What’s the Best Property Strategy in 2021? Samuel & Amanda Show…
Hey everyone. Welcome to the Samuel and Amanda show. I am Samuel Leeds and I am with my wife Amanda. Today we will be talking about the different strategies of 2021 which are best in property. As you have heard my thoughts about different strategies regarding rent-to-rent, service accommodation, deal sourcing buy refurbish refinance but now I want Amanda to put her perspective in front of all of you about what she thinks could be the best strategy for property. Let’s see how I react, it might be like we disagree at some point or maybe not. So, let's see what happens.
Before going into the discussion, the weekly update was also necessary to share with you all. So, I asked Amanda how the whole week went. She said it went really well as she joined me on the intensive tour of property millionaires and today is the last day of our tour. Also, the day is quite special for us as it’s our wedding anniversary. Happily married for six years. We have a six month old baby sitting behind us and everything is going great.
Let’s move on to the strategy discussion.
Best Property Strategies of 2021
So asking about the first strategy I asked my wife what she thinks about the deal sourcing as it is my favorite strategy. Amanda said it is really a good strategy as she thinks it is a risky kinda strategy where every time you are under high pressure from finding deals and making sure it is good to sell. The investor doesn't want to waste his/her money so you have to look at each and everything properly. Also, it requires a lot of skills to sell property to investors on the phone without seeing the property. It is not everyone’s cup of tea to convince and sell property on the phone.
She said whenever she saw me talking to people on phone doing deal sourcing she was really impressed and her heartbeats bit faster because sometimes deals might fall for any reason and then you have to go through a refund process and all or sometimes you come across annoying investors that are difficult to handle. So, it bothers you as well maybe sometimes but what I said to Amanda most of the deals build pressure and it is not like if you are getting paid with a good amount everything will go smoothly. No! You have to go through difficulties, nothing is easy to deal with. But yeah it does take the good skills to deal with people and sell them a property.
Amanda’s Favorite Property Strategy
Amanda shared her favorite property strategy is BRR (Buy Refurbished Refinance). She loved this one. But this time I have an argument with Amanda because this strategy is more stressful than packaging and selling deals. But she finds it much easier as her experience was quite stress free. According to her it is easy to manage the expectation of the client if you are doing it for someone.
You can have a flat conversation with the investors and it is easier to explain and make them understand. What I believe is deal sourcing is easier because it does not take too long to happen as you can sell them directly while BRR is almost a six to twelve months process. But Amanda finds comfort in this strategy. One more thing stressful about BRR is the cost misfortune as the Covid hit hard so things get difficult, many have seen delays and all. Amanda also agreed on this point even though my little one was also making some noise in the background, maybe she also agreed on this point. Jokes apart. Just make sure the cost doesn’t stack up and won’t make things disturbing for you.
I asked Amanda what’s her favorite part of BRR (Buy Refurbished Refinance? She was excited to say that her favorite part is the end where you decorate the house and make it look pretty with different ideas and putting up the value, showing people that this is my baby and everything is done by me. It is the best part.
Lease Option Agreement
About lease option agreement, Amanda really liked it as we most of the time did it. She also explained it as buying now and paying later. It is basically gives you the control of your property as you get, pay the mortgage and put the tenants in.You become the owner not on paper but you agree to buy it for example five to ten years and by the time, the property value will rise which means you will get it for a bargain price. Also, the rent is benefiting you every month. We both like this strategy.
Coming to the next strategy, service accommodation Amanda finds it great especially in this time where people search for staycation places. However, it was also good before but right now it has more value. I also love service accommodation as it is tax efficient because if you are buying a property for service accommodation, the stamp duty can be reduced. Also, there is a good cash flow in this. If you refurb the property then turn it into service accommodation.
it is superb because you push the value up, make it look attractive for people to stay here on their vacations. This strategy is quite popular among my students as well.
It is also a great strategy as Amanda said if someone has got time and another got money then it would be a perfect blend to make a joint venture. One is putting in his/her time while the other is investing so, it is quite cool.
One thing that we will tell you is that right now we are in the Warsaw hotel and the good thing about Warsaw is that it has not got any article four yet so you have planning permission rights. Buy a house here, turn into HMO and when the article 4 will come, the property will have the grandfather rights automatically that means the value of the house will go up. WE have already seen this happening in Birmingham and Wolverhampton. Now this is happening here in Warsaw. We both love HMOs as Amanda works for my channel and she has been into it and she loved it as well. She managed around 120 rooms at a time. It was too much but good for cash flow and for her skills to improve and learn new things every day. I would say if you are managing more than four or five HMOs then it can become your job. It is just like doing a job.
It was all for today. Final words of wisdom by Amanda was: go through all the strategies. It might scare you for a while but when you learn it and then you decide what you have to do, everything will become easy on your way. Just be focused. Hope you guys enjoy today's video. We always come up with good content so keep watching us and subscribe to our Youtube channel. Love you all. Bye!
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