£650pcm From Their First Rent-To-Rent Deal

Meet Home Plug!

Discover Home Plugs Rent-to-Rent journey so far and how we have worked together to get their first deal which is set to cashflow £650 per month…

In this episode, Simon is back on tour in Leicester with the one and only home plug who were celebrating their first rent to rent deal. With their interest in property starting back in 2016, but their work-life became too demanding. When lockdown began, they decided now was the time to do a bit more research, starting with free content available online.

They went ahead and pro-actively set up their social media, website and began viewing properties in the search for their first Rent-to-Rent deal. After identifying potential deals, they reached out to Simon on social media, he has helped them close their first deal cash flowing £650 per calendar month.

Listen to this weeks episode to discover how Home Plug has worked together with Simon to secure their first Rent-to-Rent deal, a run through of the area, property and deal and what the next steps are for their property business…

Available on iTunes, Google, Spotify and others or click “play” on the player below!

Podcast Transcript↓

Today, I'm back on tour in Leicester with the one and only home plug who was celebrating their first rent to rent deal. Next week is our first birthday. We've been doing this podcast for a whole year and to celebrate I'm doing something really special on YouTube. So be sure to subscribe to the YouTube channel right now, link in the description of this podcast.

[00:00:26] Enjoy the episode. Don't wait, 25 years.

[00:00:34] I'm Simon. And a few years ago, I decided I wanted to make a change. I wanted to create a passive reoccurring income to support me and my family today. And a legacy for the future, a future fast forward two years, and I've managed to generate over 10,000 pounds worth of monthly passive income. I've set up the business, scaled the business.

[00:00:59] I now have systemized the business to free up my time. So join me to find out how I've done it. How well does it dominion every day and how you can do it too.

[00:01:25] Yes home plug. How's it. How's it going? Really good. Amazing. Well, I just want to quickly set the tone for our listeners. We're actually in Lester at your first rent to rent deal, it looks absolutely amazing. Set the scene where the back of the house in the dining room, it's all cozy and made up look great.

[00:01:51] And I've been told that that building right outside the window is actually one of Leicester. University's main halls of residence. Yeah. It literally the demand for at university, the biggest one in Leicester is less than a mile away. And yeah, they're the holes up, back on to our guy. Fantastic prime time.

[00:02:09] So let's get into this. Mr. And Mrs. Home plug, do you want to introduce yourselves? Yeah. Mr and Mrs. Home flog. Um, we fought this idea in 2016, um, just to kind of let you know where we started. Um, and then during the first lockdown we decided to go for it, did a bit of research, you know, the free stuff that you go on, YouTube.

[00:02:32] Um, you know, kind of started to fall in love with it. And then we, we met you and before, you know, it was setting off first, went to men. Amazing. I didn't even know you guys started 2016, so, so you've actually been thinking and doing this for a while now. Yeah. Yeah. We went, um, to see Anthony Joshua fight the O two arena and we stayed in a service accommodation in London.

[00:02:58] And we got talking to the guy who gave us the keys to the property. And he just basically told us how easy it is to make the money he was making. And he owned life three of the properties, you know, in the, in the blocks of apartments. And he, well, actually he said he didn't actually own them. He rented them off the landlord and then that's what he did serviced accommodation.

[00:03:18] And we was just like, let's get into it. But then work took over life, took over. And then first locked down. We decided that my then not to get into all that time ago, said you not down with this fought. We've got a timeline. We might as well keep something because I started Evo. A hundred percent. So yeah, I mean, I know you two have got a great story and I know you're very talented as well in your personal lives, and you've always been busy professionals and doing your own businesses.

[00:03:52] Do you just want to tell the listeners a little bit about what you're doing outside of practice? Yeah, so I work, it was full time, but it's now the reduced of hours due to the pandemic and that's been happening. So I do, um, I sell Corp hospitality, so I sell football, look back all the sporting events, boxing.

[00:04:13] Um, I'm really, really good at that. And this is now something that I do half the day after I finished work. Nathaniel, you laugh? Yeah. You, you was full time doing, um, what was it that you was doing? So I used to do contracting for a bank before this, um, They were lucky to be honest with you, it wasn't going anywhere.

[00:04:37] And I've always felt like I wanted to do my own thing. Um, quite a lot of family that I'm involved in poverty. So that's always been in the family to do something, um, to property. And I just thought it was right to get involved myself. So to find out who does it full-time and I kind of finish work and just graft for home.

[00:05:00] Amazing. Yeah. Amazing. It's definitely working. One thing I will say about you too. Like, I actually didn't know that, you know, the penny drop in 2016. I didn't realize it was that, that long, long ago. So we've, we connected around two and a half, three months ago. Maybe. Now, what was you doing prior to that?

[00:05:24] Cause I know you was quite active. Um, your social media was looking great. And he was trying to actively source rent to rent. Was it always rent to rent she was doing, or was you trying other strategies as well at that point? No, it was just meant to, and that's all we know. We want it to always see the biggest things that you can in positive the biggest strategies, but we realize that with our cashflow, um, we're going to struggle.

[00:05:46] Um, so even if you had a pot of savings, it would be hard to kind of invest into a house and then continue going and going and going. So we just fought. We need something that's going to give us a cushion. Uh, maybe you can potentially build on that. And then we've wanted, the biggest strategy is further down the line and we came across, went to that.

[00:06:02] Um, so yeah, we just researched and researched and did as much as we could on our own. And well, socials are tried to build our business from the get-go. We wanted it to look professional from the get go. It didn't matter. So we've made our website, um, did our Instagram, did our Facebook, did our LinkedIn.

[00:06:24] Joined groups. And that's when we came across you. I can remember. I think we were stuck on when was the view, the property and the figures just weren't adding up because we were using narco own spreadsheet and calculated sheet. And I messaged you on Facebook. I didn't even know you're wise. And I just thought you might not even reply back.

[00:06:46] And I was just like, Simon, what do you think to these figures? And I can remember that was the first time I messaged. And then you sent me one back saying, come get you out. And that's when we obviously had the code. Sure. And how are you finding it as you say, like, it's been a bit of a whirlwind I'd imagine, um, this deal happened really quickly.

[00:07:05] So how are you finding it now? Very good. We can't, we always say don't, we, we can't believe that we're in a pandemic and we're making money like this, but we can't imagine once we do get out. And, you know, people can travel freely. We're just going to kill her literally, literally, because we've got massive, massive goals and aspirations.

[00:07:29] Um, so let's talk a little bit about this deal then. So, you know, maybe you could just give like an overview of the deal just for everybody at home. And then we can start to, you know, on paper. So we was viewing at least probably two, maybe three properties a day at this point, because you gave us that it's all good.

[00:07:55] Seven days view temp officers. Um, so that kind of made a step again. And because of that, we was frequently visiting three properties a day and we came across this one and we loved it straight away. Obviously I had a vision and the vision was for it to look like this, and it was terrible. I'm not going to live.

[00:08:17] Uh, we in total invested around 6,000 pounds. And the reason why we invested so much money is because we've always said. We want to build our brand. So we want every single property to look exactly the same consistent we want home plug to stand out and just be different from the rest. Um, so yeah, we met, obviously you've got, if I'm an estate agent, um, and you know, we couldn't get numbers with them.

[00:08:45] We was happy with the monthly amount, which was 720, which is what the landlord was asking. And. Yeah, it just went from there. We exchanged contracts. It did go backwards and forth. Quite a few times we have met the landlord is a lovely bloke. Uh, we found out that he doesn't owe any money on the property, so he's mortgage free.

[00:09:05] He's so laid back. And because of that, we're potentially viewing more properties for his sister who owns several, um, and Jack. Pretty much a hundred percent and an amazing deal. So you're paying 720 pound guaranteed rent on this property. I've started a little run round. So it's essentially a four bed terrorist property.

[00:09:30] Uh, or should I say a three bed, two reception rooms. And you've converted the front bed into a fourth bedroom. How much are you hoping to achieve in terms of, you know, the monthly income? Um, we're hoping to generate around the 650 pounds cashflow per month after bills, after giving the money to the landlord, guaranteed rent.

[00:09:54] Um, that's when we do it long term, um, we're still debating whether to do students or professionals, but at the moment it is being advertised, um, for students and yeah, so yeah, I'm on 650 pounds. Yeah, everything failed. Japan's 40 50 bills and 7 29 load a hundred percent, which is, you know, all of a sudden 650 pounds cashflow.

[00:10:21] And you're on your way really. Um, and you know, like you say, over deals potentially from this landlord, which could just quickly. You progress, you mentioned your pet, you spent six grand on it. How much of that has been on sort of the property versus the furniture and the assets, the company assets as we call them.

[00:10:43] So it's around three grand of stuff that we're physically put into the property that will be taken with us. Um, you know, if after the five-year, if we decide to not continue, um, because our plan is to go to Manchester. Long-term um, obviously I've been promoted to a really good job position. So that is the aim.

[00:11:06] That's what we want to do. And we want to be doing serviced accommodation in Manchester. So after five years, you know, if it's booming in Manchester yeah. Um, we'll be taking everything that we, we own in this property and it's around three grand's worth and we'll be taking it with us. Um, just so basically 3000 pounds on company assets, which are yours.

[00:11:28] So even though you spent six grand, you've only rarely spent three grand on this property with your 600 Japan cashflow, you're going to break even within five months. And then you're out, you've got the rest of the four and a half years or whatever to just cashflow it, right? Yeah. And as you touched on them, a good thing is because this property is not got a mortgage.

[00:11:47] You're also free to do some essay stuff. So watch you wait in for long-term tenants. Do you want to share what you've been doing with this property lately? Yeah, so basically we just, um, got the hospital to do such combination. Um, we didn't have to spend a little bit more money getting everything, um, kicked out.

[00:12:07] So like, Lady stuff and frames and, um, the little added touches that we wanted to do to kind of make it look presentable. Um, we do stay in a lot of service accommodations all over the country don't work. And so we know what we're looking for. We know what kind of things make us happy in the service accommodation.

[00:12:29] Um, so we did spend, it was one fall in Japan wine. It won a lot of money around 400 pounds again, but I can take that with us. We can take it. And at the moment we're advertising it on all the platforms and it's going 400 pounds at Penn. Nice. And like the first two weeks we generated like 1200 pounds. Wow.

[00:12:51] So a hundred pound a night, three grand. So you could potentially do like two grand a month as an essay. Yeah. So we're hoping to get the money back a lot sooner that we invested initially, um, on the property, which was 3000 pounds. A hundred percent. So let's just, just so people get a timeline in terms of us working together.

[00:13:11] Um, so once, once we had that phone call, um, well, sorry, once you messaged me, we jumped on a phone call where they look at your deal. We decided, you know, you know, there was a synergy there and we wanted to work together. What, what was what's that been like? And you know, it didn't take us that long to get a deal.

[00:13:28] What, what was the difference would you say? I think it was, it was good from the get-go because. Was missing the final touches towards what we was, what we'd already done. I should have said it was the finalizing bits. Um, which is you not as you came in and you just added that to what we already had. And we was able to get a deal in the first, I'll say three weeks, four weeks of working with you.

[00:13:54] So it was quick. So it was good. It's been good for me. Amazing. So what's next. What's the goal. I know the goal, but, um, what's the goal for home pro this year, 10 properties, 10 properties. By the end of this year, I want to be able to go to Manchester, feeling comfortable knowing that 10 properties have in Leicester generating as a good cashflow.

[00:14:17] Um, do I say he's in Manchester? Get that book. It feels. And then we eventually want to do BR BR BR is our plan 100%. Yeah. So that's our target now try and get as much money in the bank as possible and to yeah. To do that. Fantastic. All right. Cool. So final question, just for anybody starting out or for anybody listening that maybe is into mine, should they do rent to rent?

[00:14:49] What would your biggest tips be? What have you learned? I think we do as much research as you can offend, make sure that you're prepared to work hard because it's not easy. It's not just pour money in property, on a setback and watch so many communities, you know, I mean, not to have to guide them and do the work.

[00:15:07] Um, but yes, it's definitely worth putting audience and know if you can get the rewards from it. Someone wouldn't said to me, you think good advice is expensive. Try having bad advice. I think we could have gone down that line where we could have paid a lot of money to several companies and several people that wanted to teach us the tricks of the trade and stuff like that.

[00:15:33] But we're glad that we, you know, met you Simon because without that, um, we wouldn't have got a property, our pass. And if it, we would've got one a lot sooner to be dead. Definitely not. There's a lot of things that we did. Yeah, the contracts and the things that I fought I'd be able to do on my own, but no way definitely would have been able to do it, or we would have done it wrong.

[00:15:55] So, and that we would have been in a worse position. Well, you're absolutely smashing it. I love this property. We we've got my care. So we're going to do some videos stuff here. So if you're listening to this podcast, you want to see the visual, make sure you join the creative customer Facebook group with upload orders.

[00:16:15] That is going to be some videos and pictures. And, um, once you got the photography, I think you've got an, any time post a pictures on I'm sure everybody would love to see them and let's get those 10 properties. Yeah, definitely. Definitely. All right. Thanks very much. You smashing it? Let's keep going. Yeah.

[00:16:45] Thanks for listening. For more information, check out Simon Smith, online.com. See you next time.