My Thoughts On The Government Eviction Ban! Q/A On Property Investment With Samuel Leeds
Hello there, I’m Samuel Leeds! I’ve been a property investor for more than twelve years. Over the years, I’ve gained various properties and have trained hundreds and thousands of students on property investment.
Today, I’m going to answer your questions on my YouTube video. If you have a question you want me to answer, go to my YouTube channel and drop down a comment. I’ll try and answer it in next week’s video.
Let’s get started!
Abdul: I have a property I want to convert into an HMO. I want to know if there is a minimum room size to convert a two bedroom into a three bedroom by adding partitions.
For an HMO, there should be a minimum of 70 sq. ft. if there’s a communal area. If there isn’t a communal area, it needs to be 100 sq. ft. Hope that helps!
Mindy Morris: I have my own residential property that I want to rent out. I have 25% equity, 50,000 pounds. Can I make it into a BRR using a bridging loan, then live in that property, and then recycle the money into a BRRR-SA?
So you’ve got a residential mortgage, you own the property and you’re renting a room out, that’s good! You already own the house, you don’t need a bridging loan anymore. If you can do SA, you can finance it to another mortgage that allows you to rent out all of the rooms of the SA.
Winston: I watched your video of using your equity to use buy-to-let. You gave the example of a lady who had 300,000 pound equity, you told her to get 75% mortgage, 25,000 on the house. You didn’t explain how she was supposed to get the mortgage if she had been struggling.
I don’t recall the lady. However, I believe even if people are skimmed they might still have a job. Moreover, I tell such people to sell their property, get all the money out and invest in properties. They don’t have to pay capital gains tax and they would have more properties instead of one. Hope that helps!
Lewis Edwards: How do you write a business plan? Maybe you could do a video on it.
It depends on the purpose of your business. For example, if you want to write a business plan for yourself, you first outline your objectives, what you want to achieve, and then find out how to get finances managed for that. Everything you do to get finances is your business plan. Moreover, you need to add a risk assessment too: things that can go wrong and make you lose money, and then write the steps you would take to prevent that from happening.
Callum: I bought a buy-to-let property last year. I want to refinance it to get another one. The problem is I don’t have a job. I don’t have access to mortgages, should I get a job first or refinance?
Listen, when you get a mortgage for a buy-to-let, they are not going to look at your income. They will only see the house, evaluate how much rent that house would make, and then evaluate whether or not you will be able to pay the monthly payments from the rent. That’s it!
iPhone: What are your thoughts on the government posing eviction bans?
I think it’s stupid, and I’m very angry about it! I think it will mess up the entire economy because soon landlords will shift to serviced accommodation or won’t rent out their properties. Then, the tenants are going to be evicted later down the line and will have a bad credit score. They won’t be able to afford serviced accommodation, and so on.
Winner2021: Can you explain the purpose of a limited company in property?
They basically fence you so that you don’t get sued should something go wrong. Moreover, you can have them for tax reasons too. If you buy through a limited company, you pay yourself in dividends and don’t pay tax on the first 11,000 pounds. Moreover, you can count your mortgage as tax deductible if you buy through a company. But I suggest you get in touch with an accountant first to make your decision.
Anonymous: Is co-del sourcing within an established seller a good time for property? I make about 1600 pounds a month. It will take years to save for a home. Where do you recommend I source buy-to-let and BRRR deals?
You’re right, it will take forever to buy a house from savings. Therefore, it is best to be an entrepreneur and an investor. I’d say first ask the investors what they’re looking for and then find that for them. Because that’s what business is all about: give people what they need.
Artist Flow: Can I remortgage a flat that I bought with cash but it was concrete and remortgage able?
If it was concrete there might be very few lenders who might be interested in such a deal. I’d suggest you speak to a lender.
MW2002fitness: Is Samuel365 still available? I’m finally 18 and can start on my property journey and my goal is to own 40 properties when I get 30!
Yes, it’s still available. It costs a pound for seven days, and is 95 pounds a month. Now you’re 18 so you should join now.
I hope you found this helpful!
You can always visit my channel and ask questions there. Moreover, don’t forget to subscribe and hit the notification icon to not miss any videos from me!
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