The Progressive Property Podcast Babysitting, Rent2Rent & The Art of Negotiaion!
Jump in and hear live questions from the UK’s largest property community. Kevin resumes his Q & A with Keiran Kevan. Listen in as they dive into lease options, Rent2Rent strategies and the art of negotiation. Discover valuable insights from property investors of all levels of experience and hear the real life deals investors are making right now to secure NMD, Rent2Rent properties below market value and with great potential for profits.
KEY TAKEAWAYS
- In negotiations, you must walk away at least once. Most people get emotionally involved in a deal that they grab the keys no matter what, spend more and end up losing money.
- Babysitting is a term used in property when you’re looking after somebody’s mortgage as part of a lease option agreement. A lease option means that you’re contractually and legally bound to pay that mortgage, the title deed is still in the vendor’s name and you remain responsible for taking care of homes maintenance.
- If you invest in rent2rent you will not benefit from the capital growth of the property, however, if it’s a lease option that you absolutely will as you agree to purchase the property and will gain from any capital growth in the property.
- Rent2Rent is a strategy that can be utilised on both HMO, SA and Single-lets. All Rent2Rent does is replace the word buy with rent. It’s a strategy that can be used with a variety of properties but you need to make sure you’re using it on the right ones. The sweet spot is a 4-bed home that can be converted into a 'HMO' which will generate higher rents and will cost the same as a 2 or 3 bed. Rent2Rent needs to fit the property that you’ve secured.
- Don’t focus on one strategy and only look for properties that fit your certain strategy. What you need to do is fit properties that you can secure BMV or with lease options and then fit the right tool/strategy with the property. For a 1 or 2 bed, this might be a sing-let, for a 2 or 3 bed it may be a Serviced Accommodation depending on the area and for 4 beds and more a 'HMO' strategy might fit. You need to be flexible with your strategies to make the most profit.
- New council tax regulations are forcing investors to add a break in Rent2Rent contracts stating that if the council tax band in the properties area changes the landlord will be responsible for additional council tax charges past one room.
BEST MOMENTS
“Always stick to your guns”
“You cannot cut your own throat to secure a deal”
VALUABLE RESOURCES
https://www.amazon.co.uk/No-Money-Down-Property-Investing/dp/1909846767
ABOUT THE 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
https://www.facebook.com/kevinMcDonnellProperty/
https://kevinmcdonnell.co.uk/
http://progressiveproperty.co.uk/