How Much Money Do I Need to Start Out in Rent to Rent HMO? #R2Rshortandsweet #17

Thinking of starting in rent to rent?
Find out here how much you need to kick start your dreams…

Hello, hello, hello - I'm back with another great question in our short and sweet series, so let’s get straight into it!

Georgia asked this question in our Rent to Rent Success Facebook group…

“In terms of starting capital, I’m a bit tight. What would you recommend starting out with? I have about £2,000 - is that enough to start?”

That is a great question Georgia and you can find a previous video on our YouTube channel about the set-up costs and how they are broken down (link below):

How much does it really cost to set up your rent to rent business?

The video above will cover more detail on the set-up costs, but we worked out you’d need around £572 but you can do it for a lot less.

You can actually set up your business for less because we worked out that you can do a lot of these things yourself and lots of our Kickstarters do - this includes all the insurances, the compliance and everything else that needs doing. So, check out the video above.

How much does it cost? Is £2,000 enough to set up your business?

We are so lucky because the rent to rent business is a business that you could set up with relatively little capital. And actually, the cashflow and the profitability of it is really good too.

With many businesses you don't expect to make any profit within the first year, but with rent to rent you can - it's an amazing opportunity.

So, the short answer is yes, but let me go back a step and say it's not a no money down strategy. You do need a bit of money to start up.

You will need £572 to get your business all set up, and then you're going to need a little more for any refurbishments, to pay your first month's rent and deposit.

But I encourage you to do it because many of us think about money as income, it’s my salary and that's it - I'm a spending machine, but I'm not an income generating machine.

A few years ago, the switch flicked in my head where I thought, “Oh my goodness, I have the capacity to be able to make more money by adding more value”.

We all know people who have much better jobs or who've started businesses from making money from selling things on gumtree or eBay.

We all know somebody who has created more money in their life by delivering more value. And we all have the capacity to do that.

All of us who live in the rich countries of the world could easily generate more income than we currently do.

Think about it like this…

If you needed £2,000 this month for an important operation for your mum or a family member or friend - you would find that money.

You would generate that income whatever way you had to - maybe by selling things, taking a loan, or start giving guitar lessons.

The point is, there are so many ways that we can do it because of the many resources around us.

We need to see how we can become more resourceful to get some of those resources for ourselves to develop and grow our dreams.

So yes, £2,000 is enough to start and it means that you can get your business set up compliantly.

You can take on properties that don't need a lot of refurbishment. You can be creative, you can be resourceful and if you do need more funds later on, then you can think about ways that you can get those funds.

Or if opportunities come to you and they need a bigger refurbishment than your budget allows, then you can always sell those deals on to make extra money.

You can become better at negotiating with the owners so that they pay for the refurbishments of their properties.

And so, there are always ways to do things when you put yourself in the game and save up the money to get started to achieve your dreams.

Now, if you want to get started and see what the fuss is all about then click the link below and if you haven’t done so already, you can try the free online training to get a taster of what’s to come.

I hope that has answered your question Georgia and encouraged people to get started and achieve their dreams to a better and rewarding future.

Wishing you all the best of luck,

Stephanie & Nicky

xx

If you want to get started in Rent 2 Rent and take your first step to financial freedom but you're not sure where to start, you're in the right place!

Get Started with our Free Online Training
CLICK HERE for the 5 Secrets to Rent 2 Rent Success

Want to fast-track your success?
Find out more about our Kickstarter Coaching Programme and work with us.
CLICK HERE to book a call with Stephanie

Questions?
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