we did have a lot of reception rooms, a lot of bedrooms. Um, but what JL's done is she's turned the reception rooms like this. This was a sitting room, but now it's a bedroom. And JL, tell me, how do you turn a reception room into a bedroom?
You put a bed in it, right?
So, this was a reception room. It had a chair and stuff like that when you, when you took it on. And all of the reception rooms, you're, you've just turned into bedrooms?
I literally have by putting beds in them.
So that's nice. You've not spent a ton of money on this stuff?
No, everything I've spent could actually be removed.
So, yeah. What do you mean by that?
I just spent on furniture, right? Literally just found it.
So the house was already in good condition when you took it on?
Yeah.
And another interesting thing is this is a lease option agreement. We wouldn't, we don't, we don't advise that you spend loads of money on a lease option agreement, do we? If it's a residential house, generally speaking. So, okay, talk to me about how many, you've just got this, but how many rooms are you going to rent out immediately?
So immediately, I'm going to be renting out four rooms because I've had to obviously get a license to get, uh, hmm, planning as well for HMO. Um, so at the moment, I could only rent out for the rooms.
Why for it? Because that's legal, right?
So, so to rent out, if you're renting at HMO and you want to rent out four rooms, assuming it's not in an Article 4 area, you don't need a license to do that. You don't need planning to do that. So what JL's doing is she's immediately renting out to four people to get some rent coming in, get the money in. Yeah. But then she's going to be applying for planning permission, which you need if there's how many bedrooms or more?
Uh, if there's seven bedrooms. Seven bedrooms or more. Yeah.
If there's more than four, you need a license. You're gonna need both.
I need both.
So you're gonna apply for planning, you're gonna have a license. But in the meantime, money?
Yes, 100%.
Love it. Yeah. So this property is going to cash flow me immediately, right? But of course, once I get planning, it's going to be like super profitable, right?
So to begin with, day one, you're going to make a bit of money. But then once you've got the planning licensing, it's going to make you a lot of money.
How much cash flow? By cash flow, we mean monthly profit after all expenditures. Are you expected to make, you know, once it's completely done, you've got planning, you've done everything, how much cash flow?
The net amount should be a healthy £3,000.
Three grand a month?
Yeah.
Hold on, hold on. Did you hear that? Three thousand pounds. A month, right? That, that's financial freedom.
So tell me, look, backstory. How did this all kind of get started?
Okay, so originally, I think it was about, gosh, seven years ago now plus. Um, I went to a crash course and I learned about financial freedom. Um, and it took me a few years to get my head around it, but eventually, I became financially free.
There's a time you had nothing?
No, I started. I actually started. I think I, when I went to your course, I was actually on benefits in my council house, right? So I had no, I was in debt, I had no money whatsoever. And then I came to a course, uh, and learned about financial freedom, which is what you were training, uh, at the time, and became financially free. Few years from then, and then, yeah, I touched base with you when your crash course obviously blew up substantially. And, um, yeah, you gave me the good, healthy challenge to become a millionaire. Then. Now, JL's on the academy and is close to becoming a millionaire, property millionaire. But you want to be a net millionaire?
Yes. Yes. Awesome. Yes.
So this property has already gone on the market. We've got like, literally a whole load of viewings on Saturday. JL, if you know JL, she's good at getting tenants quick.
It's my thing.
So this has been on the market just a few days, and you've got how many viewings?
Five.
Five viewings. This is going to rent out. So there's more rooms that we need to rent out so far. So yeah. And I like this. Yeah, the character. I know we left the books. We just thought it looks nice. Yeah. It does. I really like it. I'd live here. Rooms are big. There's character. House is great.
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So these are one, this is one of the rooms that are going to be ready. Yeah. Right. Nice. Good. So again, this property is in pretty decent condition. You've furnished it. You've not gone high, high-end?
No, I haven't. I've gone quite.
How much does this furniture cost?
Oh god, you're testing me now, Samuel. Um, I think this whole room was probably about £400.
£400?
Yeah.
Okay, so you decent, not really cheap, but it looks nice. I mean, that's wardrobe, desk, chair, bedside table, and decoration and life. So, what, what I really want to know, okay, and I think what these guys want to know is, you've got this property, what does that mean? Got, do you own it? How have you structured it? What is a lease option agreement? How can we get a lease option agreement? Tell me everything.
I mean, it's really simple. I initially came to this property because I wanted to buy it, but I ended up buying my house in Huddersfield instead. Right. So you, so, so basically, sorry, but, but we've all got a limited amount of money, yeah? Right? So people might think, I don't need a free house on a lease option agreement. I've got £100,000. But that's going to run out. Absolutely. And it did run out on my house, you know what I mean? So I needed, um, another lead. But I actually, because obviously I had the academy, I'm constantly going back to it because it's like a toolbox. I'm able to see what strategy works for my next evolution, where I am next. Now, I knew I put a lot of money into Greenheads, into Huddersfield, but I still wanted more things to do, right? So I ended up trying to get this as a rent to rent because I saw it up on the market for rent. And again, rent to rent, for anyone that doesn't know, is when you, you would pay the landlady, yeah, a guaranteed rent, yeah, maybe £1,000. You might rent it for £4,000. That leaves you with £3,000. You might have to pay £1,000 on bills, management, yeah, but then you're left with £2,000 a month clean profit. Yes. That's right. Remember, you don't own it.
That's right.
And I told you specifically, well, you said, JL, look, try to focus on, you've done rent to rent, you've done that, and you've done it well, and it's, what brought you yourself, that's what helped you get to where you are today. But then you said, you know, focus on bigger things. But this opportunity was here. The lady really wanted somebody to take it over. After doing a little calculation, and knowing that I had to get plan an application, I needed to get a new boiler, I needed to get, you know, do up the house, I knew I would have had to put quite a lot of money into the product. It's quite a big house, £6,000 plus, you know, everything else that comes with it, you know, doing it up and, you know, things like that. So it would have been too much for me to have just done a rent to rent for a couple of years anyway. So I then went back to the course, went back to the toolbox, and realized, okay, well, let me suggest telling her that I'm gonna buy it in seven years' time. Well, that went down a treat. It worked for both of us. Like, she actually didn't want to sell it because she wants to pay down her mortgage. So she just said to me, look, pay me £1,500 per month. Yeah, which is very cheap. Which is amazing. Yeah. Which is amazing. And, you know, I'm not gonna, I'm, I don't want anything to do with it. I just, just pay me every month. So it's right, you're paying £1,500. But then you're gonna rent the rooms out, and then you're gonna get planning, and you're gonna make a nice profit of about £3,000 a month, all being well, per month. But then on top of that, you've got the option to buy it.
Absolutely.
In how many years' time?
Seven years.
For how much?
For the, the agreed price, £290,000.
But it's worth £290,000 now?
Yes.
So in seven years, yeah, it will probably be worth a lot more.
Yeah. Yeah.
So we are splitting capital appreciation. Fair. But I think that's fair. Yeah. And I thought it was it was attractive. So let me, let me say something interesting, okay? When you buy a house as an investment, you buy a house for two reasons. Okay? Number one is to get rent. Number two is to gain from capital appreciation on the house. That's the only two reasons you buy an investment house for. Now, what JL's doing is she's getting capital appreciation for this house, and she's getting rent for this house. But she didn't need to invest the deposit into the house because normally to buy a house, she got invested deposit. So what JL's done using this option agreement strategy, she's agreed a monthly fee, she's going to get cash flow, she's agreed an amount to pay down the line. But if the property goes up in value, which she probably will, she's going to get 50% of the capital appreciation. And all JL needed to put down to get this property was legal fees, a bit of furniture, a little bit of rent up front. But I guess you're gonna get that back, you're gonna get that. So it's like, why would you buy a house? Why would you save up and put a deposit down when you don't have to? So because JL's learned these strategies, instead of just buying one house, which is the first house was her council house, yes, or two or three or four, she can now buy an unlimited amount of houses. Which is why now she's a property millionaire. Which is why now she's gonna become a cash millionaire very soon.
Trump's stoked. Yeah. Yeah. It's unbelievable. You would think that it's not possible. I remember watching your YouTube clips and sitting there like, I'm gonna do this, I'm gonna do this. I'm gonna go out on a quest and try and find all these properties and watching you secure lease option agreements, testimonies about security agreements, and I just thought, how would someone, why would they give up their house? But it makes so much sense. Yeah. But when I think about the landlady, and the fact that she wants her rent to go down, she wants her mortgage to go down, she doesn't want a headache. And being a landlord, I get it as well. Like, it's no headache for her. I get to manage it, I get to profit off of it. But then also, being a landlord now, when I'm buying properties, I'm realizing I wouldn't mind somebody taking on my house and giving me a guaranteed set amount of money that I didn't have to worry about whether tenants come or go. I get that now, but I didn't get it before this journey. So lease option agreements are super possible. Super possible.
What were you saying to somebody that was watching this that was thinking, I want to do a lease option agreement. I want to stop buying lots of houses. I haven't necessarily got the capital to start up. How do I follow in your footsteps?
Oh my goodness. I think the best advice Samuel's ever given me, and actually, I was speaking to my mom about this the other day. Um, the best advice he's given me is get out there. Yeah. Like, get out there. Like, you don't know, you don't know until you go and see all the properties and view all the properties. You do not know what's going to fall on your lap. This fell on my, this, this was viewed such a long time before it was actually purchased. So I would just say, go for it. You can secure lease options, you can secure rent to rent, you can find development projects, you can find amazing HMOs and add value to them. Like, it's all for the taking. But you have to go out there. You can educate yourself, but if you don't go out there and actually physically do the work. Yeah. That's the biggest thing.
In other words, stop just watching YouTube videos.
Yeah. Yeah. Yeah. And actually get amongst people, meet people, view properties. Come to the crash. You, you came to the crash course in 2014?
Yes.
Yeah. What would you say to someone thinking about coming to the crash? You were the first ever person.
I was.
Okay. Okay, guys, I was the first ever person at this crash course. Okay? This is what makes me so motivated. I'm so gassed, okay? Because I was the first person at the crash course like seven years ago, and there was eight of us in the room. Literally. And there was Samuel was on a laptop, okay? Like teaching us about financial freedom. All right? There wasn't all these courses or anything. It was just about financial freedom. And years later, after I became financially free, I went to that same crash course, but instead of being eight of us, there's like 800 people, a thousand people, a thousand people in the room, and a massive screen with the same teachings, but on a bigger screen with more information. Man, that's the biggest drive for me because I've seen his growth. So if you are looking to go to the crash course, honest to God, your life will change. So long as you believe it, as long as you put the education, the work into it, and you're confident and ready to go. The crash course, the courses will guide you to the next level, the next part of your evolution. It definitely did. My life has changed. My life has changed. Literally.
And you, you know what? Let me tell you something. The Property Investor Crash Course. I'm going to be teaching lease option agreements. Maybe you'll see JL there. JL tends to come down to the crash courses, rocks up. You know, what's your strongest reason for doing this?
Always my son.
Um, absolutely my son. Um, but then my second strongest thing is people. Is, is, is giving people the tools and the, being an example for people to be able to be financially free and to be able to be comfortable and just live a good life, right?
So live a good life for your son, to not only help but inspire your son. But you mentioned about to be able to inspire other people. Let me say something. That's why I do this. People say something. If you, if you're making millions of pounds in property, doing lease option agreements on land, and making £100,000, their £100,000, that all. Why you keep doing YouTube videos telling everybody? But it's because actually, part of my mission, part of my joy, and part of my satisfaction is seeing people like JL and others. I mean, I've interviewed hundreds of people on my channel who have become financially free from the exact same training that JL's doing. So that's part of my satisfaction. It's great to do business with JL, and I hope to see you real soon on the crash course. So get booked on, don't hesitate, get booked on. Link in the description, and I'll personally see you there.
Final words of wisdom?
Never give up.
Yeah, never give up. Love that. All right guys, peace out. Subscribe. I'll see you all soon.
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I've got the keys. It's controlled by one of my students, namely Tom. Thomas, how old are you?
Tom, he's 18 years old.
He shops up here. There's apartments above them. These apartments have these. They've got multiple rooms, and that means that we can do rent to rent on those rooms. I'm paying the landlord £575 for to control the property. Yeah. And then the rent that I'm getting a month comes to about £1,500. And above the commercial building, there's two blocks of flats that's all owned by the same landlord. And one of my students, Hendrix, he's actually secured this direct to landlord on a rent to rent basis. He'll be making him around about £1,900 a month profit.
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