Why Do I Rent My House? Samuel Leeds Q&A Sunday

Why Do I Rent My House? Samuel Leeds Q&A Sunday

Hello, my name’s Samuel Leeds. On every Sunday, I answer your questions regarding property investing. If you have a question, head over to my YouTube and comment there. I will try my best to answer it next Sunday.

Let’s begin!

Q: I’m purchasing a property; however, I need to wait until the landlord evicts the tenants. The court order was granted before the lockdown, however, I’ve heard that evictions have been put on hold. Does this still apply if the court order has been granted?

Look, I don’t know what you agreed on. I would suggest you go back to the solicitor’s agreement and see what’s written there. Everything has been on hold because of the lockdown. But I hope it’s a juicy deal for you, and it’s worth the wait!

Q: What was the smallest startup capital you saw someone use to start up a portfolio?

Nothing! I’ve seen people start from nothing; I’d also started with nothing. You don’t need money to start, you only need to start. You have to find deals and that’s it!

Q: How to find a rent-to-rent deal on SpareRoom?

I would suggest you find a property on SpareRoom you like, talk to the landlord if they are interested in a guaranteed rent deal, and if they are, let them know what services you can offer.

Q: Why do you rent your house and office and why do you not have a supercar or something like that?

I don’t have a super car because I don’t want one. I love my car, and I like to be able to do the things I love and not care about how it may be looking.

I rent my house because it won’t make commercial sense to buy it. The house is worth approximately three-million pounds, so I’m better off putting my money somewhere I can get a return on, and not tie it up in one place. Hope that helps!

Q: I have a question on deal sourcing: when talking to investors, what questions should I ask them to know what they’re looking for?

You should be asking investors what deals they’re looking for. Ask them if they’d be interested if you pass on deals to them for a fee. If they say yes, and you pass a deal onto them, ask them how they’d like to pay!

Q: What balance do you recommend between investing in property in your local area with an emotional attachment (in my case Basingstoke) and looking at areas not local to you and basing decisions on data?

That’s a great question! Investing outside your local area is very beneficial because you don’t have emotional attachment to it, you’re not judgmental, and you make decisions purely from data— which is good! I would say the only caveat to this is you need to invest somewhere you know. Find a management company and invest someplace after doing all your research on it.

Q: Is it possible to get a lease option agreement on unmortgageable houses?

Yes, it is possible to get a lease option agreement on an unmortgageable house, but my question is, why would you want that? Unless the house is unmortgageable because of a small thing, like there’s no hot water, and you put the hot water there, you fix it, then its fine. However, I wouldn’t want to spend a lot of money on an unmortgageable house.

Q: Do you think a survey on a property you want to purchase is worth the money. If yes, what type of survey?

Yes! It is worth every penny. I would get an independent building survey every time you buy a house.

Q: I’ve been wanting to be an entrepreneur for the longest time. Do you have any advice for me?

To start a business, you need to be able to add value to people’s lives. Figure out a way to do that and you can earn money from business.

Q: Surely you don’t show someone the deal in deal sourcing until they pay you, because if you show them they don’t need you for it and won’t need to pay you. I don’t get it?

You need to sign an NDA (Non-disclosure Agreement) so they can’t cook you out.

Q: What do you do when you reach the end of a mortgage? Can you go into refinancing with example numbers? What if you’re in your 60’s and can’t get another long-term mortgage?

Just because you’re in your 60’s doesn’t mean you can’t get a long-term mortgage. I would suggest you refinance the property or sell it. If you can find someone young enough to get another mortgage, do that too!

Q: Can you list the minimum requirements when looking for a property for HMO?

Every room needs to be 70 sq. ft. If there are five or more rooms you need a license, otherwise you don’t. If it is an article 4 area, you need planning. Make sure the property is in a buzzing area.

Q: Where in the UK should I invest 30k at the moment?

If you want capital appreciation, you can put it in BRRR. Put it in and then pull it out. I would suggest you don’t wait for anything, and just invest it somewhere.

Q: What would you do if you have put an offer in a property to sell it, but the investor asks for the mortgage in principle but you don’t know if the deal will go through?

I would say go for the if/would method. Ask the landlord if I were to pay for the property in cash tomorrow, what’s the lowest you would agree on? Get in touch with an investor, pass them the deal, sign an NDA and that’s it! Timing is everything here.

Q: I have an IT contracting trading company. I want to lend from this company to a property company. Do lenders have any reservations if the deposits come from another company?

No, that’s not a problem. But I would suggest getting in touch with an accountant.

Q: When looking at a property for a BRRR, how do you know how much work needs to be done for refurbishment?

I’d say get a builder or the estate agent to let you know about that, and then cross-examine it with a survey!

Q: Can I get someone to look at a property I’m getting for BTL? What essential research to do for BTL?

You can get someone from Viewber and they’ll view for you! You can also go to my property investor’s crash course!

Q: would you recommend a property manager not located in the area of your property?

No! your property manager has to be in the area!

Q: Would you recommend going for a second house when I have 170k pounds worth of equity in a previous house of mine?

Refinance! Use that money and do that same thing again.

Q: You’d said that for every pound you spend on a property, you add 3 pounds in the value. Is that true or just a target? If I spend 25k pounds on a house extension and go for refinance in the future, would I have more than 25k that I invested?

The reason I say that for every pound you spend, add 3 in the value is to encourage you to invest in property. The banks don’t do that, the banks discourage investing in properties. If you go for a loan for property, the bank will say it’s too risky.

The only formula you need to remember is when you invest in a property, you push the end value high enough that when you pull your money out, it’s more than you invested!

Wrapping Up

property investment is a business. It’s all about numbers and timing. That’s why I run a YouTube channel to let everyone know about it. If you’d like to learn about property investments, subscribe to my YouTube channel and push the notification icon so that you don’t miss out on any of the content.

🎥 How to build a property portfolio from scratch in 7 DAYS: https://youtu.be/RWEkj1y8XKs