How we invest in property
We’ve recorded an awesome free training video to explain in more detail how we invest in property and to show you how you can build a recurring net monthly income of £3,000+ each month in the next 12 – 18 months.
We’re really proud of it and Sean described it as quite possibly the best free webinar I have ever attended. Massive value.” But before you get there, let’s set you up powerfully for it.
As we said in our Property Investment page, property investment is considered to be a fantastic long-term investment. Traditional investing leaves little (if any) positive net rental income each month, but the historical trend is for the property value increase substantially over time. We at The Property Coaching Academy, however, don’t want to wait for years in order to lead our dream lifestyle, we want it now! We also believe that purchasing an investment property based purely on hopeful future capital appreciation is an outdated and risky strategy. So we ask ‘Why not have both capital growth AND substantial rental income each and every month?
So how do you generate substantial rental income from a property?
We achieve this by, instead of renting out a property as a whole, for example to a family or a couple, we rent each room out individually. Each individual tenant pays less than if they rented the whole property, but the total rent collected from all the tenants is significantly higher. The net rental income is actually 4/5/6 x higher renting it out this way!
A house that is rented out on a room by room basis is called a House In Multiple Occupation (HMO) or a shared house.
HMOs
- HMOs are actually a really great option for the tenants because you can provide a high-quality accommodation, at very affordable prices.
- HMOs are great for the owners because not only are the returns substantial but having such a high profit margin means we are very well protected for any changes in the market conditions, interest rates or taxation.
- You can also add a huge amount of value to, and create substantial equity in the property through the refurbishment to convert the house into a HMO. You can either benefit from this when you sell the property, or release it immediately by remortgaging your invested funds back out of the property – you can see some examples in our case studies. This means your return on the capital employed is incredibly high. You can watch our free online training video to understand this more.
- “I lived in an HMO as a student – It wasn’t pretty!”
Then it sounds like you aren’t our ideal tenant 😉 You can rent to lots of different demographics of tenant: students, tenants on benefits, factory workers, or high end working professionals. Personally, we prefer the high end.
As you can see from our case studies, we teach our delegates how to set properties up to attract the best tenants. And please don’t forget that the majority of those who have produced these amazing results didn’t start with any capital or any knowledge of property. By focusing on renting to tenants who can afford to pay premium rents, give guarantors, pass stringent referencing checks and set up their payments on direct debit, we minimise any potential issues.
- Most of our course graduates are initially too busy in their day job to manage the properties themselves or subsequently would rather be sitting on the beach, or doing a new deal– so we also teach you how to effectively source and oversee a great letting agent to deal with all the management for you. This means you can become an armchair investor and enjoy the passive rental income.
This sounds very interesting, tell me more!
This is not a get rich quick scheme, and if you are hoping it is, we would suggest you log off and go and buy a lottery ticket! However, by following the 7 Step System that we teach, many our students have generated large, very highly cashflowing, property portfolios in a very short period of time, which has enabled them to become financially free – enabling them to have more time, choice and location freedom. With each house generating up to £1500 profit per month, we’re talking 6-12 months of application (alongside your full time job and family commitments) to be able to quit jobs, having more peace of mind, and building a legacy for their family.
If you want to become financially free through property, HMOs are a great and most of all very secure way of doing so. Alex has an amazing system and he teaches with great passion so everybody will get the root out of his course!
Tom Ferstl & Iris Frisch, Lecturer & VFX Lead Technical Director. London