Can You Outgrow Rent-To-Rent?

Do you think the Rent-to-Rent strategy is sustainable long term?

Listen to this episode where I debate the benefits of the investment strategy, if I see myself doing Rent-to-Rent in five years and how systemising can play a significant role in your decision…

We don’t want to work hard all of our life for little reward, and we want to get the rewards now. The key to achieving this is through creating passive income, and my favourite way of doing that is through property. You can own the property, or you can control the property.

I have done over 40 Rent-to-Rent deals in the last two and a half years. I’ve managed to replace my income and helped friends and family out of work. We decide when we get up, what we do, how we do it, and that’s the power of passive income. I won’t lie to you, there are times when it is less passive, but it’s significantly more passive than working 40 hours a week.

I love Rent-to-Rent, I love property, but do I see myself continuing with the Rent-to-Rent in five years? I ask myself this question often, and I think that the simple answer is yes. The reason for this is that no matter which strategy I explore, I see no greater opportunity for recurring, passive income other than Rent-to-Rent. Your returns are infinite.

Often I hear that the downside to Rent-to-Rent is that you don’t benefit from the capital appreciation because you don’t own the property. That’s true. However, I have used the income from my Rent-to-Rent deals to re-invest and buy five properties, with six and seven currently in the pipeline.

Listen to this weeks episode where I take a deeper dive into the debate, run through some figures and examples and explain how you can make Rent-to-Rent more sustainable through systemising…

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

Podcast Transcript↓

Can you outgrow rent to rent, plus it's official. I've launched a mastermind to help you start and succeed in rent to rent. Right now

[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 in it every day and how you can give it to.

[00:01:06] Can you outgrow rent to rent? That is the topic of today's show. And if you've not already, you know what to do hit that subscribe button. Every single Monday, we release new podcasts on all things, property, creative cashflow, and how to be financially independent, too. Day year, not in five years, 10 years, 15 years, 20 years, 25 years.

[00:01:37] We don't want to work all our life for little reward. We want to get rewards now. And the key to that in my estimation is creating passive income. Okay. And my favorite way of doing that. Is through property and you could own property, but you can also just control it and get the benefits while it's helping all pot is involved in.

[00:02:07] That is what creative cashflow is all about. And speaking of which it's official. I actually trialed a mastermind of rent to rent mastermind earlier this year to see the results, to see if it was working and the results have been unbelievable. It was invitation. Only people are getting deal after deal after deal.

[00:02:32] And so many of you have been hitting me up needing help, needing support, setting up, getting your first deals, how to speak to agents, how to speak to landlords being held accountable. So I've decided. To open it out to the public. There's going to be very, very limited places. I'm going to post a link in the description of this podcast for you to find out more, find out some success stories and find out what's been going on.

[00:03:00] And if you want to get involved Booker Corp and less, have a little chat. So just to give you a little bit of an update into where I'm at in my journey, I have done over 40 rent to rent deals in the last two and a half years. I started rent to rent two and a half years ago. I got my first deal in what I believe would have been November, December, 2018.

[00:03:24] And yeah, I've just absolutely reveled in rent to rent. Heaven, which to be honest with you, it's completely changed my life. I've managed to replace my income. Well, fall replace, replace handsome. I've managed to, you know, get my mom out of work, get my wifi of work. Get some of my friends out of work now. Um, and they worked with me and when I say work, we make the rules as well.

[00:03:59] We laugh, we laugh, me and my wife and stuff. We laugh and say, yeah, we make the rules. Uh, we make the rules. We decide when we get up what we do, how we do it. And that's the power of passive income. And I won't lie there's times when it's less passive, but it's a hell of a lot more passive than working 40 hours a week.

[00:04:21] And not knowing if there's going to be a job to come home to after the C word COVID. So for me, I love rent to rent and I love property, but do I see myself doing rent to rent in five years? And I asked myself this a lot. And I think the simple answer is yes. And the main reason for that is no matter what I do or watch strategies, I see there is no greater recurring, passive income strategy than rent to rent.

[00:05:00] And the reason is because. Your returns are infinite. And the initial investment is so much smaller than that, of a purchase. And I know there's going to be some people listening, but what about the capital appreciation? You don't even own it. And look, I get that. Um, I've used the cashflow from my rent to rents to buy five properties now properties six and seven in the pipeline purchases, but I was sad.

[00:05:28] I wasn't sad actually. Um, we've gone back to Brett. There's no where to sit. I was stood in a recent purchase lately going through the amount of money that was going to be needed to make it happen. And it was looking like close to 90 K, about 45 to 50 K for purchase, including stamp and then around 40 grand in the refurb.

[00:05:56] And it just dawned on me. That meanwhile, that's going to generate me a grand a month and it's probably going to take me a few months to do the refurb around the corner. I've got a property that's going to cost me two grand. I've got to do a lick of paint. I've got the keys the day after the lead, and that's also going to generate me a grand a month.

[00:06:18] And there's just something about that, that I just can't outgrow. I just don't think I ever would. And it's so profound because I love the purchase and I want the purchase for the capital appreciation and the long term legacy. You know, it's a hand down maybe one day, but what about now? What about improving cash flow?

[00:06:45] Improving lifestyles right now? Rent to rent is unparalleled in its power. If you do it. Right. So the simple answer to the question is, no, I won't outgrow it. But what I do is I like to use rent to rent as the ultimate form of leverage. I control properties that I don't own. I generate cashflow. I then reinvest that cashflow into other assets and that part of it does grow.

[00:07:20] Um, I started with a tool to down then we went to a three bed. Then we went to a five bed. I'm now looking at a 10 bed and it kind of the whole property, the pyramid, so to speak of how you build up and up and up and up. And then one day, hopefully we're doing, you know, 50 block apartments. I just don't think you would necessarily grow out of rent to rent just because it is the cashflow king.

[00:07:48] There's nothing better because you put five grand in, you get the five grand out within a few months and then you've got no, none, no zero of your own money in and you're generating cash.

[00:08:03] That's just crazy. If you miss last night. Wow. I was unbelievable, such a good energy and such a good vibe in there. So, so many, um, motivated property, amazing people in one place. If you missed. It, I did a setup to succeed masterclass in celebration of me launching the mastermind. And if you miss last night's masterclass, jump in the creative cashflow group to watch that back, it will be available for a short time only.

[00:08:39] But yeah, I'm doing this mastermind. I'm super, super excited about it. And I'm also going to be inviting. The members to doll beads come and see my goldmine area in person. It's the first time I'm ever doing that. So, yeah, that's it for me. Thank you very much for the support. I really, really, really appreciate it.

[00:09:00] If you're thinking about get started in rent to rent, get into rent, to rent, and if you're already in rent to rent, your aim should be to systemize it and get it to the point whereby it doesn't take too much of your time. And then you can invest in other. Things. Um, and I've got to say, I almost forgot. I set myself a goal five rent to rents, five rent to rents in two months.

[00:09:28] And I've got three on the table. I got the keys to one. I've got the second one. I'm about to sign. And then the third one, if I'm honest, I'm into mine's about right now, the thing is you don't want to rush into the wrong deals. So if ever I'm not a hundred percent sure. I just give myself that time to think about it and then hopefully make the right decision.

[00:09:50] So stay tuned more on that deal next week. So yeah, I've definitely not outgrown rent to rent and I'm going to continue to smash rent, to rent, to scale my business and to improve my lifestyle. Don't wait 25 years. Okay. Great.

[00:10:19] Thanks for listening. For more information, check out Simon Smith, online.com. See you next time.