I Asked 5 Millionaires How To Start Investing In Property (it’s not what you’d think…)

In this video I pull out advice from 5 different property millionaires that I have had conversations with on my podcast. We dive into their advice for people who want to get started in property investing.

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Timestamps:
00:25 – Lloyd Girardi – Buying Well/Borrowing Money
02:35 – Alfred Dzadey – Mindset Shift for Growth
03:42 – Ahmed Khan – Best Beginner Strategy & Experience
06:44 – Mitch Nunn – Gaining Experience
09:16 – Rosey Cassidy – Making Your First £500k

#propertyinvesting #propertyinvestment

Revenue wise per month is 30 grand I sat down with five property Millionaires and asked them for their best advice for anybody getting started in property we talk about mindset don’t get wrong I was absolutely myself we talk about some practical tips on making sure your property stack he’s 27 within 18 months

Has acquired 325 Million worth of assets and we even talk about how you can make £500,000 in one year hope you enjoy it let’s say your boys get a bit older and and they come to you and they’re 18 years old and they’re like like Dad I

Want to I want to do property development I want to go big what’s one big thing that you’ve learned that you’d like to impart to them starts small so um as much as they say go big um it’s got to make Financial sense you got to

Buy at the right price um you’ve got to factor every kind of contingency not every contingency because if you do that you’ll just kill the deal but plan a is you’re going to rent it out plan B you’re going to sell it plan C can you

Cover all the the cost to just basically make a uh make a small margin or just break even um just look at everything but make sure you buy right don’t try and just do a deal because it’s close to you and it’s convenient and it’s in your

Town yeah make sure it’s the right price so we always say like you got to buy with your head not with your heart um so if your figures don’t work don’t buy it I think the biggest thing that stops people getting started is the is the fear of borrowing money from people so

It’s not the fear of doing it themselves or actually buying property it’s the fear of borrowing money and the fear of not being able to pay back yeah um I think that’s the biggest thing that stops people yeah I think that will come with time you know when people do do

Deals you know after a few they’ll have confidence in the process and but is that first one isn’t it but it is also that as I said before there’s there’s value in what people are investing in so for a plot of land for example that £57,000 that we bought we borrowed all

The money to buy that land if we were to sell that site it was actually valued at more than 157 Grand so if it didn’t work we’d sell that site on and pay people back um but then as soon as you get the first draw down from the lender You’re

Building um a site that has value as it as it builds it increases so uh you should get down to Dam proof course so down to up to um that value of the site will probably be 250 Grand and then as it’s building and you get halfway through the developments might

Be 500 Grand like this value as you’re building it so actually yes you are borrowing money from people and there is a way to pay them back somehow yeah it’s not like you’re just doing it on a whim and hoping there’ll be something to pay him back with nowadays

I I stop talking about the house I know this podcast we haven’t talked about mechanics of hos and stuff and apologies guys but there’s actually a reason behind why I now prob share more my mindset the way I think because I start to realize what actually moves the need

For a lot of people is their mindset cuz I can I can sit down I can sit down with you and tell you how to make 100 Grand a month but if your mindset isn’t wide right doesn’t matter mechanics what I’m teaching you you’re not going to go make

It cuz you’re not you’re not going to get resourceful you’re not going to do whatever it takes you’re not into personal development you don’t believe in in the value of um time versus money like these core principles like you have to understand this stuff and you can’t

Get your head around this forget a massing am massing wealth it’s just wasting your time it’s just you might be able to luckily build it get fortunate but over time you’re going to cramble because there is a foundation to to acquiring wealth and for me it’s terms from your personal development education

And your mindset if you can’t get these things in place for it um so that’s why nowaday I’m very big on like just sharing the way I think and cuz that’s the only way people can kind of I guess understand where I’m coming from and how

I think to be able to get to where I’ve got to I was speaking at an event last night in Bournemouth and there was a bunch of young people and they were like well how do I start and I’ve got no experience and I’ve got no money at the

End of the day you need one of the two you either need money or you need experience because if you have no money and no experience there’s there’s nothing you can bring to the table yeah if you go money it’s easy because well okay I’m putting up the money you just

Find someone like yourself who has the experience you merge and you know job done normally the hard part is people don’t have the money okay so therefore you need to have experience and and I say experience and not knowledge because the problem with knowledge is yeah

Anyone can go on a course and be like well yeah I know exactly how this works but I’ve had people come to me and say you know invest in me I’ll do some deals you you put the money in but and don’t worry I’ll do it I’ve not done anything

Yet but I’ve been to this course I’m like I don’t care exact EXA exactly whereas whereas if you work for someone for free now you have something you can put your name to and say well I’ve actually done it for real as opposed to I’ve just been on a

I raised money for my first renter an deal because in my head I was like well I now have credibility because I’ve done something like I I have been involved in real things I I haven’t just been on a two-day course and now I’m saying people

Well I know exactly how this works cuz you know I’ve done the course in that location and that location so I I think the way you’ve done it or the way I’ve done it is to your point is it’s the good two-step system which is get some

EXP experience and then raise money as opposed to just jumping and start raising money because I know you know there’s so much content nowadays that you can just use other people’s money and all that sort of stuff but it’s like why would I give you money if you

Haven’t done it before yeah it’s it’s you know it’s challenging it’s very OD and so I had a bit of a transition and that’s actually what I recommend to everyone that if if you’re starting out do rent to rent but do it with the intention of maybe I’ll do two three

Four I’ll make £3,000 a month 4,000 a month and then use that experience experien in credibility to start doing you know the biggest stuff whether it’s you own a property into DOA you own a property to do HMO you know you turn a house into Flats because the benefit of

Rental rent is it doesn’t take much money and you make a lot of cash flow the downside of rent rent is you don’t own the property so there’s no appreciation and at the same time you have much less control so for whatever reason if the landlord one day wants the

Property back because I don’t know maybe they want to sell it maybe maybe they want to move in themselves whatever the reason is it’s like you don’t control there’s only so much you can do there’s yeah there’s only so much you can do but but that doesn’t mean you

Shouldn’t do it um if you’re starting out and you have like nothing else to do and you can’t afford to do anything else it’s like it’s definitely a good way of starting out how old were you when you were doing that just before you started the secure early 20s early 20s so your

21y old self has sat across from you what would you have advised him to do I mean obviously I had money so I could then sort of invest best you know I was just picking up single buy tol Investments you know the Portsmouth Flats obviously I’ve got quite a lot of

Property in Warrington which I’ve sort of accumulated um over the sort of last few years but I think if you’re sat there with the idea that you would like to get involved in property but you got no knowledge it’s different if you if you got Capital you can then put that to

Work and learn on the job if you’ve got no Capital yeah you’ve got to just learn some other learn somewhere you’ve got to you know go to the free courses forget the upsell yeah yeah which will come just just go to the courses and just pick up these nuggets be around property

People you know just sit there and just listen to the conversations and just absorb knowledge um YouTube there’s a lot of good value on YouTube there’s probably as much value on YouTube as there is in the courses anyway that actually is all free you don’t need to pay for so I would

Maybe start there I mean check my YouTube channel yeah yeah um but um um yeah I just think you’ve just got to just get involved I think that if you look at the property strategies you know I think a starting point is always deal sourcing rent to rent and those sort of

Strategies where you don’t really need capital I yeah low barrier to entry and that’s the reason why I guess you’re seeing a lot of people promote courses in those areas and strategies at the moment because they they are more accessible to people people which opens

Up the market to who they can sell those courses to yeah but I do think that’s a good place to start because if you can learn the art of deal sourcing you know not repurposing stuff that you’ve seen of another deal sourcer actually going out there finding deals analyzing deals

And knowing that it’s Stacks yes it might be a case you don’t have access to Capital so you might have to then go and sell that deal but I think if you go through that process alongside that Network meet people learn to raise Finance you’ll get to the point where

You can actually then do your first deal and then like I say this you’ll learn so much on your first deal so kind of once you’ve gone through that process once twice you’ll just pick up this knowledge and then you’ll you’ll be off so I think that’s a sort of starting position or

Anybody listening or watching if they want to get into development and they want to make 500 Grand this year what would you tell them to do and they want to make it and cash it in this year yeah let’s say that it’s going to be deal souring you’re not

Going to you know one deal if you want to take it through planning build it out within 12 months it’s going to be a smaller deal so it’s most likely not going to have half million pounds in so realistically you’re going to be looking at deal sourcing which it’s very

Achievable in a year if you if you get the volume out um you know for example just thinking of on the student sites that I did with um my dad on the Triumph um Road in Nottingham which was the Jubilee campus we just flip that on to a

Student provider never build it out and I it was it was over 2 million quid basically just for flipping the land on and that was less than 12 months deal cycle so and that’s not obviously you need some specialist knowledge around student there but the numbers are big in

Property development so if you find the right deal or couple of deals that there’s good margin in you know there’s an agent that I know in Nottingham that if he brings the right deal he gets 100 Grand as long as the deal stack and it works he gets 100 Grand so obviously he

He’s got a good knowledge base that justifies that but you know providing you and that’s all very learnable it’s not we’re not talking about open heart surgery here this is all stuff that’s available online it’s all available out there there’s a lot of resources get knowledgeable on it know how to find

Good deals know how to stack and package good deals developers will pay for it because it’s a skill a lot of developers lack so yeah deal sourcing um either assigning options or selling it on once you’ve got planning um 100% if you want to make she’ get an option say you want

To sell a piece of land um I get it agreed with you on an option contract there’s an assignable option um we agree I don’t know 100 grand for it yeah I then go and get planning on it I then get the value up to 600 700 Grand

Sell it to a uh a developer who would say great I will pay you half million quid to have the option to buy this land for 100 grand so well there’s two main mechanisms one you can actually assign prior to planning so if you okay found a side

That could be worth let’s say a million quid when it’s got plan in and I can see that by running my own numbers I go yeah yeah it’s probably worth million quid I can see why it probably should get planning so I justify that risk but you

Say look I’ve got it on an option for 300 Grand and I go okay well it’s well let’s say half a million let’s say it’s not as much there it’s half a million pounds cost me 50 Grand to get planning for 10 units let’s say so it’s 450 grand

Fat still in this deal and you say but I want 100 grand for assigning that option I might go okay so there’s still pay you pay plan in get my 10 units there’s still 350 Grand providing there’s still enough at that top end you can Justus defy an assignment fee okay

Um so that’s one option is assigning it over prior to planning and you just walk out and literally they replace you in the contract or we typically do a back-to-back transaction so simultaneous exchange and completions um if only because it’s more legally secure in terms of the contracts um so in that

Situation you’ve got it for half million let’s say go back to that same example you come to me and say Rosie got this site got plan in deis it got all the reports want a million quid for it I do the numbers I think it’s worth that I

Say okay yeah I’ll give you a million or it might be 950 might be 1.1 different developers will come to slightly different numbers it’s normally within 10% yeah I’d say um you pick who you want to go with and on the day of completion I send you a million quid or

Your sister million quid your solicitors send half a million to the landowner I then become the owner of that land and you walk away with half a million quid and laugh all the way to the bank hopefully nice I hope you found this video really helpful if you did

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