Property sold in 2006 for £82k, in 2022 it’s for sale £80,000. Samuel says in 5 years time it’d be worth £120k lol a £40k increase in 5 years yet the previous 17 years its actually lost value, fantasy figures since house prices are expected to fall and inflation is sky high This is all summising someone agrees to wait 5 years, you find a reliable tennant who won’t trash the place (more likely in a less affluent area, in my opinion) you need the tennant to keep up rent payments or you’ll have to go to court (more money) then you have to make payments to cover mortgage if they don’t pay. Then you’d need good credit and be lucky to pay £150 a month mortgage, I think for most people the minimum payments even over 35 years would be circa £300 a month, by the time you pay insurances, other costs management or maintenance, there isn’t a lot left Also people who only have £1,000 are potentially not as good managing money and if you dip it or spend the little you do make then in 5 years you need to find that money to pay for it I like sams optimism, I like the creativity but also think the risks should be better explained as it seems people are actively considering this
My mom showed me you’re channel and i too loved the thrill of investing and making money every since primary school and your story really resonates with me. I’m starting this property thing from the bottom up imma come back to this comment in 5 yrs and tell u all i made it, love
You mean get in to a real load of shit this guy talks shit he doesn’t tell you that the property needs renovating and it’s in a shit hole where only scumbags are going to be renting it who will not look after it because it’s not there’s also never pay on time so you’re left struggling to pay for mortgage and on top of that if you ever actually see the £350 profit you have to pay tax on it
I’m looking at the comments, I’ve done loads Of these deals. What he has just told you is the very basics and left out a lot of vital information. The bottom line is they do work but you have to be ethical and realistic and must work for both parties. The strategy he has just explained will cost more that £1000.00 unless you implement bolt on strategies which he has not mentioned. I think he is a nice guy I only met him once briefly and he is larger than life so respect must be given for his energy, enthusiasm and what he has achieved.
Wake up will and give you’re head a wobble What he really means is get in to a real load of shit this guy talks shit he doesn’t tell you that the property needs renovating and it’s in a shit hole where only scumbags are going to be renting it who will not look after it because it’s not there’s also never pay on time so you’re left struggling to pay for mortgage and on top of that if you ever actually see the £350 profit you have to pay tax on it
Did I miss something here? How do you take on the mortgage of the current owners? What is the £1k for? If you're not actually purchasing the property until further down the line, how are the current owners then getting their mortgage paid off to move on? And, if the price devalued over last 15 or so years, how can you think it will be +40ish K in the next 5 years?
Seems like they don't have an answer for this. Shame as I was excited about this and wanted to subscribe but reading the lack of follow up I am thinking this is bull 💩
Really insightful - Thank you! Something to note.... As mortgage interest rates are rising due to market conditions, taking on the mortgage monthly payments is going to be so much higher! I think it would be wise to find out what type of mortgage the home owner has before someone takes this on, for example tracker or fixed and for how many years.
I feel this would cost far more than £1000. If the property hasn’t sold in 4 years, I doubt it is any kind of condition to be rented out and will require a fair bit of investment to get it up to a liveable condition. Potentially £10,000 or more. Good idea but I just think there’s a bit more involved.
@@cjc7602 I hear you! But with £1k you’re limited and this is a suggestion of what people could do if they had £1k! Hits the nails on the nose in my eyes!
absolutely no way anyone will agree to wait 5 years to receive thier money ! this is crazy. in reality people do not agree to purchase option agreements, its very rare, i have tried. also, the rent on such a property is around £450 a month. minus your mortgage payment of £150, and say £50 for insurance £50 for maintenance (likely to be more than this some months), and £45 for management cost, and 20% income tax £90, you should be left with = £115 profit per month. but say the boiler packs up and you need to replace it for £3000. there you go, you will not see any profit for the next 3 years ! plus durham is an awful area for rental. it will remain empty for months. good video though and thanks for teaching us.
Hello SAM, this is so enlightening. I do not reside in the UK but should move to the UK soon. I have so much interest in the property industry especially flipping. I have been researching UK property investing online and I came across your videos. So much to learn here. Thanks for the beautiful thing you are doing. So inspiring.
This is interesting, but there's a couple of issues here. If the property is mortgaged still and you plan to rent it out - the owner is still the owner (on the deeds) and still liable for the property payments. Also what about BTL mortgage. The residential mortgage lender sometimes will allow it to be rented for a short period but as a third party interest you may not be allowed to do this (effectively subletting the property). The mortgage company would probably want to put on a BTL deal instead and higher costs. Then there are maintenance costs, licensing costs (if any), advertising costs, void periods, council taxes, which structure either through a company or personal and if you're paying utilities. Don't get me wrong it is doable but these are unknowns that I would've liked to have been made known on the video to give people clarity. Would've been good to get a call to the estate agent to see what's happening and see if they are interested in this deal.
I know people that have rented out a property that was only a few years into their purchase, that wasn't a buy to let, I'm under the impression, that they don't actually care, as long as the mortgage is being paid. They basically said: "Sorry, circumstances have changed, and I need to move, rather than let the property be empty, I'm going to rent it, cool?" And the mortgage lender accepted it.
@@ekksoku After changing them to a BTL on a less favourable deal. But sure a bank will have that conversation and sell you something to facilitate the change. They don't just accept it in one phone call.
I think because people have done it and haven't been caught doesn't make it the rule. I would be careful, it could be considered breach of contract and the lender could call in the whole loan. It's a risk but as long as you understand the risks then you can make a reasoned decision. For instance if you rent as a HMO the council at times also notify the lenders that is what you're doing. If something happens to the property whilst renter's insurance may also question what deal you have BTL or not... And may or may not pay out. Lenders do work with you so bets have that conversation just to be clear on your options and risks
Rents in that area are approx 525 gbp. A mortgage taken out in 80k in 2003 would have a mortgage payment of 287 per month. This would leave you with a difference of *238* per month/2800 per year - that doesn't include taxes, repairs or maintenance.). Landlords average maintenance costs in UK are approx 3k per year (lots of articles with this estimate) So you're barely breaking even - plus your mortgage balance would still have 29k remaining to pay off in an area where you can buy a house for less than that price with a cheaper mortgage. (55k houses are listed with 320 per month mortgage payment) I don't get how you're getting those figures you claim in the video.
or just rent it out to make the income themselves if they lived in it and were trying to sell for four years.im guessing if they can leave the property to live elsewhere for you to do a lease option agreement with them,they could leave it to rent.
If someone converted a house into HMO and put in 5 tenants. When the management company contract was over. The owner would just do a deal with tenants?
Sounds brilliant, but you’ll be so lucky to find someone who is willing to do this. If I was wanting to sell a house, I wouldn’t want the individual who’s wanting to purchase do this
Quite often properties such as this can be run down and dated, meaning they will need some money spending on them before you can get tenants in. It's obviously just a factor (of probably a few grand) to consider, that wasn't mentioned in the video. Great way to purchase property though, never done it myself.. yet.
Great video highlighting the Purchase Lease Option. If the property is in a good condition and doesn't need renovation this could be a good option. However, in todays market houses in good condition are gone so fast and so overpriced.
A major disadvantage of renting to own is that renters lose their down payment and other non-refundable charges if they decide not to purchase the home. Some sellers may even take advantage of renters by making it difficult or unappealing to purchase the home - with the goal of keeping the down payment
Sam, you are a legend. I have 4 young kids just about get by.. trying to get out of this vicious 9-5 cycle. Hoping and working towards being a near future success story you feature
Thank you for bringing 4 children into the world. Society has almost convinced us that children are the problem. Which is not true, without children this world would be a horrible place.
@@silverltc2729 The declining population is really troublesome too. According to some the decline will be near impossible to reverse and lead to collapse. Glad others out here are fighting against that !
This taught me so much I was jaw dropped focused and zoned into everything you were saying Samuel. Thanks a bunch for enjoying the teaching of the success that you've achieved. I will continue to look for videos like these where you breakdown "what i would do" videos. Blessings to you
Refinanced mortgage pays the previous owners based on the new value of the house. The higher it is the more surplus you have for either equity, or just using the accumulated rent to put down a deposit.
At 1:45 the 1k just turned into 10k! And then at 9:30 he's predicted the housing market will be up 50% in 5 years time. I get a real preachy vibe from this guy and not in a good way.
How will you transfer the mortgage? To transfer the mortgage you need to be eligible for affordability check. If a person is eligible for mortgage why can’t you apply for mortgage on 5% deposit? If their is a rental market of 450£ why can’t the old owner just rent it and pay the mortgage? Why any will trust you to give the house for 5 years?
So quick question, how do you know they do not have a mortgage of around 400 a month...for instance when checking now for a 80,000 house the mortgage over 25 years is around 400...so how do we work this out?
Very very good idea so because of this know I'm going to watch your all videos as it is will help me go our of darkness as I'm looking to go our of it is enough enough enough. Thank you so much for sharing this.
Im curious to understand why from 2006 2007 the property price hasnt changed much. But in five years rhe property becomes nearly double in value. Can someone explain please
Genuinely please tag me in this in 5 years time & show me it’s valued at £120k without major renovations. I find this extremely hard to believe that someone would just be that desperate to get out of a house that they’ve been paying a mortgage on for 4 years for just a Lease Agreement. Chances of this is literally 100,000 for sale properties to 1. Why don’t they just rent out the house themselves? If their just walking away with diddly squat?
Some landlords are tired and want to cash out for their pension - they’ve been renting the property out and making money on it for a while. Everyone has a different point of view 🤩
It's usually properties that are either too high priced for the market or in rough areas and won't sell but over time will still increase in value although deffo not that common they are locatable just not that frequent and have to be certain they will rent but can work for the owner there's 1 near me that was inherited and needs modernising do they cash it in below value or just take a small income monthly and a chunk in a few years type of thing more than it's worth currently type scenario..needs to be 5 to 7 years ideally though
Probably if they want to sell the house, then they can't rent it out; nobody wants to buy a house with people in. You can't just throw people out whenever you want to. You must have an agreement.
Just stumbled across this and amazed from the comments that people actually think this is as easy as claimed. 1. "If you don't have a £1000 put in on a credit card" - Terrible advice. If you can't get a 0% transfer, you'll be paying 15%+ on interest. 2. This is usually used for land not property. He completely disregards the issues for both the homeowner and the proposer. (increased insurance on the property, 2nd home tax etc) 3. If the homeowner can't sell the property, they would still need some place to live after the transaction. This can lead to mortgage issues for the homeowners, plus more tax to be paid, plus the 20% deposit on the new property then 2nd home tax (3% iirc). 4. The homeowners would become landlords and incur costs such as, registration with the local authority, compliance requirements including gas, asbestos etc. 5. If you have a job, you would have to declare the rent as income therefore paying more tax. Even as a Ltd company you have the expense of setting up and (potentially) accountancy fees. 6. The homeowner is likely to get legal advice and the purchase option agreement would probably favour the homeowner rather than the proposer. The fact that after the agreed length of time has passed and then the proposer says "Nah, you can have it back", could put the homeowner in a difficult position. 7. Costs/losses on sub letting where damage has occurred, it's not uncommon for sub-letters to sell things like carpets, kitchens etc. The tenant in poor areas is likely to be of a poorer standard also add in animal damage etc. £21K, is unrealistic over 5yrs. If something sounds too good to be true......
He would be in negative capital if he doesn't find a job to cover some of the mortgage as well, having others pay the mortgage through rent money alone is a dream with this strategy. Also if a house is not sold at a discounted price for 4 years and it increased in value, what makes you think others are willing to buy it for a higher price? He will now be stuck with the same problem the previous seller was in but at a much higher price. Location DOES matter if you want to liquidate quickly because some areas are just more lucrative and attractive than others. You won't find property worth £85k in London, this strategy is very niche and more of a needle in a haystack. I am not saying PLO's are bad, they do indeed work and can be super beneficial under the right circumstances but you should also be wary of the red flags in this video.
Looking at this, it’s more of a sales pitch through the video than how to buy a property for 1k. Can’t see how the property will go up 40grand in value when in the last 4 years it’s went up by 10 and no one wants to buy it. Seems like the trade off is you get to rent a property for 5 years making a variable very small income to buy the property & leave you with the negative equity. Maybe this guy has too many houses that haven’t sold?
Yes you will. A good accountant will set off 'expenses' such as letting agents' fees (if you use them) repairs, any furniture/carpets etc bought. A variety of things. You will end up paying little to no tax. Personal experience speaking.
absolutely no way anyone will agree to wait 5 years to receive thier money ! this is crazy. in reality people do not agree to purchase option agreements, its very rare, i have tried. also, the rent on such a property is around £450 a month. minus your mortgage payment of £150, and say £50 for insurance £50 for maintenance (likely to be more than this some months), and £45 for management cost, and 20% income tax £90, you should be left with = £115 profit per month. but say the boiler packs up and you need to replace it for £3000. there you go, you will not see any profit for the next 3 years ! good video though and thanks for teaching us.
Agree entirely. You would need to pay something for the purchase option. Probably an up front fee and the full market rent until you exercise the option. Otherwise, why would someone let you benefit from renting out their property for five years when you could just say thanks at the end and walk away. Plus the fact that the option allows you to benefit if the value increases but without any commitment if something goes wrong. It's no different than buying stock options, just a different underlying asset, you need to pay for the benefit and often the cost outweigh the reward. Of course, if you are really convinced the market is going to explode, it might be worth paying for the option but £1,000 isn't really going to do it. Especially without a safety net for the unexpected costs.
So how can the owner/vendor move on? with no dosh, why would they? surely if they could, they would rent out the property themselves. Can you explain in simple terms please...
Thank you so much, Samuel Leeds. I just bought your book (School Dropout to Mulit-Millionaire) and recommended it to my people. Financially I have nothing. But this piece of information you have given us give me hope now that there is a way out for me. I hope to meet you one day face to face to personally say thank you. God bless you and your family.
If the property will wealth 120k in 5years time,and you said the owner bought it in 2006 for 82k and put it in market for 80k which is 2k less the purchase price after 17years ,why then do you think it will wealth 120k in the next 5years ?
It sounds easy but hard to do! What if something coming unpredictable with the house. 1k is not enough. I hope i have the same courage as you do. Love the idea. Thank you for the tips and info. 🙏
Hey Samuel, great video, full of punch and go get it, with ap positive, positive attitude. This is for go getters and seekers- exactly the right approach to shake things up and get going. Your info is right on the dot. Great stuff, well done. I am a newbie (although I have had leased rented shops on the High Streets with my photo bizes in the past and brought my sold my house but now I am starting up my property business) to the property world. I am looking to start in the Deal sourcing and Deal Packing sector first and then progress on to other strats later, once I have built up my cash flow.
Wake up will and give you’re head a wobble What he really means is get in to a real load of shit this guy talks shit he doesn’t tell you that the property needs renovating and it’s in a shit hole where only scumbags are going to be renting it who will not look after it because it’s not there’s also never pay on time so you’re left struggling to pay for mortgage and on top of that if you ever actually see the £350 profit you have to pay tax on it and you have you’re tongue so far up his arse if you spit it’s coming out of his mouth
The main thing I've learned from your videos and life in general is don't get a mortgage. In fact don't ever borrow any money. Just save and pay with money you actually have.
The first time I heard about you I watched a video which you were driving and explaining how a university degree doesn’t guarantee a successful future, I then watched your purchase lease option video and gained interest in getting in to the property ladder but could not afford to buy a house neither put a deposit down, I’ve started to contact sellers and applying your tactics and last month secured my first lease to buy with only £1500! Great videos and very valuable advice, we just need to have a plan and be creative as there’s a lot of money to be made in property !
@@NoName-ql1wk there is nothing about paid in this comment, just sharing my experience with what I learned from the videos Samuel posts without having to pay for any courses
You idiot What he really means is get in to a real load of shit this guy talks shit he doesn’t tell you that the property needs renovating and it’s in a shit hole where only scumbags are going to be renting it who will not look after it because it’s not there’s also never pay on time so you’re left struggling to pay for mortgage and on top of that if you ever actually see the £350 profit you have to pay tax on it
@@joodertio1449 you are a bad person. Come back to pretend your comment has value and then ignore True Night Terrors question to respond to someone calling you out.
This is genius, Im so sick of looking at spreadsheets in a dull office all day and this might just be the way out, thanks for the video Samuel. Look forward to learning more soon👍
Wake up will and give you’re head a wobble You mean get in to a real load of shit this guy talks shit he doesn’t tell you that the property needs renovating and it’s in a shit hole where only scumbags are going to be renting it who will not look after it because it’s not there’s also never pay on time so you’re left struggling to pay for mortgage and on top of that if you ever actually see the £350 profit you have to pay tax on it
@@luke9571 I guess the rent should more than cover an £80k mortgage with a lot left over each month. even at present interest of 6 or 7% . He says the house can be anywhere but surely it’s much safer to buy in a place with students who are willing to pay cheap rent for a tatty place. I guess his example of Durham is a good choice so you’d want somewhere with a high demand for renting.
Also the seller would still have mortgage in their name? If so how they gonna buy another place to move too? Still what he lacks in realism he makes up for in optimism!
I wouldn't worry about housing at this time, I would be more worried about feeding the family as food is going to become very scarce as we go into the new year. All the money in the world is no good if there is no food to buy. Better start rigging those growing rooms and learn how to grow veg and fruit whilst keeping it hush hush.
@7:42 ''Give me your house. I'll pay you 2k more.. Butttt I'll pay you after 5 years.'' Do you really think you can get a property like that? What is stopping the property owner not to rent it out and find someone else to do it?
You mean get in to a real load of shit this guy talks shit he doesn’t tell you that the property needs renovating and it’s in a shit hole where only scumbags are going to be renting it who will not look after it because it’s not there’s also never pay on time so you’re left struggling to pay for mortgage and on top of that if you ever actually see the £350 profit you have to pay tax on it
I am slightly confused with this way of getting on the property ladder for a few reasons, so if you could shed some light on this Samuel, i would bemost grateful: Are you offering some money now . I.e the £1,000 to the current owner, or do they sign a piece of paper and wait 5 years to be paid ot the agreed amount? Does the house, (title) and mortgage remain in the names of current owners? If so how then do you pay the mortgage (the person that has bought the lease), do you send money monthly to the current owner and then you have to trust the current owner to pay the mortgage or pay mortgage direct? If I remains I name of current owner, then how are they going to get another mortgage with their name still on this? I assume this may be a normal mortgage and not a buy to let? If it is a normal one, then if mortgage is going to be paid for next five years it will chip away at what is outstanding, but can it remain as a residential mortgage if you purchase it this way and then put tenants in, I am sure there is something in the rules (once again protecting the banks!!) that state you cannot do this? If it is a landlord and they have a by to let chances are it's interest only which means the bank gets 5 yeas of money and the outstanding amount never goes down? If not, then surely you would have to meet criteria of having mortgage in your name? What do you do if you cannot rent it out in the 5 years you have the property? Yes I know it seems highly unlikely BUT it may happen? How can you say the house will be worth £120,000 in 5 years when in 16 years it has not increased in value and we all know that we are heading for another huge housing market crash again like we had in 2008 when thousands of pounds was literally wiped off the value of houses overnight and has taken years to recover with some areas still not recovered (seems like this area hasnt) and it may end up being worth less than the current £80,000 that they have it on the market for now? I cannot imagine that solicitors cost would be low either, or is it literally just drawing up one purchase agreement? And finally what makes it so certain that in 5 year time YOU will be able to sell it when the current owner has had it on the market for over 4 years, there is the potential that you could be in the exact same position as the current owner is now? Obviously it's the location of it that is not helping it sell, maybe it was a previously a thriving area when purchased in 2006, with shops and businesses but has changed over the years for a number of reasons, so if you were thinking of going down this route, I would probably visit the area and take a walk around, have a chat to locals and get a feel for the place, as it may be that it's now a street that has just a certain demographic type of people which if that is the case it will never sell. Sorry for all the questions, I just want abit more clarity as it is an interesting video but I can't imagine it actually is as smooth a process as Samuel makes it sound. Great video by the way. 🙂
I'm confused. If I'm the owner of the property, are you suggesting that I move elsewhere so the property can be rented out? But how do I move out if I don't have the funds yet? Or are you saying you will rent my own property back to me at a higher rental? Then why would I even sign on the dotted line? This has to be fake.
Love this idea, couple of questions would I need to register as a business and be compliant to do this; secondly, if I decide not to have the property at the end of the 5 years would I have the option to pull out of buying the house?
Mark, yeah after 5 years you don't need to buy the house it's an option. And no you don't have to register as a business. It's advised you do because there are tax loopholes in registering property to businesses, however from my understanding it benefits more from HMO's .. but I'm not a property investor just to be clear.. its something I want to get into .. im just missing one ball at present..
Love the video, just wondering what the would you need in place for this. Solicitors contract and how would it be paid would you pay the seller monthly or would you pay directly to mortgage company ? Thanks!
@@RS46192 the legal ( option agreement ) would be drawn up by the solicitors. The payments would go direct to the mortgage company. All set up through a solicitor.
Wake up will and give you’re head a wobble hes not a genius it’s a stupid What he really means is get in to a real load of shit this guy talks shit he doesn’t tell you that the property needs renovating and it’s in a shit hole where only scumbags are going to be renting it who will not look after it because it’s not there’s also never pay on time so you’re left struggling to pay for mortgage and on top of that if you ever actually see the £350 profit you have to pay tax on it
Could you explain this? I read in an article; "The renter should be confident that they can secure a mortgage at the end of the lease, or else they forfeit the purchase option." And if you are to "take over the debt" that means you also have to be eligible for a loan that size, which means you still need some guarantor or funds? And if you take on 80k in debt, and then pay the owner 82k after 5 years. How does that work. Suddenly you owe 160k. Further more there are taxes when renting. If you count in at least one (maybe) two months, depending on what time of year, you might owe the bank 400 pounds before you get someone to rent. Then these houses are rarely perfect and need some work. Say 200 pounds. And can you just cancel the agreement if this goes south and you dont have sufficient funds after 5 years. It sound all easy. Probably easy if you got funds already, as there small to no risk. But when you have 5k to your name..... Or this is easy and im just overcomplicating things. :)
You sound alot like me.. you believe the idea.. and alot of it adds up but your questioning if its too good to be true.. sounds as if its all just a marketing plot to get you on their courses? . .. there is so much I'd love to know but can't afford the training.. yet all these property coaches preach about buying stuff now paying later.. I put to Samuel Leeds or any coach.. put me through your 1-3k training that you believe in so much.. and when your training pays off.. ill pay you 3x the amount its worth with the passive income it has got me.. id even say I'll up that to 5% on any property income I receive for the next 10 years.. that potentially is offering you tens if not hundreds of thousands of pounds for 1-3k training.. makes sense right? Then take me up on it Samuel??
From my understanding which is not financial advise - The debt that you “take over” will only be the loan size I.e around 75% value for the 70k (purchase price) of the house which is 52k. When you then buy the house in 5 years I imagine £52k of the £82k agreed will go to clearing the o/s loan balance and the other £30k to the initial vendor. I also imagine that if you do not have the funds available in 5 years you will not be obliged to pay, depending on the wording of the contract. I can’t be sure but this what I imagine Sam is getting across.
Ok , so where do the people in the house go , and are they willing to be your tenants in there own home , if they want to move on they want out of the house , it makes no sense ,
As much as I love sam’s videos I’m not 100% sure this one’s realistic. I just can’t see the rent being £500 per month or even finding a tenant for a property like that and even if you did you want profit in the £350 per month because if anything goes wrong you have to fix it that will be in the contract won’t it? It would be ace if this video was redone in depth explaining every little detail 🙏🏼🤣
I think the reason this seems unrealistic is because Sam is basically telling us that in five years time that property is going to be worth 50% more than it is currently worth now however it has gone down in value in the last 15 years so I’m confused as to how it will go up in value by such a huge amount in a such a short period of time??
@@connor02 the market will go up since it hasn´t been going up for the last years he´s talking based on his experience and for the UK. Even without growth just by renting it out will keep your profits up.
This house looks similar to one I had as a buy to let. But mine was cheaper. Mortgage was still 185 a month with income of 470. After insurance, covering costs of the house and the rest of it, I wasn't making £100 profit a month.... his maths doesn't work for this one
Thank you for the video. It's doable. My concern or should I say question is what happens if there is a need for a remortgage, if the equity in the property is negative? The current mortgage is probably not interest only.
Cheers mate for finding the time to do the video! - Do you think an example like that would be in negative equity? Likely put down a deposit, paid the mortgage for however many years it was? If it’s not gone up in all them years and then had the covid boom and still not up, why in 5 years is it gonna be worth so much more? It’s likely you’ll be paying whatever mortgage they’re paying. Likely it’s not interest only and costing only £100. I think you’d be pretty hard pressed to find someone on interest only and that desperate to sell they’ll wait 5 years to see any of their money and be left with no where to live. They might end up renting it off you? 😒 If you don’t have the money or the borrowing power to buy for example in 5 years? What will happen? Do you simply say sorry, I don’t want to buy your house now? Even if you’ve got the money and can borrow the rest, the house might be worth less and you don’t want it. I hope these are valid points, let me know what you think All the best, Liam.
There's no answer he made money from making this silly video and wasting people's time making us watch it. Then he uses the money he makes from RUclips viewers and he goes buys house with it. The answer is donkeys ass lol
It's gone down in value over 4 years but 5 years later It's up 40% ? And where can I become a landlord and pay no council tax, landlord insurance, maintenance and find reasonable tenants in a depressed area? 🤔 I might buy all of the houses in Durham it sounds like the land of milk and honey
I remember when this happened to a colleague trying to sell 10 years ago. We all agreed it sounded dodgy and he eventually sold via traditional methods.
Wake up will and give you’re head a wobble What he really means is get in to a real load of shit this guy talks shit he doesn’t tell you that the property needs renovating and it’s in a shit hole where only scumbags are going to be renting it who will not look after it because it’s not there’s also never pay on time so you’re left struggling to pay for mortgage and on top of that if you ever actually see the £350 profit you have to pay tax on it
All sounds great. However I see you've done some research into the WEF and The Great Reset. So I assume you have some idea that within a few years their plan is "You will own nothing and be happy.". They plan to introduce programmable Central Bank Digital Currency with expiry dates and conditions attached to replace cash. Do you think this strategy is still viable given this scenario?
Where do I start with this video. I’m reading comments of you giving people "hope" and I think it's a shame that you make money miss leading people with videos like this. You know the content of this video is fiction at best, you care about how many people view the video so you give it a click bait title and watch the view go up. 1) If I own that home, why wouldn’t I be renting it and earning the £350 profit? 2) You completely haven’t mentioned the fact that the government aim to have an EPC rating of C or above on rentals in the UK by 2025 (within the magic 5 years you mention), this property falls below that standard (quick check of the EPC register tells me that). Where does the money come from to renovate the home? A buy to let lender wont release any funds unless the EPC is above C, you know that but you just choose not to mention it. So how do I get my buy to let mortgage and release all this money when fundamentally the home in unmortgagable without renovation? 3) Most lenders will not lend on a property that has changed hands so recently (back to back remortgage) it's a massive money laundering flag. You make it sound like I can buy it in 5 years and instantly remortgage it - Incredibly unlikely. 4) Majority of lenders on a buy to let insist you already own your own home, how is that going to work for all the people your miss leading on this video? 5) If the value of the home doesn’t stack up at the 5 year point, what are the legal ramifications if I can’t meet my obligations? 6) You said in 5 years time you will have £21,000 saved from the income and the house will be worth £120,00 minimum (lol). This is the time I would buy it right? So when I ask my buy to let lender for a mortgage 25% of £120,000 is £30,000, not £21,000 where does the extra £9,000 come from? I have £3,600 worth of stamp duty to consider plus an extra couple of thousand to pay for solicitors fee's. So that’s £14,600 extra I need, where is it coming from? I cant be bothered to going into the fact the property might not rent for enough money each month for a lender to give you the 75% or the fact the monthly cost on that size mortgage is definitely more than your quoting. You know its fiction, that’s why you keep it vague. It's criminal people watch your video's and think it's a way to better themself. There is no quick way to success. I've just seen your offering crash investor courses, that’s exactly what it will be - a crash.
He is just ripping people off making housing unaffordable and full of bullshit Hi moove out of your house let me rent it out so i can make proffot out of it whilst you end up renting another house 4x more than your mortgage was costing you. Im just not seing that many people being that stuck to go with a deal like that and then its going to seriously damadge there lives once the reality has sunk in they are paying more getting paid less and wont even own there house once you have made proffit out of it and sell it.
Boiler goes in first week, roof starts leaking, drains blocked you being the landlord are going to get it in the neck from the tenant and feel it in your pocket if you don’t get it rectified so always got to have a contingency fund aswell for any unforeseen problems
I haven't got the time to go into how much of a tool this guy is, wrong on so many levels, ridiculous assumptions and completely overlooking the tax liabilities.
Yes, too easily glossing over the problems of putting it up for rent i.e. area, neighbours, and paying a company to manage the rent out. Not to mention the cost of any repairs needed, which can be in the thousands.
That’s right, I think the best way is to invest with a professional, at least it saves the trauma of too much losses. This just surprised me because I also invest with Mrs Jane Morgan
Sorry, have I missed something? Need another video to explain why the current owner might think this is a good deal. As I see it, they’d be walking away free of the address, but tied to a mortgage. if they were going into rental themselves might be one reason.
@@RicherPodcast what I dont understand is how do the original owners move from the house if they got no cash and needed it to move out ? Or it's isn't your problem?
@@joshmaitie5954 exactly what i was gonna say.theyd have to have money to move on and if they did have that kind of money sitting there,if it were me,i probably wouldnt be trying to reap back the same price i paid for it for four years.id price it to sell ie a bloody bargain to offload it and move on.
REALLY interesting and I wish I had of done it when I didn't get myself into so much debt. I seriously doubt any mortgage lender would do this for me now with bad debt.
Property sold in 2006 for £82k, in 2022 it’s for sale £80,000. Samuel says in 5 years time it’d be worth £120k lol a £40k increase in 5 years yet the previous 17 years its actually lost value, fantasy figures since house prices are expected to fall and inflation is sky high
This is all summising someone agrees to wait 5 years, you find a reliable tennant who won’t trash the place (more likely in a less affluent area, in my opinion) you need the tennant to keep up rent payments or you’ll have to go to court (more money) then you have to make payments to cover mortgage if they don’t pay. Then you’d need good credit and be lucky to pay £150 a month mortgage, I think for most people the minimum payments even over 35 years would be circa £300 a month, by the time you pay insurances, other costs management or maintenance, there isn’t a lot left
Also people who only have £1,000 are potentially not as good managing money and if you dip it or spend the little you do make then in 5 years you need to find that money to pay for it
I like sams optimism, I like the creativity but also think the risks should be better explained as it seems people are actively considering this
Wow here in the US houses worth 100k in 2010 are going for 200k minimum some are triple the price! It's so hard to do this strategy now...
Thank you! I was laughing throughout this video!
Plus won't you need to be paying tax on the £350?
WHEN SOMETHING SOUNDS TO GOOD TO BE TRUE...............
@@R0cketRed Yeah. I'm looking at who is the multi-millionaire property developer and going with him.
My mom showed me you’re channel and i too loved the thrill of investing and making money every since primary school and your story really resonates with me. I’m starting this property thing from the bottom up imma come back to this comment in 5 yrs and tell u all i made it, love
You mean get in to a real load of shit this guy talks shit he doesn’t tell you that the property needs renovating and it’s in a shit hole where only scumbags are going to be renting it who will not look after it because it’s not there’s also never pay on time so you’re left struggling to pay for mortgage and on top of that if you ever actually see the £350 profit you have to pay tax on it
Good luck hope you make a fortune 💯✌️
We here for you b
We’re still waiting for you to pop back to your comment,
You're 2 years in so far, have you made a start?
I’m looking at the comments, I’ve done loads Of these deals. What he has just told you is the very basics and left out a lot of vital information. The bottom line is they do work but you have to be ethical and realistic and must work for both parties. The strategy he has just explained will cost more that £1000.00 unless you implement bolt on strategies which he has not mentioned. I think he is a nice guy I only met him once briefly and he is larger than life so respect must be given for his energy, enthusiasm and what he has achieved.
Thanks
This man’s video is better than any paid course. Way better.
Wake up will and give you’re head a wobble What he really means is get in to a real load of shit this guy talks shit he doesn’t tell you that the property needs renovating and it’s in a shit hole where only scumbags are going to be renting it who will not look after it because it’s not there’s also never pay on time so you’re left struggling to pay for mortgage and on top of that if you ever actually see the £350 profit you have to pay tax on it
Did I miss something here? How do you take on the mortgage of the current owners? What is the £1k for? If you're not actually purchasing the property until further down the line, how are the current owners then getting their mortgage paid off to move on? And, if the price devalued over last 15 or so years, how can you think it will be +40ish K in the next 5 years?
EXACTLY what I was left thinking
THIS. I'm still waiting for an answer
Seems like they don't have an answer for this. Shame as I was excited about this and wanted to subscribe but reading the lack of follow up I am thinking this is bull 💩
The 1k is for the actual agreement, solicitor fees etc. A purchase lease agreement between both parties allows you to take over the mortgage payments.
@@deansabeur3481 so the sellers leave the property with no profit but also no mortgage?
Hi I need a class or session with you
Really insightful - Thank you!
Something to note.... As mortgage interest rates are rising due to market conditions, taking on the mortgage monthly payments is going to be so much higher! I think it would be wise to find out what type of mortgage the home owner has before someone takes this on, for example tracker or fixed and for how many years.
I feel this would cost far more than £1000. If the property hasn’t sold in 4 years, I doubt it is any kind of condition to be rented out and will require a fair bit of investment to get it up to a liveable condition. Potentially £10,000 or more. Good idea but I just think there’s a bit more involved.
Maybe so! But that’s where you can get a JV partner.
@@KatieLou_johnson exactly. It’s not beyond the realms of possibility, but like a said, “I just think there’s a bit more involved”
@@cjc7602 I hear you! But with £1k you’re limited and this is a suggestion of what people could do if they had £1k! Hits the nails on the nose in my eyes!
And if it's so cheap then area is bad so lots of problems
absolutely no way anyone will agree to wait 5 years to receive thier money ! this is crazy. in reality people do not agree to purchase option agreements, its very rare, i have tried.
also, the rent on such a property is around £450 a month. minus your mortgage payment of £150, and say £50 for insurance £50 for maintenance (likely to be more than this some months), and £45 for management cost, and 20% income tax £90, you should be left with = £115 profit per month. but say the boiler packs up and you need to replace it for £3000. there you go, you will not see any profit for the next 3 years !
plus durham is an awful area for rental. it will remain empty for months.
good video though and thanks for teaching us.
Hello SAM, this is so enlightening. I do not reside in the UK but should move to the UK soon. I have so much interest in the property industry especially flipping. I have been researching UK property investing online and I came across your videos. So much to learn here. Thanks for the beautiful thing you are doing. So inspiring.
Thank you Sam you are great man 👨
This is interesting, but there's a couple of issues here.
If the property is mortgaged still and you plan to rent it out - the owner is still the owner (on the deeds) and still liable for the property payments. Also what about BTL mortgage. The residential mortgage lender sometimes will allow it to be rented for a short period but as a third party interest you may not be allowed to do this (effectively subletting the property). The mortgage company would probably want to put on a BTL deal instead and higher costs.
Then there are maintenance costs, licensing costs (if any), advertising costs, void periods, council taxes, which structure either through a company or personal and if you're paying utilities. Don't get me wrong it is doable but these are unknowns that I would've liked to have been made known on the video to give people clarity.
Would've been good to get a call to the estate agent to see what's happening and see if they are interested in this deal.
Yep, it's all nonsense.
I know people that have rented out a property that was only a few years into their purchase, that wasn't a buy to let, I'm under the impression, that they don't actually care, as long as the mortgage is being paid.
They basically said: "Sorry, circumstances have changed, and I need to move, rather than let the property be empty, I'm going to rent it, cool?"
And the mortgage lender accepted it.
@@ekksoku After changing them to a BTL on a less favourable deal. But sure a bank will have that conversation and sell you something to facilitate the change. They don't just accept it in one phone call.
@@NoName-ql1wk no they didn't change it
I think because people have done it and haven't been caught doesn't make it the rule. I would be careful, it could be considered breach of contract and the lender could call in the whole loan.
It's a risk but as long as you understand the risks then you can make a reasoned decision.
For instance if you rent as a HMO the council at times also notify the lenders that is what you're doing.
If something happens to the property whilst renter's insurance may also question what deal you have BTL or not... And may or may not pay out.
Lenders do work with you so bets have that conversation just to be clear on your options and risks
Rents in that area are approx 525 gbp. A mortgage taken out in 80k in 2003 would have a mortgage payment of 287 per month. This would leave you with a difference of *238* per month/2800 per year - that doesn't include taxes, repairs or maintenance.). Landlords average maintenance costs in UK are approx 3k per year (lots of articles with this estimate) So you're barely breaking even - plus your mortgage balance would still have 29k remaining to pay off in an area where you can buy a house for less than that price with a cheaper mortgage. (55k houses are listed with 320 per month mortgage payment)
I don't get how you're getting those figures you claim in the video.
He's full of bs
Why would the seller give up the 21k rental income over 5 years? Surely they’d just keep the house themselves and wait for the market to recover?
or just rent it out to make the income themselves if they lived in it and were trying to sell for four years.im guessing if they can leave the property to live elsewhere for you to do a lease option agreement with them,they could leave it to rent.
If someone converted a house into HMO and put in 5 tenants. When the management company contract was over. The owner would just do a deal with tenants?
Because they can’t rent it out if they are living in it 🙄
Samuel is a property genius. I wish I could meet him in person soon.
Sounds brilliant, but you’ll be so lucky to find someone who is willing to do this. If I was wanting to sell a house, I wouldn’t want the individual who’s wanting to purchase do this
I like this lad he’s optimistic but his plan coming to fruition relies on everyone involved following his script. This rarely happens in property.
Then one goes onto the next one until everyone does play ball.
Rarely happens in life. Due to human error if nothing else?
Quite often properties such as this can be run down and dated, meaning they will need some money spending on them before you can get tenants in. It's obviously just a factor (of probably a few grand) to consider, that wasn't mentioned in the video.
Great way to purchase property though, never done it myself.. yet.
The seller doesnt get their money!!! How are they supposed to move on to a new house????
Great video highlighting the Purchase Lease Option. If the property is in a good condition and doesn't need renovation this could be a good option. However, in todays market houses in good condition are gone so fast and so overpriced.
Well even if it’s not in good condition it doesn’t have to cost 10’s of thousands to do it up
@@Mr.Voysey can't really do that with a thousand £ though as its stated in the title.
@@Shard3432 exactly. Nice to see a functioning intellect on here. For a change.
A major disadvantage of renting to own is that renters lose their down payment and other non-refundable charges if they decide not to purchase the home. Some sellers may even take advantage of renters by making it difficult or unappealing to purchase the home - with the goal of keeping the down payment
Sam, you are a legend. I have 4 young kids just about get by.. trying to get out of this vicious 9-5 cycle. Hoping and working towards being a near future success story you feature
Thank you for bringing 4 children into the world. Society has almost convinced us that children are the problem. Which is not true, without children this world would be a horrible place.
@@silverltc2729 this is such a lovely comment. I hope you have a great day. keep going and I'm proud of you. Love the positivity. God bless
You will do it...it's hard graft but keep that motivation up...🤞🤞🤞👍
@@silverltc2729 The declining population is really troublesome too. According to some the decline will be near impossible to reverse and lead to collapse. Glad others out here are fighting against that !
If you think this is a good idea wake up and give you’re head a wobble
This taught me so much I was jaw dropped focused and zoned into everything you were saying Samuel. Thanks a bunch for enjoying the teaching of the success that you've achieved. I will continue to look for videos like these where you breakdown "what i would do" videos. Blessings to you
What happens to their residential mortgage ? Doesn’t it need to be a BTL mortgage?
I was wondering what will happen to the original mortgage on the house or is it stopped due to the new agreement agreed on
Quick question, how do we pay the previous owners the 82k we promised and how what happened when we refinance the house?
Pay Samuel 12k for his course and he will tell you all.
@@Tina-ng9up I'm guessing thats where "sammy boy" gets a chunk of his income..
Refinanced mortgage pays the previous owners based on the new value of the house. The higher it is the more surplus you have for either equity, or just using the accumulated rent to put down a deposit.
At 1:45 the 1k just turned into 10k! And then at 9:30 he's predicted the housing market will be up 50% in 5 years time. I get a real preachy vibe from this guy and not in a good way.
How will you transfer the mortgage?
To transfer the mortgage you need to be eligible for affordability check. If a person is eligible for mortgage why can’t you apply for mortgage on 5% deposit?
If their is a rental market of 450£ why can’t the old owner just rent it and pay the mortgage?
Why any will trust you to give the house for 5 years?
I can see this, but it's not a quick fix at all. Definitely need a few of these, but wow there is ALWAYS A WAY!!!!!
So so true, I am learning.
finally someone explaining why landlords refuse spend money on expensive repairs that won't effect its long-term value. legend
Hahahah
best property advice on youtube this man no cap
So quick question, how do you know they do not have a mortgage of around 400 a month...for instance when checking now for a 80,000 house the mortgage over 25 years is around 400...so how do we work this out?
That's what i was thinking.
Very very good idea so because of this know I'm going to watch your all videos as it is will help me go our of darkness as I'm looking to go our of it is enough enough enough.
Thank you so much for sharing this.
'How to create a 10 minute hypothetical miracle' should be the title!!
🤡
A miracle? 😂
100%. there's a reason its 80k...no one gonna pay what he's expecting the nutter
The guys literally a millionaire 😭
@@CelticGlasgow20 I didn't comment on his situation, just the scenario he detailed in the video.
Im curious to understand why from 2006 2007 the property price hasnt changed much. But in five years rhe property becomes nearly double in value.
Can someone explain please
Genuinely please tag me in this in 5 years time & show me it’s valued at £120k without major renovations. I find this extremely hard to believe that someone would just be that desperate to get out of a house that they’ve been paying a mortgage on for 4 years for just a Lease Agreement. Chances of this is literally 100,000 for sale properties to 1. Why don’t they just rent out the house themselves? If their just walking away with diddly squat?
I'll message you in 5 years
I concur BTW
Some landlords are tired and want to cash out for their pension - they’ve been renting the property out and making money on it for a while. Everyone has a different point of view 🤩
It's usually properties that are either too high priced for the market or in rough areas and won't sell but over time will still increase in value although deffo not that common they are locatable just not that frequent and have to be certain they will rent but can work for the owner there's 1 near me that was inherited and needs modernising do they cash it in below value or just take a small income monthly and a chunk in a few years type of thing more than it's worth currently type scenario..needs to be 5 to 7 years ideally though
Probably if they want to sell the house, then they can't rent it out; nobody wants to buy a house with people in.
You can't just throw people out whenever you want to. You must have an agreement.
Just stumbled across this and amazed from the comments that people actually think this is as easy as claimed.
1. "If you don't have a £1000 put in on a credit card" - Terrible advice. If you can't get a 0% transfer, you'll be paying 15%+ on interest.
2. This is usually used for land not property. He completely disregards the issues for both the homeowner and the proposer. (increased insurance on the property, 2nd home tax etc)
3. If the homeowner can't sell the property, they would still need some place to live after the transaction. This can lead to mortgage issues for the homeowners, plus more tax to be paid, plus the 20% deposit on the new property then 2nd home tax (3% iirc).
4. The homeowners would become landlords and incur costs such as, registration with the local authority, compliance requirements including gas, asbestos etc.
5. If you have a job, you would have to declare the rent as income therefore paying more tax. Even as a Ltd company you have the expense of setting up and (potentially) accountancy fees.
6. The homeowner is likely to get legal advice and the purchase option agreement would probably favour the homeowner rather than the proposer. The fact that after the agreed length of time has passed and then the proposer says "Nah, you can have it back", could put the homeowner in a difficult position.
7. Costs/losses on sub letting where damage has occurred, it's not uncommon for sub-letters to sell things like carpets, kitchens etc. The tenant in poor areas is likely to be of a poorer standard also add in animal damage etc. £21K, is unrealistic over 5yrs.
If something sounds too good to be true......
you’ve completely forgot to talk about taxes on the rental income. Let me tell you, you will not end up with 21k at the end of the 5 years
And that's not the only thing that is utter fantasy in this video.
He would be in negative capital if he doesn't find a job to cover some of the mortgage as well, having others pay the mortgage through rent money alone is a dream with this strategy.
Also if a house is not sold at a discounted price for 4 years and it increased in value, what makes you think others are willing to buy it for a higher price? He will now be stuck with the same problem the previous seller was in but at a much higher price.
Location DOES matter if you want to liquidate quickly because some areas are just more lucrative and attractive than others. You won't find property worth £85k in London, this strategy is very niche and more of a needle in a haystack. I am not saying PLO's are bad, they do indeed work and can be super beneficial under the right circumstances but you should also be wary of the red flags in this video.
Looking at this, it’s more of a sales pitch through the video than how to buy a property for 1k. Can’t see how the property will go up 40grand in value when in the last 4 years it’s went up by 10 and no one wants to buy it. Seems like the trade off is you get to rent a property for 5 years making a variable very small income to buy the property & leave you with the negative equity. Maybe this guy has too many houses that haven’t sold?
Yes you will. A good accountant will set off 'expenses' such as letting agents' fees (if you use them) repairs, any furniture/carpets etc bought. A variety of things. You will end up paying little to no tax. Personal experience speaking.
hes assuming the house will not be vacant in 5 years which is another fantasy, not going to pay taxes too?
How's about house maintenance? Tax for profit? And maybe the owner dont will accept because maybe any lender will give straight away other mortgage.
absolutely no way anyone will agree to wait 5 years to receive thier money ! this is crazy. in reality people do not agree to purchase option agreements, its very rare, i have tried.
also, the rent on such a property is around £450 a month. minus your mortgage payment of £150, and say £50 for insurance £50 for maintenance (likely to be more than this some months), and £45 for management cost, and 20% income tax £90, you should be left with = £115 profit per month. but say the boiler packs up and you need to replace it for £3000. there you go, you will not see any profit for the next 3 years !
good video though and thanks for teaching us.
Good insight! But What is the insurance for? Can’t You work out a deal with the owner for them to do up the property for 50/50 with you?
@@SuperMastaba you need to have buildings insurance just in case the place burns down or gets damaged by weather, landslide etc.
Ofc samuel is gonna act like this comment never existed ahahahahah
Agree entirely.
You would need to pay something for the purchase option. Probably an up front fee and the full market rent until you exercise the option. Otherwise, why would someone let you benefit from renting out their property for five years when you could just say thanks at the end and walk away.
Plus the fact that the option allows you to benefit if the value increases but without any commitment if something goes wrong. It's no different than buying stock options, just a different underlying asset, you need to pay for the benefit and often the cost outweigh the reward.
Of course, if you are really convinced the market is going to explode, it might be worth paying for the option but £1,000 isn't really going to do it. Especially without a safety net for the unexpected costs.
no mention of what happens to the seller? how can they move out of the property if they haven't been paid anything?
Thanks for the video, I am trying to understand why the seller would agree to wait 5 years to receive £82k? Wouldnt they prefer £75k / £80k now?
I think its based on the premise that the seller is aware that the house has little to no chance of selling as it hasn't done so for 5 years.
and to release the prior owner from the monthly mortgage payment
If the new landlord can find a tenant, why would it be hard for the original owner to rent it out?
As a business how do these people move on if they don't have money to move on with only a pormes that you would by it in 5 years
Most people use the funds from the sell of their house to buy another house. That will be very tricky in my opinion… correct me if I’m wrong?
So how can the owner/vendor move on? with no dosh, why would they? surely if they could, they would rent out the property themselves. Can you explain in simple terms please...
Thank you so much, Samuel Leeds. I just bought your book (School Dropout to Mulit-Millionaire) and recommended it to my people. Financially I have nothing. But this piece of information you have given us give me hope now that there is a way out for me. I hope to meet you one day face to face to personally say thank you. God bless you and your family.
This is brilliant.. I have £40000 in cash... going to buy 40 properties and retire in 5 years :) Life is so easy :)
If the property will wealth 120k in 5years time,and you said the owner bought it in 2006 for 82k and put it in market for 80k which is 2k less the purchase price after 17years ,why then do you think it will wealth 120k in the next 5years ?
Samuel, you are incredible. Huge charisma! I start make savings to participate on your course! I really hope to meet you shortly! Big thank you!
It sounds easy but hard to do! What if something coming unpredictable with the house. 1k is not enough. I hope i have the same courage as you do. Love the idea. Thank you for the tips and info. 🙏
Hey Samuel, great video, full of punch and go get it, with ap positive, positive attitude. This is for go getters and seekers- exactly the right approach to shake things up and get going. Your info is right on the dot. Great stuff, well done. I am a newbie (although I have had leased rented shops on the High Streets with my photo bizes in the past and brought my sold my house but now I am starting up my property business) to the property world. I am looking to start in the Deal sourcing and Deal Packing sector first and then progress on to other strats later, once I have built up my cash flow.
Let's PROTECT THIS MAN at all costs!!!! You are the BEST!!!!!!!
He`s a national treasure.... probably even an international one.
Wake up will and give you’re head a wobble What he really means is get in to a real load of shit this guy talks shit he doesn’t tell you that the property needs renovating and it’s in a shit hole where only scumbags are going to be renting it who will not look after it because it’s not there’s also never pay on time so you’re left struggling to pay for mortgage and on top of that if you ever actually see the £350 profit you have to pay tax on it and you have you’re tongue so far up his arse if you spit it’s coming out of his mouth
The main thing I've learned from your videos and life in general is don't get a mortgage. In fact don't ever borrow any money. Just save and pay with money you actually have.
The first time I heard about you I watched a video which you were driving and explaining how a university degree doesn’t guarantee a successful future, I then watched your purchase lease option video and gained interest in getting in to the property ladder but could not afford to buy a house neither put a deposit down, I’ve started to contact sellers and applying your tactics and last month secured my first lease to buy with only £1500!
Great videos and very valuable advice, we just need to have a plan and be creative as there’s a lot of money to be made in property !
Hi, once you contacted them what did you do after? Thanks
Sounds like a paid for comment. The information in this video doesn't work.
@@NoName-ql1wk there is nothing about paid in this comment, just sharing my experience with what I learned from the videos Samuel posts without having to pay for any courses
You idiot What he really means is get in to a real load of shit this guy talks shit he doesn’t tell you that the property needs renovating and it’s in a shit hole where only scumbags are going to be renting it who will not look after it because it’s not there’s also never pay on time so you’re left struggling to pay for mortgage and on top of that if you ever actually see the £350 profit you have to pay tax on it
@@joodertio1449 you are a bad person. Come back to pretend your comment has value and then ignore True Night Terrors question to respond to someone calling you out.
You're a great teacher. I want more, I'll be hitting that link for the crash course! Thanks for this video!
This is genius, Im so sick of looking at spreadsheets in a dull office all day and this might just be the way out, thanks for the video Samuel. Look forward to learning more soon👍
this may seem like a good idea, but he didn't mention how big of a risk it is.
@@IsabellaDemarko how? ur just gonna lose 1k?
Wake up will and give you’re head a wobble You mean get in to a real load of shit this guy talks shit he doesn’t tell you that the property needs renovating and it’s in a shit hole where only scumbags are going to be renting it who will not look after it because it’s not there’s also never pay on time so you’re left struggling to pay for mortgage and on top of that if you ever actually see the £350 profit you have to pay tax on it
@@ayman7424 you’re taking on an 80k mortgage on a house that hasn’t sold in 4 years…
@@luke9571 I guess the rent should more than cover an £80k mortgage with a lot left over each month. even at present interest of 6 or 7% . He says the house can be anywhere but surely it’s much safer to buy in a place with students who are willing to pay cheap rent for a tatty place. I guess his example of Durham is a good choice so you’d want somewhere with a high demand for renting.
Hi Samuel how do you contact the home owner through right move if it has been listed by property agent
Great question did you get an answer?
If you took over the mortgage payments and then rented it out… wouldn’t it be on a residential mortgage meaning you couldn’t rent it out?
Also the seller would still have mortgage in their name? If so how they gonna buy another place to move too? Still what he lacks in realism he makes up for in optimism!
Best financial video I have ever watched. Subbed to the channel immediately and smashed the like!
This is really inspiring stuff Samuel, thanks for sharing bro!!
I started to enjoy your videos. You are something special.
Am I missing something? Who is going to sell their house and not get any money for it until 5 years time?
He's talking shit. Surprised he didn't suggest you buy his course for the 1k.
You’d be surprised I know a few people that have done accepted this …
@@michaelleader4253 These guys only make money from courses and socials. It's all nonsense...
I wouldn't worry about housing at this time, I would be more worried about feeding the family as food is going to become very scarce as we go into the new year. All the money in the world is no good if there is no food to buy. Better start rigging those growing rooms and learn how to grow veg and fruit whilst keeping it hush hush.
Really look up to you bro, made me want to change my life for the better so keep doing what your doing and I’m sure you’ll help a lot of people!
@7:42 ''Give me your house. I'll pay you 2k more.. Butttt I'll pay you after 5 years.''
Do you really think you can get a property like that?
What is stopping the property owner not to rent it out and find someone else to do it?
That was one of the best real estate videos ever for the UK. Thank you so much
i got 100k so any advise where to start?
I love the fact that you add value to peoples lives and make a difference in this world 🌍👊🏾
You mean get in to a real load of shit this guy talks shit he doesn’t tell you that the property needs renovating and it’s in a shit hole where only scumbags are going to be renting it who will not look after it because it’s not there’s also never pay on time so you’re left struggling to pay for mortgage and on top of that if you ever actually see the £350 profit you have to pay tax on it
But if the property hasn’t gone up in value in the past how do you know it’s going to be worth roughly 33% more?
I am slightly confused with this way of getting on the property ladder for a few reasons, so if you could shed some light on this Samuel, i would bemost grateful:
Are you offering some money now . I.e the £1,000 to the current owner, or do they sign a piece of paper and wait 5 years to be paid ot the agreed amount?
Does the house, (title) and mortgage remain in the names of current owners?
If so how then do you pay the mortgage (the person that has bought the lease), do you send money monthly to the current owner and then you have to trust the current owner to pay the mortgage or pay mortgage direct?
If I remains I name of current owner, then how are they going to get another mortgage with their name still on this?
I assume this may be a normal mortgage and not a buy to let? If it is a normal one, then if mortgage is going to be paid for next five years it will chip away at what is outstanding, but can it remain as a residential mortgage if you purchase it this way and then put tenants in, I am sure there is something in the rules (once again protecting the banks!!) that state you cannot do this?
If it is a landlord and they have a by to let chances are it's interest only which means the bank gets 5 yeas of money and the outstanding amount never goes down?
If not, then surely you would have to meet criteria of having mortgage in your name?
What do you do if you cannot rent it out in the 5 years you have the property? Yes I know it seems highly unlikely BUT it may happen?
How can you say the house will be worth £120,000 in 5 years when in 16 years it has not increased in value and we all know that we are heading for another huge housing market crash again like we had in 2008 when thousands of pounds was literally wiped off the value of houses overnight and has taken years to recover with some areas still not recovered (seems like this area hasnt) and it may end up being worth less than the current £80,000 that they have it on the market for now?
I cannot imagine that solicitors cost would be low either, or is it literally just drawing up one purchase agreement?
And finally what makes it so certain that in 5 year time YOU will be able to sell it when the current owner has had it on the market for over 4 years, there is the potential that you could be in the exact same position as the current owner is now? Obviously it's the location of it that is not helping it sell, maybe it was a previously a thriving area when purchased in 2006, with shops and businesses but has changed over the years for a number of reasons, so if you were thinking of going down this route, I would probably visit the area and take a walk around, have a chat to locals and get a feel for the place, as it may be that it's now a street that has just a certain demographic type of people which if that is the case it will never sell.
Sorry for all the questions, I just want abit more clarity as it is an interesting video but I can't imagine it actually is as smooth a process as Samuel makes it sound.
Great video by the way. 🙂
Since when is deposit 25%? 10% was still fine in March this year.
Can you sleep at night? Are you still doing 12k courses?
I'm confused. If I'm the owner of the property, are you suggesting that I move elsewhere so the property can be rented out? But how do I move out if I don't have the funds yet? Or are you saying you will rent my own property back to me at a higher rental? Then why would I even sign on the dotted line? This has to be fake.
Because it’s all bollocks
Love this idea, couple of questions would I need to register as a business and be compliant to do this; secondly, if I decide not to have the property at the end of the 5 years would I have the option to pull out of buying the house?
Mark, yeah after 5 years you don't need to buy the house it's an option. And no you don't have to register as a business. It's advised you do because there are tax loopholes in registering property to businesses, however from my understanding it benefits more from HMO's .. but I'm not a property investor just to be clear.. its something I want to get into .. im just missing one ball at present..
Love the video, just wondering what the would you need in place for this. Solicitors contract and how would it be paid would you pay the seller monthly or would you pay directly to mortgage company ? Thanks!
Great questions! Have you attended a crash course?
@@RS46192 any replies back to this question please?
@@RS46192 the legal ( option agreement ) would be drawn up by the solicitors. The payments would go direct to the mortgage company. All set up through a solicitor.
You are a genius.. Uni is good in terms of knowledge but listening to your videos is making it all coming up... Thank you so much 🍀🙏
Wake up will and give you’re head a wobble hes not a genius it’s a stupid What he really means is get in to a real load of shit this guy talks shit he doesn’t tell you that the property needs renovating and it’s in a shit hole where only scumbags are going to be renting it who will not look after it because it’s not there’s also never pay on time so you’re left struggling to pay for mortgage and on top of that if you ever actually see the £350 profit you have to pay tax on it
Could you explain this? I read in an article; "The renter should be confident that they can secure a mortgage at the end of the lease, or else they forfeit the purchase option." And if you are to "take over the debt" that means you also have to be eligible for a loan that size, which means you still need some guarantor or funds? And if you take on 80k in debt, and then pay the owner 82k after 5 years. How does that work. Suddenly you owe 160k. Further more there are taxes when renting. If you count in at least one (maybe) two months, depending on what time of year, you might owe the bank 400 pounds before you get someone to rent. Then these houses are rarely perfect and need some work. Say 200 pounds. And can you just cancel the agreement if this goes south and you dont have sufficient funds after 5 years. It sound all easy. Probably easy if you got funds already, as there small to no risk. But when you have 5k to your name..... Or this is easy and im just overcomplicating things. :)
sounds like genuine issues to me...worth researching more and talking to someone about it properly. good luck
You sound alot like me.. you believe the idea.. and alot of it adds up but your questioning if its too good to be true.. sounds as if its all just a marketing plot to get you on their courses? . .. there is so much I'd love to know but can't afford the training.. yet all these property coaches preach about buying stuff now paying later.. I put to Samuel Leeds or any coach.. put me through your 1-3k training that you believe in so much.. and when your training pays off.. ill pay you 3x the amount its worth with the passive income it has got me.. id even say I'll up that to 5% on any property income I receive for the next 10 years.. that potentially is offering you tens if not hundreds of thousands of pounds for 1-3k training.. makes sense right? Then take me up on it Samuel??
From my understanding which is not financial advise - The debt that you “take over” will only be the loan size I.e around 75% value for the 70k (purchase price) of the house which is 52k. When you then buy the house in 5 years I imagine £52k of the £82k agreed will go to clearing the o/s loan balance and the other £30k to the initial vendor. I also imagine that if you do not have the funds available in 5 years you will not be obliged to pay, depending on the wording of the contract. I can’t be sure but this what I imagine Sam is getting across.
Email address?
BOOM 🎉🎉🎉🎉 We love you Sam!
Always informative stuff Mr Samuel. Can’t wait to meet you. 💯I am ready to get training done…
Ok , so where do the people in the house go , and are they willing to be your tenants in there own home , if they want to move on they want out of the house , it makes no sense ,
As much as I love sam’s videos I’m not 100% sure this one’s realistic. I just can’t see the rent being £500 per month or even finding a tenant for a property like that and even if you did you want profit in the £350 per month because if anything goes wrong you have to fix it that will be in the contract won’t it? It would be ace if this video was redone in depth explaining every little detail 🙏🏼🤣
I think the reason this seems unrealistic is because Sam is basically telling us that in five years time that property is going to be worth 50% more than it is currently worth now however it has gone down in value in the last 15 years so I’m confused as to how it will go up in value by such a huge amount in a such a short period of time??
@@connor02 the market will go up since it hasn´t been going up for the last years he´s talking based on his experience and for the UK. Even without growth just by renting it out will keep your profits up.
Still waitin for samuel to respond
This house looks similar to one I had as a buy to let. But mine was cheaper. Mortgage was still 185 a month with income of 470. After insurance, covering costs of the house and the rest of it, I wasn't making £100 profit a month.... his maths doesn't work for this one
@Gijs yes?
Loved this video!! Please do more like this!
Thank you for the video. It's doable. My concern or should I say question is what happens if there is a need for a remortgage, if the equity in the property is negative? The current mortgage is probably not interest only.
I knew about this already but you have stimulated me into taking action. Thank you.
Cheers mate for finding the time to do the video! - Do you think an example like that would be in negative equity? Likely put down a deposit, paid the mortgage for however many years it was?
If it’s not gone up in all them years and then had the covid boom and still not up, why in 5 years is it gonna be worth so much more?
It’s likely you’ll be paying whatever mortgage they’re paying. Likely it’s not interest only and costing only £100.
I think you’d be pretty hard pressed to find someone on interest only and that desperate to sell they’ll wait 5 years to see any of their money and be left with no where to live. They might end up renting it off you? 😒
If you don’t have the money or the borrowing power to buy for example in 5 years? What will happen? Do you simply say sorry, I don’t want to buy your house now? Even if you’ve got the money and can borrow the rest, the house might be worth less and you don’t want it.
I hope these are valid points, let me know what you think
All the best,
Liam.
Very valid points i would like to know the answer
There's no answer he made money from making this silly video and wasting people's time making us watch it. Then he uses the money he makes from RUclips viewers and he goes buys house with it. The answer is donkeys ass lol
it won't
It's gone down in value over 4 years but 5 years later It's up 40% ? And where can I become a landlord and pay no council tax, landlord insurance, maintenance and find reasonable tenants in a depressed area? 🤔 I might buy all of the houses in Durham it sounds like the land of milk and honey
I remember when this happened to a colleague trying to sell 10 years ago. We all agreed it sounded dodgy and he eventually sold via traditional methods.
This guy knows his stuff!!!
Wake up will and give you’re head a wobble What he really means is get in to a real load of shit this guy talks shit he doesn’t tell you that the property needs renovating and it’s in a shit hole where only scumbags are going to be renting it who will not look after it because it’s not there’s also never pay on time so you’re left struggling to pay for mortgage and on top of that if you ever actually see the £350 profit you have to pay tax on it
My only question is how do I get tenants for the next 5 years 🤔?? Thanks for the advice Samuel I am 22 and this seems like a smart play for me
All sounds great. However I see you've done some research into the WEF and The Great Reset. So I assume you have some idea that within a few years their plan is "You will own nothing and be happy.". They plan to introduce programmable Central Bank Digital Currency with expiry dates and conditions attached to replace cash. Do you think this strategy is still viable given this scenario?
Where do I start with this video. I’m reading comments of you giving people "hope" and I think it's a shame that you make money miss leading people with videos like this. You know the content of this video is fiction at best, you care about how many people view the video so you give it a click bait title and watch the view go up.
1) If I own that home, why wouldn’t I be renting it and earning the £350 profit?
2) You completely haven’t mentioned the fact that the government aim to have an EPC rating of C or above on rentals in the UK by 2025 (within the magic 5 years you mention), this property falls below that standard (quick check of the EPC register tells me that). Where does the money come from to renovate the home? A buy to let lender wont release any funds unless the EPC is above C, you know that but you just choose not to mention it. So how do I get my buy to let mortgage and release all this money when fundamentally the home in unmortgagable without renovation?
3) Most lenders will not lend on a property that has changed hands so recently (back to back remortgage) it's a massive money laundering flag. You make it sound like I can buy it in 5 years and instantly remortgage it - Incredibly unlikely.
4) Majority of lenders on a buy to let insist you already own your own home, how is that going to work for all the people your miss leading on this video?
5) If the value of the home doesn’t stack up at the 5 year point, what are the legal ramifications if I can’t meet my obligations?
6) You said in 5 years time you will have £21,000 saved from the income and the house will be worth £120,00 minimum (lol). This is the time I would buy it right? So when I ask my buy to let lender for a mortgage 25% of £120,000 is £30,000, not £21,000 where does the extra £9,000 come from? I have £3,600 worth of stamp duty to consider plus an extra couple of thousand to pay for solicitors fee's. So that’s £14,600 extra I need, where is it coming from?
I cant be bothered to going into the fact the property might not rent for enough money each month for a lender to give you the 75% or the fact the monthly cost on that size mortgage is definitely more than your quoting.
You know its fiction, that’s why you keep it vague. It's criminal people watch your video's and think it's a way to better themself. There is no quick way to success. I've just seen your offering crash investor courses, that’s exactly what it will be - a crash.
Greetings from Peru! I love your WINNING ATTITUDE!
He is just ripping people off making housing unaffordable and full of bullshit
Hi moove out of your house let me rent it out so i can make proffot out of it whilst you end up renting another house 4x more than your mortgage was costing you. Im just not seing that many people being that stuck to go with a deal like that and then its going to seriously damadge there lives once the reality has sunk in they are paying more getting paid less and wont even own there house once you have made proffit out of it and sell it.
Why for goodness sake am I seeing this video in 2023?🙈 This is gem, this is priceless information. Thanks Sam, and God bless🙏🏽
Wouldnt say the mortgage repayment of a 80k property is 150£ pm
2.2% interest rates. £150 is bang on
@@SamuelLeeds still doesn't come to 150. To be honest
Boiler goes in first week, roof starts leaking, drains blocked you being the landlord are going to get it in the neck from the tenant and feel it in your pocket if you don’t get it rectified so always got to have a contingency fund aswell for any unforeseen problems
I haven't got the time to go into how much of a tool this guy is, wrong on so many levels, ridiculous assumptions and completely overlooking the tax liabilities.
Think your the tool mate 🤦🏻♂️
@@scouse0151 you're (Insert amusing emoji)
🤣🤣🤣🤣
Agree non of this is realistic and i have properties
Yes, too easily glossing over the problems of putting it up for rent i.e. area, neighbours, and paying a company to manage the rent out. Not to mention the cost of any repairs needed, which can be in the thousands.
I'm genuinely mind blown. Seriously wicked stuff.
I’m no longer waiting for the GRANT LOAN because I earn $48,700 every 10 days recently
Same here, I earn $32,670 a week. God bless Mrs Jane Morgan, she has been a blessing to me and my family.
I have heard a lot about investments with expert Mrs Jane Morgan and how good she is , please how safe are the profits?
I’m enjoying working under a platform that brings good return in life . I’ve been making my weekly returns without stress all in crypto currency
That’s right, I think the best way is to invest with a professional, at least it saves the trauma of too much losses. This just surprised me because I also invest with Mrs Jane Morgan
It’s four months now I started investing with her and it has been a good experience
Sorry, have I missed something? Need another video to explain why the current owner might think this is a good deal. As I see it, they’d be walking away free of the address, but tied to a mortgage. if they were going into rental themselves might be one reason.
Great vid! So in 5 years when it’s worth 120K, would I need to put down 30K instead of the 21K? (assuming it’s a 25% down payment) thanks in advance 😀
No, as you agreed to pay the owner the 82K via PLO Agreement!
That property will not be worth 120k in 5 years anyway. You'll probably also find yourself in negative equity.
@@RicherPodcast what I dont understand is how do the original owners move from the house if they got no cash and needed it to move out ?
Or it's isn't your problem?
@@joshmaitie5954 exactly what i was gonna say.theyd have to have money to move on and if they did have that kind of money sitting there,if it were me,i probably wouldnt be trying to reap back the same price i paid for it for four years.id price it to sell ie a bloody bargain to offload it and move on.
@@joshmaitie5954 I don't understand this either.
have £10,000.. looking to invest, where we going?
REALLY interesting and I wish I had of done it when I didn't get myself into so much debt. I seriously doubt any mortgage lender would do this for me now with bad debt.
Mate just keep working it off, find ways to make money and get it going!
You don’t actually need a mortgage lender for this bit Jason! 🤯
It’s a big green rush.. I have friends in Massachusetts US making crazy money and they own alot of land and grow alot with a license to sell