REACTING TO 28 YEAR OLDS FIRST HMO PROPERTY
My team found a great video by Tyrone who’s completed his house sale and I love the fact that he’s just put himself out there right away.
In this article, I’ll be responding to some of his comments as seen in the video and hope it inspires you get your first property too.
This is a four bedroom Hmo that I’ve just purchased.
First of all, that’s not just any bedroom. That’s a bedroom that used to be a sitting room as people say I’ve got a sitting room what am I going to do with it? maybe I need to get a builder out to turn it into a bedroom but no you don’t as you just need to put a bed in it and that’s what this guy’s done.
Tyrone put a bed in a sitting room, put number one on the door and now it’s bedroom number one and I love that!
So, four bedrooms, two bathrooms and a Hmo? That’s fantastic and just like my very first property.
The cool thing is, to get a four bed Hmo, you don’t need a license as there’s no planning and there’s no regulations like that as it’s pretty straightforward.
It’s his first property investment and so, to get your very first property investment as a Hmo, that’s pretty impressive as it’s much more profitable than a single.
You can get what you want as long as you work for it.
I love this guy’s attitude and that’s exactly what any property investor needs.
You are going to have people, naysayers saying that you can’t do it and I mean, this guy probably looks about my age, maybe around 28 or 29 years old and for sure people probably advised him you know, buy a house to live in first or rent or don’t buy and do property because there’s risks but he’s gone through that and pushed through that.
I’m however questioning how this dude purchased the house as he looks like a young guy and seems like a hard worker and a hustler like me but he’s bought the house and hasn’t got any debt on it, which means he’s bought it cash! I’m wondering how he’s paid for the house as I’m also wondering why he’s not refinancing the property because it looks like it’s in decent condition and he could refinance that and take out 75% equity and then put that into multiple other properties Hmos and become financially independent?
You’ve got to be tight and when you get to that successful stage then you can start helping the friends and family out.
That’s where I’d slightly disagree with Tyrone right now.
Of course there’s times when you do need to be tight with luxuries that you haven’t necessarily got right now and this guy is a grafter as I don’t know how he saved up that money but even though he’s only like 28 or 29, I can tell that he’s made that money himself and he’s literally saved it up and then bought this house cash and I mean, at least he’s bought a Hmo that’s hopefully going to be cash flowing in positive but that is the very slow way to do it.
He’s talking about being really tight because, then one day you can look after your family and your friends and stuff and I believe that when you work really hard and have got a serious discipline and delay your gratification for ultimately one day, that works to a point but in my opinion, if you want to get rich and want things to happen a bit quicker, you’ve got to be really smart.
This guy works hard and he’s not an idiot as he’s smart but I think he could be smarter with how he leverages his money and also how he gets his money in the first place.
If he was my mentee with his attitude, I’d scale things real big and really quick.
To be honest, if I had three houses, I’d be three houses fully paid and I’d class myself successful.
I think you can do that in six months and then you said fully paid and i’m thinking but why do you need the houses to be fully paid because the cash flow won’t be much different!
Let’s say that you’ll probably rent that house out for about fifteen hundred or sixteen hundred pound a month and you’re going to have to pay bills and management a few hundred quid, without mortgage payments, your cash flow each month might be around 1200 pounds a month but with mortgage payments let’s say the house is 150 grands, your cash flow is going to be maybe 850 to 900 pounds a month which is just a little bit less cash flow.
Instead of you having to save up and buy the house for cash which is going to take years, you just need to leverage your money and think cash flow rather than having to own things outright.
Anything that replaces your income classes you as successful.
I totally agree with Tyrone because that’s what I call financially independent.
If you’ve got a recurring passive property income coming in that’s covering your living expenses, you’re financially independent. The thing is, you can get there pretty in 12 months and if you work smart as well as hard, you are going to become successful.
When you make money, you’re adding value to lots of people such as investors, the economy, and tenants and then when you make that money you’re going to pay tax on the money and you’re going to help the economy.
Being a hard worker, this guy’s studying and researching and that’s why he’s got a Hmo and that’s why he managed to get the finance to buy the Hmo in the first place.
I’ve got literally everything’s going into this massive respect and you know what, to be successful, a you have to take a risks every investment is a risk because otherwise it wouldn’t be called an investment.
Nothing in life is guaranteed but when you educate yourself, work hard and take massive action like Tyrone, you’re going to be super successful and I hope to interview him on our winners Wednesday episode as he’s a winner for sure.
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