I Want To Be A Millionaire By 26! What’s The Plan?
Hey everyone! I’m Samuel Leeds, and today, I’m going to answer some of your questions about property investing. If there is something that is stopping you from becoming financially free, ask me on my YouTube channel! I’ll do my best to answer them next week.
Abdul Aslam: Hi Sam, do you need planning permission to convert a single dwelling into two separate flats? Also, would the council tax change once it has changed from one dwelling to flats?
Yes, you will need planning permission to turn a property into flats. You can get permission by contacting the local council. The council tax will change because it’s now two flats instead of one. If you have tenants in both the flats, they would have to pay; otherwise, you will have to do so.
Phil Carr: I’m a self-employed electrician living in the Liverpool area looking to get into property. I’m starting out with 150,000 pounds. Should I buy a house in cash and implement BRRR, or should I get 3-4 buy-to-lets?
If you put the cash into 3-4 buy-to-lets, your money’s going to be finished. With tenants, you’ll be able to make a grand a month after all the mortgage payments and expenses. Therefore, I would suggest putting the money in a project, watch it grow, and then take your money out. Hope that helps!
Dillon Harris: My plan was always to remortgage my mom’s home so I could invest in property. I’m finally in the last stage of it. I will have around 135k pounds. My question is, what would your next five moves be in September 2020, in my situation to achieve financial freedom?
Okay, first thing I would do is I would make a goal; what I want to achieve with the 135 grand. Second, I would speak to people that I’m going to invest in property, and find a success buddy. Third thing, I would start viewing houses, or speak to an estate agent. Fourth, I would invest in a mentor; I would buy DVDs, books, online courses to expand my knowledge of property. Fifth, I would take action towards my goal!
BeaMan: I want to be a millionaire by 26. Do you have a plan?
Respect! My advice for you would be to not focus on being a millionaire, but rather focus on your next step. Focus on making a thousand pounds in the next three month packaging deals. Achieve that, then create another goal. Then the next, and so on. Because when you get to a million, maybe your goal would become different. Maybe you’d want to help people, or something else. But it wouldn’t matter because you’ll know how to take the next step towards it.
Emma Pembo: I have started my property career in R2R HMO. However, I’ve been getting a lot of rejections due to lack of experience. I’ve included a break clause in the contract, but it isn’t enough. What’s your advice?
I want to know how people are rejecting you because of inexperience. Are they sensing a lack of experience or confidence?
I think you can flip any situation to your advantage. If somebody says you’re inexperienced, just tell them that this is your first deal and you’ll be signing the contract for the first time, and since this is your first time you will do such a great job that you’re going to get a testimonial off of them!
I think it has to do more with how you’re dealing with them than your lack of experience.
Abdullah Aljawhary: How old do you have to be to have a lease option agreement?
I think, 18! I bought my first house when I was 17 but put it in a family member’s name, so there’s always a way around things.
JaiBoi: when looking for a BRRR deal what is the best way to get quotes from builders without paying them to come with you for viewing?
You can ask an estate agent how much it would cost to do up a house. Get the quote from a builder, and compare the prices. If there is a massive difference between the prices, you can negotiate with the agent. Moreover, we have a BRRR Master class where we teach people how to come up with prices for a do up!
Brandon Spencer: Is there any way to avoid capital gains tax in the BRRR strategy? Also, can you refinance from a residential mortgage to a BTL mortgage?
Yes, you can refinance from a residential to BTL mortgage by speaking to a lender. And, you don’t have to pay capital gains tax in the BRRR strategy.
Rhys Mackenzie: I am 23 years old and I own a property. I want to buy another property as I am a Building Surveyor full time after studying property development for quite a long time. I need investment funds for this project. Any recommendations?
The problem here is getting funds but professional people like you have a huge advantage. But, now you’ve got to get good at making money, at raising money. My advice would be to get good at sales, get good at talking to people.
Baris Ozolmez: Can you give advice on how to avoid capital gains tax from both a property investor and a BTL landlord perspective?
You can go to a BRRR strategy, in which you won’t have to pay capital gains tax. Another way to avoid it is to live in the house; live in it, raise the amount, and then sell it, you won’t have to pay the tax.
MisterChris: I’ve recently been made redundant. I have a property that is mortgage free and the rental income covers the mortgage on my home I live in. would you mortgage the property that is paid off to buy more property or leave it how it is? With it covering the mortgage, I’m afraid to remortgage it with the lack of experience and no other income. Being financially free would be the end goal.
First, you need to get educated to get the knowledge that you need. I would sell the property, rent somewhere nicer, and use the money from the sale to invest in property!
Najoom: What happens when you take all these mortgages and good debt and you pass away? Won’t the money you earned be used to pay your debt and nothing will be left for your family?
No, actually. The good debt will be used to make money. If you die that money will remain yours or your family’s, while the good debt will be left for the bank.
Sam E.: I want to have a property to let, but I can’t get a mortgage due to my age. I want to get the mortgage in someone else’s name (parents, family, etc.). How can I safely and legally go about doing this? What paperwork is needed for this? How will the person that has the property in their name will give proof of the funds?
You need to go to a mortgage broker and ask them about tenants in common.
Domurc: I have a large lump sum (650k) after selling my employee stocks. How would you use this to scale a property business quickly?
Look, if I were you, I wouldn’t want to invest the 650k in loads of small houses. When you do that you basically multiply your headache! Therefore, I would suggest you look for one big deal and generate money off of it. But make sure you don’t lose it!
Burning Desire: I spoke to a property investor and asked if it’s a good idea getting 5 small houses at 75k and getting them all paid off in 10 years from completion. They said I won’t be financially free from this. Do you think this will be a good idea? I can only afford to buy a house every two years with 20k. And I don’t want to save forever. Do you think once I buy these houses, I can stop saving from wages?
I don’t necessarily think it’s a bad plan. However, what I would do is that I’d buy a property, document it, raise the price, and get money off of it. Then, I would find a joint venture buddy, and I would ask them to put in the money on the next deal. Even if you get 30% from the experience, it’ll be great.
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