Structuring a £3,000/Month No Money Down Deal
I spoke to Troy and Kayleigh as they explained to me how they were able to secure a no money down deal which produces £3,000 profit per month. After attending the rent to rent course through the academy, they were able to secure a business with 2 rent to rents on a lease option agreement. It's impressive how creative they have been with the strategies they implemented.
In today’s article, I’ll be interviewing the two as I take you through their success journey in hopes you learn a thing or two.
How did you structure your first property deal?
The first deal was a company purchase we first saw by looking on right move.
Once I saw an advertisement of one of the houses, I called them and said, I’d like to do a company let agreement on the house.
The way we were going to make the margin was basically how they were doing it and I pushed through by saying, I’m sure we can sort something out.
I went to speak with her and found out a little more about her situation. She had another rent in Gloucester and therefore, we understood that she was actually looking to sell the company.
We started negotiating on approaching the company as there were three different ways in approaching it.
The number one thing was going to get a loan and that failed through, the number two thing was to get an investor to fund us but that fell as well and then the third way that ended up succeeding was that, we structured the company as a lease option agreement.
We paid for half of the money and then the profits that it's making up every month is approximately three thousand pounds from the two rental rents.
The lease is a 16-month lease option agreement and so, after the 16 months, we'll have 100% access to the profits.
Why would the company not want to continue running those rent to rent if they are so profitable?
It was more of a personal reason for them and what happened was that there were two incidences at hand.
They originally started with four directors and then turned out three of them sort of went off and did their own thing which left the one of them to manage the two houses.
The problem wasn't with the properties but with the structure of the company and so, it started putting strain one the director that was left behind.
I think the company that previously had the property was breaking even and were actually making 500 which was still going over because that's how much of a margin there was on both properties.
However, they were initially asking for 45k but Madison negotiated with them down to 35k.
From their perspective, they were struggling with it and just wanted us to have the company as we pay them from the profits and the properties are currently performing extremely well.
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