Liam provides a step-by-step guide to UK real estate investing for beginners, beginning with the Property Freedom Formula, a seven-step process that guarantees results for both beginner and seasoned property investors.
The episode covers the importance of mindset and how to cultivate a winning mindset for success in property investing. It also delves into funding options, emphasising the use of other people’s money (OPM) to accelerate portfolio growth.
KEY TAKEAWAYS
- Property investing is simple when you understand the laws and follow a system.
- Mindset is essential for success in property investing. Belief and working on personal growth are important aspects of mindset.
- Funding can be obtained through OPM (Other People’s Money), such as joint ventures or private funders.
- Site finding is crucial, and it is important to focus on primary and secondary strategies and build relationships with agents to find deals.
- The Property Freedom Formula, consisting of seven steps (mindset, funding, site finding, appraisal, planning, construction, and exit), can guide beginners in UK real estate investing.
BEST MOMENTS
“You can do the same, even if you’re a complete beginner.”
“Property investing is actually very simple when you understand the laws of property investing.”
“It is absolutely essential when becoming a property investor or looking to scale a portfolio that you use systems and processes that will help you go and get the guaranteed results.”
“The most important thing is to make sure it is a win-win.”
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.
Today, I’ve done over 28 million pounds worth of property deals raised 9 million pounds of joint venture funding, you can do the same, even if you’re a complete beginner. Welcome to Liam Jay Ryan the dealmaker podcast. And in today’s episode, we are going to be looking at UK real estate investing for beginners. And a step by step guide. Property Investing is actually very simple. When you understand the laws of property investing. Many rookie investors, they try and do it on their own. They don’t follow a system, they watch a whole bunch of free content, they don’t have the right guidance, and they make mistakes fast, which can be very costly. It is absolutely essential when becoming a property investor, or looking to scale a portfolio that you use systems and processes that will help you go and get the guaranteed results.
How do you do this? Well, the step by step process that I have used is called the property freedom formula. I have done many hours of research. This has been tried and tested for many, many, many years. And this is a seven step guaranteed process for beginner property investors on how to get started. And if you’re a seasoned property investor, then perfect because this is really going to show you how to scale. The seven steps are the following step one is mindset. Step two is funding. Step three is site finding. Step four is appraisal. Step five is planning. Step six is construction. And Step seven is the exits. Now, when you follow the seven steps, you will know exactly how to find fund Phil flip amazing property deals. This will enable you over the next 369 1218 months to go and build a diverse property portfolio of different strategies.
So let’s take a look. Step number one is mindset. And it’s all about having a winning mindset. The belief comes before the strategy, if you think you can or if you think you can’t, you’re probably right. And many people, they don’t work on their mindset. They feel that they can do it on their own. They lack belief, they listen to the monkey on the shoulder. They are influenced by outside sources, family, friends, society, what’s going on in the world, interest rates, war, inflation, they listen to the news, and they stop believing in themselves look, a professional property investor, we understand that we need to be working on mindset all of the time, becoming a better version of yourself and really understanding that it doesn’t matter who you are or where you’re from, or what your situation is, you can become a professional property investor. So how do you work on your mindset? Well, there’s loads of great things that you can do. Have you heard you, you are what you eat. When you eat? Well, you will have a better mindset you can do exercise will give you a better mindset. Hang out with different people. Stop listening to negativity, understand, the more you learn, the more you earn, and really be open to go on a new direction, a new path, because you are literally just one, two or three property deals away from experiencing a different life. Mindset is a daily activity that I truly believe we need to be working on. This is how people become top 1% performance. I’m pretty confident there will be some changes that you need to make. You got to get comfortable being uncomfortable, and you have to do things initially where you may feel you’re climbing Mount Every things are going to be a bit tough. But what is on the other side? Is you becoming a better version of yourself, where you become unstoppable. And you know that it doesn’t matter what’s going on, you are going to get the results. So for me, mindset is absolutely essential in this process. Step two, funding. Many people get this wrong. The old traditional way of doing property investing is work hard, save lots of money for a small deposit, work even more, I was getting a job get a third job get a fourth job, multiple businesses. And I’m not saying you can’t do that. But what I’m saying is that a slow, it is a lot of hard work. Yes, you will build a property portfolio by working many extra hours and saving for your deposit pots, which is normally 25% of the purchase price. The new way, the faster way is via Oh, PM, other people’s money. Now, even if you’re a complete beginner, you probably are thinking that no one is going to give you the cash. How come you’re investable? Where do I find these investors? What do I say to these investors and these are exactly the things that I said to myself eight years ago, when I came back into the property space, my first time in property, I used all my own money, I made bad decisions, I lost money, I relied on other people, this time round, I had no money of my own.
The only way for many people tuning into this that you can do this is via OPM other people’s money. And it doesn’t actually take that long for you to become investable, you’re going to set up your business, you’re going to decide on your strategy, you’re going to have your business cards, you’re going to start building relationships with agents, you can understand how to analyze the deal, you are going to be walking and talking like a professional property investor. Now, of course, you’ve got to go through the transition. Once upon a time, maybe you didn’t know how to ride a bike or drive a car, you got lessons, and now you pass your test or you can ride a bike. Everything we do in life at some point, we didn’t know how to do this. So if you are tuning into this now, and you are needing to use other people’s money, there’s more money out there than ever before, there is a process called the No Money Down blueprint. And I will cover this in one of my other episodes. But this is a process that you can follow. So you literally will have a queue of investors lining up at your door, you will be in a position relatively soon, where you have more money than you know what to do with. So you can do no money down deals. Now what’s important when it comes to funding is that you’ve got funding from say the bank. So you can go in leverage cheap money, you can use the bank’s money, you can go and get bridging, you can use crowdfunding platforms, you can get auction finance, you can get mortgages from the bank, you can get development funding. So in many cases, you can get a large percentage of the money needed for a deal.
Typically 75, if not 80%, from a bank or institution at relatively low interest, and then the equity piece that’s required, there’s skin in the game. This could come from one of your private funders, where you could do some type of joint venture, you can set up a company together, what’s called a special purpose vehicle. They’re a shareholder, you’re a shareholder, you’re both directors, they can be putting a director loan into that business. And then you go and get the funding with the relevant funding party. So you both have skin in the game. You are working as a partnership. And that is a great way in which you can build a property portfolio. They put in the money, you do the work, and then you can share the profits 5050 Hey, doesn’t always have to be 5050 You may do 6040 in your favor, 7030 in your favor. The most important thing is to make sure it is a win win. Now when you’re doing that type of setup that would be called a portfolio builder setup. You can do the buy to sell setup. The investor puts in the money. You do all the work, you go and buy dirty, horrible, smelly, disgusting houses. If you bring them back to life, you do a great refurb you flip the property on you sell it. And let’s say you make 80,000 pound profit, you could then split that 40,000 for them 40,000 For you. Or you could use the savings accelerator. This is where an investor will lend you money at a fixed rate of return for a certain time period, you then use that money to go and buy houses for cash. You then buy refurbish, refinance, or buy, refurbish and then sell, you pay back the investor and then you keep 100% ownership or 100%. We actually did that for one of our latest deals in Burgo road culture style, where we borrowed 150,000 pounds from investors, we paid them 6% interest, we bought the property for cash, we got it below market value, we bought it we refurbed it we refinance, the property value was around 350,000 pounds, we got a 75% loan to value mortgage on the refinance. And then we paid back the investor, they got a great return. We then own that property in our special purpose vehicle. Why is someone going to invest in you? Well, because you have time you have energy, you have confidence, people are going to get to know like and trust you and look, where can you find the investors? Hey, investors are in your phonebook. They’re people you work with. They’re on social media, their friends, family members, they’re at networking events at the moment, you just don’t have products and services, and you have no idea on how to put yourself in front of an investor to build that credibility. But once you go on the journey, once you start walking, you will talk like an investor, you will feel like an investor, you will work on your pitch. And you’ll know exactly what to say and how to say it.
So just remember, YOU ARE investable, there is more money in the world than ever before, it’s easier to access. And this is one of the fastest smartest ways in which you can scale, any portfolio, any strategy at any time, anywhere in the UK. Let’s now move on to step three. I hope this is making sense for you. Step three is all about site finding. And within Site finding, we have something called the matrix. The matrix are the U K’s hottest property strategies. And at the lower levels of the matrix, we have things like deal packaging, rent to rent serviced accommodation, or HMOs minimum cash in maximum profit out, you can get started on these properties with no experience using other people’s money. You don’t have to go and buy property, it’s creative finance, creative property deals. And then you can move through the levels, lease options, owning property flipping property, then you’ve got things like commercial conversions, land development deals. Look, there are many, many property strategies, which will make you a hell of a lot of money. But I wouldn’t recommend doing all of them at once focus on your primary strategy. And I would be investing around 80% of your spare time into getting that first or next they were up and running. And then 20% of your time can be spent on your secondary strategy, which might be doing larger deals. So let’s say you put 10 hours a week aside a few hours in the evening, little bit of time on a Saturday or a Sunday 10 hours is very easy to find. And let’s say you’re looking for cash flow, you want to replace your income. Maybe money is not too good for you right now. Something like rent to rent serviced, accommodation could be a great starting point. You don’t have to own a property. You control a property with the right legal framework, you are then renting it out by the nights as a guest you’re using things like Airbnb booking.com, one of the fastest growing property strategies in the UK. That could be your 80% however, you might have you might like the idea of doing your first land development. So you could use that as your 20% go and secure your first piece of land. And these land deals will typically make you even on a small deal where you’re just building two or three or four houses. You could typically be making 250,000 300,000 pound profit even on your first deal, even if you’ve never built houses, why? Because there’s a whole team and I’ll be, I’ll be sharing more about that as we go through this process. So if we have a look at what we’ve covered so far, we’ve looked at the first three key elements. Mindset is absolutely essential, because without it, you’re never gonna get anywhere, even if you’re someone that’s relatively successful. Now, property is a different game, you’re coming into a different world, there’s different rules in property. And this is why it’s important to have the right mindset, we’ve looked at funding. And the fact that you can do this using none of your own money. Of course, you’ve got to build relationships. 70% of your time should be spent on building new great relationships. And then you’ve got site finding. And that’s really honing in on your primary and secondary strategy. And then doing nothing else, other than getting completely obsessed with building relationships with agents. So you can get deals from the agents. You can get deals in Facebook groups, you can do direct to vendor deals, you can go to auctions, there’s many different online platforms where you can find deals, you can do billboards, you can do letter drops, you can get to networking events, there are deals everywhere. And certainly, interest rates have gone up 14 times since 2021. People are really finding it difficult. There are more motivated sellers and landlords right now than we’ve seen for many, many, many years. So right now is that golden opportunity.
I really hope this has given you some insights and some inspiration as to how you can become a professional property investor. And you can start making 15,000 pounds per year per property. 250,000 pounds with something like a land deal or commercial conversions. If I can do it, you can do it too. And in part two, in part two, I’m going to introduce you to the other four key elements. We’re going to be looking at appraisal, we’re going to look at planning, construction and the exit so you can maximize your rate of return. And you can be making life changing income very, very quickly. 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 to make massive profit so you can live the life of your dreams.
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