4k Pounds Per Month At 20 Years | Rent2Rents
Today, we have a wonderful guest on Winners on a Wednesday. She is only 20 years old, and has built a great portfolio over the couple of years since my training with her.
Samuel: Why didn’t you want to come on the show a year ago?
Lois: I wanted to be sure that this is what I wanted to do. You can say that I’d been testing the waters to see that everything goes well before I came to your show. Now that it has done quite well, and I’ve moved on to various areas in the business, I’m quite happy and confident about it.
Samuel: You have a brilliant portfolio of Rent to HMOS, and now you’re moving towards Rent to Serviced Accommodation. How much are you making profit on the Rent to HMOs?
Lois: When all the units are full, and with 80% occupancy of the Serviced Accommodation, we get around 4000 pounds profit.
Samuel: What is the turnover you’re collecting?
Lois: Just under 10,000 pounds.
Samuel: How many rooms are there in the HMO and how much occupancy do you get there?
Lois: We have 16 rooms, out of which 15 are full. I believe in every business there comes voids. We have certainly seen them, but they haven’t affected our profits. Usually our tenants let us know a week before they leave, and we have ads running all over Facebook and SpareRoom through which we collect people’s contact information and let them know when any rooms are available.
Samuel: How did you know about the crash course?
Lois: I was scrolling through YouTube when I found one of your videos. You were walking around your home, telling tips for beginners, and I thought to myself, “Is this for real?” I found the link of your book in the description; read it. Found your crash course through the book, and decided to go.
Samuel: How did you like the crash course?
Lois: I loved it. The knowledge and networking opportunities you get through the course are phenomenal. I’m definitely taking my mom there too!
Samuel: You were only 19 when you came to the course. What were you doing then, were you working or studying?
Lois: I was studying business management, to which I need to go back to in October. When I came to your crash course, and took action in property investment, I had no idea I would be doing so well. I wonder now that had I come across you before, I wouldn’t have to go back to uni in October. I’m still working at my job. I feel like I can’t spend so much time doing nothing. I go to work, and come back home, and have my property business, I feel like things should remain up and running like that.
Samuel: Talk to me about your first deal.
Lois: Well, it was a huge mess! We had an agent with us, and we ended up putting our own money into the property. Now that I look back to it, I would never spend that much money on someone else’s property. But it was definitely a learning curve.
But now I know how to negotiate better. After the first deal, I was able to say to an investor that I’ve done this deal as a proof.
My business partner and I put in 4000 pounds each and we got a profit of 780 pounds a month. After that, however, we got a lot of deals with the same landlord because they knew us and we’d already worked with them before.
Samuel: Tell me about your second deal. Was it with the same landlord?
Lois: No, actually. It was a different landlord. I found them on OpenRent. They had a flat on top of a shop. Everything was done, I only needed to furnish it. The person gave me the keys and I told them what my plan was.
I spent around 700 pounds on it, and got a rent of around 2000 pounds a month. Minus all the expenses, I make around 800 pounds profit a month.
Samuel: So you have various little properties you’re getting profit from. Do you have a management company or are you doing it on your own?
Lois: I’m currently handling everything on my own. However, that’s not the long-term plan. I’m definitely going to be needing help with management if I get more properties.
Samuel: So what did you think of me in the crash course; how am I like off-camera?
Lois: The same. You’re exactly like you are here in the crash course.
I remember, you made us read a declaration in the course. It said, “I am a property investor […]”
And I was like, I can’t say that, I just came here. But I realized then that it was about how you looked at yourself and how you felt about your goals that truly shape your path in real life. If you keep saying that you’re a failure, or you can’t do anything, it will eventually become like that.
Samuel: I agree with you! What has been your top lesson in this field?
Lois: Honestly, there has been such a massive learning curve in this field. There are so many things that I know now that I wish I knew before so I could do them differently.
There have been people who only wasted my time. They said they were interested in the property, but then didn’t show up for it. Now, if anyone says they’re interested, I tell them they have to put in a deposit, so as to not waste my time and other people’s time.
Another learning curve was handling utilities. I didn’t know I would have to read an electricity meter after I got a property! Thankfully, there are now smart meters that are easy to read, so it’s become easier for all of us.
Furthermore, there was once a landlord who was a little difficult. The roof was leaking, and obviously the tenants weren’t happy with that. So I told the landlord but they weren’t willing to pay for the repair. So I had to manage it myself and what the repair cost, I deduced it from the rent I gave to the landlord.
Samuel: Have there been times when you felt like giving up?
Lois: Not really felt like quitting, but the time with the leaking roof was very stressful. But the thing is, you need to have faith in yourself and keep pushing forward if you have to achieve something. I know I had to do some things and I did. And in the end, people value you too because you’re finding a solution for them.
Samuel: What are the toughest questions you get from landlords?
Lois: I’ve had a lot of them ask what would happen to their property. Of course, they become skeptical because of my age as well. Some people also ask what my cut would be from all of it. I’ve also had a landlord who actually refused my offer, but I saw the house on Airbnb a couple of months later.
Samuel: How did that make you feel?
Lois: I’m fine, honestly. There are so many houses to be viewed and renewed and there are always more opportunities.
Samuel: How much percentage would you say people skills have in this field, as compared to all the property jargon and technicalities?
Lois: I would say it’s a people’s game. There are 70% of people skills, and around 30% of the property technicalities in this.
Samuel: Tell me about the house you managed to secure, which freakily was the house you happened to live in as a kid?
Lois: So, I was looking through properties; looked at the oldest, just like you taught us. And I came across the house and recognized it. It was through an agent so it had stood out for that reason too. We called up the agent, and discussed the offer. But he said that the landlord wouldn’t agree to it.
But I didn’t drop it. I went to Facebook and dropped the landlord a message, and we agreed on a meeting. He was open to the idea but had a lot of questions that needed to be answered. After that, all we had to do was paint the house, and we got the keys.
Samuel: Tell me about the profit there?
Lois: So, I pay the landlord 550. It’s a serviced accommodation. I get 140 pounds for a night for each stay. I currently have a 21 nights stay for some people from Belgium who are here for a business project. These are the kinds of stays that have the least running cost, and we enjoy them.
Samuel: What would you say to someone watching this video, saying that they want to do this?
Lois: I’d say, get his book, go to the crash course, and listen to Samuel on YouTube or Spotify. There is tons of knowledge that you will get to move things forward!
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