_edited.jpg)
The attraction of property investment is undeniable – many of us want to get started but where do you start, if you have limited access to cash?
If that sounds like YOU… then we created this blog to help you get started.
The traditional route into property investing often demands a big cash deposit, which leaves lots of people with limited funds, feeling shut out.
So that’s why we thought we would help you out and explore a couple of creative, yet effective strategies to break into the UK property market, even with a small budget.
Strategy: Lease Options – A Foot in the Door
Imagine securing a property with minimal upfront cost, then being able to generate monthly income from it (without owning or buying it!)
Let us introduce you to lease options. Here's how it all works:
The Deal: You negotiate a lease option contract with a homeowner. This grants you the exclusive right to buy the property at a predetermined price within a specific timeframe (typically 1-5 years).
You benefit from agreeing the price today, as in 5 years-time… capital growth should mean that the property is worth a lot more than the price you agreed.
This doesn’t mean only you benefit… You also agree to rent the property from the owner for the agreed term (in this scenario 5 years). Typically, you agree to pay the owner a set amount each month and you can then rent the property out for more money and make a small profit each month.
So, imagine you agree to pay the owner £700 per month for 5 years but you let the property out for £1000 a month for 5 years. That’s £300 a month profit every month for 5 years. A total of £18,000 income over 5 years from a property you don’t own.
There are ways you can massively increase the income by using the property as; serviced accommodation or as a HMO and ‘supported living’ providers may also pay you a premium rent to use the property.
In fact, I know people who generate a clear £2,000 profit per month, using this very strategy and work with supported living care providers on guaranteed rent contracts for years.
Getting Involved:
Look for properties that are for sale and also for rent too! This tells you that the owner is open and flexible to both outcomes. Online property forums can also be a valuable resource for connecting with motivated sellers on Facebook marketplace, Gumtree and social media platforms.
Offering and pitching a lease option to the right person is an art form but basically you can offer guaranteed rent for the length of the agreement 3 to 5 years is normal.
Important Considerations:
Do your homework on the property itself and the local market conditions before entering into a lease option agreement.
Seek legal advice to ensure the contract is watertight and protects your interests.
Factor in renovation costs if the property requires work.
If you would like to find out more, we cover this in our online training courses and we can even mentor you one-to-one. You can now apply below...
Strategy: Property Sourcing – ‘The Property Matchmaker’
Property sourcing can be a lucrative six figure income when approached correctly.
As a property sourcer, you act as the person in the middle, connecting property sellers with property investors seeking their next property investment.
Getting Started: You need to learn how to find investor clients and build those relationships this is the key to success with sourcing. The property side of things is just a process anybody can learn.
The Process: You find investors and qualify what they are looking for and then you go and find properties that meet their criteria, present them to your investor and facilitate the sale for a pre-agreed fee, typically it’s around a 2% percentage of the purchase price.
Potential Income: Your earnings depend on the number of deals you broker and the fee structure you establish. Just a few key investors can get you earning substantial sums of money if you are professional and have the right training.
Viewing Reports: You could offer to do viewing reports where you do a walk around of a property for an investor and give them a detailed report on the property condition and the local market and of course a video tour all for a nice fee. This is a great way of starting an investor relationship too!
Project Management: Some investors will ask if you can project manage the refurb on a property and this may be something you want to consider doing. This is usually something that commands a nice fee of around 10 to 15% of the cost of the refurb. This can be charged on top of your sourcing fee so you increase your income per deal when doing this.
Remember:
Develop strong negotiation skills to secure the best deals for your investor clients.
Build a solid reputation and be professional in your approach and market your growing expertise to attract investors.
Stay compliant with relevant regulations and make sure you are compliant to trade!
If you want to get started in property and you’re looking at your options, then please don’t purchase expensive property courses – there really is no need.
We offer affordable online courses with lifetime access to the content so you can dip in and out and use it as a resource forever. We include the contracts you need and all the knowledge to master the step by step of creative strategies.
If you want support and help one to one to really help you take your next steps, well we are the only property trainer in the UK to offer one-to-one mentorship that lasts forever for one low reasonable fee.
Find out more about mentorship right here:
