2 Low Entry Cost Strategies to Start in Properties

 

Hello everyone and welcome to our blog . By creating this blog we will try to help as many of you on your property journey. If you would have any questions please don't hesitate to reach out as we are all in this together.

Worried about where to start ? We've got you , there are a few strategies that don't require a vast amount of money. This are Rent-to-Rent (R2R) and Deal Sourcing.

This is what should you do next:

1) Get educated

Start by immersing yourself in the world of property investment. There are plenty of resources out there, from books to online courses and even free Youtube videos, that cover everything you need to know about the industry, local regulations, and different investment strategies.

2) What are your GOALS ?

What do you want to achieve with your property investment journey? Whether it's building wealth, generating passive income, or achieving financial freedom, setting clear goals will help you stay focused and motivated along the way.

At this point you should take a piece of paper and write specific goals down. Be as accurate as possible.

As an example : I want to get myself 2x R2SA* properties by 20 December 2024 and I will make on average £1200 profit from them.

*R2SA = rent to serviced accommodation

*R2HMO = rent to house of multiple occupation

3) Research you AREA 

Even though R2R works in the majority of places please take the time to explore different areas in the UK. Look for places with strong rental demand, good amenities, and potential for growth. Remember, finding the right location is key to success in property investment.

Normally I would suggest you to stay closer to home (1 - 1.5 hours from your home/office if you want to do R2R) but you can source deals to investors nationwide.

4) Your Network is your Net Worth

Connect with other property investors, find yourself a mentor, and reach out to professionals in the industry.  Go to networking events, check online forums , property groups on WhatsApp and Facebook, and seek advice from experienced investors can provide you their valuable insights, support, and even opportunities may arise from talking to them.

5) Learn Deal Sourcing

Deal sourcing is an effective strategy for getting into property investment. Here's what you need to do:

Research properties and negotiate with sellers to secure deals at discounted prices.

Source deals for other investors and charge a sourcing fee.

Build relationships with estate agents, auction houses, and motivated sellers to uncover opportunities.

Talk to potential investors and see what their criteria is then go out and find them what they are looking for. There are loads of cash rich and time poor people out there.

6) Rent-to-Rent

Rent to Rent is a great low-cost strategy to get started in property investment. Here's how it works:

Find landlords willing to lease their properties to your company.

Negotiate favorable terms with the landlord.

Rent the property out on a room-by-room basis ( this strategy is called Rent-to-HMO*) or rent it out by the night just like hotels do (this strategy is called Rent-to-Serviced Accommodation) .

Make sure to follow regulations and get necessary permissions from landlords and local authorities.

7) Building your team

As you grow, surround yourself with a team of professionals such as solicitors, mortgage brokers, and tradespeople. Going to lots of networking events you will start meeting loads and loads of people , see how they act around you , see how you feel talking to them trust your gut and start taking their contacts.If an opportunity arises and you can use their expertise just call them see if they are willing to help or how soon they would be available for a chat with you. Having a reliable team will make your property journey smoother and more successful.

8) Contracts and legals

Most important thing that you will need especially just starting out is having the right contracts. You CANNOT take on a property and lease it to someone else if you don't sign a Company Lease Agreament or a Property Management Contract. If you sign an AST contract , thats states that you HAVE to move into the property and you cannot rent it out to other people. So please bare this in mind. 

Legislation is another thing that you have to understand but it takes time to learn it. Things like Article 4 Areas and what does it involve or Planning permission or Permitted Development Rights are a few basic rules that you should at least know.

9) Progress not Perfection

Don't wait for the perfect moment – start taking action. Whether it's securing your first R2R deal or sourcing your first property, getting started is the most important step. Remember, every journey starts with a single step.

10) Review and adapt

Be open to learning from your experiences and adapting your strategies along the way. Property investment is a journey, and there will be ups and downs. By staying flexible and open-minded, you'll be able to navigate challenges and seize opportunities as they arise.

By following these steps and embracing low-cost strategies like R2R and deal sourcing, you can start your property journey in the UK with confidence and set yourself up for long-term success in the exciting world of real estate investment.