Latest / The Property Unleashed Podcast / Stop Looking To Do Rent 2 Rent The Old Fashioned Way, See How I Do Rent 2 Rent Deals

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Stop Looking To Do Rent 2 Rent The Old Fashioned Way, See How I Do Rent 2 Rent Deals · The Property Unleashed Podcast

• 0:00
  Speaker 1: How you should be looking at getting into rent to rent.
• 0:02
  Speaker 1: Let's cover that now.
• 0:04
  Speaker 1: Hello, my name is Mark Fitzgerald.
• 0:16
  Speaker 1: It's great to have you joining me here today.
• 0:18
  Speaker 1: So there is still this feeling, there's still this training, there's still this thought that you have to use this old style of method, of strategy of everything to get into rent to rent, and it's starting to wind me up.
• 0:34
  Speaker 1: So I thought I'd jump on today and I thought I'd set the record straight and the best ways for you to be looking at doing the rent to rent strategy.
• 0:44
  Speaker 1: Okay, because there are still a lot of people that are teaching rent to rent, that don't dominantly do it themselves.
• 0:49
  Speaker 1: They're still looking at the old ways and the old methods and it just doesn't stack up anymore.
• 0:54
  Speaker 1: I was taught and shown very much, so a lot, of the old methods and old ways when I started in rent to rent and I decided that's not how I'm going to do things.
• 1:04
  Speaker 1: You know, I decided that I wanted to only take on good properties, properties that are already set up as HMOs, rather than going out there and trying to convert properties.
• 1:15
  Speaker 1: So the old way that you're probably hearing about still, and a lot of it, is that maybe people aren't always teaching this, but because there's so many videos out on YouTube or on podcast episodes and things like that that people are still watching those and thinking that they can still do what people would do in 10 years ago, okay, which was get a house, get a property, a three bed, maybe it's got a reception room downstairs, maybe you can add another room somewhere else.
• 1:40
  Speaker 1: You then put beds in those rooms.
• 1:43
  Speaker 1: You then obviously try and get a license if you have to get a license in those areas.
• 1:47
  Speaker 1: Back then not everybody had to have licenses pretty much everywhere.
• 1:51
  Speaker 1: Now you need a license for four beds or more.
• 1:53
  Speaker 1: So people are looking at mini-MOS or things like that.
• 1:56
  Speaker 1: They're putting fire doors in place or they're not, and they've got all this cost.
• 2:01
  Speaker 1: So you're looking at about five, 10 grand that you've got to spend on a property before you've even started to make a penny and that's not your property.
• 2:09
  Speaker 1: Okay, so you're wasting, in effect, your own money, your own money for setting properties up is all going into one property where, if you had 10 grand let's say, yeah, you do you could take on a load of properties, spend a few hundred pounds on each.
• 2:22
  Speaker 1: Most I've ever spent on a rent to rent deal is 900 pounds and that was for change, two carpets and for some decorating.
• 2:28
  Speaker 1: Predominantly, most of the properties I've taken on I say most, not all of them I've had to paint a bit or redecorate or just tidy up.
• 2:37
  Speaker 1: Okay, but never, and some of them I haven't had to do anything.
• 2:41
  Speaker 1: Some of them haven't cost me anything apart from a couple of hundred pounds and that's for room dressing that we keep on site for when we dress the rooms, when we're looking to rent those out, okay.
• 2:48
  Speaker 1: So this is for HMOs.
• 2:50
  Speaker 1: Service to accommodation is a whole new game.
• 2:53
  Speaker 1: It's a whole new level.
• 2:54
  Speaker 1: Why?
• 2:54
  Speaker 1: Because predominantly, you've got to furnish the properties, although you can look for part furnished properties You're.
• 2:59
  Speaker 1: Decorating definitely is a must because you've got to be that high of spec, that higher end, depending on your client types.
• 3:05
  Speaker 1: But again, it normally does take a level of investment to get started in a service to accommodation.
• 3:12
  Speaker 1: But if you're looking at HMOs, you want to be looking for already existing HMOs.
• 3:17
  Speaker 1: Hmo properties that have a license Okay.
• 3:20
  Speaker 1: Hmo properties where you can go on the HMO register of your local council and get the details of the owner okay, via the Freedom of Information Act, and you can market to them and it's not a bad thing to do, because you're basically marketing to them to be their customer, so it's not a bad thing.
• 3:37
  Speaker 1: So people are still looking at trying to get hold of three bed houses and stuff like that.
• 3:43
  Speaker 1: Convert these rooms, do all these, put all these money into them.
• 3:46
  Speaker 1: And when I speak to people I say I do rent to rent the things and I showed them my portfolio or I talked to them about how I do deals.
• 3:52
  Speaker 1: Well, I thought you just did it like this, because surely why would a landlord use your services?
• 3:58
  Speaker 1: Surely you're going to pay a buy to let sort of price to the landlord and then you're going to rent out room by room to make your money.
• 4:04
  Speaker 1: Otherwise, how do you make your money?
• 4:06
  Speaker 1: Well, a lot of the times when you take on an HMO, that will be a problem.
• 4:10
  Speaker 1: All right.
• 4:11
  Speaker 1: If you take on any rent to rent, whether it's service accommodation, whether it's HMOs there will be a problem.
• 4:16
  Speaker 1: Otherwise, the landlord, or potentially the agent that you're talking to, wouldn't be talking to you.
• 4:21
  Speaker 1: They'd have no reason to talk to you.
• 4:23
  Speaker 1: They're only talking to you because they have a problem.
• 4:25
  Speaker 1: We want to be the problem solver.
• 4:27
  Speaker 1: We need to find out what the problem is.
• 4:29
  Speaker 1: Maybe they're fed up with managing it themselves.
• 4:31
  Speaker 1: Maybe they're fed up with the letting agent who's letting them down.
• 4:33
  Speaker 1: Maybe they're fed up with maintenance bills.
• 4:34
  Speaker 1: Maybe they've got problem tenants.
• 4:36
  Speaker 1: Maybe they've just got a problem with the property that they cannot solve.
• 4:39
  Speaker 1: With us going in being savvy investors, we've got a better methods and a better way of looking at problems and how we can potentially solve them and get them out of the way as quick as possible.
• 4:48
  Speaker 1: We can't always, but that's what we want to be trying to look to do.
• 4:52
  Speaker 1: So if you go for existing properties that have already set up, already got a license, you're not having to pay for the furniture.
• 5:00
  Speaker 1: Why?
• 5:00
  Speaker 1: Because it's set up as an HMO, it's already got all the furniture.
• 5:03
  Speaker 1: You're not having to pay for a license.
• 5:04
  Speaker 1: It's already got an existing license.
• 5:06
  Speaker 1: You're not having to pay them for the compliances, the electrics, the gas, all of the requirements, all of the requirements that you need in an HMO.
• 5:14
  Speaker 1: Why?
• 5:15
  Speaker 1: Because it's already set up, it's licensed, it's running.
• 5:17
  Speaker 1: That keeps your costs right down.
• 5:20
  Speaker 1: That means you can get into starting a business like this very, very easily.
• 5:27
  Speaker 1: When I started in rent-to-rent, I looked at lots of different properties, but I fundamentally then found that I was just going to go and I was going to look at existing properties.
• 5:37
  Speaker 1: My students on the rent-to-rent business builder who are absolutely smashing it, by the way are using this method to supercharge their results.
• 5:46
  Speaker 1: Why?
• 5:46
  Speaker 1: Because they know what to say, they know what to look out for, they know how to negotiate, they know with confidence that they are doing good deals with our help and support.
• 5:58
  Speaker 1: They know that they've got their numbers right.
• 6:01
  Speaker 1: That's another big thing as well, where you think you've got your numbers right but you're not 100% sure why?
• 6:06
  Speaker 1: Because you're not asking people that have got loads of properties, that have done loads of deals.
• 6:10
  Speaker 1: Some of my first deals weren't the best deals.
• 6:12
  Speaker 1: I will be honest with you.
• 6:13
  Speaker 1: That's the way it goes, which is why now, with my experience and everything, I help my students make sure that they're doing good deals from day one.
• 6:23
  Speaker 1: We do that on the rent-to-rent business builder.
• 6:25
  Speaker 1: Listen, if you need help with this, we've got free training.
• 6:28
  Speaker 1: We've got free resources on the Property Unleashed website, propertyunleashedcom.
• 6:33
  Speaker 1: If you go down to free resources, just under where the podcast is, you can click on any of those, download them, use them to your heart's content.
• 6:40
  Speaker 1: If you want to take it to the next level and you want the complete roadmap with all scripts, with all contracts, with all training, with coaching and guidance, then our training products can help you there as well.
• 6:50
  Speaker 1: In this episode, I'm here basically to tell you stop looking at the old properties.
• 6:55
  Speaker 1: If you're looking at doing HMOs, stop it.
• 6:57
  Speaker 1: Stop it right now.
• 6:58
  Speaker 1: Start looking at existing HMOs.
• 7:01
  Speaker 1: There will be landlords out there with problems that need your help, that need your support.
• 7:06
  Speaker 1: You need to get out there and find them.
• 7:09
  Speaker 1: The only reason you haven't got a deal at the moment or you're not working with a landlord or an agent is because they don't know about you.
• 7:17
  Speaker 1: Okay, you haven't sent them any marketing.
• 7:19
  Speaker 1: You haven't got out there and networked with them and talked to them.
• 7:21
  Speaker 1: Okay, that's the reason you've not got any deals.
• 7:24
  Speaker 1: When you find them, it's all about knowing about what to say, what to ask and how to negotiate, and one of the things that I also love and I have in my training is how we break things down Systematically when we're talking to agents of landlords, to really show them a what a great job that we can do for them, but be the financials as well of what they're actually making on a property right now and what we can offer them now.
• 7:49
  Speaker 1: If you break it down and you do it in this manner, then going for existing HMOs is a complete enough to know brainer for you.
• 7:55
  Speaker 1: Okay, the only reason you would go for the old way of doing things is because you're unsure of how to negotiate, you're unsure of what to say, you're unsure of yourself.
• 8:04
  Speaker 1: So you're thinking I just need to get that house and then I can basically hide away and do it myself.
• 8:08
  Speaker 1: And that's great if you've got money to blow and waste, brilliant stuff, because you could do a three-year deal.
• 8:14
  Speaker 1: I tried to try and do five years deals, but we have break closes in the contract.
• 8:18
  Speaker 1: So I'm never locked into a deal that I cannot get out of.
• 8:20
  Speaker 1: Remember, it's business, it's a business-to-business agreement.
• 8:24
  Speaker 1: You never lock yourself into one of these agreements that you cannot get out of.
• 8:27
  Speaker 1: So make sure that you are savvy investor and by being a savvy investor, you know what you're doing, you've got confidence in what you're doing and you can get out there and you can create a successful rent-to-rent business.
• 8:40
  Speaker 1: Okay, when I first started doing this, I didn't know it was the right way to do things.
• 8:44
  Speaker 1: I did know what to do in the sense of how to take on properties.
• 8:48
  Speaker 1: But I'd never managed HMOs before.
• 8:50
  Speaker 1: I'd never even knew what an HMO was until about 12 months before that.
• 8:54
  Speaker 1: I thought they were dust houses or student houses, because my sister stayed in one which is at university.
• 8:59
  Speaker 1: So when people were saying that HMOs houses multiple occupation, I was just like, well, that's a student house and that's what we used to call dust houses and things like that.
• 9:08
  Speaker 1: I don't really want to get involved in those.
• 9:10
  Speaker 1: But it's only when you start looking at those.
• 9:12
  Speaker 1: You start looking at how people actually manage those run-nose and when they do it to a good manner and you always want to be, you know, to a really good standard in your area.
• 9:19
  Speaker 1: That's where you can make a difference, and a lot of the times the local counselors as well.
• 9:23
  Speaker 1: If they can see that you're doing a good job and that you're putting it out there that you're doing really, really well, they don't mind working with you.
• 9:29
  Speaker 1: So it's always good to talk to your local counsel, talk to the HMO officer or the housing officer there as well.
• 9:35
  Speaker 1: Let them know what you're doing, let them know the good job that you're doing, because it can make a world of difference when you want to change something or do Something in the properties.
• 9:43
  Speaker 1: Don't try and hide away and think I don't want to see them, just in case I'm doing something wrong.
• 9:47
  Speaker 1: Make sure you know what you're doing.
• 9:49
  Speaker 1: A lot of people fall over with rent to rent to get themselves into Agreements with agents and stuff where they're locked in and they're just not profitable deals.
• 9:55
  Speaker 1: Why?
• 9:56
  Speaker 1: Because they didn't.
• 9:56
  Speaker 1: They don't know the numbers.
• 9:57
  Speaker 1: You don't know the numbers until you know the numbers, until you're actually operating To is they take on the wrong sort of properties or they work with the wrong people as well, and the landlord or the agent that you work with can be as important as the property Okay, that's the property itself.
• 10:13
  Speaker 1: Let me say that again the landlord and the agent that you're working with is as important as the property.
• 10:18
  Speaker 1: If it's a great property, absolutely amazing, super property, but the agent or landlord that you're working with are a headache or a pain, don't do it.
• 10:28
  Speaker 1: It's not worth it.
• 10:30
  Speaker 1: You'll regret it.
• 10:31
  Speaker 1: But if you can build up rapport with them, if they can pretty much leave you to manage the properties and do your job, that's great.
• 10:37
  Speaker 1: That's what we want as operators.
• 10:39
  Speaker 1: So if you need help with this.
• 10:41
  Speaker 1: As I say, check out the property, unleash calm.
• 10:43
  Speaker 1: Check out more of my episodes.
• 10:44
  Speaker 1: Do feel free to subscribe like, follow, shares they all say, but actually do if you do and Also feel free to comment, to reach out to me on social media Facebook, linkedin, all of those great things.
• 10:56
  Speaker 1: Connect with me.
• 10:57
  Speaker 1: I love to connect with people.
• 10:58
  Speaker 1: I love to connect with people.
• 11:00
  Speaker 1: So connect with me.
• 11:00
  Speaker 1: Send me a message, tell me you watch one of my videos and you know.
• 11:03
  Speaker 1: If you've got a question or you've got a problem or you just need help with anything, reach out.
• 11:07
  Speaker 1: We are here to help and support you.
• 11:09
  Speaker 1: I'm more than happy in most occasions, if I can, to jump on a zoom call and talk to any body about our training products or coaching, our support, if that's what you so require.
• 11:19
  Speaker 1: Why?
• 11:19
  Speaker 1: Because it can be quite a big investment for people.
• 11:21
  Speaker 1: So I want to make sure it's the best investment you've ever made and make sure that it's right for you.
• 11:25
  Speaker 1: It's not right for you, hey, don't do it.
• 11:27
  Speaker 1: So Come and join me in the next episode very, very soon, and I look forward to seeing you then.
• 11:33
  Speaker 1: Bye for now.