| by Kenneth Chase | 45 comments

10 Ways To Make Money from Property Investing | Samuel Leeds


Hi, Samuel Leads here, and in this video I’m
going to reveal to you ten ways, the ten ways, that I get paid from property. So, the first way that I make money from property
is through rent. Tenants pay me rent. I know that’s kind of obvious. There are ten ways,
but it’s really important. You can get more rent through a property by being creative.
For instance, by turning into a HMO. You buy a house and, rather than just renting it out
to one family, splitting it up, renting it out on a room by room basis. Tenants pay me
rent. I see my tenants as my customers. It’s really funny actually because sometimes people
will stop me in the street and say, “Samuel, I saw you on the BBC landlord show. Oh my
gosh, can I have your autograph. You’re amazing. You’re such a nice landlord. You look after
your tenants so well.” Then, two minutes later, I’m continuing to
walk down the street and someone will shout out to me, “I saw you on that landlord show
you scum.” I’m like, wow, where did that come from? It was the same show. It’s so crazy
different people’s perspectives. My customers, my tenants, I love them. Rent is fantastic
because it’s pretty much passive. Where it is passive is you’ve got it systemized. So,
that is number one. Number two is capital appreciation. That’s
just where the house goes up in value. I’ve been in property now for ten years. I’ve gone
through quite a bad recession and I’ve still received a lot of capital appreciation. In
fact, just in the last six months I’ve made like 250 thousand pounds, just under. So almost
a quarter of a million pounds in six months just in capital appreciation. One of my students,
I was chatting with him last week. He bought a house in London. It wasn’t even a house.
It was an apartment in 1999 right in London centre for 75 thousand pounds. He got it on
a 100% mortgage. It’s now worth 700 thousand pounds, 18, 19 years later. It’s timesed itself
by ten in 19 years, which is just insane. So capital appreciation is a really good way
that I make money from property. It’s how most people become millionaires by mistake.
I’m happy to be an accidental millionaire as well as a deliberate millionaire, so that’s
number two. Number three, and this is different from rent
because they’re not tenants but serviced accommodation. Serviced accommodation is like a hotel without
staff. So service accommodation property is one way you rent it out as a hotel, but you
don’t have to employ staff. It’s all systemized. It’s something I’m doing a lot at the moment.
In fact, the castle that I’m buying is probably going to be done as a luxury serviced accommodation
property. It’s just a really good way of getting a sky high income from property. The cool
thing about serviced accommodation is that, when you systemize it properly and you buy
in the right area, it can be extremely lucrative. Multiple of my students are doing serviced
accommodation very successfully. If you’d like to watch Leslie’s story of how she’s
making 15 thousand pounds a month within four months of becoming my student, you can watch
that right here. Next way I make money from property is a strategy
called rent to rent, which is not something that I actively really look for anymore, but
it was quite helpful in the earlier days. It’s something that my students do really,
really successfully and I’ve done many times as well. That is simply where you take over
a property. You don’t buy it. You make money from it, but you don’t buy it. You control
it. So you take over a property and you rent it off the landlord, but then you add value
to the tenants and you make it like … For instance, let’s say you rent a single let
property and you pay 500 pounds to the landlord, but then you rent it out on a room by room
basis and rent it out for 1500 pounds. Then any different the profit you make you keep.
It’s a really cool way to make some instant cashflow from property without really putting
any money down or much down to begin with. Rent to rent, really cool and you can tie
that in with HMO serviced accommodation, whatever you please. Just make sure, if you do that,
you use the right contracts. You don’t use a normal AST contract. You need a special
rent to rent agreement, which you can get drawn up pretty easily for very inexpensive. Number five is my favourite, or one of them,
lease option agreements. What is a lease option agreement? It’s simply where you buy a house
today, but agree to pay for it later. Completely legal, wendom rights. People say, oh that
sounds a bit dodgy. No. If you use the right words, the vendors will go for it. If you
do it properly, it’s completely legal. Lease option agreements have been around for decades,
and decades, and decades. So how does this work? Let’s say I find a house, it’s on for
100 thousand pounds, but they can’t sell. They’re having issues. They’re in negative
equity. It’s an inherited property. They don’t know want to do with it. They’re stuck, whatever.
I say, “I’ll buy it off you for 100, but I’ll pay you in five years time. In the meantime,
I’ll take over the mortgage or I’ll pay you a small monthly sum, maybe 100 pounds a month
or whatever.” Then you take on the property, you benefit
immediately from the cashflow, the rent from the property. You’re also gaining from any
capital appreciation. You haven’t put down any of your own money apart from maybe drawing
up the contract. So lease option agreement is fantastic. You can also do them for really
big deals. It’s something that I’ve done for many, many years and I’m actively still doing
lease option agreements today, and many of my students do lease option agreements as
well. So, that is number five. Number six is commercial property. Commercial
property is something that I’m beginning to get into more these days. The reason is, is
because what is commercial property? It’s instead of buying a residential house and
renting it out to tenants, people that live there, a commercial property is when you buy
a property or a building which is used for commercial purposes. For instance, if it’s
a shop, if it’s offices, anything, if it’s a garage, anything that’s used for business
purposes. The reason commercial is so awesome is because, instead of having a six month
contract with a tenant, you tend to have a ten year, five year, ten year, fifteen year
contract with a business. The business usually, depends on what the contracts are, but typically
with commercial property is the business, they will deal with any repairs, any issues,
they will deal with it. It’s a very long contract and you can kind of switch off. So when I had my conversation with Lord Sugar,
he was like, “residential? How do you deal with all the boilers breaking and stuff like
that” because he’s used to commercial. So I think commercial is good, especially if
you’ve got lots of money or you’ve been in residential for a while. You’re financially
free and you really want to just really grow your portfolio and take it big, but you don’t
necessarily want hundreds and hundreds of residential properties. It would make sense
to just buy a big office block. Here’s the thing. A lot of people think that
commercial property, the returns are a lot less, but it’s more stable. That’s not true.
Some of my commercial properties are giving me 24%, so commercial property can still be
high return. Capital appreciation is usually not as quick to go up. I don’t want to give
tax advice or anything like that, so speak to your accountant, but you can buy commercial
property through a pension and there’s very strong tax advantages for buying commercial
property, so loving, loving commercial property right now. Number seven is to buy refurbished, refinance
and rent. You don’t have to quite do it like that, but that’s typically the standard way
that we do it. What that is, is if you’ve got money but you don’t want to put it into
a property and just dump it in and leave it in, you can put it in and them pull it back
out. Now some people, some trainers, make it sound much much simpler than it is. This
does come with a little bit of work and even a little bit of risk because, when you’re
relying on builders sticking to budgets and timescales, and value is being in a good mood,
it can always get down valued or things can always not happen quite the way to plan. However,
we have got many of our students doing this successfully that come through the crash course,
especially the ones that have gone on to join the academy. The first house that I bought, I bought it
below market value, and then I refinanced it and pulled out all of my money. Now that
was … around 2008, so it is different now. The best way to do it now is to buy and add
value and then refinance. Kent Reliance, a mortgage lender who are very very well known
and popular amongst investors, have just banned the six month rule, which means that you can
literally refinance straight away. There’s no rule. So as soon as you’ve bought and added
value, you can refinance and pull your money out straight away which is fantastic. So this
is a strategy that’s becoming more and more popular with my students. You could literally
buy a 50 thousand pound house, spend 20 grand on it or 15 grand on it, and then, if the
value has gone considerably up, you can refinance and pull all or most of your money out. Or you can do this with the castle. The castle
I’m buying, I mentioned a couple times because it’s a castle and you’ve probably seen the
videos. We’re going to add value and refinance, and we’re going to add value to that buy turning
it into apartments. You can buy a property and split it up. You can title split. You
can refurbish. There’s so many ways you can add value. Once you’ve added the value, then
you can refinance. So that’s number seven. Number eight, which is kind of similar to
number seven, is to buy and sell. Buy a house, add value, and then sell it. At the moment,
I’m doing this to a piece of land. I’m buying a piece of land. I bought it for 100 … or
I’m buying it. It’s not gone through yet, but I’m buying it for 100 thousand pounds
and then I’m going to get planning permission and sell it for a whole lot more. The problem
with buying and selling is that, again, it can come with a little bit of risk because
what happens if you can’t sell it. So you usually need an exit strategy or a plan B.
Also, the other negative with it is that it’s not passive income, but it is massive income
and massive income can very quickly become passive income. If you do a deal to make 100
grand or half a million or whatever, or even 20 grand, you can then, with that profit,
put it into just buying a buy to let or a HMO or whatever. So it’s nice to have two
ores, massive, passive, massive, passive going on together, which takes me onto the next
way. Number nine, which is deal packaging. Deal
packaging. What do I mean by that? That is finding property deals that might not be suitable
for yourself. You might not be able to afford to buy them. You might already have too many
deals going through, but then you package the deal, package it up, and pass it onto
an investor. You marry an investment property with an investor and you charge a fee in the
middle. It’s just a fantastic way to make money, but also get experience of being out
there finding deals. I personally think that most investors, certainly most of my students
end up doing this to some extent. Do make sure, if you do this, that you do pass only
good deals, and also that you’re complaint. There is a compliancy issue you need to go
through which is very straight forward. One of our academy members called Al Astair,
he is sourcing successfully. I did an interview with him last week, which was videoed. Last
month he made 27 thousand pounds. That’s right. Two, seven, zero, zero, zero just buy packaging
and passing deals onto people. He’s doing that consistently every month. If you want
to hear his story and see how he’s doing that, then you can check out the interview with
him just right here. Finally is number ten. This isn’t quite how
I make money from property, but this is also how I make money, which is from training people
how to successfully invest as well. I teach people for free on YouTube or semi crash courses
free. I have my book, which I give out for free on my website, but then some people want
to go further and want to get maybe mentored or coached. I also run a training business.
I have a very successful property training business and it kind of shocks me and makes
me laugh when people say, “If you’re such a successful investor and developer, when
why do you train people?” I’m thinking, that comes from such a stupid person, or maybe
not stupid but certainly a broke person. I had dinner with Richard Branson maybe six
months ago. Imagine if I’d said to him, “So Richard, if you’re plane business is making
so much money, then why do you run trains?” He’d slap me right across the face because
he’s an entrepreneur. I love teaching. I really enjoy it. It gives me a real buzz. I’ve seen
people succeed, and I also will happily take the money because I’m an entrepreneur as well.
Money is a certificate and, if someone gives you money, whether that be a tenant or anybody
at all in business or someone that you’re training, they’re giving you money as thank
you certificate for adding value. So I’m very happy to add value and help people and take
their money because, if I’ve helped someone make 100 thousand pounds and they’ve given
me 10 thousand pounds, then they’re 90 thousand pounds up and I’m 10 thousand pounds up. It’s
win, win. So that’s another way. Hope that video has been helpful. Hope it’s
inspired you. If you’ve got questions let me know. Also, I’d love to know which your
favourite strategy is amongst the ten, and which one you want to really smash this next
year. So please comment below what is your favourite property investment strategy, your
favourite way to make money. Comment below. Please do share and subscribe. Like the video.
Thank you for your support. Love you always. See you next time. Thank you so much for watching. If you’ve
benefited from that video, please do share with your family and friends. For more videos
like it, you can watch right here. If you’d like to spend two days with me at the property
investors crash course, watch this video, see what happens. But whatever you do, don’t
forget to subscribe right here and I’ll see you next time.

45 Comments

Gregor Pirie

Sep 9, 2018, 7:44 pm Reply

7 is my favourite. Risky only if you are relying on getting 100% of your money back, if I got most of my money back I would be happy. So hopefully I will be smashing that strategy next year and beyond!! They call it brrrr (buy, refurbish, refinance, rent, repeat )

Craig Webb

Sep 9, 2018, 7:58 pm Reply

Brilliant video Samuel !

andrew heaton

Sep 9, 2018, 8:16 pm Reply

that was a brilliant video sameul

N J Russell

Sep 9, 2018, 8:19 pm Reply

Great video Samuel – I'd love to know more about number 8 and what your exit strategy would be if you couldn't add value

steve

Sep 9, 2018, 8:24 pm Reply

Keeping an eye on them subscribers.. getting there πŸ˜‰

Layton Barr

Sep 9, 2018, 8:29 pm Reply

Another great video thanks Samuel. In no particular order LOA – HMO – Serviced Acc – Sourcing…

Krishna Balamurali

Sep 9, 2018, 8:33 pm Reply

I love the rental income as it’s passive, and the buy refurb refinance and rent model, developments and of course lease options!

izabela kulczycka

Sep 9, 2018, 8:59 pm Reply

Inspiring as always πŸ‘πŸ‘πŸ‘

STUART BAILEY

Sep 9, 2018, 9:02 pm Reply

You’ll have to start doing a crash course on Commercial Property next πŸ˜‰

My goal is to eventually go into commercial property and then run my own Gym chain! Will be a good few year before any of that happens, but that’s the dream! πŸ‘ŠπŸ»

TK

Sep 9, 2018, 9:12 pm Reply

I'm still trying to start with property investing, the main struggle I'm faced with is raising funds for a deposit so I would love to know how one goes about getting a Rent To Rent and Lease Option Agreements, what are the steps? what should I know? (Do's & Don'ts).

Dan Lee

Sep 9, 2018, 9:41 pm Reply

We needs to have a chat! I think you could make a success story out of my situation with a little help! Get in touch, loads of Goals to smash πŸ‘

Humayun Hussain

Sep 9, 2018, 12:41 am Reply

Hi Sam,
which lender let refinance before six months??
Thank you

Richard dugard

Sep 9, 2018, 6:28 am Reply

Look forward to seeing you in a couple weeks in Birmingham mate!

Robert Charlton

Sep 9, 2018, 3:46 pm Reply

I love rental income because it’s passive,I’ve only got one property let out at the moment is it better to save for a deposit to put down on another property or just to refinance as I’ve got positive equity??

Jade Colgan

Sep 9, 2018, 5:05 pm Reply

Woooww MASSIVE VALUE given in this video! :O Seriously, it blows my mind how much value you give away for free sometimes Samuel!

I like the way that the standard "buy, refurbish, refinance, rent" or "buy to sell" model wasn't the first one mentioned here (which it often is by some trainers) but rather the more creative/professional investor-centric strategies (capital appreciation, rent to rent, lease options, commercial property etc) that not everybody talks about! I really enjoyed hearing about what Alan Sugar had to say about property and how the returns can be great on commercial too + pension strategies! Amazing stuff! Love, love, love!

Mr K

Sep 9, 2018, 7:24 pm Reply

Amazing vid. So many coaches/entrepreneurs on YouTube these days… Some take 1.30hrs show to share 1 tip … You nailed it, 10 tips in 12 mns, bang bang bang no unnecessary stories and crap, straight to the point.

Michael Bunney

Sep 9, 2018, 8:22 am Reply

What a load of shite, I’ve been in this line of business since 1999 and the job is finished, what he forgets to tell you is he is buying all these properties on interest only mortgages relying on property price increase to pay off his debt, interest rates are rising killing profits on rental income, tax changes in recent years are causing problems and effecting profits, men like him have hidden agendas, get him to make a video regarding the debt he has and the costs he has to cover that would be more interesting than listing to him brag about buying castles!!!

The Amazon Journey

Sep 9, 2018, 11:35 am Reply

*SAM* you mentioned you can purchase commercial property through a pension. As Paying into a pension isn’t taxed ..this is very interesting!! Can you please do a video on this

Emmanuel Lewis

Sep 9, 2018, 6:45 am Reply

r2r, lease option, S.A. and property sourcing is the way forwards. Can't wait to start the academy!!!

greenwichwitch

Oct 10, 2018, 7:17 pm Reply

Fantastic course, everyone needs to do it

Rizwan Ramzan

Oct 10, 2018, 11:45 pm Reply

how much do u charge for training

Coffee Cake

Oct 10, 2018, 6:18 am Reply

Came accross ur channel and subscribed straightaway. I dont own anything yet and have never dealt with anything to do with property but im feeling motivated and willing to start within next 12 months..

ann riz

Nov 11, 2018, 3:06 pm Reply

Question: what are the best cities to invest property in apart from London and surrounding areas? where i can get profit after renting out?
apologies I'm just a beginner and donot even make sense to myself, learning!

Speedz1991

Dec 12, 2018, 10:44 pm Reply

How much did you start off with? And how long did it take to save enough to get first property?

Thomas Gardner

Dec 12, 2018, 9:17 pm Reply

www.airbnb.co.uk/r/tomg7966
Best way to earn money! Sign up and start hosting. Easy, Simple and real profitable

Draven Draaaven

Jan 1, 2019, 6:49 pm Reply

How did you choose your students for mentoring? I really want to learn more from you.

Jimmy Gangster

Jan 1, 2019, 4:57 am Reply

I don't think I'd ever do a service accommodation. To me it looks like too much work, I don't mean that as in "I'd rather sit and watch TV", I mean that as in "I could be spending this time making more money". I feel like unless you're paying a person or a company to manage that property for you that you'd be spending all your time there. Every time you get a new customer, "this isn't working", "where is this located?", "how does this thing work", etc. If you just rent it out to a leased tenant you do that once and then maybe a few times each year if/when something breaks, meanwhile you're out working on another property to rent out. But also, with having people coming and going more often in a service accommodation you have to worry about cleaning after every stay, you have to worry about checking for damages, you have to worry about stolen items, etc. With a regular rental you only have to do that when someone moves out and you're prepping it for another one.

bogdan tunaru

Jan 1, 2019, 5:57 pm Reply

gold

Marlene Sathekge

Jan 1, 2019, 3:21 pm Reply

I'm in South Africa and am going to implement the rent to rent strategy first.😎

Tyrone Johnson M.

Jan 1, 2019, 9:17 am Reply

Texas is where you need to be.

Parthiv Kavi

Feb 2, 2019, 6:29 pm Reply

Hi Samual, is it possible to buy the house and part rent it? What are the possible issues in current rules and regulations by becoming a living landlord? Can I get a cheaper mortgage? Thanks

MC FURY

Feb 2, 2019, 1:31 pm Reply

I love the richard branson's analogy

Enoch London

Mar 3, 2019, 12:00 am Reply

Who else is 17 here? πŸ™ŒπŸ˜‚

Joanne Hussey

Mar 3, 2019, 8:36 pm Reply

Interested in deal packages, serviced accommodation, actually most of them lol waiting to go to the Crash course in May in London and getting impatient as want to get financially free ASAP to spend time with grandchildren and build a portfolio in property as love property

Chris Juice

May 5, 2019, 9:41 am Reply

Mad respect for you Mr.Leeds

Tony c

May 5, 2019, 6:06 pm Reply

lease option agreement, how do you get a mortgage after the 5 year agreement? where do you get the deposit from? or do you just sell it on or give it back? what if the house hasn't increased in value?

Rob Mason

Jun 6, 2019, 7:58 am Reply

Great video Sam πŸ‘
My wife thinks you have a greater impact to your voice and delivery than Robert Kiyosaki. #bigcompliment
It's taken me 12 months without success to persuade her that interest only mortgages are the way to build a portfolio and generate cashflow. I put on one of your videos on during a property business trip up north and she was sold in 5 minutes. For that alone, thank you πŸ˜‚

Kenneth TurboLife Donald

Jun 6, 2019, 2:17 pm Reply

Massive and passive i love your way of thinking. I also look forward to meeting you on your crash course, all booked up and eager to soak up the wealth of information you pass on. It's priceless!.

musikmakerfan

Jun 6, 2019, 1:05 am Reply

1. Rent from tenants
2. Capital appreciation
3. Serviced accommodation
4. Rent to rent
5. Lease option agreement
6. Commercial property
7. Buy, refurnish, refinance, & rent
8. Buy, add value, sell
9. Deal packaging
10. Training people how to invest

Razor Morris

Jul 7, 2019, 4:26 pm Reply

awesome vid samuel thanks again for adding value great stuff

Northumbrian

Jul 7, 2019, 9:48 pm Reply

Fantastic video. Thanks for sharing this wisdom

Daniel Kendall

Jul 7, 2019, 11:41 am Reply

Hi come see me bro in Sheffield need your help next step I wanna be a millionaire like you

Joshua Croman

Aug 8, 2019, 4:34 pm Reply

Ok so how can you get started getting rent from tenants?? In a step by step guide??

CHINO05

Sep 9, 2019, 8:25 am Reply

,

Mark Green

Oct 10, 2019, 11:31 am Reply

What about building houses and selling them?

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