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Rent-To-Rent HMO – How to Find Rent2Rent HMO Properties UK | Winners on a Wednesday #21

Samuel: Welcome to ‘Winners on a Wednesday.’
This week we’ve got two absolutely awesome guys here, a great couple. We’re gonna be
talking about Rent2Rent. So please welcome onto the show, Jordan and Jess. Jordan: Thank you very much for bringing us
down here, Samuel. Jessica: Thank you. Nice to see you. Samuel: Really good to see you again. So you
guys are killing it at the moment. Why don’t you just tell me, before we go on to talk
about what you’ve done, what you’ve built up, maybe just tell me your backgrounds. So
what’s your backgrounds before you got into property? Jessica: Will you start? Jordan: Yeah, I’ll go first. So my background,
basically, leaving school … I’m real passionate about cars, so I went straight down that route.
I went in to do an apprenticeship, blah, blah, blah. I went into formula one, so I was working
for McLaren and then, at some point, I decided that I want to achieve more and just get into
the next pay grade, and that wasn’t really enough for me. So then I started … actually,
funnily enough, I went home after a night shift and I started tapping into YouTube,
“How to make money” and then “How to make money in property” came up and “How to invest
in property”, and it was one of your videos ’cause, I think, it was “Millionaire at 21”
or something like that. Samuel: I know the one. Yeah, yeah, yeah. Jordan: It was one of those videos and- Samuel: The video interviews in the garden. Jordan: Yeah. Samuel: It’s the most random video but it’s
got, like, 74,000 views. Jordan: Yeah, but it comes up, the first one.
So that brought me straight to you, basically. And then from there, watching those videos,
that’s when I knew from that point that I wanted to get into property, learn more about
it, come down to do some courses and get involved. And that’s how I was gonna build well. Samuel: Awesome, man! So your background is
you, kinda, like cars? Jordan: Yeah, yeah. For sure. Samuel: Watched the video on YouTube, came
down and met me at the crash course. Samuel: How about you, Jess? Jordan: Mine’s, kind of, all over the place.
Been in a job since I left school. I didn’t really know what I wanted to do. What I did
know is that I hated working nine till five and just hated being bossed around by other
people. And I’ve been in some estate agent jobs now, so learning the ins and outs of
that sort of thing. But how I got into property was Jordan actually begged me to come to the
first seminar I ever went to, and that’s how I learned from there, and I’ve been open minded
and doing that ever since. Samuel: Cool. Love that. Love that. And you
guys are not old. How old are you guys? Jordan: We’re both 22. Jessica: 22. Samuel: 22. Like the song, Taylor Swift. Epic!
So that’s your background. Young, hungry entrepreneurs. I know when we met you would say, “I do not
wanna be working for a [inaudible 00:02:18] forever.” Jordan: You remember. You remember. Samuel: You were, “I’m the man, man.” So I
know we’ve done some one on one training, as well To be fair, you’ve been to the crash
course, you’ve been here in the offices for training. So why don’t you just tell us … ‘Cause
when … Tell me about the crash course. Tell be about what happened. Jessica: Yeah, yeah. We’ve got a lot to say
about that. Jordan: Happily, happily. The crash course
was amazing. So me and Jessica have actually both been in training before the crash course,
both paid and free, as well, and the thing about the crash course is awesome. I literally
remember our conversation after the crash course when we came out. We were, “This is
the best course all round just for sheer value”, ’cause that’s what it is. It’s just sheer
value. I’ll tell you exactly what I mean. So we paid thousands of Pounds for courses
in the past and nobody has ever shown us, “Okay. So here’s the Rightmove and here’s
how you find a deal step by step. This is what you click on. This is what you do. This
is how you find it for an HMO, a single let and lease option.” I didn’t even know finding
a lease option was possible and the Rightmove. I didn’t even know the technique, did not
know how to do it. Jordan: And then, also, on previous courses,
people will tell you what to say and stuff, but there’s always a mist, a bit of a cloud,
like, “What if somebody says this? What if somebody says that?” But I know, with your
course, you just literally pick up the phone and do it there and then live and, on several
occasions, you just pick up the phone and you just go for it. Some good responses and
some bad responses, real life, but we can see how you’ve reacted to it and, for me,
that was just a massive learning point. I’ll never forget it. Samuel: Oh, man, I appreciate that bro. Jordan: At least you remember it. Samuel: You know what? Respect, bro, respect. Jordan: No worries. Jessica: Yeah. Samuel: I try my best. Jordan: How about you? Do you feel the same? Jessica: Yes. [inaudible 00:03:48] determined
to say “Yes”. There was another thing that I remember, you said, “Big energy’s big money”,
and you actually said, “Whoever’s a millionaire, come up on stage right now”, and I immediately
ran and Jordan immediately ran, and we were doing all that silly dancing on stage, and
you really made us feel really confident ’cause we would never do anything like that. I know
I wouldn’t get on a stage and dance like an idiot, but you just made us feel like it was
a really safe environment and you could do anything. So that’s how you made us feel.
[crosstalk 00:04:16]. Samuel: “Cause there’s a time to be serious.
There’s a time to have fun and if you’re not getting out of your comfort zone how are you
gonna pick up the phone and do a deal? Jordan: Yeah. Jessica: Yeah, exactly. And that helped us
a lot because it did help us pick up the phone, didn’t it? So- Jordan: It was a massive point for us, and
I would say, as well, the crash course is not just a property course, it’s a phenomenal
experience because our goal, ultimately, is to become wealthy, right? And I remember at
the crash course, towards the end, you were teaching the fundamentals as well, like, bank
accounts, how to set up your bank accounts, how many to have, this sort of thing, and
then to pay yourself first, and that sort of thing. So that really helped us out as
well. So we took a lot away from the crash course. Jessica: Yeah. A lot of context. Samuel: I really love that. I really appreciate
that, guys. And then after the crash course, I know you started implementing … you started
putting together your business plan, and you started vlogging the journey, “Check them
out on Facebook.” Started vlogging the journey, and then you really thought you’d fly more
by doing a little bit of one to one coaching, so you came to the offices. What did I say
when you presented your business plan to me, Jordan? Jordan: So, basically, you just went like
that and you just tore it in half. So, we came in, really bubbly, happy, over the moon,
with this mega piece of art that we put together and it was a business plan that, basically,
had so much stuff in it. It was a bit of a mess. Now we see it was a mess- Samuel: Yeah. Jordan: … ’cause I had- Samuel: You were so proud it it. Jordan: I know. We were so proud of it. We
were so proud. It was, “You’re gonna do this. I’m gonna do that.” There was SA, Rent2Rent,
lease options, BMV, deal packaging, the lot. And then you just, basically, go, “Guys”,
tore it apart and goes, “Look, if we just narrow it down, focus on something, focus
on …”, and we went with Rent2Rent altogether and, very quickly after that we started getting
results. Samuel: Yeah. Oh, man. Jordan: And when we focused on [crosstalk
00:05:55]. Samuel: Yeah, ’cause you had all these … ‘Cause
I think sometimes with property, especially when you start going on property courses,
you can be like a kid in a sweet shop because you go, “Oh, that was a great strategy! That’s
a great strategy!” Oh, that’s good! Jordan: That’s exactly what it was. We didn’t
want to spare anything. We wanted to just have it all together. Jessica: That’s exactly- Samuel: Do everything. Jessica: Yeah. Do them all. Yeah. Samuel: Yeah. And they say, “If you try and
chase two rabbits, you’ll catch none.” Because … So when you just say, “You know what?
Forget that.” Focus is focusing on one thing at once until successful and then you can
then see what’s next. I think that what I gave you was good advice ’cause it’s clearly
worked because now you’ve got how many Rent2Rent? Jordan: We’ve got five now. Samuel: Five Rent2Rents. High five, man. Jordan: Thank you. Samuel: And, on average, how much is each
Rent2Rent bringing you in profit? Jordan: So on each one- Jessica: [crosstalk 00:06:38]. Jordan: So, yeah, I would say, around £750.
Between £700 and £800, all of them. So, in total, once they’re all fully let, it will
bring us about four and a half thousand Pounds. Samuel: That’s incredible. Jordan: Four or five, or so. So, yeah- Jessica: Yeah. Jordan: … it’s nice. Samuel: And you say once you’re all fully
let, because you’ve literally … I mean, you’ve been picking up the keys still to one
and- Jordan: Yeah, yeah, yeah. So- Jessica: They came in two months … We got
all of that. Jordan: We took our first one in November.
We’re now in January. So two months. We’ve still got … We just signed for two so they’ll
come in within the next couple of week. We’ve got two fully let. One’s going through a re-furb
and we’ve already loads of interviewers coming in so that’ll be let fairly soon. So- Samuel: And I remember seeing the pictures
on Facebook when you first got the property. You got the keys, and then a couple of weeks
later there’s another picture where you’re there and I saw the house and “It’s fully
let.” You know- Jordan: It’s a good feeling, man. Samuel: Yeah. How does it feel seeing the
money actually coming in? Jordan: Oh, it was amazing. Jessica: Nice. Jordan: It’s so good, literally. It’s weird
because it’s almost like you don’t get too much time to reflect but then, when you do
think back, you say, “Well, now we’ve got properties and they’re paying us and … I’m
not working anymore, by the way, I’m full time now, so- Samuel: That’s incredible. Jordan: … it’s all happened … It’s not
that it’s happening quickly, but it’s weird, but it’s amazing. Samuel: And when did you … Just to get time
scales right, when did we first meet at the crash course and when did you do your mentoring
section? Jordan: So we met … So when was the crash
course? I think it was in the back end of the Summer. Was it July or something? That
could- Samuel: Maybe about six months, eight months? Jordan: Yeah. Jessica: Yeah. Jordan: Yeah, yeah, yeah. We’d done our mentoring
soon after that. It was- Samuel: Like September/October? Jordan: Yeah, yeah. Jessica: Very quickly after, yeah. Jordan: And then we got our first deal in
… We got two deals in November and then three in January. Samuel: Fantastic! Fantastic! That’s so exciting.
So you’ve now quick your job? ‘Cause, I mean, four thousand, four and a half thousand, man,
a month, that’s a pretty decent … I mean, for some people, that’s two salaries? Jordan: Yeah, yeah, yeah. Jessica: Yeah. Samuel: And that’s not quite fully passive,
but it’s close enough- Jordan: Yeah, yeah. Samuel: … because you’re managing them yourself?
Is that right? Jordan: Yeah, yeah. We are. [inaudible 00:08:20]. Jessica: Yeah, yeah, yeah. Samuel: Yeah. And where are these properties? Jordan: They’re all in Coventry. Samuel: All in … And where do you live? Jordan: Coventry. Samuel: Fantastic! ‘Cause that’s the thing.
You know what? I teach that it doesn’t have to be close to where you live because it might
just happen that you live in an area which isn’t particularly good for you. So don’t
rule out investing elsewhere. But, I think, sometimes people take that to the extreme
and then everybody’s looking really far north, or [inaudible 00:08:45], which can work but,
I think, it’s really good to see people actually in their own area with one strategy smashing
it out the park. I mean, Coventry’s not too far from … I go to church in Coventry. You
been enjoying that? Jordan: Yeah, yeah, yeah. We met there. Jessica: Yeah. Samuel: So tell me how you are finding these
properties? Who are the landlords you’re speaking with? Give me some advice. Give us some nuggets. Jordan: Yeah, so we’ve got … How many different
landlords? There’s three different landlords. Jessica: Three, yeah. Jordan: So two of the properties have come
from direct to landlord. So that was through direct mail campaigns- Samuel: Yeah. Jordan: … and the other three have all come
through agents. So we call up agents, find the properties we like are Rightmove, call
up the agents, go for viewings, build some rapport, let them know that we’re serious
about what we do and we’re looking to take on a lot of properties, and then, yeah, they
basically, could trust us, and we went ahead with the first one. That went really well
and they gave us two more. So- Samuel: Incredible! You know what? I always
say, “A good relationship is better than a good deal.” Jessica: Yeah, definitely. Samuel: I mean, if you think about it you’re
now making four grand plus a month from just three landlords? Jordan: Yeah, yeah. Exactly. Samuel: Three people! Where there’s seven
billion people on the planet. Jordan: It’s so true. It’s so true. And on
many occasions landlords have more than one property, so the first landlord we got the
property from he gave us the second one after that, and he’s got about 20 in his portfolio,
and it just so happens that those two weren’t let at the time. But now that he can see that
we’re adding value to his house, we’ve decorated the place and he can trust us and we’re doing
a good job, I think he’d be willing to work with us even more in the future. So- Samuel: So, that’s fantastic! I’m really proud
of you guys. Tell me a little bit about how much money did you have to start … to invest
in this rent portfolio? Did you have a big pot? Did you have nothing? Jordan: I’ll let you go ’cause I’m doing a
lot of speaking. Jessica: Not a lot. How much would you say
we had to start? When we took our first Rent2Rent on we had nothing. Jordan: No, we didn’t have any money. Jessica: We got it direct to landlord, we
negotiated with him a two week rent free period because we simply just didn’t have the money
to pay him straight up for the place. Samuel: So, hold on. So you had a landlord.
He agreed to give you his property on a Rent2Rent basis, and then you had to renegotiate to
have it free for two weeks? Jordan: Yeah, yeah, yeah. Jessica: Yeah, yeah. Samuel: How did you do that? What did you
say to him? Jessica: Well, what happened was, I was going
back and forth to him for a very long time, emailing, calling, trying to break down the
figures to him and say, “This whole figure you’re getting is not what you’re getting
after the voids, after maintenance, after all of that. And then, finally, one day he
picked up the phone and said, “I want you to come out to my house and have a chat with
me.” So me and Jordan put on our best suits, went round there and we got grilled and interviewed
for about an hour, and then he gave us the keys the next day. Samuel: Wow! Jessica: So we negotiated with him [crosstalk
00:11:28]. Samuel: So you obviously handled yourself
super well. Jordan: Yeah, yeah, we did. Well. Samuel: And I think that’s, as well, you guys
coming from a position with very little money to invest, but then the little money that
you did have spending it on training … So that then when you were- Jordan: Yeah, yeah, yeah. Good point. Samuel: … in a situation whereby you’re
getting grilled for an hour- Jordan: That’s when the practise and the training
really comes in. Jessica: It does, yeah. Samuel: Yeah, yeah. So, okay. So you negotiate
two weeks. For anyone that’s watching this and thinking, “What on earth? What is Rent2Rent?
You started at nothing. Now you’re making four grand.” Maybe just summarise for anyone
that’s not quite sure. What is a Rent2Rent and what … ’cause you’re not in serviced
accommodation are you? Jordan: No, we’re not. Jessica: No, no. Samuel: You’re doing- Jordan: We’re just in HMO. Samuel: Yeah. So tell us what Rent2Rent is. Jessica: Okay. So, essentially, what we do
is we rent a property as a whole from a landlord. We negotiate a rent upfront and then we agree
on that rent. We take it for a long period, usually between three and five years, and
then we’ll guarantee that rental figure to the landlord for the entire length of the
contract. So, regardless if we have [inaudible 00:12:26] or not, that landlord has now never
gonna experience a void ’cause we’ve made a commitment to him or her. Jessica: And so then we take that property
and we rent it out as an HMO on a room by room basis, which then maximises the profit
so we’ve got enough then to cover the bills. So we cover the bills and our service and
then we pay the landlord and then there’s profit left for us afterwards as well. Samuel: Fantastic! Love that! Great explanation
there. Jessica: It’s simple. It is really simple. Samuel: It is. And is that completely legal? Jordan: It is, yeah. Jessica: It is, yeah. Jordan: It’s legal, simply because of the
fact that we have the right contracts in place and we have a Limited company in place, which
has access to management for the property. Samuel: Yeah, ’cause sometimes, again, people
say, “Is that legal? That sounds like sub-letting.” Jordan: Yeah, but- Jessica: And then for a lot of estate agents
when you call them, you wanna see them, and they’re ‘No. You can’t see it. That’s sub-letting.”
You’ve got to … Some of them you don’t get passed. You simply don’t get passed them,
but some agents you will be able to say, “Let’s meet up at the property, talk, explain it
to you”, and then they do understand [crosstalk 00:13:18]. Samuel: ‘Cause you’ve managed to win an estate
agent and a couple of landlords-? Jessica: Yeah. Jordan: Yeah. Samuel: … which is great. So what are the
risks associated with Rent2Rent? Jordan: Obviously there’s risks if you don’t
do your market research and your due diligence so much. You’ve got to do your research properly
to make sure the area you choose to invest in has demand there ’cause the last thing
you wanna do is take a property from a landlord, spend some money on it adding value to the
property so it’s all nice and ready to rent out, and then have it empty. That’s the last
thing you want. So definitely- Jessica: You’ll be paying the rent each month
then. Jordan: Yeah. Because you’re obliged to pay
the rent to the landlord, so you definitely wanna do some research to make sure that the
area has demand so you’re not gonna be losing out on money. I’d say that’s probably one
of the main factors. Samuel: Yeah. It is. Jessica: Yeah. Also I’d say one of the other
main things is if you are taking on an HMO that’s … ‘Cause obviously the law’s changed
where you need HMO licencing if there is more than five people in the property … To make
sure that the landlord has all the correct licencing in place, fire alarms, fire doors.
Everything like that needs to be [inaudible 00:14:17]. Samuel: Yeah. ‘Cause it’s five or more people
now isn’t it? Jordan: Yeah, yeah. Jessica: Yes. Samuel: Yeah, yeah. Absolutely. And I think,
as well, although Rent2Rent strategy is brilliant, if you’ve got no or very little money, you’re
doing something, you’re doing, don’t you? Jordan: Yeah, you’re doing- Jessica: Yeah. Samuel: You know? If you take on a property
and you’ve got no money and then you can’t rent it out and you’ve not got money to pay
the landlord, you could have a lot of sleepless nights. Jordan: Yeah, yeah. [crosstalk 00:14:39]. Samuel: So, you’ve done it really well, you
know? You’ve done your market research. You’re operating in an area that you know because
you live there. Jordan: Yeah. Exactly. Samuel: You’ve been trained, you’ve got the
correct contracts, and then it’s a case of just ready to smash it out of the park. Jessica: [crosstalk 00:14:50]. Yeah. Jordan: You just learn with every one as well.
We got so much from doing the first deal. Jessica: We learn new things on every single
deal we do. Samuel: Yeah, of course. Well, the thing is
… I almost feel like, and I’m sure you guys would agree, there’s over here, this extreme.
This is people that go on courses and don’t take any action. And knowledge without implementation
will lead to no results. Jordan: So true. Samuel: But then, over here, you have people
who take massive action but they don’t take the proper training, they don’t know what
they’re doing and these people we call “motivated idiots” that can get really burned, and it’s
very dangerous. And then, in the middle, you’ve got, “Do the training, read the right books,
talk to the right people, get their knowledge but then take action”, and there’s a nice
sweet spot. And I think you guys have got that just right, and that’s why you’ve got
it just right. You’ve not gone on loads and loads of courses and spent … But you’ve
taken the right steps, you’ve gone on the right training, you’ve got the right mentoring.
You guys aren’t even on the academy and I know you did a day, which is great, but you
still smashing it out of the park, which is absolutely fantastic. Samuel: So talk to me, as well, ’cause I agree,
the best way to learn is to do. So talk to me about some of the lessons that you’ve learned
in doing these deals. Jordan: What would you say lesson number one
would be? Jessica: Definitely do all the electricity
and gas first because we took on properties and, basically, without the property [inaudible
00:16:18] we found out the gas and the electricity hadn’t actually been changed over because
we can’t contact the company because they never answer the phone and then, when you
do, you’re on the phone to them for hours. So I say, “Make sure all of that is done.” Jordan: I’d say take just hold of that yourself
rather than the landlord doing it in most cases to make sure it gets done, changed over
properly. What other lessons have we had along the way? Samuel: That’s a really good lesson. It’s
one of those things you probably wouldn’t read that in a book. It’s just one of those
things you just gotta do it. Jordan: That’s one of the things you learn
by actually getting the first deal and say, “Oh, what do I do now?”. Samuel: Yeah. Jessica: And the lessons we’ve learned: Always
confirm with people who want to view a couple of hours before in the morning or the evening
before because we’ve got to viewings and people have said, “Yeah, I’m on my way. 20 minutes”,
and then they’ve never turned up- Samuel: Wow! Jessica: … which is wasted- Jordan: Yeah. A lot of people waste time. Jessica: … a lot of our time. Samuel: Yeah. Jessica: It’s annoying. Samuel: Annoyingly, in 2019, people’s word
is not their bond. When I started out in property 10/12 years ago, if someone said they were
gonna be there, they were gonna be there. But now- Jordan: Oh, no way. No way. Samuel: … you’ve gotta text to confirm,
an hour before, 15 minutes before … ‘Cause you guys are talking about tenants or-? Jessica: Yes. Jordan: Yeah, yeah. Tenants. Jessica: Yes. Prospect tenants, yeah, because- Samuel: Yeah, yeah, yeah. Jordan: Some people say, “Come let’s do a
viewing” and say- Samuel: Sure. Yeah, yeah. Even agents have
done this. Jordan: Yeah, agents as well. You just have
to check all the people and make sure they’re still turning up. Samuel: Yeah. All right. And what’s the biggest
… These are obviously some of the challenges, but in regards to some of the successes, that’d
be winning the deal or getting a maximum rent. What are some of the biggest lessons that
you’ve learned through the successes of what you’ve done? Jordan: I think, when we talk on our first
one, we were gonna let it out how it was considering we didn’t have much money at all and we, pretty
much, got the property for free, and then we decided to use credit cards and whatnot
and actually do the property, get it painted and whatnot, and we found that definitely
spending some money on the property was a good point for us ’cause now we will paint
most of them because you just get it rented out so much quicker. People come round, they
appreciate the fact that there are little touches that you put in the rooms [inaudible
00:18:16]. Jessica: Dressing the rooms. Jordan: They really like it. So I think that
stuff is really important if you’re gonna let out. It really helps. So that helps to
our success in regard to renting the rooms out quicker. In regards to finding more deals,
I would probably say … What’s the big lesson? Probably just when you going into viewings
and going into meetings with agents and stuff, we’ve always acted confident and acted like
we’ve been doing this a million times before, and that served us really well because they
then get the feeling that you’re serious about what you’re doing and take on loads [inaudible
00:18:50]. And then they want to give you too many at once and then you have to figure
out what you’re gonna do. Jessica: Yeah. [crosstalk 00:18:53]. Jordan: But I think being confident. Samuel: Being confident. Have good posture
because you might think, “I’m saying the wrong things, I’m saying the wrong things”, but
they don’t know what you’re planning on saying in the first place. Yeah. I love that. So
be confident, get the right skills, gas, utilities. Jordan: Sort the utilities out. Jessica: Utilities, bills. Samuel: Confirm appointments. How do you spot
a good … What are you looking for? What is a good deal with Rent2Rent? Jordan: I would say the minimum … So we
would work out the minimum net profit we wanna take is £500, so none of them cash flow,
that little [inaudible 00:19:27] because that was where we were willing to go, so if there’s
a deal that comes along that’s got a cash flow of £500 and it doesn’t really need much
spending on it, we’d happily take that deal. But, yeah, what we do is we work out … So
the ones we’ve got at the moment in the cash flow is £700/£800, that is grey. How much
do we need to spend on them? So we work out, basically, we wanna break even within six
months. I mean, even … If you’ve got the deal for three or five years you can go longer.
I know some people who actually like 10 months and stuff like that, but we normally hope
to break even most of the time within six months. So that’s a key for us. Samuel: So what you mean is if you’re gonna
put down five thousand, then you want to be able to make that back within the first six
months- Jessica: Exactly. Jordan: Yeah. Samuel: … which is gonna give you a 200
per cent return on investment. Jordan: Exactly that. Yeah. Jessica: Yeah. Samuel: So, I mean, and I teach you, as you’ll
know, a very conservative … You wanna make at least a hundred per cent ROI in your first
year, so 200 percent is fantastic. So where abouts as well … I mean, are you looking
… Have you got a particular street or a particular … Or are you just generally looking
around in Coventry? Jordan: Obviously we’re from Coventry so we
know the area quite well and we’re generally in Coventry. We generally invest around the
city and a couple of the hotspots just because we’re from there. We know where the demand
is sort of thing. So, yeah, and then, as we pick some up, if we do research on one and
the demand’s good and we actually get the deal and test it out, then we know that that
street in the area’s good and we’ll happily win some repeat in the area. Samuel: Do you have any break clause if it
doesn’t work? Jessica: We have … On some of them if we
do put a lot of money into the property with one landlord, we have a first anniversary
break clause, a 12 months. Other that that- Jordan: Initially, so in the contract that
we use if we’re going direct to landlord, there is no … there’s a break clause for
us after the first anniversary, so after the first year, but not for them. And then when
we go through agents, they usually let us put a break clause in for six months in case
a landlord isn’t happy or we’re not happy, but because we’re prepared to spend money
and add value to the property, we explain that, and then we’ll get at least a 12 month
break clause so that we don’t lose out on any money we’ve invested. Samuel: Yeah, sure. So, basically, the idea
of SAP is that if you have a break clause … So you’re gonna say to the landlord, “Look,
I’m spending two/three grand doing this place up. It’s a bit dirty. I’m gonna paint it,
and that’s my commitment to you to show that I’m serious. However, if after a year, I wanna
pull out because it’s not renting out as well as I thought, I want to have a break clause.
It’s a five year contract but a break clause to pull out. However, I will leave you a property
in better condition that I took it on.” So is that the kind of thing that you-? Jordan: Yeah, that’s exactly what it is- Jessica: Yeah, that’s what is is. Jordan: And they’re happy with that because
essentially we are literally adding value to their property which they own and, in most
cases, we’re putting in furniture and stuff like that. And the reality is that when it
comes to the end of deal, I can’t see us bringing around a van and taking all the furniture
back out and moving it to another house. So they’re most likely gonna keep the furniture
as well. Jessica: They have the furniture as well. Samuel: Yeah. But it’s a really good point
because if you say, “Look at all the furniture, and I’ll leave you with the furniture.” It’s,
“Oh, wow! That sounds great!” But, come on, let’s face it, in five years’ time- Jordan: Exactly. Exactly. Samuel: … you’re not gonna want it anyway. Jessica: We’re not gonna want it. Samuel: No. That’s fantastic! So what kind
of contracts do you use then for Rent2Rent? ‘Cause I know that’s a really important issue. Jordan: Yeah, so we’ve got from basic- Jessica: We use a management contract. Jordan: … I think it’s called a lease agreement
contract, doesn’t it? Jessica: Yeah. Jordan: It’s a special Rent2Rent contract
we’ve got from one of our courses, and that’s a contract. And so, luckily for us, it was
already made for us and had all the clauses in there, already overseen by a solicitor
and whatnot. So- Samuel: And it’s really important that you
use a management contract rather than if you just have a normal AST- Jordan: [inaudible 00:22:57]. Jessica: [inaudible 00:22:57]. Samuel: … and then you rent it out on another
AST, that’s called sub-letting. So, again, it’s a really- Jordan: That one is a problem. Jessica: I think when we first went through
the contract as well there were clauses in there that we thought you’d even need, so
you definitely need to get the right contract [inaudible 00:23:11] ’cause if anything did
go wrong, literally one thing, we didn’t even know was in the contract, we wouldn’t have
put it in there. So- Samuel: So I think you can use management
agreements, corporate lets, but just make sure that … I would definitely advise, and
I’m sure you would as well, get in advice on that. Jessica: Yeah. Jordan: Yeah. Hundred percent. Samuel: And it also depends on what you’re
doing. And, of course, every deal’s different as well. I mean, with lease option agreements,
you need a solicitor, with Rent2Rent you can use it again and again, but it’s gotta be
right. Jordan: That’s exactly. Yeah. Samuel: So what will be your biggest advice
for someone who was in your shoes six months ago that was thinking, “I really wanna get
my first Rent2Rent deal.” What would you advise them to do? Jessica: You just need to keep motivated.
Do your research. Go to as many courses and meet as many people as you can. And, for us,
it was really getting around the right people and basically connecting and meeting up with
people who are in our industry and what we wanted to do. So we met with a load of people
who were doing Rent2Rent and that’s how we basically got our answers to our questions
that were just the last little questions that we needed to get that bit further. Jordan: Yeah. Just speak to somebody who’s
already doing it. So I would say network as well. It really doesn’t matter. We just recorded
a YouTube video on this the other day and we were saying how important it is to just
stay motivated, keep on going for it and find people that are in your field doing what you
wanna do, have the conversations with them ’cause when it comes to getting a deal you’re
gonna be, “Oh my God! What do I do now?” And if you’ve got people at your local events
and stuff that are doing Rent2Rent, or even HMOs in general, they will be able to advise
you on the next steps and how to go about this and that. So I would definitely say build
some good contacts. Samuel: No, that’s right. So your business
plan six months ago we ripped it up and we started again, and we said, “We’re gonna focus
on Rent2Rent.” We actually … I think we said, from memory, “When you making about
four/five grand a month, perhaps we can then move on to another strategy.” So what’s next
for you guys? Jordan: So we’ve got a pretty big vision for
this year, actually. We actually want to get to 48 Rent2Rents by the end of 2019. Samuel: Wow! Jessica: That’s what we want. Jordan: So we want a lot. So we really have
focused on Rent2Rent and now we wanna go for it. So by the end of this year, we want 48.
That’ll be turning over a million plus, and that’s one of our goals as well. And then
also, at some point in the year, we wanna be able to step back a little bit, hire somebody
to take care- Jessica: Get systemized [inaudible 00:25:23]. Jordan: … of the management, the viewings
and stuff like that. Systemize it so we can step back and then take on another strategy.
We’re not sure what yet, but we definitely wanna start- Samuel: Good. Sounds to me like you’re super
laser focused. Jessica: Yeah. We are. Jordan: Yeah. Samuel: And you’re now getting results? Jordan: Yeah, definitely. Jessica: Yeah, which is great. Samuel: Yeah. Talk to me a little bit about
mindset because I think that one of the reasons I think most people fail is because they talk
themselves out of it, they have a bad mindset, they have a “can’t do” attitude instead of
“can do” attitude. How important has that been to you and what advice would you give
around that? Jordan: Fundamental. Absolutely fundamental.
I mean, both Jessica and myself, we both write down our goals every single morning and every
single evening. So first thing when we wake up, last thing before we go to bed. I, personally,
have 19 goals and I know them all off by heart and I write them down, and that helps me stay
focused because I’ve got a very positive attitude, and just listening to audio books, reading
books about business and the industry, also about mindset and how to stay positive from
the influential people out there. And, yeah, it’s just so important just to stay motivated
and just have the “can do” attitude. Just know. Just envision where you’re going. Know
you can do it and it’s possible. And then map out a plan of what you’ve got to do to
get there. Samuel: Love that. Jordan: I don’t think you can really do it
without being positive and knowing you can do it and believing in yourself. Jessica: It’s also good that we have each
other as well because if I ever feel down or I’m not doing something, he gives me a
kick back up, and likewise. So it’s good that we do have each other for motivation at the
same time. Jordan: And we’re both on the same mission.
So, yeah. Jessica: Yeah. We’re both on the same mission. Samuel: Love that. You guys are an awesome
couple. What advice would you give to someone that was weighing up whether to book onto
the free property investors crash course? Jordan: Oh, man. Jessica: You would be extremely silly to miss
out the [inaudible 00:27:00]. Jordan: Like I said we’ve spent thousands
of Pounds on courses before and we still name crash course number one, just because … I’m
not just saying … I’m saying that because of the amount of value that I just said previously
that you get in the crash course. So you have to, you have to do it. You’d be insane not
to. Jessica: If anybody ever comes to me on Facebook
from my YouTube … Comes to me from Facebook and Instagram, “How do I get into property?”
I say, “The first thing I’d recommend to you before I give you any of my time is to go
on the Samuel Leeds crash course. Jordan: Crash course. That’s the truth as
well. Jessica: It’s free and you’ll learn everything
you need to. Well, I’ve said that to numbers and numbers of people. Samuel: You guys are awesome. Well, listen,
man. Thank you so much for coming on the show. Jessica: No problem. Samuel: Reach out to me any time. Jordan: Hundred percent. Samuel: I’m super proud of you guys and.,
yeah, you’re amazing. Jordan: Thank you for bringing us on the show,
Samuel. Samuel: You’re welcome. Jessica: Thank you. Jordan: Thank you so much. Samuel: My name is Samuel Leeds. Thank you
for watching ‘Winners on a Wednesday’. Every single week we interview our success students
for your inspiration. You can watch more right here on the playlist. There’s a whole playlist
of them. But what you’ll notice is every single winner on a Wednesday always starts with them
coming to my two day crash course. So if you would like to be a winner on a Wednesday,
literally come on my crash course and, who knows? In three months’ time you could be
here in my offices on this show as a winner on a Wednesday. So get yourself booked on
the crash course. Watch more. Have fun. I’ll see you next week.


Zoraiz Habib Bakht

Feb 2, 2019, 7:01 pm Reply


Darryl Thomas

Feb 2, 2019, 7:05 pm Reply

I want to achieve more than working in F1 for McLaren? Interesting comment.


Feb 2, 2019, 7:15 pm Reply

Any advice doing this in the US?

Golden Acre

Feb 2, 2019, 7:25 pm Reply

These two are great..! I’d love to meet them. Well done guys!

Sean Curran

Feb 2, 2019, 7:34 pm Reply

What's there YouTube channel?


Feb 2, 2019, 7:36 pm Reply

Hey guys!!! Jord&Jess here if you would like to connect with us our socials are below.

And our YouTube channel is: Jord&Jess

Thank you can’t wait to connect with you all :)!!!!

Nic Mcdonnell

Feb 2, 2019, 7:42 pm Reply

Great info. If the guys manage the property themselves what does the estate agent get for sourcing them the deal?

Henry Persoon

Feb 2, 2019, 7:54 pm Reply

Nice interview glad to see both of them getting ahead, he does needs to learn his manners, not to chew gum on camera.

Billie DeBra

Feb 2, 2019, 8:10 pm Reply

Do the classes you teach hold true for the United States as well? Meaning, the concept of rent to rent and similar contracts, HMOs.

Mo Shah

Feb 2, 2019, 8:21 pm Reply

Am 17 and wana start in the property business after looking at u

Leah Miller

Feb 2, 2019, 8:23 pm Reply

Awesome video guys!??


Feb 2, 2019, 8:57 pm Reply

I like this brother real one, keep moving forward g!


Feb 2, 2019, 8:59 pm Reply

Stay Steady Striving Samuel 🙂


Feb 2, 2019, 9:10 pm Reply

So, To use a single let property as a rent to rent multi- let, you don’t have to change the mortgage?

jack brown

Feb 2, 2019, 9:45 pm Reply

Great video guys. I was having one of those low moments today when a deal fell through at the last minute due to the restrictions with the landlords mortgage, and this has really picked me up. Tomorrow is a new day and I’ve got a feeling it’s going to be a good one

James Sena

Feb 2, 2019, 10:30 pm Reply

Can you please come to Australia to do a crash course!!!! I can't wait to get into the game after watching your videos

Andy Anderson

Feb 2, 2019, 10:30 pm Reply

Respect to you both!

Graham Barker

Feb 2, 2019, 10:52 pm Reply

Samuel…don't let anyone ever film chewing gum…disgusting…and I don't want to see it going round and round anyones mouth….yuk….great subject and what im getting in to…but…please…

Soyodhi Alam

Feb 2, 2019, 11:11 pm Reply

Samuel, you are an absolute God send! I ordered your book "Buy Low, Rent High" off your website and paid only for P&P. Book arrived today which also included your new book…ALL FOR FREE! I was so eager that I read both books in 2 hours lol so much value it's incredible! Definately looking forward to attending your crash course mate! God bless you man!

Liam R

Feb 2, 2019, 11:21 pm Reply

Advice on R2Rs in Article 4 areas..?

Amar T

Feb 2, 2019, 12:08 am Reply

Congrats guys!


Feb 2, 2019, 12:31 am Reply

Can you do a investors course in Glasgow.


Feb 2, 2019, 1:55 am Reply

Jesus that is a nice suit

Matt H

Feb 2, 2019, 5:23 am Reply

Samuel, I do love your enthusiasm and I love that your giving quite a lot of good info away for free….but one quick look at some of the landlord websites out there and there are some bad reviews of your techniques. Obviously there are always going to be haters but could you address some of their concerns in a video? Cheers dude ?

Thomas Reynolds

Feb 2, 2019, 7:16 am Reply

I’ll see you tomorrow in Peterborough!

A Ayanle

Feb 2, 2019, 9:24 am Reply

Hi Samuel, Do you need to set up a limited company before sourcing your first deal? And would I need a separate limited company for buying properties?
Thank you


Feb 2, 2019, 1:40 pm Reply

Hey! would love to know more on the events they're going to to make friends with others doing rent to rents?xx

Bonaldi Obeng

Feb 2, 2019, 4:42 pm Reply

What's the difference between subletting and rent2rents

Adeel Sindhu

Feb 2, 2019, 10:29 pm Reply

Hey Samuel, when somebody do rent to rent or buy to let on residential properties do they have to charge and pay vat as well?

Maninder Randhawa

Feb 2, 2019, 1:28 pm Reply

Awesome stuff both. Smashing it ??

LN Capital

Feb 2, 2019, 7:24 pm Reply

Love this!


Feb 2, 2019, 11:43 am Reply

Please start one course in Edinburgh

Kwame Dukes

Feb 2, 2019, 3:03 pm Reply

I've booked my place for the crash course in London on the 30th and 31st May. I can't wait!!


Mar 3, 2019, 9:05 pm Reply

Should the r2rs be furnished beforehand?

miguel venancio

Mar 3, 2019, 9:16 pm Reply

So much to learn..amazing!

Craig Stone

Mar 3, 2019, 10:43 am Reply

Awesome interview! great success guys

Chris Yuile

Mar 3, 2019, 8:53 am Reply

What are your views on the new licences being implemented in Coventry??


Mar 3, 2019, 6:26 pm Reply

When you rent the property of the landlord do you need to tell them that you are turning it into a hmo?
Also when finding rent to rents do you tell the estate agents this is what I’m after or do you mention it after the viewing?

Kelvin Kips

Mar 3, 2019, 10:41 am Reply

Watched so many of your vids in the past 3 days, you’re exceptional my brother. I’m interested in you’re support forreal. Anyone watching you would be stupid not to want to jump on board!

Paul Magee

Mar 3, 2019, 4:56 pm Reply

Did these guys take into account voids and repair costs in their profit calculations? (Around 20% of the rental income).

AOC Industries

Apr 4, 2019, 4:24 am Reply

Mr. Leeds much respect for you, your family and work come to Columbus Ohio USA and do the financially free challenge ???

Bradley A

Apr 4, 2019, 3:22 pm Reply

Is Coventry a good place to invest in ?

Mike TaiCee

Apr 4, 2019, 5:25 pm Reply

Im a teacher and U have inspired me to get into property. Wow, I may just use U to try and motivate my youngsters!!!

Chris Baker

Apr 4, 2019, 2:02 pm Reply

What are the insurance implications of rent to rent? I'm assuming that the Landlord is liable for the buildings insurance, but who is liable for the contents and any potential damage insurance? Not to mention public liability etc. I haven't found this mentioned anywhere yet.

Commando Vermelho

Apr 4, 2019, 1:50 pm Reply

They paid thousands for previous courses but then had nothing to when they first secured their first rent to rent deal? hmm.. that doesn't add up ..

Josh Pickles

Apr 4, 2019, 6:30 am Reply

Hi Guys! Don't forget about your minimum room sizes and mandatory / additional hmo licencing. Also don't forget you'll need to find a landlord willing to have their property used this way and modified with a D grade fire alarm system and fire doors. You must tell the landlord you'll be subletting their property and creating a hmo. BTW most won't agree to this anymore due to risk and licensing requirements. Just be sure to do your homework. Then you need to be prepared to manage your tenants paying cheap rent who often have social problems. His business model isn't easy but does work in the right locations. Typically major cities and near universities or airports.

Bartek Basinski

Apr 4, 2019, 9:28 pm Reply

Refining what strategy suits every individual is vital. Now at least I know what I am concentrating on when on the CC in May 🙂


Apr 4, 2019, 12:37 am Reply

if you believe this bs you seriously need a reality check

Anand Madhvani

May 5, 2019, 7:56 pm Reply

Great stuff guys, well done! Where did you source the contracts from?


May 5, 2019, 8:32 am Reply

I love Samuel and I love this channel. But the guy being interviewed is a w-anker!! Why? He is wearing a fake Hublot watch that costs £50K in real life, and he and his girlfriend had to use creditcards to reburb their first hmo…. lol!

Fake watch = fake personality. Never do deals with fake people.

GStar1862 9181

May 5, 2019, 10:19 am Reply

What an incredibly focused power couple ? Property or otherwise, with the level of determination these guys show, I can’t imagine they’d fail at anything. Amazing.

Jack Hounsom

May 5, 2019, 12:18 pm Reply

Love this, I’m from Edinburgh and I’m eager to get started. I’m looking at what’s best to start

Goncalo Domingues

May 5, 2019, 2:27 pm Reply

im 18 getting down to london going to your course need to learn as much as i can so can fukin smash it!, having the book get delivered anytime this week as well as will be coming to see you july can not wait!!! past few days its all ive been looking at gona put 100% in to this no matter how hard i have to try i wont stop, see you soon !

Chris Mitchell

May 5, 2019, 8:36 pm Reply

Once you’ve found a property and got an agreed yes from the landlord or agent, how do you then find Tennant’s so quickly? What’s the best way, rent a room.com or online companies?

Patrick Gorman

Jun 6, 2019, 11:08 pm Reply

Retard content for idiots. I’m marketing unicorn shit – message me for a JV opportunity.

Creative Inspiration

Jun 6, 2019, 7:11 pm Reply

Typical millennial cunts – can't be fucked to work a real job or put in hard work to achieve anything – want it now and for little effort. Fuck off – sad that 75 years ago soldiers fought for these ungrateful cunts…….What the hell was the point? Countries fucked thanks to these greedy fucks….contributing nothing to society. NOTHING.

khf jvc

Jun 6, 2019, 9:11 pm Reply

So its 5k a month between them both? Or each?


Jun 6, 2019, 12:49 am Reply

how would one find and seek rent to rent contracts?

Johnny Buckley

Jun 6, 2019, 7:16 am Reply

Hi Samuel, love your videos. But you need to sort the echo'ing, think you have duel mic pickup. maybe one for camera and one from on person mics.

Marian Hanson Confidence Coach

Jul 7, 2019, 7:30 pm Reply

Very inspirational video ??

Booney Inc

Jul 7, 2019, 1:44 pm Reply

Dressing like they made it already

Mabel X

Jul 7, 2019, 10:05 pm Reply

How much is his course?

Chris Vaessens

Jul 7, 2019, 1:16 pm Reply

Does anybody know someone who does this in the Netherlands? I'd love to connect


Jul 7, 2019, 4:59 pm Reply

He cant even talk properly but that arrogance…?

Razor Morris

Jul 7, 2019, 8:56 am Reply

bro what your youtube vid bro ?? on this subject

Macaulley Chadburn

Jul 7, 2019, 4:01 pm Reply

8:14 "for some people that's two salaries" for me that's 6 salaries lol. I want to get into this, you're an inspiration

Dusan Veselka

Aug 8, 2019, 8:16 am Reply

You are saying 'speak to the people who are already doing it'. Well, if I wanted to find someone Id like to partner with in a joint venture, me being the cash investor, where should I look?

Commando Vermelho

Aug 8, 2019, 11:49 am Reply

lol wonder where they are now

Craig James

Aug 8, 2019, 8:09 pm Reply

I get a "off" feeling from these people, Like it's all an act.

Ab Rabosea

Aug 8, 2019, 6:46 pm Reply

Wow I can’t believe that the crash course is just £1? respect

Henz Shaz

Sep 9, 2019, 6:03 pm Reply

is not an act craig they take action and put effort in learning and taking steps forward


Sep 9, 2019, 9:36 pm Reply

Inspiration ?

Susu A.

Sep 9, 2019, 9:21 pm Reply

Any one can advise where I can get a rent to rent contract please? God Bless You

erastus muhia

Sep 9, 2019, 11:28 am Reply

I went to the crash course and I managed to convince a landlord to get his property for a few years he said yes! Not sure now where to get my management agreement contract… excited but a bit overwhelmed.. any one out here who can help?

Jim Taliadoros

Sep 9, 2019, 5:18 pm Reply

Well done to you both. But as a landlord myself I must say I don't get it. You say you guarantee rent for the period but you have no equity so for me that guarantee is high risk. I do straight let's but if I was going to go down HMO I'd use a management company and let them keep their cut before keeping the rest for myself. Hats off to you for pulling it off though


Oct 10, 2019, 11:26 am Reply

HMO is for students?

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