Should I do rent to rent or should I buy properties?
Hello, hello, hello and welcome aboard episode 43 of the Rent to Rent Success Podcast and today we’re talking about buying property.
It’s part of our mythbuster series, busting common myths about rent to rent.
Some people are put off rent to rent because it’s a cashflow business and although you don’t need a lot of money to start, you don’t own the assets either.
So, you don’t get the capital appreciation that happens when your property goes up in value.
And if you’re wrestling with this dilemma, you'll love this episode!
Before I start today I want to thank you for all your reviews on apple and spotify, and I want to share what Sarah said.
Sarah said:
“Insightful & inspirational
Stephanie’s message is clear from the start. With great rent to rent advice, tips, tricks & information provided. Such value and inspiration by a successful leading lady. Great listen!!”
Sarah thank you.
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Some people are put off doing rent to rent because it’s a cashflow business. That means you make money but you don’t own the properties.
And most of us want to own property too and take advantage of capital appreciation and be able to pass assets on to our children and others who are important to us.
So should you do rent to rent or buy your own properties?
Now I might ruffle a few feathers here.
For all of us who want to build long-term wealth we can pass on to others, buying assets is part of it.
And property is an asset that everyone on the rich list invests in to a greater or lesser extent.
So absolutely, if your goal is long-term wealth then buying property assets can be a part of that.
But for many of us getting started, we don’t have the money in the bank to start out with buying our own properties.
You could raise money to buy properties with other people’s money but not everyone feels ready to do that before they have any experience.
And rent to rent is a fantastic solution for you, if you want experience and cashflow before you begin buying your own properties or raising finance to buy properties.
Not only can rent to rent help you make a great living from properties you don’t own, rent to rent can help you build your own property portfolio using creative strategies like lease options and exchange with delayed completion to buy properties.
This means you can buy properties without having £50k in the bank.
Lease options and exchange with delayed completion are strategies where you buy properties without a mortgage or big deposit up front.
They’re sometimes known as ‘no money down’ strategies because you can secure properties for as little as £1 (instead of needing a big deposit).
The basic principle is that you agree to a price with the owner that you will pay in the future. These can be agreed in many, many ways.
And I go into detail about how these strategies work in episode 3 of this podcast
How to buy property with no money down.
Definitely worth a listen.
So if you can’t afford to buy, why not start with renting right now.
Rent to rent helps you buy property in three ways:
It’s highly likely you’ll get opportunities to buy properties with creative strategies too because some of your landlords will be open to selling their HMOs.
Rent to rent is a great way to build your cashflow faster. So you can invest in my properties
The experience you get in rent to rent will help you secure bank lending and private investment once you have a track record in property with your rent to rent business.
In summary, yes definitely your goal should be to buy property for long-term wealth.
Rent to rent is a great place to start if you don’t have the funds to do that yet.
That's it for this week guys,
If you want more and you want to see our searchable series of videos, podcasts and all things rent to rent come and see us at rent2rentsuccess.com/blog
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Until next time, have a great rest of the week.
And remember,
Believe Bigger, Be Bolder and Be a Gamechanger!
See you soon!
Stephanie & Nicky
xx
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