So usually if you're not getting the results that you want in property; if you're not financially free; if you're not a property millionaire, it's because of something that you don't know. So think about it, imagine if you had access to a property millionaire that could answer all your questions every single week. Well guess what? I've got some good news for you, that's exactly what you've got right here! If you have a question for me, just pop it in the comments section of this week’s video and I’ll do my very best to answer it next week for you.
I got a really good question this week about whether to become a deal sourcer or to start out with rent to rent deals. A lot of people get confused about where to start, so I thought it would be worth covering it in a blog post.
Sam Biggerstaff says…
Should I do a few rent to rents to get me started before going legal in deal sourcing? What would your best advice be?
So Sam, great question! So it sounds to me like you've not got any money, which is cool, there ain't no problem with having no money as long as you're learning the skills and you're doing something about it. So you've got no money, and you're saying should I get a few rent to rent deals to get me started and then put that money into becoming a compliant deal sourcer?
I may have misunderstood the question, but if that's what you've asked, I probably would say no don't do that. That's the worst thing you could do and I'll tell you why, because it costs money to get a rent to rent deal! You're going to need a deposit; you're going to need some contracts; you're going to need rent to the landlord. So if you've not got much money and you're thinking maybe I'll do rent to rent deals and get some money and then put that into becoming a compliant deal sourcer, I wouldn't do that!
What I would do is this, I would find somebody who's already a deal sourcer; who's already compliant; who's already got their company established; who's already up and running with investors. These people are everywhere because I train them, I train thousands of people to become successful deal sourcers. I would say to them, ‘Hey, what are your investors looking for right now?’ ‘Oh, they're looking for HMOs in Birmingham?’ ‘Oh they're looking for this, this, this? If I can find a really good deal for you to pass to your investors, would you give me a percentage of the fee?’ Let's say they say yeah I'll give you 50%, or even 25%, the average deal sells for 3,000 pounds! You sell one or two deals like that then you can become compliant yourself.
The best and quickest way to get money in from property is through deal sourcing. It’s quick cash. Then once you've got a bit of money saved up, put that into rent to rent deals. That's my advice. Hope that helps.