Alaa - The Journey To £4000 Monthly Rent-To-Rent Cashflow
Meet Alaa!
My star Mentee who has secured four Rent-to-Rent deals in just 12 months…
In this episode I travel up to Leeds to talk to Alaa, my star Mentee who I have been working with for a year now. We discuss her journey from zero to £4,000 of monthly Rent-to-Rent income. We have secured four deals together and I thought it would be a great time to visit Alaa and share her journey to date.
Alaa, originally from Sudan, came to the UK six years ago. She is a mother to three boys and works full time alongside her property business as an IT Engineer. Listen to this weeks episode to discover the fifth consideration and the conclusion of the best investment strategy for you.
Podcast Transcript↓
Today, I'm on tour in Leeds talking to Alaa about her journey from zero to 4,000 pounds of monthly rent to rent income
[00:00:14] 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, and now I've systemized the business to free up my time.
[00:00:43] So join me to find out how I've done it. How well does it do it every day and how you can give it to.
[00:01:06] So we are in Leeds and I'm so glad not to be on my own today. I've actually got a friend, a special guests. Um, somebody I've been working with she's my star mentee. I've been working with her for a year. We've done four deals together and I just thought it was only right to come up to Leeds. Now lock downs lifting and to see her latest deal.
[00:01:30] So we're in her latest five bed rent to essay in the center of Leeds and we're having a little catch-up. So Adam, welcome to the show. Oh, thank you so much, Simon. Thank you for taking all the way here to lead, uh, to have this physical interview. Um, uh, yeah. Thank you so much anytime. And look, it's amazing to actually meet in person or the zoom.
[00:01:52] Cause we, we, we chat every Tuesday, every Friday, 7:00 AM. Have done. So for a whole year, first time together. Amazing. Can't believe it. So for people that don't know you that are not aware of you, do you just want to do a little introduction into yes. So hi everyone. This is me, Anna. And, um, I'm originally from Sudan.
[00:02:15] I came to UK like six years ago. I'm a mother of three boys. Um, 10, seven and five and I'm, uh, I'm an it engineer. So it's my full-time job to work as an it engineer. And, um, I'm also doing this property business, so, yeah. Fantastic. And how many deals is this now? So this is the fourth deal. Wow. So full-time mom full-time job.
[00:02:42] Yes. English isn't even your first language? No, it's not my first language at all. Sometimes I forget words. So I might forget where it's now. So yeah. Fantastic. Absolutely fantastic. And how long has it taken you to get these four deals? So I've started the, this property like a year ago. So the first three years I got it.
[00:03:03] So the first three days I got it at the beginning of my property year. Um, and he was like two weeks difference between the three of them. And then now I've got this fourth one, which is, um, nearly at the end of my property year. Sure. Now I remember, well, cause I know you were struggling a little bit.
[00:03:20] You'd had some of her education and stuff. You're struggling to get your first deal and then. What did we get like three in something stupid, like six, seven weeks or whatever it was. We got three deals in six weeks. Mental. Absolutely amazing. So how have you, well, that's a very good question. So, uh, every day that's my daily routine.
[00:03:43] I wake up at half four. And I just start my activities, organize my things, get kids to ready to school and then start my doing my it job, come back, focusing in on the business. And then I go back to bed at 10. Amazing. And if you need to view properties, like how are you fitting that in? Well, I just sneakily sometimes go through the daytime to do a viewing quickly and come back.
[00:04:06] And the fact that working for yeah, that helps disclaimer
[00:04:18] is fair. I know he's a I'm I'm very often with my manager, so I told him about a member's business and I, as long as. This won't interfere with my it job. He's happy with that. Yeah. And I'll just say, you love your job. I love my job. I love my it job. So to my manager, I love my job. Yeah. We're not leaving.
[00:04:35] We're just adding additional income talking of which, um, cashflow wise before this deal, where, where are you at? So, uh, I was doing the rating around 1,500 from the, uh, three PVS, uh, rent rent deals. Fantastic. Amazing. And before we fast forward on. There's a really interesting story behind. Two of your three deals.
[00:05:00] Yes. Do you want to just tell us a little bit about that? The way I got my first deal is actually, um, the, um, telling everyone what you do. So I met the landlord in a playground in the school where our, both our kids go to the same school. And, um, I just had like a normal parents conversation. I already been in, how are you?
[00:05:19] So she asked me what you've been doing. And I told her about. There's property management thing. And I didn't know at that time that she is a landlord herself and she's got so she just, yeah, she just said, oh, so you meet HMO Allah. I was like, yeah, it chemo's, you know about them. So she, then I realized that she's in the business.
[00:05:36] And then, um, she asked me to manage one of hers and this is how I got my first deal. And then after I build that trust with her and she saw, um, the amount of good work that we did with her property, she decided to give me a second. Um, my S my second property, which is one of hers as well. Amazing. So, yeah, playground playground, literally.
[00:06:00] Amazing. Great. So let's talk about this place because we're in this amazing five bed. Is it five bedroom in the middle of leads, high ceilings, Victorian. Beautiful. It looks like an absolute. Show home. How did you find this one? Well, this is now the, the beauty of social media. So from my third, um, uh, deal, I posted pictures of that.
[00:06:25] Um, this is how the landlord found me when he saw those pictures, he was very interested and he contacted me on Facebook. Uh, sending me a message saying I've got this property, uh, would you like to come and have a look? Um, so this is how it started. So I went, I had a look at it. It was completely different.
[00:06:43] It's it's a livable place, a horrible place. So I told him this needs a lot of work to be done, and he was so happy to do that work. And then four months later, he contacted me say, said, um, saying that the work has done. Do you want to come and have a look? And, um, here we go. So in a week, Um, so I got this last week and now in a week time, it's all ready to go now a hundred percent and it, it looks phenomenal.
[00:07:07] So it just goes to show how important pipeline is, because I think the first time you brought this deal to me was what going on for five, six months ago, right? Four months ago. Yeah, exactly. And it is taken a little while, so let's go through the figures on, on this deal. So it's a five bed went to serviced accommodation.
[00:07:27] Yes. She first serviced accommodation. So nervous about it. We were, we've been getting ready for what I think is an amazing, especially now seeing it. It's an amazing deal. What sort of figures? What's the arrangement you've got with it? Right? So for this one, eights, uh, babysitting his mortgage and then 50, 50 profit share on this one.
[00:07:49] What's the mortgage seven 50. Cool. And what are you hoping? The nightly rate too big? So this is going to be around one 74, three people, and then 30 pounds for extra person. And it sleeps, sleeps up to 13. It's massive. It's massive. Um, and look, w and we already have bookings, like starting from, uh, June. Oh, wow.
[00:08:12] Yeah. Smashing it. So I was just going to say, you need to see the pictures of this place. It's amazing. So we'll make sure we put them on the creative cashflow group, if you're not already a member link in description for that. So yeah, so mortgage 750 pounds bills and stuff. Probably 500 pounds. So what, you know, what do you reckon the total income you could generate a month weekly?
[00:08:38] So if it's a 100%, um, occupancy for this one, so it's going to be around 5,000 something on this house. Wow. Yeah. So you're looking at potentially, you know, 3000 pounds, net, 50% for you. Yeah. So this could take your cash flow to over 3000 pounds a month. Yes. And I know we also did the figures on this and this breaks even at like 40%.
[00:09:04] That's what we always say, guys, you can't be breaking even at 80%. So that's good. So amazing. So great deal. And I can't wait to show the show, the pictures. So just wanted to ask you a few more questions in like how hard is, it's a very hard, it's very hard. It's not easy. I'm going to be very honest. Really here is it's not easy, but it's all about that.
[00:09:26] Your determination and, um, that you, if you really want to do this or not, because it's not easy, it needs lots of days. You need to be focused really 100% focusing on this one a hundred percent. And if you, you know, if you want to give any advice to people starting out, what would you, what would you say?
[00:09:45] Um, I would say just to start this, the rent to rent business, you have to be very, very honest. You have to, um, Come be committed to it and to, to stop, to start it properly. I mean, I'm going to talk about your checklist Simon, if you don't mind, because. To me, it helped me a lot to start this business because I felt like I'm organized now.
[00:10:12] I'm ready to go. So once there is, it's the 12, the 12 checklist going through each one and once you've finished them all, I feel like I'm confident now enough to go outside and speak to landlords and agents, which really, really helped me a lot. Yeah. I actually remember when you did it and I saw your website and you was all set up and it did definitely give you confidence in it.
[00:10:35] Yes, it did. So a massive, massive change. And what do you think the difference was? Cause I know you did quite a bit of property education before us working together. What do you think the difference was between doing that? Not getting deals and then working together and getting all those deals? The big difference is I'm working with someone who's actively being in the business.
[00:10:57] I was actually doing the rent to rent himself. Which is, uh, something that I was missing on the, I couldn't find find in the other programs. And, um, so we know the concept concepts, we know what does it mean? We know what will happen, but to have someone who's actively doing this, um, is, was very important to me.
[00:11:17] And it tells me a lot because we came, uh, come across different scenarios that I know you Simon will say that you came across it in the past, so you would help me on this. So, yeah, that was, that was the main difference. Um, and working with you. Fantastic. Amazing. And as one question, I just have to ask you, what's it like being a woman in, you know, what's sometimes perceived as a very heavily male industry.
[00:11:44] How is that getting into rent to rent and going into the agencies and working with these landlords? It's uh, it's a, it's a great question. Yeah. I mean, sometimes I feel like, um, there are some kind of landlords, uh, who thinks that. They can't really trust me as a woman. And also as English language is not that good.
[00:12:07] I mean, I'm trying to be honest here, but these could be factors to lose the deal because, um, it just don't build that confidence and trust with that landlord. Sure. And I mean, I never forget when I heard your property name and you explained the reason, you know, the meaning behind it. What does conductor mean?
[00:12:27] Oh, conductor means a warrior. Um, so it's being, it's a title actually being given to CAUTI queen and they were famous that they are warriors. So I decided to take that name because I want to be a property warrior. I want to just keep going on. Never give up. Well, you're doing an absolutely amazing job, as I say, you know, So proud of your progress.
[00:12:50] And I do genuinely think it's just the beginning four deals cashflow soon to be over 3000 pounds. Um, I know you're, you're not looking to quit your job. You want to carry on doing your job. This is just going to be additional cashflow. What, what's this additional income going to mean to you? Well, it's. To me is just I'm living.
[00:13:12] My dream is, um, um, is going to help me a lot. Like maybe in the future, I don't know. Maybe I'll decide to quit my job, but I'm not planning to, but that could help me and with my personal situation and with my kids. So, um, more money's okay. Yeah. More money, more money, more problems, but, well, thank you so much for being my first ever podcast guest.
[00:13:38] Thank you so much for it. Amazing. Well, thank you very much for tuning in. If you want to learn more about Allah, be sure to join the creative customer of Facebook group. She's going to be posting pictures before and after of this property. And of course, remember Allie, you can help me. Don't wait 25 years.
[00:13:54] Be creative.
[00:14:07] Thanks for listening. For more information, check out Simon Smith, online.com. See you next time.