Are There Too Many Property Investors Now
I love helping people out with their property investments—it’s my passion! Last week, I got a load of questions on my YouTube channel regarding property investments, and I thought of answering all of them.
So, let’s get started!
Answering Some Of Your Questions!
Q: Would you be focusing on HMO or single let deals because of what is happening these days? Won’t it be harder for people to move into an HMO rather than people or a family to move into a single let?
Absolutely not! I think HMOs are going to be more and more popular as people are losing their jobs, unemployment is high, the divorce rate is high, and people are going to need affordable accommodations. They are going to be looking for one-room households (affordable places) rather than single lets. Both may work, but personally, I think HMOs will do better.
Q: I'm doing R2R's in Reading. Now, there are some great business loans available with nothing to pay for the next twelve months' option. This means it will be easier to raise money for a BRRR. I was thinking of using that money as a (bridging loan) or buy the house for cash and refinance it ASAP. The question is, how quickly you can refinance.
You can do it straight away; however, you need to add value to the property. Once you add value to the property, you can refinance it. Most lenders allow refinancing after a period of six months (not all).
Q: Which lenders will allow you to refinance your property after a quick refurb before the six months?
Plus-sized Mortgages and Kim Reliance! I have worked with these in the past, and I know them.
Q: I'm 19 and recently purchased my first buy to let property after being inspired by your videos. My question is: I try to look for houses with at least a 30% return on investmenton them, and I've had an idea. What if I used investor's money as deposit money by offering them a 10% return on their money? I got that a chunk of my money went each month, but it is still 20% for me and otherwise money I wouldn't have had anyway. My investor is on board and happy to start getting some decent interest on the money he had sitting in the bank. Is this a good business plan, and do you think it could work for me in the long run to expand my property portfolio?
Yes, absolutely! This is exactly what I did too. The only factor you should watch out for is that when you are borrowing money from an investor, the lender is going to ask you where that money is coming from, so keep that in mind. It may vary from property to property, but you can certainly pull this off!
Q: Were you really 17 when you viewed your first house? Also, did you view it on your own, or did a family member accompany you?
Great question! You know, I was 17 when I bought my first house. I don't know how old I was when I first viewed one, maybe 16. I think it was my mum who came with me to view the property. She's a mobile hairdresser, and she is very confident in these matters. Even though I had been financially independent when I was 21, I still had this fear that if I didn’t involve someone with me, something could go wrong. My mum has definitely helped me out with this!
Q: What do you think of Gary Vaynerchuk?
I think he is awesome! I don’t exactly agree with him on everything, but I think he is amazing. I’ve had the opportunity to meet him and ask for business advice, and he’s really helpful.
Q: Do you think there will ever be a day where there are too many people trying to be property investors? Surely there is a limit, we all can't be landlords.
Great question! You know, because you watch my videos, you think that everyone is trying to be property investors—they are not. Most people are working at a job, saving money for a home they can live in, and that might take 15 years.
And even if people started investing in properties, they would just switch up the rules a bit—like they did when people started investing in HMOs, they brought in Article 4. Therefore, I believe it won’t matter if many people started investing in properties, the government will come up with new regulations, and the ones who would be prepared for it would survive.
Q: When sending a letter to a vendor to start a potential LOA, if a response isn't given for a few weeks, what would be your steps to get their attention if the letter goes unnoticed?
Probably wouldn’t keep sending letters to them as it would be considered as spam. You may check out other vendors and send out more letters!
Q: Apart from remortgaging my BTL property to expand my portfolio, is there any other way to raise money? I have 15 BTL at the moment.
Great, you've got 15 BTL, respect! And you're wondering if you should do refinance as you want to make money other than refinancing. My prediction is that you're in a well-paid job—you have good earnings and live in a modest house yourself to have bought the 15 BTL, and you must be getting some sort of passive income from those properties too. My suggestion would be to sell some of those properties and invest in BRRR. When you save money, invest in a BTL, raising money can be a slow process. Therefore, shift your strategy and invest in bigger deals to make more money.
Q: Is there a way I could get your advice on something? I don’t want to ask publicly, and I do understand that you’re a busy guy. Thanks for the videos though, keep up the good work!
You can head over to Samuel365.com, where you can get one-on-one mentoring that is more specific than what you receive on YouTube. Hope to talk to you soon!
Q: Of course, every successful person has to have a course, I wonder if Jeff Bezos or Bill Gates or Elon Musk have the time to read questions and answer on YouTube or they are busy managing their REAL business.
Haha, it sounds like you're a bit skeptical. I don't know if it's a question or a statement, but I'll answer it the same. So what you're basically saying is that any successful person wouldn't have the time to help people who would like to emulate what they're doing, and I don't agree with that. Yes, there are people who become wealthy, and they hide, or they don't care. However, there are many people who love to help others out in their journey, including me. So what you're doing is that you're looking at a few people who don't teach their lessons and suggesting that every successful person does that, which isn't true. I hope you have a great day!
Q: I'm about to buy my parent's house at a cut-rate. What's the best way to refinance and pull my money out to buy a B2L property?
Great, good stuff! Remember, when you’re trying to refinance a property, you need to show that you’ve somehow increased its value. That’s the only thing you need to remember when refinancing a property.
Q: I'm 18 and started my sourcing business six months ago after doing the due and crash courses. Since then, I've built a list of 172 investors and have sold one deal. I'm currently at a hurdle as I'm struggling to build a pipeline of BRRR deals due to the competition in the market. Do you have any tips for finding run-down properties apart from the right move, agents, and simply looking around streets? Ahah! I also asked my postman yesterday to let me know when he posts mail in any run-down properties.
First of all, massive respect for you! Second of all, you obviously make money to have done this, and you can do it again. Deal sourcers have either of these two problems: either they have a lot of properties and no investors, or have a lot of investors and not enough deals. My advice to you is to find another deal sourcer with the opposite problem to you, get a deal from them, sell it to your investor, and do 50/50 on the profits! Good luck, I hope to see you on samuel365!
Q: Would you recommend, for your first deal, to buy a single let property?
Yes, sure! You can surely start with single let properties for your portfolio and go from there. Get a good return on it, and then invest in bigger properties.
Q: What tips would you give me, self-managing my own fully paid for, HMO? You may have learned something you can share with us all from your experience of going on TV on ‘when the landlord moves in.' Any tips would be great to keep tenants happy, as sometimes I feel I don't want to tread on their toes, and I want them to feel they can come to me if they have any issues.
Love it! To the people reading and watching this, what ideas do you have? Share with me in the comments!
Q: I hear all the flack you've been getting, and I'd just like to say my wife Sharon and I came on your crash course back in November 2019, followed your advice, we had a deposit and bought a semi-detached house for 85K. Spent 15K on it in 3 months, refinanced it for 130K, and rented it within 3 hours for 600 PCM. So to all the people out there who say you're a scammer, etc. we did what you said and still do, and it works. By the way, we did not pay you anything for this advice. Keep up the good work, and thank you!
That's amazing how you've refinanced the home! I have courses that you can pay for, courses that are expensive, free advice, and you are free to choose whichever you would like to have. My heart melts whenever I hear such stories. I hope you get in touch with me on social media soon, and maybe we can bring you on the channel!
Q: I’m nearly 20, at uni, and looking to start an R2R business with only 3k pounds saved. Would you say that's enough to start, or would you recommend waiting a little longer until I've finished uni and having a little bit more money?
You got to do whatever you want to do! If you want to wait till your uni is over, sure! If you're itching to start your investment with 3k pounds, do it, that's enough. Of course, you do need money for business, for deal sourcing, for R2R, however, people get the money they need for their business, and so would you!
A final word
Thank you so much for your questions, guys! I appreciate you and your questions. If you have more questions, you can ask me on my YouTube channel, and I will surely answer them. For more videos on property investing, be sure to subscribe to my YouTube channel if you'd like personal coaching head over to samuel365.com.
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