Advice For Teenage Property Investor
Today, on Winners on a Wednesday, we have a very young guest! Before we meet them, let me first introduce you to his mother, Rani.
Samuel: So, Rani, why did you put your son in my training course, even though you’d put your daughters into university?
Rani: My son had actually dragged me to your seminar. Before that, he couldn’t stop talking about you. So after I visited your seminar, I apologized to him, and bought the course for him because I was so impressed!
Samuel: That’s great! Let’s talk to Josh now, a young property investor!
Samuel: Josh, you were 17 when you came to my course, is that right? Your parents were kind enough to get you in my course, and you’ve closed a deal too. How’s it going?
Joshua: Really good!
Samuel: So your first deal was put your money in, pull your money out, and how much was left in the deal?
Joshua: Only 63 pounds.
Samuel: So you effectively bought a house with only 63 pounds.
Joshua: It’s the price of a dinner!
Samuel: You’ve also packaged and sold a deal, started with no investor list, no knowledge about property, just watched Gran Cordone and other people on YouTube.
Joshua: Literally, that’s all I did.
Samuel: So tell me how’d you get started?
Joshua: This goes way back. I’ve been interested in business since I was 14 years old. I knew that was what I wanted to do. I used to watch a lot of business moguls and influencers on YouTube, and read a lot about people who have been successful in business. Then came my GCSEs and I put all my focus into that. However, then came summer holidays, and a friend of mine came to pick me up for prom in his Lamborghini. When I sat in the car, I thought to myself that I ought to work hard now to get this!
Samuel: How did you know about my YouTube channel and how did you persuade your parents to get you in my course?
Joshua: So I was reading a lot about investors and businessmen and decided that I should look more into people in property in the UK. A lot of videos came up, and there you were. I remember you were very enthusiastic and telling us that this is how it’s done, etc. And I thought that this guy is very energetic. I should follow him. So I binge-watched your videos, I took notes, I learned a lot.
I knew I had to be 21 to start investing. So I did a few other things till then. I was running an online business of dropshipping. However, I was constantly thinking about property. So when I persuaded my mum to go with me to your seminar, she was sold. She persuaded my dad and I got into the academy. I tried a bunch of techniques and creatively went about things.
Samuel: So how did you bring your dad into it, tell me the story!
Josh: I had actually persuaded my mum to go to the crash course, and got it for my dad too. When we went there, we were blown away from the amazing environment, the networking, the knowledge exchange. We went to the DFE, and thought it would be the last thing. But then we realized that each academy member has an asset to share; somebody’s an accountant, someone’s a surveyor, etc. they all have knowledge that we can get too, and so we went with it.
Samuel: Tell me about your first house. Tell me about the numbers.
Josh: I was trying deal sourcing, and we viewed 8 houses in total for my big day. We liked one which we ultimately got. The owner was highly motivated. They wanted 45,000 pounds for it. The house was gorgeous, there was a lot there could have been done, and I ended up giving them 39,995 pounds.
The greatest thing about refurbishing a property is that you’re getting a good portfolio, and you’re providing better living opportunities to people.
Samuel: That is wonderful! As a 17 year old, how did you get the confidence to make that deal?
Josh: People think there’s some big secret to success—there’s not. You’ve just got to do it. Just show up, and do it, that’s it.
Samuel: When I met you at the course, what did you ask me?
Josh: I came up to you and I was really nervous, and I asked you what I should do in property because I’m only 17. You told me to do deal sourcing and joint ventures.
Samuel: And when you were in the academy, you asked me something again, what was that?
Josh: I asked you if I should pay extra for mentoring, and you’d told me I didn’t need to do that because I would get everything I needed here, and if the academy members liked my efforts they would get in touch with me themselves.
Samuel: Exactly! So you got the house for 39,995 pounds, why was that, and how much did you spend in the refurb?
Josh: I paid that amount to avoid stamp duty.
I paid 984 pounds for the legal paperwork. Then I paid 350 pounds for a surveyor to check it out. Then I paid 7485 for refurb work, so I spent 48,813 pounds. I refinanced it for 65,000 pounds. I paid 75% of a mortgage with 97 pounds interest payment.
We are now looking for putting in up for rent, it’s been on the market for two weeks and hopefully, we’ll get tenants soon!
Samuel: What would you say to people your age and who are interested in property investment?
Josh: I would say just go for it, but get the proper knowledge and training for it. I think the greatest risk at this age is putting in a lot of money and then messing up. Even if you get the money back, it still leaves a scar. So, get training first.
Samuel: What would you say to people who want to bring other family members along; how should they do that?
Josh: I would say show them the proof. Show them that it can be done.
Samuel: How grateful are you for your parents for letting you do the course?
Josh: I can’t repay them enough for what they’ve done for me. Sometimes I think that because of their belief in me and their support, I’m here. It allowed me to live my dream, and see them live theirs.
Samuel: That’s great! Tell me about your other deal; you didn’t have any investor, how did you package that deal?
Josh: So I was viewing a patch of properties at Hull. I found an HMO—a six-room HMO that needed no work done. It was getting I think 350 pounds of rent per room, and 2100 pounds per month. They initially wanted 155,000 pounds. I negotiated the price to 138,000 pounds. We got a letting agent and they told us that they will let it out, and the achievable rent was rigidly the numbers we had originally put in. And then we got a co-deal sourcer—another academy member. They got 3500 pounds for the deal, and I got a third (1200 pounds).
Samuel: That’s amazing! So what’s next for you?
Josh: I’ve decided to do one deal per week, now that I’ve turned 18. I’m running my website where you can reach out to me, it’s https://jonasourcing.com/
My family will be improving their BRRR game, and we want to get better deals every time.
Samuel: What’s the training like?
Josh: First of all, the academy is worth so much more than its price tag. Secondly, the networking there is amazing. You get to be in touch with so many valuable, like-minded individuals who bring something unique to the table. Some people are investors, some people are builders, etc. and you can get so much knowledge from them.
Samuel: So your parents were going to get you into uni and you begged them not to do that, is that right?
Josh: Yeah, that is right. University just isn’t for me, I believe. When people think about university, they think long-term. That they will study, will get a job, and work their way up. The academy is like that too. It’s not like, after the training, six weeks later you’ll have a Rolls Royce at your door, that’s not it. You will have to work hard on it every single day.
Samuel: Great advice! How long have you been in the academy and how’s the support like during lockdown?
Josh: I’ve been here for eight months, and the support has been amazing! You know, we’ve all felt bad during the lockdown, if you haven’t felt that you’re probably lying. But the academy’s pretty supported and I’m definitely going to be back!
Samuel: What would you say to someone who is ready to work hard regarding what their next steps should be?
Josh: I’d say learn how to find opportunities. In my experience, opportunities have been nothing but curses in disguise!
Samuel: What has been the hardest part?
Josh: Overcoming rejection and ‘No’. you know, it’s definitely hard, but just remember that even if you’re getting no, your opportunity is out there. You’re ready for it, it just hasn’t come to you yet.
Samuel: That’s powerful! How was the feeling of getting a house while you were a teenager?
Josh: You know, your first house is your baby. You don’t want to give it away. It was an amazing feeling, can’t put it into words. I was like, “this is happening!”
Samuel: I still have my first house! It’s doubled in value now.
What would you say to someone who thinks they don’t need to pay for a course because they have the information online?
Josh: Look, you can do that, but you’re going to make a lot of mistakes. A training academy will answer your questions, they will prevent you from mistakes that would save your 5-10 years without training! You will still reach success, but that’s like 5-10 years of halt. If you really want it, do get in training.
That was an amazing chat with Joshua. I hope you enjoyed the talk. Good luck to him!
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