Episode 14 - Never Overleverage Yourself and What’s the best property strategy?

Fairmont Rainmakers

HMO’s (Houses of Multiple Occupation) Instead of letting the property by the house or flat to one family tenant, you let out individual rooms to increase the income, cashflow & yield. The more rooms you can carve out of the unit, the higher the income. Serviced Apartments: Alternative to staying in hotels which provides more of a home experience on a nightly basis and where it provides a higher yield and return on investment. These are modern day fully furnished boutique’s and are becoming very fashionable for owners and guests for short and long term stays. Rent to rent: Also known as sub-letting or corporate letting. You rent an ‘HMO-able’ property from a Landlord on a single let basis, and then ‘HMO’ it yourself, renting out multiple rooms with a management agreement. You create all the cash flow of an HMO, yet you don’t buy it. No deposit needed. No big upfront costs, just small refurb costs. Deal Packaging A packaged deal is a deal you sell for a fee, for someone else to buy. This is also known as wholesaleing or property facing where you sell the lead using assignable contracts, sub-sales & option agreements. Client facing is where the clients pay you more to manage the process (purchasing, legals, refurb) and assist them building up their portfolios.