How to start a rent to rent business with no money

I get asked about this all the time.

And this one is really simple. 

You can’t.
It’s impossible to start a rent to rent business with no money.

I can’t think of a single business you can start with no money. 

But as we talked about in episode 2,

Rent to rent is an incredibly efficient business model

• Little money is required to start up

• You can be profitable within a few months (most businesses are not profitable in the first year)

• You have consistent recurring cashflow (most startups do not have recurring revenue )

• You have the names and addresses of your perfect customers (most businesses have to guess where to find their customers)

And I love the fact that at it’s simplest, you rent a property.

Something thousands of people do every day.
And with just 3 - 5 properties you can replace an average UK salary. 

Check out episode 2 if you missed it - What is rent to rent?

https://rent2rentsuccess.com/2

So can you start a rent to rent business with no money?
No 

But you can start a rent to rent business with little money.
Yes you can.

And the money can be yours, or it can be other people’s. 

I encourage you to raise funds yourself first. 

In this podcast I’m going to give you some ideas to raise funds to get started.

And in next week’s episode we’ll talk about how much money you’ll need to raise.

Here are some ways to raise money if you’re starting from zero or less.

Pay yourself first

An important step is to look at the incoming and outgoing and get your outgoings under your income. 

It’s not sexy.

But it’s necessary.

If you’d like help getting your expenses lower than your income, there are lots of resources online to help you with this.

Martin Lewis Money Saving Expert’s Money Makeover is a Great Place to Start.

CLICK HERE for the Money Makeover

Once you have your spending within your income, it’s very important to start saving however small, you can build up in time. 

This is the beginning of your wealth creation.

Set up a standing order to be paid as soon as your income arrives in your bank account.

Pay yourself first.

This is the money that eventually you’ll use to invest. 

It’s an important habit to start for yourself. Start at £1 if you have to and build it up from there and increase it as you earn more.

Paying yourself first is a state of mind, if you won’t do it now, you’re unlikely to do it even when you have more money. 

A great book to develop this further is Secrets of the Millionaire Mind by T Herv Ecker

Increasing your income

Here are a few ideas to inspire you

If you have a job 

• Put together evidence of how you’ve saved money, time and the business impact you have and ask for a raise.

• Go to your boss with a proposal to add to the bottom line and request for a raise if you hit target.

• If you haven’t been performing above average go to your boss and ask them what they’d really love to see you do to over deliver in your role. Do it.

If you have a business

Brainstorm about how you can offer more value and charge more.

• What would make your product or service exceptional?

  • Could you offer a premium product or service to your range

• Could you put your prices up and serve fewer people and have more time?

• Could you cut expenses (but be cautious about cutting marketing which is bringing you business!)?

Here’s a few that I’ve done, or have worked for people we know.

Could you rent out a room in your home? 

This can be Monday-Friday so you have the place to yourself at the weekends. This way you make cashflow straight away without any additional costs.

Could you sell stuff you no longer use?

When you really dig down most of us have too many things. And we only use 20% of it regularly. Look at your 80% and look at what you can cut down.

Marie Kondo’s book The Life Changing Magic of Tidying is very helpful.

And it has the side benefit that we often feel happier and more productive with fewer things we love than with lots of things we hardly use.

There are so many ways to sell such as Facebook marketplace, gumtree, eBay and lots more.

Start with family and friends

When you’re looking for investment and you need more funds than you have, family and friends are a great place to start because they already know, like and trust you.

The magic words

Do you know anyone who…?… who would like to invest £3k for 2 years and receive 5% interest. 

Now that interest rates are so low more of your family and friends will be looking for safe ways to invest their money. 

You might be surprised who among your family and friends has money you had no idea about. And the person you’re speaking to might be interested too!

You’ll be surprised who comes forward to invest when they know you have an opportunity. We were.

Tell everyone you know

Talking about what you do will bring you more opportunities both for properties to manage and for investment. 

Spend time working on your pitch and it’ll be much easier for you to talk about what you do both when you meet people in person and on social media.

Be bolder. Step out of the shadows and let people know what you do.

Demonstrate that you are investible.

Speak about what’s in it for the other person, the opportunity for them rather than what you want. 

Your resourcefulness in making things work for you will help you succeed. 

In summary

• Get your expenditure below your income

• Implement a plan to reduce debt

• Start saving

• Increase your income

• Let people know what you do

That's it for this week.

Next week see you same place, same time where we’ll be talking about exactly what it costs to start your rent to rent business.

Have you found this useful?

We’d be super appreciative you could leave a review on apple podcasts. 

CLICK HERE to leave a Review on Apple Podcasts

And for every podcast review you give, you’re giving to help children in the Turkana region of Kenya to have the uniform and books they need to attend school. 

See you next week.

And remember,

Believe Bigger, Be Bolder and Be a Gamechanger!

See you soon.

Stephanie & Nicky

xx

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