Hi, my name is Samuel Leeds and, in this video I'm going to do something absolutely crazy
that I don't think any other property investors are doing.
In this video I'm going to expose and reveal my 2018 property investor's business plan.
It means that you will get to see exactly what I am planning and strategizing to buy
myself.
Now, a lot of people would pay thousands of pounds to have this information, and you might
be thinking, "Are you crazy? Why would you reveal your business plan?" People have tried
to tell me not to do this. I've had close friends of mine saying, "Don't do it. If you
reveal your property investing business plan everyone is going to copy you, thus you will
create competition for yourself. You will push the property prices up, and it just doesn't
make any sense. What's the point?"
So, let me explain, firstly my reason for doing this. The most successful businesses
in the world reveal their business plan to the world. Let's take Mcdonalds. Mcdonalds
is one of the largest businesses in the world. Believe it or not, do you know what they make
most of their money on? Property investing. That's how they make their money, and their
business plan, Mcdonalds is revealed online for the world to see.
The book of Ezekiel says write down the vision, make it plain so that all can see. Why? Why
do that? Well, I believe that when you speak it out, write it down so that all can see
suddenly it just begins to happen easier.
So, most property investors are pretty secretive about their businesses. They keep their cards
close to their chest. I am not going to do that in this video. So, stay tuned and you're
going to get to see exactly what my business plan is for property investing in 2018.
So, in 2018 I am going to buy 10 houses in total. Two of those houses are going to be
lease option agreements that I'll be keeping for myself. A lease option agreement is a
property where you buy now, pay later. So, you fix the price now, and you pay for it
later. I believe that right now we're having a massive expansion and property prices are
on the rise.
Lease option agreements are no money down deals, and in the time where you are waiting
for completion, you will benefit from all the rent and all the capital appreciation,
regardless of not putting any money down up front.
Lease option agreements are something that I've been doing for almost a decade and if
you've been to my Property Investor's Crash Course, or even just read my book you'll see
it's something that I've been teaching openly to people for probably about five years now.
Two of my properties are going to be straight forward, buy low rent high HMO's. HMO's standing
for House of multiple occupancy, where you rent the property out on a room by room basis.
Again, this is something that I've been teaching at my Property Investor's Crash Course. It's
also in my book for quite some time, and I've been doing successfully for almost a decade.
The five rules of HMO's and certainly for the way I want to be doing it for these two
is going to be one, make sure that it's close to a city centre. I'm going to be buying two
HMO's in Middlesbrough. Two, it needs to be in good condition, because if you're going
to be having to do a refurb then that could be a deposit on another house.
The bank will not lend you money to do up the property so, it needs to be in good condition.
Three, it needs to be in an area whereby there's a power team and an HMO manager. Four, you
need to have a minimum of four lettable rooms. Five, you should never pay more than 25,000
pounds per lettable room.
So, if there's five bedrooms, you shouldn't pay more than 125,000 pounds for the HMO.
The other six deals are a little bit more interesting.
Buy and refinance. When I started out property investing, in fact the first house that I
ever bought, I bought at 25% below market value and then I refinanced it back up to
its true value that same day.
Now, this was in 2008, 2009 where the recession was just about to hit the country hard, and
what happened when the recession came, is they changed the rules, they said, "You can
no longer buy and refinance the same day. You've got to wait six months," which was
the first problem. The second problem was when you waited six months, the value would
come and they would undervalue it. So, you wouldn't be able to pull your money out at
all, and the reason that was happening was because the recession was on the way.
Things are beginning to get a bit easier in this area now, and things are beginning to
shift. So, because house prices are going up considerably and lenders are laxer than
they have been previously as well in a lot of areas, my plan is to buy a cheap HMO property.
It won't be a current HMO, it'll just be a big derelict property and to come and buy
it for cash.
I will then spend six months doing it up, renovating it into a nice, big, professional
house of multiple occupancy. After six months I will then refinance the property and I will
pull out all of the money that I put in, and potentially even some of the refurb costs
as well, meaning it will be left with a very little money down deal, and of course, I'll
even be generating a high rental income from it as well.
Now, this type of deal always comes with its risks, because whenever you're expecting builders
to stick to budgets and stick to time scales, and surveyors to be in a good mood, there
can be problems, but fortunately now, at this point in my journey, I've got full-time builders
that work specifically and exclusively for me, I've got a full time project manager,
and I think I've got a team, and I think the rules in the economy are at a position where
I can now continue to pick up my journey of buying and refinancing. Exciting times!
Property six, title splitting. This is pretty fun. They call this slice and dice, and it's
where you buy a big property, maybe an old house, and you convert it into two apartments,
a minimum of two apartments, and you split the title, and then sell each apartment leaving
you with a nice profit.
An example of this would be if you bought a big old derelict house for 70,000 pounds,
you spend 20,000 pounds doing it up, and you converted it into two apartments, which would
be a very good cost, but when you've got full-time builders and the right team that would be
possible.
So, so far you've spent 90,000 pounds and you've now got two apartments. You then sell
each apartment separately for 65,000 pounds each, bringing you in 130,000 pounds, leaving
you with a gross profit of 40,000 pounds, which is not a lot of money, but it's not
bad if it's just one deal in 10 over a year's period.
Property seven, seaside apartments. Now, I know I teach that property investing is not
about feelings, it's all about formulas, but you know you can actually make quite a lot
of money from seaside apartments. There were seaside districts some years ago and you could
buy apartments there for 80,000, 90,000 pounds, but what happened was the council regenerated
the area and suddenly, you're talking 150,000 pounds minimum just to buy a one bedroom apartment.
There aren't many seaside resorts in the UK that haven't now been regenerated. So, typically
speaking you're going to spend about 150,000 pounds minimum for a seaside apartment. However,
there are a couple of areas in the UK whereby they haven't regenerated the areas just yet.
So, what I've done, is I've found an area which is a seaside district where they haven't
regenerated the area just yet, but they are about to.
So, prices, I believe are going to go up very, very highly, however capital appreciation
doesn't pay the bills so you can't rely on it. So, this particular area that I found
you could buy a nice apartment for less than 100,000 pounds, and the rent that you can
demand is around about 750 to 800 pounds per month. So, even if they don't regenerate the
area like they are going to, and even if prices don't go up in the area, which they are going
to, you still are going to be making a very healthy return on investment from these type
of seaside apartments.
So, I'm going to be buying a seaside apartment, hopefully for around about 85,000 pounds,
renting it out for 750 pounds. Where am I going to do this exactly, what's the area?
I probably shouldn't tell you this. This is a thing people are being telling me not to
do because of competition, but I'm going to tell you where I'm [inaudible 00:09:34] buy
my seaside apartment and it is going to be in Western-Super-Mare.
Property eight will be a HMO flip. What do I mean by HMO flip, and how will that work?
In the last 12 months I have traded over 150 HMO properties to my students and investors.
They've bought these HMO's for around about 80,000 to 100,000 pounds. They've spent about
5,000 pounds getting them looking pretty, and then furnish them as well, and a lot of
these HMO properties now are worth 120,000, 130,000 pounds, sometimes even more.
So, because they've done them up, and they've put furniture in, and they've put tenants
in suddenly the value of the property has shot up. You see, if you're a London investor
and you see a HMO opportunity, but you're going to have to do it up, you're going to
have to furnish it, you're going to have to put tenants in it, you might think, "It's
80,000 pounds. I'm not sure if it will work."
But, if someone comes and does that for you, and tests it out, and buys it, and puts the
furniture in, puts the tenants in, and it's generating 50 and 100 pounds a month, suddenly
as this busy, rich, maybe London investor, or Dubai investor will say, "Oh, I'll pay
130,000 pounds for that, no problem. Here's cash."
So, my strategy is going to be next year, and I have done this before, but I'm going
to be doing it again this coming year is going to be to buy a property very, very cheap,
maybe around about 60,000 pounds HMO to renovate it cheaply, perhaps spending 10,000 pounds,
plus furniture, and then to sell it as an up and running HMO to a wealthy, busy investor
and make, I want to make a profit, a gross profit of a minimum of 30,000 pounds doing
that, which again is not bad for just a little bit of work, especially if you enjoy it.
Auction property. Auction property is something that everybody thinks is a great thing to
do, and lots of people attempt. However, if you don't know what you're doing you can fail
miserably. So, what I would suggest is stay away from auctions unless you know what you're
doing. If you know what you're doing you can make good money. If you don't you can get
burned badly.
So, that is my business plan for next year. I'm sure I'm going to go on to do a lot more
than that. I'm still going to be finding deals, and packaging them, and selling them on, I'm
still going to be doing a little bit of training as well. So, I hope that's been useful and
interesting. If you want to go and copy me, go for it. In fact, if you want to copy me,
and you want me to help you copy me, I will even do that. So, just get onto one the training
sessions or find out my mentoring packages, I'll happily help you to do the exact same.
If you found this video interesting and you want to see me doing these, you want to see
me in the auction room, you want to see me at the seaside negotiating, buying the properties
then please do subscribe below, and you'll get to journey with me through the year.
Also, I would love to know what your strategy's going to be. What's your business plan? What
are you hoping to achieve? What are you hoping to buy next year? So, please do comment below
and let me know what your strategy is, and I will read with great interest and cheer
you on all the way.
Oh, and I almost forgot number 10. Number 10 property will be a serviced accommodation
property. So, I'll keep you posted on how I get on, and do get in touch. Come along
to one of my programmes. I'm very happy to help in any way that I can. So, subscribe
right now, and I'll see you very soon. God bless.