| by Kenneth Chase | 12 comments

Achieving Financial Freedom with Property – HMO’s, Rent to Rent and Serviced Accommodation

– Guys, if you wanna
find financial freedom using property, then you’re
gonna love this video. We’re gonna talk to Ian
McBain, he’s from Scotland. And he controls and
rents out 28 properties and he doesn’t own many of them. He owns some of them. We’re gonna go into depth
just how he’s done it and how you can do it too. Let’s go. Right, let’s get into property now, because that’s the bit. Know enough about you and your brilliance. So. (laughing) I like, I’ve done quite a
lot of stuff on property and now I really wanna
focus just on commercial, as my career continues to develop and we’ve bought a lot
of commercial property. I’ve done HMOs. I did not enjoy that process. Can you just explain Ian, what, because I know what it is, but in case people don’t understand, what’s the process mean, of rent to rent? – So to simplify it, let’s
say, you had a house. – Yeah, I did. – And you wanted to just rent to out and I came along and said, “James, I’ll give you a
guaranteed rent on your property “for three to five years with no voids. “I’ll take over the grass keeping, “the house keeping, maybe cover “any maintenance issues
up to 50 or £100 a month.” And then you think great, I’ve got a guaranteed tenant, and
then what I would then do, effectively what I’m doing is subletting your property for a profit. So after all costs come off, you get your rent, I pay the bills, and what’s left in the middle, it’s like a sandwich, should
be a profit each month. – So I did that. I was the landlord that rented someone like you, and I
didn’t enjoy the process. The neighbors had a go at me because what they were doing is renting rooms out multiply, which I knew they was gonna do, but they agreed to pay a higher rent to me, and they destroyed our property. So we’ve just now got
it back to a single let. But I’m not saying just because I had a bit of bad luck with
that, that it doesn’t work. So I really wanna find out, you know, how you can make that work. What’s the, you know, what’s the, because this rent to rent thing, in the commercial world,
has been going on forever. You know, Regus go and rent,
Regus rent an office block and then they sub all the floors out, rent desks out to multiple
different companies. The pension fund that usually owns the office block finds that easier to do. You know, Holiday Inn don’t own any of the hotels. – [Ian] Hilton Hotels, yeah I know. – Yeah, they just, you know this, so and it’s funny, all the strategies I’m seeing that’s happening
in the residential world has been happening in the commercial world for decades, hundreds of years. So what, so then you’ve
got this other thing, serviced accommodation, and the rent and the HMOs, which is primarily where this rent to rent strategy works best, isn’t it? Because there’s no point
you renting a room, a house from me and then renting it to a single let person. – [Ian] No, there’s no margin. – There’s no margin. So, so I supposed I wanna do a quick fire serviced accommodation, HMO, if you had to choose
one, which would you do? I know you do both, but if you had to. – Probably, if I was
starting out I’d do HMO. – Can you tell me why? – So, it’s more guaranteed returns. – Guaranteed income. – Yep, now there’s a caveat here, because the fastest way
to get out the blocks is serviced accommodation. So there’s not as much
regulation involved in it. But HMO, so let’s just make an example, right, again to keep it simple for the listeners, and the viewers. Let’s say your house has
got five rooms in it. – Yep. – I come along and say, I’ll give you a thousand points a
month, guaranteed rent. You say, great. Then I sublet the rooms out. – Yep. – Say I rent them out for 500 a room. So five times five is 2500. I take my bills off. – Which would be roughly? – 500 quid. – So you’re down two grand. – Yeah, and then there might be a bit of what, your rent comes off at a grand. – So you’ve got a thousand. – And then I might have some management if I pay a company to manage it, and I might have some maintenance, and I might have some voids. You could take 10% off of that. So say 800 quid. – Yep. So you rent the house
from me for a thousand, it grosses two and a half thousand, and you net profit £800 out of a HMO. – Yep, that you don’t own. So it’s just a total control strategy. – But the situation is, you must have to put some money to
get it legalized as a HMO. – You do. – So fire alarms, fire doors. – So the easy exercise for that is what I normally do is if I take it on on a five years deal, agreement. – So you come to me and you say, I’m gonna rent your
property for five years, and there’ll be any increase in my rent? Or do you try and get a five year? – We try and just agree a market increase, you know, so you could say 25 quid a year, 50 quid a year. Obviously what I try and do now, because I’m a bit more switched on is I try and get the landlord to pay for some of the works, or the landlord to maybe pay for half the works. But let’s just say, take the net profit figure at £800 a month. – Let’s just do it for £1000
a month for easy maths. – Okay, right. So let’s say you’re making
a thousand quid profit, times that by 12. 12 grand, year one. – Yep. – Right. But you don’t want your,
what you need to spend on the property to be more than 12K. – So all of your year one
profit is your investment. So you would start cash flowing profit. – Year two. – Year two. – But that was in the early days. Now what I would try and do is get cash flow after six months. So I’d ask the landlord
to make an allowance, or I would take on a better property that needs less investment. – Yeah, see this is what I’ve
always been telling people. You know, people trying to get deals and bargains on properties that need new kitchens, new bathrooms, I’m like why are you doing that? Pay a bit more on the upfront, because that term debt over a long period of time, and if
you’re not a builder, you’re gonna muck it up, aren’t ya? I mean I get why builders
wanna do that stuff, that’s their trade, but
if you’re, you know, I always think, and if you shop around, usually you can get much
better properties that– – Well to be fair, you know, this will, you know, whether it lasts forever doing rent to rent on
residential properties. Obviously because, a
bit like the experience you had, you don’t know who
you’re letting it out to. So they could promise you the earth, but you know it’s like
you give over control, but you wanna keep an eye on it and make sure that, you know,
you’re looking after it. So what I do, this is just
a total control strategy. So I only wanted to do a set amount to build up a bit of cash flow that would help kickstart the business, and then the cashflow then goes into developing other parts of the business, which are buying and holding, which we do as well. – So but, so how many times have you done this strategy? – Rent to rent? I’ve done it probably 15 or 16 times. – Wow, so you’re pretty a lot. – [Ian] Yeah. So to be fair– – Can I just, how much time, because this, so when you’ve got, so how many HMOs have you got? Actually no, how many
tenants have you got? That’s a better question. – We have got close to 50 tenants. – See, you’re running basically a 50 room hotel, over multiple locations, that’s the best way of, well, because a HMO is, they’re, what’s the average length of a stay of? – So we don’t muddy the waters here, HMOs are still rented out on a AST, an assured short hold tenancy. So once someone signs that, you’ve got them in there for six months. – Right. – So you kind of know
that, so kind of 50 rooms on a gross revenue basis
would be 25K a month, roughly. But obviously you know that you’ve got these tenants in here
for the next six months. The average length of tenancy in an HMO room can be anything from nine to 12 months, you know? So you might get a doctor on a contract, a nurse on a contract. But obviously in the
serviced accommodation rent to rent, you’re doing that by the night, by the week, by the month. – Yeah I’ll come onto, yeah, let’s come onto that in a minute, just so I understand. So you’ve got the 50, I mean, what’s the problems? – [Ian] So the problems are like– – Do you aim for good
tenants, that’s what? – Well you’ve gotta go for professionals. So you wanna take a deposit. They’ve gotta go through a
referencing, credit checking. You’ve gotta do all of that. – Because most, I think the perception is that HMOs are usually going to people that can’t get a normal AST, buy to let. – Well to be fair, we don’t let those types of people
in to our properties. I think, when I show people some of my HMO rooms, if
they’re an older landlord. – Because your rooms, you do
up quite nicely, don’t you? Chuds, can we put some
images of Ian’s rooms? We’re gonna put them over. If you’re watching this, we’ll put some of the stuff in. You’re putting a lot of effort into there. I don’t think people would understand that’s usual, is it? – Well what, so it depends on your market. So it’s like, I think there’s not a lot of room at the top. You know, there’s a
load of room at the top because most people go for
the middle of the market. So you know yourself, in any business there’s the bottom of the market, then there’s the middle,
and then there’s the top. I’m in removals at the top of the market. I went for the top class clients. – So what does it cost to rent
one of your rooms a month? – On average, we’re looking at 600 plus a month for a kind of professional room. So you’re getting a TV, desk, wardrobe, chest of draws, nice bed. – Are you doing all that
with a 12 grand fit out? – Well to be fair, that’s if
I do it on a rent to rent. If I do it on a rent to rent deal, the property itself has to be really nice, but the photos that I’ve been putting up in your group, James, are ones that I actually own, ones that our family business owns. So we’re spending a bit of money on them. – On the HMOs, the 600 a month, but what would be the low
end and the middle end in that particular area
that you’re doing that at? – 400, 350 per room. – But you can be nearly double. – Well let me give you an example, right? I went to a letting agent and he said, the rooms, you’ll get 550 for this room, and I said, well I want more than that, and he said well you’ll not get that, that’s what the market dictates. So the pictures that I’ve put up, I put that, I put those videos, I put a marketing video
and I put them online, and I smashed the ceiling
price for the rooms. – Here’s the thing, so are you
marketing them yourself then? As well as an agent? – Yeah, you can do it through an agent if you get the right agent,
you know, that you trust. But doing it yourself as well means that you can, you know, you can
run quite a tight ship. – So you, what you looking for, five bedroom houses? – So a three bed house
with two reception rooms. So you can split the two. – What about the neighbors of these HMOs? They must hate you. – Well to be fair, if it’s well managed and you’ve got professional
tenants in there, you shouldn’t have any issues, but of course, like any
business, you do get issues. – Well I’m gonna ask now like, so you’ve got five people living in a house that’s only got three bedrooms, if they’ve all got a car
each, what happens then? – A lot them, to be fair,
don’t have cars because– – Do you recon? – Some of them obviously, you know, if they pick up a job in the area, or they’ve over on a kind of contract. So the likes of the hospital, like I say, we’ve got kind of doctors and nurses from the hospital. – You’ve got doctors as part? – [Ian] Yeah. – So why would they not buy somewhere? – Well it’s an interest point. So let’s say they’re
foreign and they’re in here, you know, on a secondment
or something like that. – Yeah, yeah, yeah. – Then because they’ve not been in the country long enough,
they can’t get an EST. They don’t have a bank account, stuff like that, so the hospital need to help get all that set up. So we’re like an incubation
center, if that makes sense. – So do you go to hospitals direct and say look, here we are? – [Ian] Go to hospitals. – So who do you go to? What, the HR department? – You can go to South End Hospital, Basildon Hospital, Chelmsworth Hospital. – Yeah but, you don’t just
walk into A&E, do you and say– – Well no, obviously there’s accommodation part of any hospital. – Where do you go? How did you work that out? – So you know how I got it? I just messaged them on Facebook. – Did you? – Yeah. – What, like NHS Basildon? – Yep, and then just put some pictures up. – See that’s, this is the thing like, this is what I love about entrepreneurs, like you like, that’s what I would do. Sorry to like probe into you, most people don’t think like that here. That’s what I’m tryna get, like you go, well what do you mean? You know, but that’s what most, that’s what usually the barriers to stop– – Well people say there’s
an adage in business, isn’t there, where they say
it’s sales and marketing. It’s not, it’s marketing first. So if you want to have the best rooms, you want to get them out there, you think, well what’s the 10 best marketing strategies that I can employ that’ll fill my rooms up. So I think there’s a niche. When I showed my latest HMO to some older landlords, and I showed ’em and they said Ian, that’s way too good to be an HMO, and I said it’s not. This is the future. – It is, yeah. – It’s the future. – If I was gonna, because I keep looking and thinking, I might give this a tickle, because when you’re doing
stuff not outstanding and you, I think it’s
hugely scalable as well. I mean you can have a hundred HMO rooms. – Well to be fair, we
strip ours back to brick. We insulate them, we talk
to the neighbors both sides. We get them on side. And naturally there’s always a fear at the kind of start, but once they see it as policed and it’s managed
and it’s professional people, we’ve had air crew, pilots,
loads of different demographics. – What about the councils? – Yep. – Do they hate you, do they love you? – Well to be honest, most councils are under staffed, but I think when you’re offering to
pay the council money and you’re providing a service, let’s face it, we don’t have as much, we’re not building any more land on this island, and
obviously we’re creating like fantastic homes, so I think our rooms are, without being big headed, every single person that’s come round to our properties has said, “Wow, I want to live here”. It’s amazing, honestly. – I wanna come and, I
wanna make a video of it. – Come. – So what about council tax, do you pay a higher rate as a HMO? – No, you pay, so interesting point again. So they are at the minute,
it’s one council tax in South End, but across some of the other councils in the country,
they are introducing banding on the rooms. You know, so they’re gonna, you know, that’s one thing that
they’re gonna be looking at, so they might– – That could increase rents. – That could either increase rents or it’ll impact on your profits, you know? So. – Really interesting, right. Service accommodation. – Yep. – So if you have to choose between service accommodation and HMOs, you would choose just
HMOs if you had to choose. – Well if I was going to, it depends what your strategy is. If you want some guaranteed income, HMOs is pretty solid. You know how businesses go up and down, up and down, up and down like we were speaking about earlier. Serviced accommodation’s a bit like that. So in the summer, you can kill it, absolutely kill it, and in
the winter it drops off. – It’s because you’re in
South End though, isn’t it? – [Ian] Well it’s a leisure,
seasonal town, isn’t it? – But if you had serviced accommodation in the middle of London, it would be– – Well exactly. So I think the Ritz hotel in London probably don’t suffer too
much from seasonality. But if you imagine your
HMO in one of the towns, say Chelmsworth or
Colchester in the winter, it’s still got ESTs and it’s
still paying you that amount, whereas your cashflow in serviced
accommodation can be hit. But you need to tie in target, corporate people in, you know, if there’s something going
on in your local area. – Let me ask you, when we go to some servicing, in the same way. So you’re going to come to me, rent my property from me for
a thousand pound a month. What could be your gross income? What’s the 70% occupancy, is the aim? – 70% occupancy’s 21.6 or
seven nights of the month, and if you’re renting it out at like £100 a night, say, that’s 2170, so there’s not a lot of margin left at that. So that £1000 a month would be classed as either too high a rent, or you’d maybe need to charge a bit more nightly to make a profit, but again, it depends. – So can you walk me
through an actual deal like on a serviced
accommodation that you’ve done? So you’ve gone to a landlord, what can you, are you thinking of one? – Yep, so you guarantee the rent for 800 a month, say. – Yeah, and what would that be? That would be a flat, would it? – That would be a kind of
two bed apartment, yep. – So usually serviced accommodation is apartments rather than houses? – Doesn’t have to be. Houses and apartments work well, but there’s a lot of apartments coming onto the market now, because there’s a lot of companies training on it and saying SA is easy, you can get onto the market. But let’s, we’re deviating away. So let’s say 800, and then you’ve got to rent it out, you know, per night. The minimum we charge is
a minimum two night stay. So you’ve got minimum two night stays, and that cuts down on your laundry and cleaning cost, but
you’ve gotta have cleaners. This is a business, James,
we’re talking about, you know what I mean? So you’ve got, yeah. – This is not like doing a buy to let, single let where you can
fit and forget, is it? This is–
– Aye, exactly. – You’re running a hotel,
aren’t you, in effect. – You are, you are. And that’s obviously where coming into communities, people that got upset with noise and you know, loads of traffic and stuff like that, but to be fair, if you think of, if it’s well managed, and it is only 70% occupied, that can– – Is that 70% right, or am I? – That’s about the average, yeah. So obviously if you think of, I mean in the summer, you know yourself, you could be 100% occupied
and make no money. You could be 25% occupied
and make a fortune, if your pricing is right. So it’s not about
selling it out too cheap, it’s just finding out what’s
the sweet spot for you. But obviously typically on that, we look to try and make maybe kind of 500 a month. – Profit? – Profit. Now, there’s loads of training
providers out there saying– – Is it worth it? – Let’s go for a thousand. Now in the summer, can you do that? Absolutely. But in the winter, and then
when you add it all up. – So the HMO strategy is
so much better, isn’t it? Because you can manage
your neighbors easier, because if you’ve got, you know, someone in there for six to 12 months and they’re a bit of a toe rag, you can say look, please, come on, you’re gonna upset the neighbors, where if you’ve got an
serviced accommodation, you’ve got a change of people
all the time, haven’t you? – Yeah, there’s a lot of churning. But to be fair, mixing the
two strategies together does help give your cash flow a boost, because in the summer, obviously, you can make like decent money, but it’s not all about the money, it’s about, obviously,
it’s running a business, building that team again, and getting, obviously, you know you don’t want to get into like blocks of apartments where you’ve got neighbors
below and stuff like that. So that’s how houses work quite well, or if you’ve got a block of apartments, that works really well, you know? Because it’s all the one
thing in the one place. – Yeah, yeah. – You know, so but it is a valid point. – See, what’s your thoughts, do you want to buy and own property? Or would you like to
do more rent to rents? – Buy and hold. So renting to rent just gets you out the starting blocks. A lot of people that
don’t have the cash to– – Do deposits. – Do deposits at the start. And obviously in any business, and especially in property, you run out of money fairly quickly. So in the end to rent thing, you think well I can invest a small amount, and the thing that people
are forgetting here is people may be sitting
skeptical and thinking, rent to rent, I don’t
want any part of that. But what it does do, it
gives you credibility, and it gives you experience as well. So when you’re going down the line, you can say, well I’m
an experienced operator, so I know what I’m doing. And as well as that, dealing
with few different landlords. – What about if you go and buy a house that you could buy in South End to say for quarter of a million quid, but turn it into a HMO, do it up nicely and get, you know, someone like Kent Reliance who love HMOs, and then they revalue it up based on a house with multiple occupation, because they see it as a trading business, then get a big chunk of
your money out and go again. What do you think to that strategy? – Yeah, I think it’s a good strategy. It’s a long term strategy though, it’s a long game. So let’s just think about this. Let’s say right now you said you’re gonna go and buy a house, it’s probably gonna take you 90 days
to put in the offer, get it accepted, complete on it. – If you’re lucky, 90 days, yeah. (laughing) I always say it takes at least six months to buy any
property in this country. – Let’s say six months,
right, okay, I like it. Let’s say six months, and then let’s say you’ve got six months refurb, getting the, let’s use Kent
Alliance as an example. You get Kent Alliance out, you revalue it. Getting that refinance over the line. Getting your money back out, you’re looking at 12 months, you know? So if you wanted to do it at scale, you’d need to have a fairly substantial pot of cash, and you need to be doing a few at a time, and you would need to have a building team
that could cope with that, you know, at the same time. So I think to myself now, if I’m taking on a HMO today, I’m not getting paid until this time next year, by the time I invest my money, or invest, you know, some finance. – But over 10 years, you are experience huge capital growth, because property is, you know, I like to
call, it’s a slow pound building thing, but anything that’s slow to build usually lasts a long time. Anything that’s fast to build, usually it’s frivolous,
frivolous and fast, or slow and safe, you know, and that’s– – Well the serviced accommodation certainly is a fast way into the market, but obviously my exit
strategy for property’s death. So it’s like just buy
it, hold it, keep it. It goes up over time. I’m fortunate, when I moved here in the fire service that, when I joined the fire service, sorry, I managed to buy a flat and I kept that, and then it went up in value, and I bought somewhere else. So capital growth is a great bonus, if you can get it, but
obviously doing this– – Well you will get it after decades, won’t you, but it’s not after months. – Exactly, exactly. – Or even years–
– You can’t, you can’t bank on it, it doesn’t put food on the table either. So it’s like knowing your margin. I think what is smart is finding out what the end value will be. So knowing from a commercial lender what the end value of
property’s gonna be, so. You think how much you
can pull back out it. – Let’s just talk about mortgage fraud, because lots of people are operating serviced accommodation,
rent to rent stuff, it’s not the middle man, IE the person renting it off of the landlord, it’s the landlord that’s, in many cases, don’t get permission from, and do you know anyone that’s been caught out on this yet? – I don’t know anyone that’s been caught, but it is well spoken about
topic at the minute, so– – Because HMOs, like even
if you own a property and you say, you get
a buy to let mortgage, then you turn it into a HMO, I know some banks hate HMOs. I know there’s other banks that love HMOs. So you know, people will just not, I don’t think they realize
it in some cases, you know. – Nah, well obviously, you know, part of your due diligence is to ensure, you know, there’s documents and paperwork, and say look, it’s your responsibility to make sure X Y and Z. But let’s pose a scenario. So let’s say, I say to you that we’ll take on this property, and you must have
permission, and you could show me permission and say, I’ve got permission to let it as that. But what’s to stop 12 months down the line you then going away and refinancing with another lender,
and you don’t tell me. So you’re protected up front, but you’re right, it’s a massive, you know, there’s most mortgage providers don’t allow, if it’s a buy to let, they want to see a HMO product on there. And if it’s serviced accommodation, most mortgages don’t
allow a short term let, you know, as well. So there’s probably a lot
of operators out there at the minute. – That’s really interesting. – Keep getting themselves a problem, stacking it up for the future. – What about saturation? Loads of people are doing this services accommodation, HMO stuff now. You know, is it? – Well to be fair, there’s South End has got a fairly large
and mixed demographic, but we’re seeing lots of
serviced accommodation coming in, not just to South End, all over the place. – What about HMOs? – Not, there is a few developers and HMOs locally in Essex that I know of, but I think there’s, you know, there is still a bit of market for growth in the HMOs, but eventually, will it come to saturation? You don’t know. The government aren’t
building enough homes. – Well the thing is with HMOs is even if not everyone can afford a single let, buy to let. – No, well there is a market out there for people that want an HMO. So the market that we work to is like high, our rooms are phenomenal. Super fast broadband, Sonos, PlayStations. – You’ve got Sonos? – Sonos play bar in some of ours, yeah. Cinema rooms, basement
converted into a cinema. So you know, it’s gonna be, that’s the future James. Obviously when you look at it, people are, you know, people want something that’s kind of high end. Something that they maybe
couldn’t afford themselves. – So what about buying a 12 bedroom hotel? Because they hardly make
any money as a hotel. – I’ve thought of that as well, but I think the room market everywhere, it would need to be
something really special. – But if you turn that
into a 12 bedroom HMO, so you actually stop running it as serviced accommodation. You turn a 12 bedroom hotel into a HMO, you would mitigate all the problems with neighbors, wouldn’t you, because people living round there understand that’s the deal. And then you would get rid of all the staffing costs of running a 12 bedroom hotel, which just
doesn’t stack up, you know. You need to have 80 rooms, you know, one receptionist can look after 100 rooms or 12 rooms, can’t they? You know, and I just wondering if, but then you could derate
it for business rates as a hotel, and back into– – Well the only potential snag I could see is that because some councils, there’s a few different
planning class duties. So they’ve got a provision for hotel beds in the local area. So that planning class, if you’re running hotels and guest houses is C1. And obviously an HMO planning class is C4. So if you try and convert from C1 back to C4, that’s not
always gonna be granted because they don’t want
to lose the bed spaces. That’s not to say it can’t be done, but it’s one thing to be mindful of. – So what does five years
time look like for you? What does your property journey look like when it’s finished in five years? – Well to be fair, I would like to travel a bit more, so it’s basically doing all the fundamental I
used in my removal business. So building systems, building a team. Having it running without us, and it’s generating enough profit to, you know, go and do the
things that I want to do. – So what does that look like? How many houses, how many? – Well to be fair, I thought over the next few years I would try and buy up, you know, another 25 kind of houses, if I can do. – Buy to own? – Yeah, but we’d have to, you know, you need funding, you
need to recycle your cash. You need to know what you’re doing. You need a team, and obviously now that I’m focusing on this full time, it’s just putting those systems and processes in place. Get a lender on side. – Someone like Shawbrook, you know those– – I’ve got a good
relationship with Shawbrook. I was in a corporate water skiing day with them on Monday
actually, which was good, and they were obviously, the reason they done that so they
can lend you more money. So but obviously I think when I started the removal business, this dream of being the kind of biggest one, but you quickly realize that obviously turn over is vanity, isn’t it? And profit is sanity. So you don’t actually need a huge amount. It’s like what do you want a month? If you want five K a month, get five HMOs. If you want 10K, you might
need to diversity and build up. So it’s like– – But sometimes people buy turn over because, you know, you need to know what your profit is that you want when it’s finished, and sometimes you need to buy a turn over, you know, and get to a critical mass. It’s the same with the hotel thing. I know that people, that if you’ve got a boutique hotel, you make money, or if you’ve got a big
hotel you make money. Anything in the middle don’t make money, and it’s like, you know, one day nursery makes money, or 10 day
nurseries make money. You need the same middle management team to look after seven day nurseries as 10, 20 day nurseries, you know, and that monster rears it’s head in most business scenarios, and that’s why, you know, most people just don’t have the staying
power to keep going, and that’s because they’re sane. – I think, yeah, well I think
you need to be resilient. So it’s like, my, you
know, I thought to myself, well if I can generate quarter of a million a year from
a property business, that’s a decent income. That’s pretty much solid and pretty much bullet proof. But obviously lending
at the minute’s tight, getting finance is tight. – Have you noticed that? – Yeah. Refinancing and obviously
trying to get finance. – Well this is going to
bring me on to my next, so when did you notice
that finance getting tight? – I’ve probably noticed it in the last kind of 12 months. – Yeah. – I don’t know how you find it, but it’s, I would say that you need to be careful because
there’s money out there, and the bank want to lend, but they’re just asking for more and more proof, this,
that, the next thing. It just seems to be taking longer, and it’s painful, and most– – Boring money takes time. – I think you hit the nail on the head, most people are sane. I think if you’re an entrepreneur, it takes a little big longer. You need to just stay in there, you need to have the staying power. You need to be resilient. It’s tough. – What do you think about, I mean I’ve got my views on this, where do you think property prices will be in 18 months time? So we’re, currently as
we’re recording this, three months away from, or 74 days away from the supposedly Brexit date of 31st of October 2019. It would be great to watch
this back in a years time. We’ll probably still be
there, nothing’s changed. But here’s the thing, I keep hearing about the stamp duty changes that, you know, someone I work with, she’s not completing on her house now until after the next budget, because he’s just said that he’s gonna reduce stamp duty and turn it onto buyer, sellers rather than buyers. So she’s just like right, I’m not gonna. So that’s a three month delay. I mean everyone’s now gonna not say, I mean everyone’s gonna
wait until the budget now to complete on houses, aren’t they? – Well see to be honest, there’s just loads of scaremongering. There’s loads of uncertainty. Do you want me to say what I think? – Yeah, what do you think? Yeah, go, go, go for it,
because I’m interested. You want to buy 25 houses. – What I think, in 18 months, I think it’ll all be sorted, and I think the prices
will be going up again. That’s what I think. What do you think? – When it’s sorted, I think
the prices will go up again. So I think if you’re, no, the deals are out there to be had right now. I think there’s a global
recession, I mean– – [Ian] Taxing could be coming in. – Germany’s in recession,
and that’s happening, and it’s obviously Donald Trump and President Xi of China
don’t like each other, and they’re the two most dominant economies in the world,
and they’re fighting, and that, you know, so
everyone’s gonna blame Brexit, but it’s a global situation, you know? China and America have a wobble, that’s the rest of us, we all follow them. – It’s interesting, so I do keep one eye on the news, but about seven, eight years ago, this
guy told me something that I found was pretty life changing. He said, don’t listen to the news, don’t read newspapers,
and don’t listen to radio. And I used to consume all that junk. And obviously I started doing it, and now I just listen to positive stuff. In Ian’s world, everything is positive. But I’m an optimist, and
obviously stuff goes wrong, my wife says, I told you! (laughing) – No but the thing is, no but I think corrections are great
news for entrepreneurs. You know like, you know, the deals like, you can get businesses
for nothing in recessions. You can get stuff at lower price. I can’t wait for a recession, because most people say, no, we’re not going to do anything. See, there’s two types of entrepreneurs, there’s the ones with
entrepreneurial tendencies, and then there’s the entrepreneur, and the entrepreneurial tendency guys, they withdraw when
there’s a slight wobble, whereas the entrepreneur
goes forward 10 times more. And so I’m definitely
in the 10 times more, and you lose, you know,
the competition, I think. – Yeah, I think you’ve got
to just keep thinking ahead. It’s tough, but when you look back at what you’ve achieved,
forward is forward. So it does nay matter
whether you’re running at 100 miles an hour,
or you’re going forward at two miles an hour, you’re still lapping everyone that’s
sitting on the couch talking about it. So you’re right, there is
great opportunities out there. – And there’s always great opportunities for those with the right mindset. – [Ian] Yeah, there’s great– – Just remove the mood
hovers, and off you go. – Exactly. I’ve started using the mood hover (laughing) to rescue other people. – No, it’s good. I really enjoyed this. What do you think, Chuds? – [Chuds] Interesting. – Did you pick some good stuff up? It’s good, I think I’ve
brought most of my notes. I don’t think I’ll be doing
serviced accommodation after talking to you. I didn’t, it seems like too
much like hard work for me. The HMO thing, to the professionals, I really like that strategy. I think that is a really smart one. I don’t see that being saturated, because I just feel like
that’s individual flats, I mean, and if you’re doing it to the high end clients,
I think that’s fantastic. Ian, I’ve loved this. I think people are gonna get
some great value out of it. You’re a top guy, thanks for watching. See you real soon, bye bye. – Thanks very much. – Thanks for watching the video, really hope you enjoyed it. To help grow your business, don’t forget you can watch more of my videos by clicking here, and don’t forget to hit subscribe to the YouTube channel by clicking this button right here. It gets better than that, because you can come and see me at one of my seminars to help grow your business. All the detail of how you can get to one of those for free is
in the video description.


Andrew McCague

Sep 9, 2019, 7:46 pm Reply

Great stuff, really interesting, still sat on the couch myself but soon to complete on my first investment property. 👍

Matty 93

Sep 9, 2019, 8:25 pm Reply

Brilliant content!

Carl Harrison

Sep 9, 2019, 8:56 pm Reply

Ian you old dog…! You didn’t say you were on here! Just started watching so not sure if Tokeet came up!

Carl Harrison

Sep 9, 2019, 9:18 pm Reply

With SA v HMO tenants. If you get a problem HMO tenant, you’re pretty much stuck with them. With SA, you can have them removed immediately. And Ian’s £500 a month is a little on the low side. As an idea, we manage a former 5 bed HMO that was cash flowing £1300 a month for the owners. Now it’s SA, we return them a minimum of £2000 a month

Carl Harrison

Sep 9, 2019, 9:24 pm Reply

On the subject of mortgages.. there are products out there and increasingly more mortgage providers will modify the terms of the mortgage to allow SA. The problem is exactly as Ian said at the start; there are far too many trainers out there giving just enough info to encourage people to get started. What they don’t tell you people is how to make sure it’s fully compliant and all permissions are in place

James Cosgrove

Sep 9, 2019, 1:55 pm Reply

This is brilliant content. Thanks James (Y)

fehmyu hussain

Sep 9, 2019, 2:55 am Reply

James loved the video, raw and honest, and the questions you were asking are exactly what the normal public would ask. Brilliant mate keep it up.

The Sky Life Project

Oct 10, 2019, 6:20 am Reply

Hey James, I notice how you were taking notes in your notebook. From one entrepreneur to another, check out a note taking method called The Bullet Journal.
And let me know if you do?

From a personal perspective, being gifted with dyslexia and short term memory loss I've taken snippets of note taking practices from this, and applied my own adapted method. It works a treat.

Send me a PM on any social if you do take a few minutes to check it out.

Plamen Kechev

Oct 10, 2019, 8:53 am Reply

Hi James, i have been watching tons of videos and I have been on few seminars and reading books like House arrest, Buy low rent high etc, but your conversion with this guy was the best of it.
You really clear the water for me.I am saving a bit of money to start my R2R HMO BUSINESS next year.I know Samuel Leeds will say "NO MONEY DOWN DEAL".
But you need money to start.
I would really like to meet you one day.
I am a taxi driver from Colchester and I do have my little taxi airport transfer business, but I love properties and the CASHFLOW strategy
You are so natural and honest.
Good luck you are big inspiration for me
Many thanks


Oct 10, 2019, 4:19 pm Reply

Lots of SPECIFIC content. Not woo woo BS.

Ranjan Bhattacharya – Baker Street Property Meet

Nov 11, 2019, 6:14 am Reply

Great interview James

Anthony Cummins

Jan 1, 2020, 9:46 pm Reply

Very knowledgeable guy, he deserves success. No BS,which is rare !

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