The Progressive Property Podcast Is No Money Down Possible?
Ever thought that you can’t buy property because you don’t have a 25% deposit, or you don’t earn enough to gain a mortgage?
Well, there are plenty of ways for you to invest in property, with either no money, very little money or with someone else’s money. Kevin this week talks through the various different ways that are available for you to invest in property with ‘No Money Down.’ From using rent-to-rent and Planning Gain, listen from the expert in ‘No Money Down’ property structures to make sure you start investing in your future today.
Key Takeaways
Do you know people who own a lot of property? Do you know them personally or have you read about them? The reality is they probably get there by doing ‘No money down’ property deals. They didn’t do this by working in a job to save for a job. If you don’t use ‘no money down’ investing otherwise you won’t own enough properties.
What is ‘No Money Down’ Property investing? There are three types of ‘No Money Down.’ It could literally mean there is no money down on the property, or there is very little or no money down on a property. Would you be willing to purchase a property for £1 which is worth millions and gives you lots of passive income? The final meaning is where you use other people's money to put down on a property.
What ways can you do ‘No Money Down’? People say you need a mortgage or you need 25% or you need to go through an estate agent, none of these things is necessarily true. This is not what creative property investors do.
You need time, you need knowledge, you need the money to get into Property. It doesn’t happen to be your money, however. There isn’t enough money to give back everyone the money there is in their account. A lease option is a really powerful strategy, which allows you to control someone else's property. When you buy a house, you get a title deed. It has the owner name and it has the address on it alongside anyone else who has an interest in the company. This means you get control of the title deed, which gives you control of the mortgage, cash flow and profit.
Rent-to-rent is a great option. You can get control of other people's property and the cash flow without the deposit. We’ll get the landlord to make sure that there is a few months free rent, you can even get the furniture in buy now pay later scheme. You rent the property, and then you put the tenants in the property. People don’t want the hassle of managing a property. If you don’t have a deposit rent to rent can be great.
Rent-to-Buy. There are lots of people who are in rented accommodation and they want to buy a house but they can’t afford to. You pay the market rent and have an option to buy later. The purchase price is locked in on day one. So you can move in, or someone else can be moved in. There is no cost to the landlord, the purchase price can be increased.
Buy-to-Flip. There are costs to this when you are doing the refurbishment. Buy-to-flip has to pay an additional 3% stamp duty which has eaten into profits. But an assisted sale could be useful. This is where you joint venture with the homeowner. You pay the refurbishment and increase a purchase price up front. You can split the sale cost after the event, so it's a win-win from the homeowner. You can joint venture with someone else to pay for the refurb costs as well.
Planning Gain. You don’t need to buy a house to benefit from planning gain. This could be where you get an option to buy on a plot of land, and submit planning permission and then sell your option to buy.
Best Moments
‘Just because some money is needed it doesn't have to be your money.’
‘Don’t think that without any savings
‘Money doesn’t really exist.’
‘The situation of the homeowner is more important that the
‘Lease option is a really powerful strategy’
‘In a leasehold, you are not buying the house.’
‘People don’t want the hassle of managing a property.’
‘There are opportunities to make money in areas where people don’t want to do the work.’
‘A tenant-buyer property contract you have the security of ownership.’
‘Buy-to-flip pay an additional 3% stamp duty.’
‘You don’t need to buy a house to benefit from planning gain.’
‘Joint venturing is a hugely powerful strategy.’
‘You can exchange your time and knowledge for their money.’
‘Don’t pedestalize the money.’
‘The more you network the more money you can make.’
‘One of your greatest assets is the time and willingness.’
‘Ask people to look at your deals before you go to investors.’
‘Don’t chase for the money.’
‘Sell through not to.’
About Your Host
Kevin McDonnell is a Speaker, Author, Mentor & Professional Property Investor. He is an expert when it comes to creative property investment strategies. His book No Money Down: Property Invest talks about how to control and cash flow other people’s property to create financial freedom.
Contact Method
- Facebook: https://www.facebook.com/kevinMcDonnellProperty/
- Official Website: https://kevinmcdonnell.co.uk/
- No Money Down: Property Investing by Kevin McDonnell