What is Rent to Rent?

Rent to Rent is simple enough to explain as it is a very simple strategy. You simply rent a property yourself and then rent it out room by room to other tenants. Renting a property that you do not own and renting it out room by room.

Landlords love it because you give them long term security of tenancy and you look after the property and take care of the smaller maintenance jobs yourself.

You carry out a small refurb with the landlord’s financial help and approval and find tenants to live in the property who pay you rent.

Profit is the difference between the rent you pay to the owner and the rent you get paid by your tenants minus your costs which may include utilities, broadband, council tax etc.

You need to find a Landlord who is happy to rent their property to you with the knowledge that you will be subletting to other tenants. They will need to be fully insured and, if they have a mortgage, they must inform their lender of the change in status.

NEVER sublet a property without the landlords consent and NEVER sublet a property until you have all the insurance and lender’s consent in writing via the landlord. This will make sure that all the hard work you do does not go to waste and most importantly you don’t mess your tenants around.

It also one of the quickest ways you can make a passive income with little capital of your own. You take control of a property and transform it into multiple rooms that you let by the room.

We tend to rent out to professional or blue collar workers from companies we have relationships with and who use us on a regular basis. You can also rent out to LHA and other various tenant types – it all depends on your area and what you tenant type you are prepared to work with. Some are harder than others and some are more profitable than others.

Our ROI or return on investment time frame is always targeted at 3 months. In other words we like to get our money back that we put in to set the property up including deposit, furniture and any light refurb in this short period. We don’t always have to furnish a property and we also rarely pay deposits.

Beyond that, the rest is pure profit.

Are you ready to start earning a residual income?

Then book your space today on our one day intensive content rich Rent to Rent mastermind. You will get the following;

Full manual printed and presented to you on the day to take away and use as a reference with electronic updates for 12 months.

You also get the full one day course as mentioned and tons of tips on the day along with a fully scripted live role play with agents.

We also provide you with all the contracts and documents you will need with letters to agents and landlords included.

Click here for more information ….. You will be surprised at how much less you will pay than expected for such a course.

Ashley Banfield

Recently whilst viewing various properties we came across a property that needed zero work and had the most amazing gardens you could imagine. All cared for by a lady who showed us her beloved well maintained garden. The house was also immaculate and carefully prepared for our visit on the day.

We sat down and had a cup of tea with freshly homemade cake and listened to the lady tell us about how she was born in the very house she was trying to sell. How her father had built the property himself with a builder friend before she was born and she was reluctant to sell to just anyone given all the memories.

This is all very well but we were only interested in buying the property to knock down and build 6 new homes. Like all good property investors we were looking at the numbers and had little emotion until we met the lady.

Unlike the lady who cherished every inch of the property we were trying hard to work out a way of telling her we didn’t really care too much about the state of the property without actually saying that. Should we walk away and simply tell the agent that it wasn’t for us? Should we avoid telling her the truth to make her feel better? How do you tell a lady with her memories that you will knock down her house once planning was approved?

We listened for a little more and then I decided to ask her a question. I asked her if the agents had mentioned that we are investors and that we would not actually live in the property.

To my absolute surprise she said, ‘Oh yes, they told me you are investors and that you would only buy the property if the deal was right and the numbers were right’. She then said, ‘I just wanted to make sure you stayed here long enough to have a good look, that’s why I made you a cake and a cuppa and spent all this time with you, all the others came in and left within 10 minutes’.

Cheeky lady – she was just trying to sell us her home. The emotions are real and the facts are true and we spent almost an hour with her.

We then went on to explain that we could only agree to buying the property if she would agree to delaying completion so we could go and get planning approval. We would need around 12 months on this particular deal to cover any possible appeal process.

The lady asked many questions about how this would work, how it would affect her and after a good hour we were agreed. She was thankful she could spend the next few months saying goodbye to her beloved home for so many years and said she was happy in a way because she knew she would be the last to live there in the house her father built.

It’s important to explain from the outset what you do and why you are looking at the property. If you confuse the vendors, agents or solicitors in any way at all they will out up the blockers and go down the traditional route of simply exchanging contracts and completing in the next 4-6 weeks.

You will not always get the deal you want because what we do is not for everyone but if you want a deal that you have spent a lot of time looking for then you need to be fully equipped with the right information.  

There is always a story in each and every deal and each one is unique – find out the story and you can then work out the best strategy to use. Don’t just go feet first with a strategy that may not fit the property or the needs of the vendor.

I speak to a lot of our students through each week and these challenges come up a lot. Coaching them in what to say increases the chances of success.

To find out what they know and what they learn from our courses why not come and spend a day with us for free.

Go to this link and sign up for the free reports and the full one day new investor course. http://www.glennarmstrong.com/new-investors/

I look forward to seeing you soon

Ashley Banfield

Dealing with estate agents on a daily basis gives you an insight into a new way of thinking. Estate agents come in all sorts of disguises and can change in an instant if you don’t know how to deal with them nor should I say the words that they speak.

Being sophisticated investors is not always an easy way to make money – yes you will make a lot of money when you find the right deals and when you have an few estate agents that know how to sell your strategies to the vendors.

I have a lot of experience dealing with estate agents and many will actually try to convince the vendor that your offer is not what they want to move forwards with. Solicitors who don’t understand what you do will also try to convince the vendor that this is ‘risky’.

Why?

Because you have not explained well enough what you are trying to achieve with your offer. If the agents or solicitors don’t understand what you do then they will anti sell YOU and YOUR offer.

Example

When you go forwards with a delayed completion offer because you need to lock out the property in order to carry out works or to get planning or for any other reason many agents don’t even know or have never even heard of this. Wow! You may say.

Then you hit another agent with an ‘option’ strategy for similar reasons to those mentioned above and again they will not know what you are talking about.

In defence of the agents and solicitors out there it is your job to educate them from the start and to demonstrate that you are in fact a sophisticated investor. You must understand all factors of property investing if you are going to deal with advanced strategies so you can explain this in as few words as possible to help them understand this.

Direct deals with vendors will be even harder as you are the agent here and you need to educate the vendor and help them understand how you wish to buy.

If you want to go down the traditional route of investing and save up a load of money, buy a house and then save up again this will take a long time to get to your goals. Yes you can do it this way and after a while things start to compound. You will start to gain equity in your properties, re-finance and release money and buy more houses so the need to save becomes less.

Using the advanced strategies that we teach and practise on a daily basis will catapult you to achieving your income goals much more quickly.

Start out by attending my one day new investor day - which is free of charge – and learn how to articulate these advanced strategies so you too can start making the money you deserve.

Please go to this link and check out the next date that suits you and sign up for the free reports. http://www.glennarmstrong.com/new-investors/

I look forward to seeing you soon

Ashley Banfield