| by Kenneth Chase | 10 comments

My Property Business Plan of 2018 | Samuel Leeds

Hi, my name is Samuel Leeds and, in this video
I’m going to do something absolutely crazy that I don’t think any other property investors
are doing. In this video I’m going to expose and reveal
my 2018 property investor’s business plan. It means that you will get to see exactly
what I am planning and strategizing to buy myself. Now, a lot of people would pay thousands of
pounds to have this information, and you might be thinking, “Are you crazy? Why would you
reveal your business plan?” People have tried to tell me not to do this. I’ve had close
friends of mine saying, “Don’t do it. If you reveal your property investing business plan
everyone is going to copy you, thus you will create competition for yourself. You will
push the property prices up, and it just doesn’t make any sense. What’s the point?” So, let me explain, firstly my reason for
doing this. The most successful businesses in the world reveal their business plan to
the world. Let’s take Mcdonalds. Mcdonalds is one of the largest businesses in the world.
Believe it or not, do you know what they make most of their money on? Property investing.
That’s how they make their money, and their business plan, Mcdonalds is revealed online
for the world to see. The book of Ezekiel says write down the vision,
make it plain so that all can see. Why? Why do that? Well, I believe that when you speak
it out, write it down so that all can see suddenly it just begins to happen easier. So, most property investors are pretty secretive
about their businesses. They keep their cards close to their chest. I am not going to do
that in this video. So, stay tuned and you’re going to get to see exactly what my business
plan is for property investing in 2018. So, in 2018 I am going to buy 10 houses in
total. Two of those houses are going to be lease option agreements that I’ll be keeping
for myself. A lease option agreement is a property where you buy now, pay later. So,
you fix the price now, and you pay for it later. I believe that right now we’re having
a massive expansion and property prices are on the rise. Lease option agreements are no money down
deals, and in the time where you are waiting for completion, you will benefit from all
the rent and all the capital appreciation, regardless of not putting any money down up
front. Lease option agreements are something that
I’ve been doing for almost a decade and if you’ve been to my Property Investor’s Crash
Course, or even just read my book you’ll see it’s something that I’ve been teaching openly
to people for probably about five years now. Two of my properties are going to be straight
forward, buy low rent high HMO’s. HMO’s standing for House of multiple occupancy, where you
rent the property out on a room by room basis. Again, this is something that I’ve been teaching
at my Property Investor’s Crash Course. It’s also in my book for quite some time, and I’ve
been doing successfully for almost a decade. The five rules of HMO’s and certainly for
the way I want to be doing it for these two is going to be one, make sure that it’s close
to a city centre. I’m going to be buying two HMO’s in Middlesbrough. Two, it needs to be
in good condition, because if you’re going to be having to do a refurb then that could
be a deposit on another house. The bank will not lend you money to do up
the property so, it needs to be in good condition. Three, it needs to be in an area whereby there’s
a power team and an HMO manager. Four, you need to have a minimum of four lettable rooms.
Five, you should never pay more than 25,000 pounds per lettable room. So, if there’s five bedrooms, you shouldn’t
pay more than 125,000 pounds for the HMO. The other six deals are a little bit more
interesting. Buy and refinance. When I started out property
investing, in fact the first house that I ever bought, I bought at 25% below market
value and then I refinanced it back up to its true value that same day. Now, this was in 2008, 2009 where the recession
was just about to hit the country hard, and what happened when the recession came, is
they changed the rules, they said, “You can no longer buy and refinance the same day.
You’ve got to wait six months,” which was the first problem. The second problem was
when you waited six months, the value would come and they would undervalue it. So, you
wouldn’t be able to pull your money out at all, and the reason that was happening was
because the recession was on the way. Things are beginning to get a bit easier in
this area now, and things are beginning to shift. So, because house prices are going
up considerably and lenders are laxer than they have been previously as well in a lot
of areas, my plan is to buy a cheap HMO property. It won’t be a current HMO, it’ll just be a
big derelict property and to come and buy it for cash. I will then spend six months doing it up,
renovating it into a nice, big, professional house of multiple occupancy. After six months
I will then refinance the property and I will pull out all of the money that I put in, and
potentially even some of the refurb costs as well, meaning it will be left with a very
little money down deal, and of course, I’ll even be generating a high rental income from
it as well. Now, this type of deal always comes with its
risks, because whenever you’re expecting builders to stick to budgets and stick to time scales,
and surveyors to be in a good mood, there can be problems, but fortunately now, at this
point in my journey, I’ve got full-time builders that work specifically and exclusively for
me, I’ve got a full time project manager, and I think I’ve got a team, and I think the
rules in the economy are at a position where I can now continue to pick up my journey of
buying and refinancing. Exciting times! Property six, title splitting. This is pretty
fun. They call this slice and dice, and it’s where you buy a big property, maybe an old
house, and you convert it into two apartments, a minimum of two apartments, and you split
the title, and then sell each apartment leaving you with a nice profit. An example of this would be if you bought
a big old derelict house for 70,000 pounds, you spend 20,000 pounds doing it up, and you
converted it into two apartments, which would be a very good cost, but when you’ve got full-time
builders and the right team that would be possible. So, so far you’ve spent 90,000 pounds and
you’ve now got two apartments. You then sell each apartment separately for 65,000 pounds
each, bringing you in 130,000 pounds, leaving you with a gross profit of 40,000 pounds,
which is not a lot of money, but it’s not bad if it’s just one deal in 10 over a year’s
period. Property seven, seaside apartments. Now, I
know I teach that property investing is not about feelings, it’s all about formulas, but
you know you can actually make quite a lot of money from seaside apartments. There were
seaside districts some years ago and you could buy apartments there for 80,000, 90,000 pounds,
but what happened was the council regenerated the area and suddenly, you’re talking 150,000
pounds minimum just to buy a one bedroom apartment. There aren’t many seaside resorts in the UK
that haven’t now been regenerated. So, typically speaking you’re going to spend about 150,000
pounds minimum for a seaside apartment. However, there are a couple of areas in the UK whereby
they haven’t regenerated the areas just yet. So, what I’ve done, is I’ve found an area
which is a seaside district where they haven’t regenerated the area just yet, but they are
about to. So, prices, I believe are going to go up very,
very highly, however capital appreciation doesn’t pay the bills so you can’t rely on
it. So, this particular area that I found you could buy a nice apartment for less than
100,000 pounds, and the rent that you can demand is around about 750 to 800 pounds per
month. So, even if they don’t regenerate the area like they are going to, and even if prices
don’t go up in the area, which they are going to, you still are going to be making a very
healthy return on investment from these type of seaside apartments. So, I’m going to be buying a seaside apartment,
hopefully for around about 85,000 pounds, renting it out for 750 pounds. Where am I
going to do this exactly, what’s the area? I probably shouldn’t tell you this. This is
a thing people are being telling me not to do because of competition, but I’m going to
tell you where I’m [inaudible 00:09:34] buy my seaside apartment and it is going to be
in Western-Super-Mare. Property eight will be a HMO flip. What do
I mean by HMO flip, and how will that work? In the last 12 months I have traded over 150
HMO properties to my students and investors. They’ve bought these HMO’s for around about
80,000 to 100,000 pounds. They’ve spent about 5,000 pounds getting them looking pretty,
and then furnish them as well, and a lot of these HMO properties now are worth 120,000,
130,000 pounds, sometimes even more. So, because they’ve done them up, and they’ve
put furniture in, and they’ve put tenants in suddenly the value of the property has
shot up. You see, if you’re a London investor and you see a HMO opportunity, but you’re
going to have to do it up, you’re going to have to furnish it, you’re going to have to
put tenants in it, you might think, “It’s 80,000 pounds. I’m not sure if it will work.” But, if someone comes and does that for you,
and tests it out, and buys it, and puts the furniture in, puts the tenants in, and it’s
generating 50 and 100 pounds a month, suddenly as this busy, rich, maybe London investor,
or Dubai investor will say, “Oh, I’ll pay 130,000 pounds for that, no problem. Here’s
cash.” So, my strategy is going to be next year,
and I have done this before, but I’m going to be doing it again this coming year is going
to be to buy a property very, very cheap, maybe around about 60,000 pounds HMO to renovate
it cheaply, perhaps spending 10,000 pounds, plus furniture, and then to sell it as an
up and running HMO to a wealthy, busy investor and make, I want to make a profit, a gross
profit of a minimum of 30,000 pounds doing that, which again is not bad for just a little
bit of work, especially if you enjoy it. Auction property. Auction property is something
that everybody thinks is a great thing to do, and lots of people attempt. However, if
you don’t know what you’re doing you can fail miserably. So, what I would suggest is stay
away from auctions unless you know what you’re doing. If you know what you’re doing you can
make good money. If you don’t you can get burned badly. So, that is my business plan for next year.
I’m sure I’m going to go on to do a lot more than that. I’m still going to be finding deals,
and packaging them, and selling them on, I’m still going to be doing a little bit of training
as well. So, I hope that’s been useful and interesting. If you want to go and copy me,
go for it. In fact, if you want to copy me, and you want me to help you copy me, I will
even do that. So, just get onto one the training sessions or find out my mentoring packages,
I’ll happily help you to do the exact same. If you found this video interesting and you
want to see me doing these, you want to see me in the auction room, you want to see me
at the seaside negotiating, buying the properties then please do subscribe below, and you’ll
get to journey with me through the year. Also, I would love to know what your strategy’s
going to be. What’s your business plan? What are you hoping to achieve? What are you hoping
to buy next year? So, please do comment below and let me know what your strategy is, and
I will read with great interest and cheer you on all the way. Oh, and I almost forgot number 10. Number
10 property will be a serviced accommodation property. So, I’ll keep you posted on how
I get on, and do get in touch. Come along to one of my programmes. I’m very happy to
help in any way that I can. So, subscribe right now, and I’ll see you very soon. God


smARTy girls

Nov 11, 2018, 4:23 pm Reply

Hi Sam, looking to get on your course in London in January. One question, me and the wife would love to own and run an old people's home but don't have the money to buy one, would finance lease option be an option in order to get hold of one?

Michael Bunney

Nov 11, 2018, 8:26 am Reply

I will create interest in a particular area to inflate property prices due to the fact I may have property to dispose of in this area, then disguise this to dummies and fools on YouTube that actually think they can become millionaires from the buy to let market ?? this fat fuck is a con man

Ibrahim Bah

Nov 11, 2018, 2:11 am Reply

What if am out of uk

Dwayne Jones

Dec 12, 2018, 9:14 am Reply

Samuel when is your next crash course after the Jan 4-5?

alison norcross

Dec 12, 2018, 5:03 pm Reply

I like yiyr. Claruty ans wnrhusuasim


Jan 1, 2019, 12:32 pm Reply

Sir help me in my business!

Braulio Ruiz

Jan 1, 2019, 10:06 pm Reply

I'm looking for a cheap house, not far from the center, so i can fix it and rent it or sell it. Hope in 7 years i can finish paying it by renting it.

Im from Mexico, very poor and desperate, I hope this works, wish me luck. Today im going to search them physically because i believe i will be more lucky than in the internet

Corey Grandmaison Archive

Jan 1, 2019, 12:08 am Reply


Lionel Khumalo

Feb 2, 2019, 10:58 pm Reply

I want to buy, refurbish and refinance one property. After that I will pull out my equity and pay deposit for another property through mortgage. I am hoping to continue this activity until I achieve a healthy capital base. Currently I have two properties and am hoping to release equity from one to start the ball rolling. I have read your books Samuel and I have Wenger them.

Mohammad Halabi

Mar 3, 2019, 6:11 pm Reply

great video,

Tony c

May 5, 2019, 8:04 pm Reply

lease agreement option, what if the property value hasn't increased at the end of the agreement? another question say after the 3+years he wants to buy it then rent it out him self how does he afford a deposit for a mortgage on the property as he only earnt couple hundred pound each month? also what if he doesn't have a tenant for a few months of the year your screwed?  with HMO do you ever have problems with constantly having tenants all year round?

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