Just before my 18th birthday I bought my first property by using NO cash of my own! I was not born with a silver spoon in my mouth, but from a reasonably working class background and nobody gave me a penny. There has been a range of people in the property world and also individuals I have trained, who have not used their own money to invest.
I usually hear people say that I had lots of money when I was younger, or it does not count because my parents helped you in beginning. To this I like to remind people that no-one is self made, so whilst no-one gave me any money, I did rely on 3 people heavily to secure my first deal.
- A family member who did not give me any money, but let me buy a property in their name.
- My mentor who told me exactly what to do.
- My mortgage broker.
Now, I’ll let you in on my first ever property deal…
There was a property on the market valued at 100k and I bought it below market value (BMV) at 80k in cash because my mortgage company gave me a bridging loan. I then refinanced the property back up to it’s true value of 100k, poured out 80k to which I paid the lender back by using none of my own money and relying on 3 people. Some people will say “Samuel, you did not buy a house, the banks owned it!” Yes the banks owned it, true. However, who benefits from the rent and capital appreciation? ME! The mortgage repayments were £166 p.c.m, so I rented put the property as a HMO room by room which garnered an impressive £1,400 p.c.m
The moral of the story remains the same…
- Do not let anyone tell you it is too good to be true because there are a lot of impressive things happening right now and successful people will never say it.
- Do not be afraid to ask for help and depend on people.
- Take action and educate yourself!
The market has changed since I first started investing 10 years ago so I do structure my deals a little differently now, but this is exactly how I got my first deal and you can still buy, add value and refinance in today’s market.