Samuel is out on the road with one of his successful students Alasdair Cunningham. A year removed from attending the crash course is doing amazing things and continues to add to his burgeoning property portfolio.
The trip to hull has Samuel viewing Alasdair’s latest addition. A 4 bedroom HMO that is currently undergoing quite the refurb.
How much did Alasdair pay for the property to be exact? £0!! The only expense he has covered thus far was the legal fees which amounted to £750. He was able to do using the no money down method and purchase the property on a lease option agreement.
In five year’s he will have the option, not the obligation to buy the property for £88K. Currently, the ROI for Alasdair on this property is 100% as he didn’t put a fee down he stands to make a great profit. As Samuel makes his way around the property its clear to see that some work is needed and a refurb is clearly underway.
A fourth bedroom has been inserted on the ground floor turning the HMO from its current listing of 3 bedrooms into 4. The price for the creation of additional bedroom was £1,300. Each room will undergo standard painting & decorating, new carpets, furniture, fireproofing, and smoke alarms will all be installed.
Although no fee has been paid Alasdair will invest around £3,500 for all the refurbishments. This being a small cost for a huge gain in the future when the building is available for rent.
Alasdair initially acquired the property by sending a letter to the previous owner. The motivated seller while not making much of a profit. A deal was agreed on a lease option with Alasdair paying £400 per month. In five years time he will the option to purchase the property outright for £88K.