In a recent video, I met up with 2 of my students who were securing a rent-to-rent deal with no money down. Adam and Dan are getting very close to financial freedom despite being new to the property game. This is the power of rent-to-rent when it is done right! If you are willing to put in the work and take the time to become educated, there is a lot of money that can be made with no money down in the property industry.
Often people don’t get started because they don’t have money to put into a deal. That’s why I want to teach people what is actually possible. In this article, I will give you three tips for getting started with rent-to-rent deals with no money. Once you see what is possible, I hope you will get trained and start taking action. If you know someone that could be helped by reading this article, please consider sharing it with them.
1. No deposit
Remember that everything is negotiable. You are going to be taking over the property and managing it. If you are going to rent the place out by the room, you will be taking deposits from the tenants. If you are going to be doing serviced accommodation, you will be regularly maintaining the property. If you can show the landlord that you are professional, they don’t necessarily need to take a deposit from you.
Adam and Dan came across as trustworthy and professional, and the landlord was happy to rent the property out to them without taking a deposit. If you can build a relationship with the landlord, they will be much more likely to accept this kind of deal. Make sure you get the appropriate training, so you sound knowledgeable and are able to answer all objections.
2. Rent-free period
You will need time to do up the property before you can rent it out. This means it makes sense for the landlord to give you a rent-free period. How long this period is will depend on your negotiating skills and the landlord you are speaking to. The quicker you can get the property refurbished and the longer you can make the rent-free period, the better. This will give you some time to start making money from the property.
Adam and Dan got a 4-week rent-free period on this deal, which gave them time to get the property ready for guests. Because they had built trust with the landlord, there was no issue securing this arrangement with him.
3. JV on furnishings
You will need to furnish and decorate the property before you let it out. But if you don’t have the money to do this, you can JV with someone who does. This could be for a share of the deal, or this could be a loan. Adam and Dan borrowed the money at 10% from another one of my students. This allowed them to do the deal with no money down.
If you would like to start out in the world of rent-to-rent deals, you need to get the correct training. The best place to start is at one of my £1 training events. You can find the next one and book a ticket here. Tickets go extremely fast, so book one now!