Liam is here to discuss the journey of Ola, a graduate who has successfully built a portfolio of 14 high cash flowing properties, making a profit of £140,000 per year. They emphasise the importance of proper training and support in business, as well as building relationships with agents and landlords.
They also discuss the concept of staging a property to attract the best bookings and prices.
KEY TAKEAWAYS
- Rent to rent is a property strategy where you rent a property from a landlord and then re-rent it out on a night by night basis.
- Staging a property is important to attract the best bookings and get the best price. Basic amenities such as furniture, appliances, and a comfortable living space are essential.
- Building relationships with agents and landlords is crucial in securing deals. By maintaining good relationships, you can continue to receive more opportunities.
- Training and mentorship are key to success in the rent to rent business. Learning from experienced individuals and continuously seeking guidance can help avoid costly mistakes.
- Service accommodation can be a profitable business, with the potential to generate significant income. By scaling the business and systemizing operations, it is possible to achieve a high level of profitability while working fewer hours.
BEST MOMENTS
“So how do you go from zero to 14 high cash flowing properties making 140,000 pounds a year profit?”
“Rent to rent is simply taking on a property via an agent, landlord or developer, renting it from them and then re-renting it legally on a night by night basis.”
“Training is important. That’s number one. And then just listen to those that have been in the industry for this long.”
“You’ve got to make sure it’s in the right location, you’re renting it at the right price.”
“There is not another property strategy out there where you can get results as quickly with the least amount of money, and for me, scale extremely quickly as well.”
FULL TRANSCRIPT
If you’re listening to the dealmaker podcast, hosted by multimillionaire property investor, entrepreneur, and Guinness World Record holder, Liam Ryan, discover how to start scale and grow your business become a better negotiator create more opportunity and make massive profit so you can live the life of your dreams.
So how do you go from zero to 14 high cash flowing properties making 140,000 pounds a year profit? Well, that’s exactly what we’re going to be talking about. Today. I am joined today with my amazing business partner Ross Malou, known as aka the agent whisperer, he has sourced over 3000 rent to rent deals in his 15 year career. And we are sitting with our good man, our good friend, Allah, who is one of our graduates, who has recently just picked up keys to deal number 14. Allah, welcome in. We are actually sitting in one of your units right now. How many bedrooms? Is this particular apartment?
Is it a two bedroom ground? floor flat? So, it’s two bedrooms? Who did you rent it from?
From national legend agent? A national letting agent? How much do you pay per month to the landlord?
900 pounds
900 pounds? You’re renting this out to who?
Mostly doctors and nurses because it’s very close to the hospital.
Right? So close to the hospital to you have a contract with them? What are you renting out for a night?
It’s between 130 to 170. Right?
what’s your net profit after all costs, net profit minimum of 1000 pounds per month? 1000
pounds?
So this unit is 12,000 pounds per year. Am I right in saying that you didn’t buy the asset? No, you haven’t actually raised hundreds of 1000s of pounds. So you have not got a mortgage on the property. So what have you done? just rent it. So you have just rented it from a landlord and then re rented it out on a night by night basis where you can also use things like Airbnb booking.com. Ross, people tuning in, there is a misconception about rent to rent. Can you tell us once and for all? Exactly what rent to rent is? Yeah,
by all means. So it’s simply taken on a property via an agent, landlord or developer, renting it from them and then re renting it legally on a night by night basis.
As simple as simple as that. Right. And it’s 100%, legal 100%,
legal 100% aboveboard? You know, we’re part of red tree buddies. You know, I want to vote the last 15 years in this business if it wasn’t aboveboard, legal, so yeah, it’s quite simple. Once you know how.
So look, once you take control of a property, you can then re rent it out. And what a lot of people used to do the old way was renting it out via HMO. So that’s a house in multiple occupancy, lots of red tape, a lot of fire regulations. Now you’ve probably got to get a license or go and get planning permission. But the new way the faster way is through what through serviced accommodation, okay, serviced accommodation, Allah, in your opinion, what is serviced accommodation, so stuck in motion. So when you take control of the property, you pay the landlord’s or less an agent monthly rent? And then you rent the property out on a day by day basis?
Excellent. Excellent. So look, you’ve got 14 of these now in the portfolio. This one’s making you 12,000 pounds a year, what would you say? Are some of the really important things to consider when starting this strategy? So if you could share some top tips, take yourself back to when you started? What were some of those things that you learn across those first few weeks and months through the process?
The main thing when you starting out is to get the right training and the right supports, because without the right training, I wouldn’t be here. Right now, there were a lot of properties, I had to say know what to vie my mentor and looking back at those properties. Now, I knew I would have made a terrible mistake taking on those units. So training is important. That’s number one. And then just listen to those been in industry for this long. You listen to them learn from their mistakes. That’s why you need a continuous support from you. Excellent.
So get get the right training, be in the right community. And really what’s what are some of the first steps that we have to take in order to become what we call a relocation agent, either rent to rent or owning those things. What are some of those initial things at work that people need to do to look like any business you have to put your foundations in place for it to last the test of time it needs to have foundations. So one of the key elements initially is putting all the building blocks to run the business successfully moving forward. So I think that is one of the key mistakes a lot of people make, try cutting corners try not having to do because they don’t believe they need to. For me, it’s essential that those foundations in place from the get go, because it propels you move. Great.
And let’s share those foundations. Now. There’s really a nine slash possibly 10 Step Process Right? to becoming a relocation agent launching your business getting it out there. What are those steps? Ross? Yeah, by all means. So firstly, you need to register your business, great companies house, you need to obviously make sure you’ve got a bank account in place to take payment and to pay out landlords, agents, developers, you need to make sure that you aren’t sure do you want to be protected at all points, professional indemnity public liability, you want to associate yourself with bodies, for example, like the Property Ombudsman, ARP, which is obviously an optional sort of credibility tool that we use, you need to make sure you’ve got your website in place, you need your logos, your business cards, and Oh 800 number to portray that credibility to the mass market. These are some of the key things that you need to have in place to start and scale and you’ve got to be professional throughout. And this is exactly what you did. You went through this step by step process, you launched yourself out to the marketplace. And you got your first deal relatively quickly. Right. The first deal that you ever got, where was that deal?
Oh, that was in coaches that actually was just down the road, okay, to the university. Yeah, that was my first and how did you get that deal? Again, through the same agent, I got this day off after the on patch we carried on building relationships with agents. And that’s, that’s really interesting that you got the first deal from an agent that agents now giving you other deals, how many deals has that agent given you?
Where we’ve taken eight deals from that agent? They’ve brought more than a third case, and why didn’t you do those other deals just wasn’t the right time, the right time. And some of them were just not the right properties totaling about five bed house, that’s, again, sometimes the rent may be too high, because some landlords get to be asking for more money.
When do you know you want to do with it? Okay, so yes, so many other reasons. And again, location is key is knowing the right location. Yeah, so you’ve all made sure it’s in the right location, you’re renting it at the right price. But it’s great to hear that one agent, you’ve secured eight deals from them, you don’t actually need to be working with that many agents or that many landlords, right? Because most landlords have got three or four properties, you build great relationships. So when you picked up the keys for that first ever deal, how did that make you feel? A little bit apprehensive, a little bit unsure? Is this going to work or not? But now you know, with the right support? I actually love questions, God, God, the guidance, where to get things on how to get in set up. And then yeah, as soon as we did the pictures, we put the property online on Sunday, or Monday, we got off his booking for 3320.
Wow, that must have been a huge confidence booster. And really is like, Oh, my goodness, this is working now because you were completely brand new. You didn’t put some money in the bank, you’d invested in high level mentoring with us. This had to work because you know you was in a situation. Your four kids, your lovely wife, you had your franchise you were working many, many hours. So that just must have meant everything to you when you got the first deal.
My next question is how many more?
How quickly did the second deal come off? The bear is relatively quickly. Yeah, it was I was hungry for more. Okay, I was like, wow, this really works. So if I can multiplied by five by 10 that can just cover up my incomes. Yeah, I was out there.
Great. Okay, let’s talk about now staging a property. You know, we’re in your property. Now, this is a nice property. It’s pretty basic, but it’s very, very appealing. You’ve got nice fixtures and fittings, you’ve got a nice sofa, you’ve got all the Kitching. When we when we talk about staging a property, what would you say is really important, so you get the best bookings and you get the best price. We’re staging
it from my experience is just the basic things you need to get during the staging process, a dining table and chairs for the amount of people sofa, the beds you need to get zipper link bed, that’s very important. TV, get the basic amenities you gain houses like microwave, toaster, care to fridge, washing machine, and then depending on your market. In my case, I focus on contractors so I just keep it as simple as possible for them and keep the rates reasonable. Be fair for them as well. All right, good profit.
So minimum costing maximum profit out basic, but to a good level, just so we’re clear Ross, there’s different types of markets that the serviced accommodation units can go out to all is just mentioned contracts is what is contractors mean for anyone that doesn’t understand yet by
all means it’s quite a generic term. And people do get confused with this term. But it’s basically in a nutshell, anybody who’s working away from home, we cater them while they’re working away from home. So quite simply, it could be coming in for three days, it could be coming in for three months, it could be coming for three years, we provide accommodation, a home from home while they’re here for work,
excellent by charging a nightly rate. So there’s no HST there’s no contracts, like if they play up, you just walk call the police, right and they got no tenant rights, it’s just you’ve got to look at it like this.
So if you don’t leave the Hilton Hotel for you, who’s going to tip you out there, they have not got security at tenure, this is a temporary basis, you’ve got a Terms and Conditions signed. And as long as they did to your terms and conditions, it’s a fantastic relationship. If not, out, they go and move on to the next Wow.
And what’s brilliant, you can do this owning property, you have your own money or other people’s money, or you can come and do rent to rent, where you take control of a property and then you re rent it out. I think this is an incredible, incredible property strategy that anyone can do. Allah, what is next in your journey, my journey, we want to start owning the assets. That’s key for us because rental rent is fantastic, but also be good to put the money into owning some assets. And then we annex companies sourcing clients, for SEO operators, where we can get commission off them and supply them long term contractors in the India apartments.
Excellent. And I’m just the sort of wrap up what would be any last minute tips that you would give to our great viewers, I would view as I’m going to tell them like training is key. There a lot of trainers out there. But I know of the trainers I’ve worked with and they’ve changed my life. It is really really key training, mentorship, continuous support. And continuous guidance is important in this business. I
think you’ve done amazingly well. And this is just a start. This is a proper business, isn’t it? Ross? This has been around for many, many, many, many years. One property, you could be making around 15,000 pounds per year per property. And I always say this, how many of them do you need to live a better life to go from bad debt to good debt, to provide for your family to get out of the rat race, things are getting tough out there, right? People are losing their jobs, businesses are going under, wages are going down the cost of living is going up inflation, interest rates, we can’t control any of that. But we can control the fact that income follows assets. So focus on the assets that you own or control and your life can become a lot better. Ross last few words from yourself. Any Top Tips people getting into this, what should they really be considering?
For me, there is not another property strategy out there where you can get results as quickly with the least amount of money for me scale extremely quickly as well. So for me, it’s about understanding the basic aspects of the business, bringing in other people to help you grow the business. So then you can take yourself out the frontline. I’m sure nobody wants to trade one job for another job within service accommodation. I’d never want anybody to do that. Naturally need to get your hands dirty on the first couple of units. And then for me, it’s about Systemising your business. So it literally works on autopilot.
So Allah, you’ve got 14 units, how much are you making? approximately per year net net profit
will make him between 120. Wow, between 120 Wow, that is that’s more than what brain surgeons get? Yeah. In many, many cases, you know, top professionals. And how many hours a week? Are you working on the business?
Put in about 10 hours a week, man, this guy’s having a joke. Yeah. 10 hours a week. I need to I need to get a new business. I was gonna work really hard.
You know what, this has been a fantastic, fantastic session with two amazing individuals. Just to give you some more top tips. Understand your local area. Understand your avatar, set your business up, focus on building relationships, and run it and treat it like a business so it will pay you like a business. If we can do it. You can do it.
You’re listening to the dealmaker podcast, hosted by multimillionaire property investor. A entrepreneur and Guinness World Record holder Liam Ryan, discover how to start scale and grow your business become a better negotiator create more opportunity and to make massive profit so you can live the life of your dreams or dreams.
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