Finding a no money down property deal in London
Can you do a no money down property deal in London? All of Samuel's property deals have been outside the capital but he's accepted the challenge to find a no money down property deal in London. Everybody says it's so tough and property is in a precarious place prior to Brexit. Generally, people are afraid to get into property in London. Samuel set himself the task to achieve it – could he get a no money down property deal in London? Find out in a few weeks when the full documentary is released!
What happens in an Uber goes on YouTube…
On his way to a viewing, Samuel got into an Uber and began a conversation with the driver. They spoke about property investment strategies and whether it was possible to own a property with no personal, financial investment. The driver's reaction was plain and simple – “it's impossible!”. It's a common response and one that Samuel is faced with every time he speaks on stage or talks about his ideas. Yet, the majority of the time, he is right and his belief that his strategies could work shone through.
So, what are the no money down strategies?
- You can rent a property from a landlord and then rent that property out on a room-by-room basis. This is known as ‘rent-to-rent'. You have to find a landlord who doesn't want the hassle of managing their property and finding tenants. Then you offer them a small guaranteed rent per month to take that stress away, on the basis that you can let the rooms out yourself.
- Another strategy is a lease-option agreement. Here's an example: find a house worth £400,000 and offer to pay the owner £500,000 for it in 7 years' time. In exchange, you'll pay them a small monthly fee or simply take on their mortgage payments for them.
- A third strategy is to find a house which needs major refurbishment and is for sale below market value. Borrow money from the bank to buy the house and then borrow money again to do the refurb. The value of the house is lifted and then you can just let it out. You're essentially buying the house using the bank's money.
There was a 4th strategy which Samuel told the Uber driver about but you'll have to watch the video to find out what that was!