Five Rent-to-Rent Deals In Two Months Challenge

Five deals in two months - can I do it?

Five weeks into the challenge, I'm going to be giving you an update on the deals I've taken, the deals I've decided to skip and why…

So here's an update on my current property activity. I've been working really, really hard over the last few months on my BRRRR's. We've made several purchases, all requiring massive refurbishment, and we have successfully managed to refinance and tenant those properties.

I've also been spending a lot of time with my mentees, and we just completed the official launch of the masterminds, and the deals are starting to come in! We've just had a mentee hand in their notice to go full time into property, which is fantastic! So everybody is going from strength to strength.

Then a friend of mine asked me a question. "Hey Simon, when was the last time you did a Rent-to-Rent deal?" It was around five weeks ago, and it got me thinking, you're right, I usually do two deals a month, and it's how I have scaled my business. So I wanted to set myself a goal - five Rent-to-Rent deals in two months!

Tune into today's episode to see how many deals I have so far with three weeks left and if I'm still confident I can achieve the goal. I'm going to be breaking down each deal, how I sourced the deal, how I decided on which strategy to use and the financials.

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

Podcast Transcript↓

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. 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 have systemize the business to free up my time.

[00:00:33] 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.

[00:00:56] Five deals in two months. Can I do it? That's the challenge. I set myself just five weeks ago. And on today's episode, I'm going to be giving you an update on the deals I've taken on the deals I've decided to skip and why. And what I'm going to do to hopefully not, hopefully let's be positive to smash this goal over the next few weeks.

[00:01:23] If you're brand new to the podcast, please do me a favor. Subscribe, write us a review. Um, and let us know what you want to see or what you want to hear rather on the podcast. So I can keep pushing things forward because this is our 53rd episode, which means we are officially on. Two. And I read a statistic statistic.

[00:01:49] I read a statistic that most podcasts fail after around seven episodes. Is it so, um, you know, we've nearly 10 X that, and we're going to keep carrying on and smashing these episodes out. And not only that. But we've also now got the official YouTube channel. So if you want to see the visualizations of what we discuss on the podcast, head over to YouTube, I'll put the link in the description of this podcast, or just search Simon Smith on line.

[00:02:22] So a little bit of an update. I have been working really, really hard over the last few months on my brr, ours. And we've done several purchases, several massive refurbs we've refinance, we've rented, and I've also spent a lot of time with my mentees and launch in the mastermind on helping them smash it.

[00:02:47] We actually had a mentee that has given notice to. Day job a couple of weeks ago, which is amazing. And everybody's going from strength to strength, but then I made a mindset to me. Hey, Simon, women's last time you did a deal. And I had a little thing and it was about five weeks ago at the time I was like, no, yeah, you're right.

[00:03:08] Come on. Um, typically I do two deals a month. Like that's how I've managed to scale the business. And that's how I continued to scale it. So I decided to set myself a goal five rent to rent deals in two months. And I'm about five weeks in. I went away for a few days last week. So I've, um, I've wiped that out.

[00:03:30] Come on, give me a chance. Um, decided to take a few days out, but I'm back into, I probably got three more weeks left and I wanted to give you an update on where I am and then I'm going to be pushing her to do some more over the next few weeks. So. In a nutshell, I'm currently, um, three meals in, or should I say two and three quarters?

[00:03:57] So deal number one, uh, rent to serviced accommodation, absolutely amazing to bed. It's a house. Remember, I don't really do apartments. I feel like there's too many barriers to entry and too many things that could go wrong and too many hurdles. Too bad. As I said, absolutely. Smashing it already on schedule to cashflow 1600 pound in month one, uh, absolutely for occupancy.

[00:04:25] And the great thing is I have essays that I essentially. Avoid short-term bookends. And a minimum book in is around 10 to 14 days. And we look at getting long-term construction and corporate bookings in as soon as possible, uh, with our clients. So that's what I'm always pushing for, because then you're getting the nightly rates, which is amazing.

[00:04:50] But you, um, You don't have to keep turning things over every day. Just do a clean every couple weeks. Um, and I've got tons of those at the moment I've got, I think I've got about seven or eight houses, which have had long-term construction bookings in for over three, four months. And my longest corporate booking is a year.

[00:05:13] And they've just extended to Christmas. So 18 months on one book in, and that deal is generating around 1300 pounds net per month, depending on the bill, sometimes a little bit more, sometimes a tiny bit less. I'm managed to source that deal direct. They actually reached out to us through our marketing channels.

[00:05:35] And yeah, that was that actually just went out to the property, had a little look, made an offer there and then sent the paperwork. And it was a groundbreaking deal because from getting the first conversation, the first phone call to signing and getting the keys was 24 hours. Yep. I said it 24 hours. And you will never ever buy a house in 24 hours.

[00:06:02] So that's the power of rent to rent deal. Number two is a really, really, um, versatile deal can work as a mini HMO can work as essay. Property is completely unencumbered, so we're clear. Um, Landlords amazing needed to relocate. So they're three, 400 miles away, beautiful property, beautiful area. And that one's going to be amazing.

[00:06:28] And I've decided to push the boat out a little bit in terms of the refurb and the furnishing, because I want to push things forward in terms of our interiors. And I felt like I wanted to go a little bit higher. And so. Even though we've got a decent, chunky preparation period. I've not rushed it because I want to make sure it's right.

[00:06:51] But I'm hoping to share that with you over the next week photo shoot books in for next week, loads of furniture. Coming in over the next few days. So hang tight for that. Um, and one of the best things about this particular deal is it's literally a stone throw away from my house, which is amazing. So not far to go for maintenance issues and talking of maintenance issues.

[00:07:15] Wow. I'm not sure if you're following me on Instagram, but I had a massive, yep. A colossal leak this week. Whereby some tenants had just moved into the property and never a long-term construction booking. And the first night, the first night, the boiler hose split and the whole central heating system emptied into the floor.

[00:07:43] Filling up an emergency light, completely messing up all the walls and intern damaging over boiler parts because it was so wet. Tenants were absolutely furious. Naturally. It was just super unlucky. And as much as you systemize, when something epic happens like that, you just want to get things dealt with.

[00:08:04] And it was really, really funny actually, because. You know, we're hands off. I want to make sure that the landlord doesn't have to stress about anything. And I actually posted a picture of the leak on Insta and the landlord must follow me. The landlord hit me up. He was like, sigh, you know, it's at my house.

[00:08:21] He said, all right, don't worry. All sorts of electricians round change the emergency light boy. Um, parts, um, repaired, immersion, heat, and switched on electric showers, serving the tenants. It's all good. All sorted. Um, but that's our hands off. My landlords are things like that happen. I just deal with them.

[00:08:44] And then I dropped them a polite line when it's already dealt with, to, to set up. Um, and that's the hands-off way. So yeah. Want to check that out? Make sure you follow me on Instagram daily content, Simon Smith on yeah. And deal number three, which the reason I said I'm like two and three quarters done is because I'm about to finalize this one, but, um, I'm actually not getting the keys for a few foot few months because the tenant is, um, just extended last minute, but that's.

[00:09:17] Because, you know, I still count that as a deal. And to be honest with you, we could have done six or seven deals, but I've passed on quite a few recently because I'm trying to be even more strategic and focused. I'm at a point now where I know the properties that work and I know the gaps in the portfolio.

[00:09:35] So if you've got a three bed in X area, That's smashed in it, then you might decide you want another one in that particular area to the same degree. If you've got one in a different area that's not performing and you get, you know, additional stock or additional offers of new deals in that area, you might pass I've on a deal that needed a bit too much work.

[00:09:58] And the landlord didn't want to invest. And then I also passed on a deal that the landlord only was looking for like a six month tenancy. And that just won't work because I don't want to waste my time, invest in time or money into a property to have to give it back in a few months. So three deals in, um, which is going to generate around three, three and a half thousand pounds, extra cashflow to us.

[00:10:23] One of the main reasons I set myself this goal by the way was because not because I'm greedy and want to go mental it's because I wanted to hire more staff. We wanted more team members to make this more passive. So the majority of this extra cash flow from these five deals is going to go back into the business to free up our time.

[00:10:44] So that we can then scale more and do some of the bits and bobs and reinvest. So that's kind of the. Point of this challenge. So any quick you want to know more information, you know what to do hit me up, stay tuned. I'm going to do an update in a few weeks and fingers crossed. I can get two more deals.

[00:11:06] We're ramping the marketing up. We've got a brand new rebrand in the pipeline. Stay tuned on my Instagram for the announcement of that. And I'm going to be doing a lot of followup. So every landlord. Spoken to over the last three years, I'm going to be calling them or touching base and seeing if we can get those next two deals lined up.

[00:11:30] Hope you find this useful. Please make sure you subscribe. Um, drop us a review. It really, really does help to get feedback on this content scenes. It's just me speaking to myself today and remember whatever you do. Don't wait 25 years. Get crazy.

[00:11:58] Thanks for listening for more information, check out Simon Smith, online.com. See you next time.