Hey guys and welcome back.
Today we are going to be looking at how to stack up potential Rent to Rent deals
If you’re new to my blogs, I’m James Bennett, The Property Coach and it’s my mission to bring you up to scratch on all things property investing
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So back to today
We are going to be looking at what to do in order to stack up rent to rent deals and how we go about doing it
So, after all the training is complete and you are legally set up with all the correct contracts, the next step is to start looking up deals and get to the exciting part
One of the best places to start when looking for deals is on the internet
Just log on and head on over to Rightmove, this will be where you find most of the deals available but not always the easiest to secure, I will talk a little more about this shortly
So, once you have logged on to Rightmove, what we do next is to look for property to rent today and we will be looking for rent to HMO property
I will do a separate video for survived accommodation but a lot of the steps are quite similar to what we will be talking about today
Once you have logged on you need to search for 5 bed plus properties to rent within a 50-mile radius
of where you are currently living
In my last video https://www.youtube.com/watch?v=8yLqd-c8wAY&t=21s I showed you how to locate goldmine areas so refer to that on how to find the right area
Once you are in the selected goldmine area you will need to change your view from map view to list view of the properties in the area and you will then need to refine the list to the lowest price first
You now want to start by scrolling down the list to start looking for and locating keywords within the description of the properties
So just click on the ad of the house that you are interested in then in the description there are going to be keywords that we need to look out for that will indicate to us that we are actually looking at an HMO
These keywords include words like
Student property
House Shares
All bills included
Available for the academic year
HMO
Suitable for a house share
When you locate some of these words within the description of the property you will then want to start looking through the pictures and get a feel for the property
You will need to be looking out for things like the condition of the bathrooms and the kitchen and the overall presentation of the property
We are doing this because we are looking at how much the property will cost us to bring it up to a nice standard and once we have estimated this, then you want to start looking at how much the property is up to rent for
These are all key figures that are needed when you are starting to stack deals and you need to be able to locate them
DON’T WORRY!
We are showing you exactly how to locate all the figures you need to stack a deal correctly
So, now we have the rental amount and a rough idea of uplift costs
The next figures we are going to need is how much the rent we can charge per room and how much it will cost to run the property
ie- void periods, maintenance, and the bills on the property
So the main cost is the rent and now we will do an example for you guys to show you exactly what we mean
Rent £1000, Bills £400, Cleaners£25, Void and maintenance £200, Total cost £1625
We have 5 good double size lettable rooms that we can charge £550 per room for so the property will generate (if all rooms are full) a total of £2750
So, minus the cost of the monthly costs of running the property and bills, etc which was £1625 it will then leave us with a monthly profit of £1125
This is how we start stacking up deals
We also need to work out how long it will take us to get out our invested money that we put into the deal in the first place
So, most 5 beds require £5000 and if we are making a monthly profit of £1125 it is safe to say within 5 months of running this property you will have got all your money back out of the deal
This is just one of the methods that we use to stack up Rent to Rent deals and we have all the software and charts to give us a much clearer and precise way of stacking deals that we offer to all our students during your mentorship training
I am going to be doing a second blog on how to source Rent to Rent deals without using the traditional method
This method will be going directly to the vendor
This is a bit more tricky than the stacking deals on Rightmove as we need to do a bit of detective work but going directly to vendor has a much higher success rate than using agents and if I was to start all over again then this would be the method I would focus a lot more of my attention on
Please drop your comments below
Thanks for reading guys
I’ve been James Bennett
The Property Coach
Hope you all have a great day
So how do you get started?
To start your new journey in Rent to Rent simply take action
Immerse yourself in the subject by reading then find yourself a suitable mentor who can clearly guide you through the whole process from setting up your company right through to settling in your new tenants
You can easily get bogged down with too much free information and not know what to do with it and end up doing nothing at all
This is called analysis paralysis
So, if you are serious about getting started in Rent to Rent or just want a friendly chat to find out more then please book a FREE strategy callhttps://www.jamesbennett.uk/product-page/strategy-call today and we would be more than happy to assist you moving forward with your property venture
