How Fast Should You Scale Your Rent-To-Rent Business?

Is there a perfect speed to scale your Rent-to-Rent business?

Discover what I have learned from scaling my business to over 40 deals, mistakes I have made and how a flexible approach can help you scale faster...

I've done over 40 of my own rent to rent deals. I've sourced and co-sourced countless other deals for my mentees and people. My wife always asks me, how many more do you need?

On this journey, I have often stopped to think, how fast should I scale? Am I scaling too fast, or is it time to consolidate? In this episode, I will share with you the things I have learned along the way through scaling my business. The mistakes I have made, the things you need to watch out for and some of the critical factors as to how fast you should scale your business.

There is such a thing as scaling too fast, it is possible, but a significant advantage of Rent-to-Rent, however, is you can scale and achieve your goals very quickly. If you are in a job that you dislike, have uncertainty, want to spend more time travelling or spend more time with loved ones - you are not going to want to wait five years.

Education is key to scale sensibly, and you need to make sure that you have the knowledge and the systems in place before getting 5 or 10 deals. Then it's just rinse and repeat, and that's how I have built my business.

Listen to this weeks episode to hear how I initially started to scale my Rent-to-Rent portfolio, how to scale up your property business and how to get infinite returns when scaling your business.

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 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.

[00:00:29] 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 do it every day and how you can do it too.

[00:00:56] Simon here and welcome to another episode of the podcast, where we talk all things, property, creative cashflow, and of course, how to be financially independent to day, not in 25. Years, and I'd just like to do a massive, massive, thank you for all the support. On last week's episode, it's been one of the biggest episodes we've ever dropped.

[00:01:23] It was the first special guest I've ever had on the show. And if you missed it, make sure you check it out. It was all about my star mentees Alice journey from zero to 4,000 pounds of monthly passive. Rent to rent cashflow. And I know there's going to be people out there saying, yeah, but he's not passive, but it's as passive as you make it an a tell you what is a lot more passive than doing a 40, 50, 60 hour work week.

[00:01:59] Um, you don't need to spend a lot of time on your rent to rent business. And that ties in perfectly with. Today's topic. How fast should you scale your rent to rent business? And look, I've done over 40 of my own rent to rent deals. I've sourced and coast sourced, countless of other deals for my mentees and people, you, my wife, she always says, how many more do you need?

[00:02:35] How fast. Are we, are we scaling too fast? Do we need to consolidate, you know, maybe we should just take it, you know, take it easy for a minute. So today I'm going to basically share with you all the things I've learned through scaling my business. Okay. And what mistakes I made and what you should watch out for, and a key factor as to how fast you should scale your business is how well you've.

[00:03:05] Implemented you've created youth set up your systems and procedures. And last night I did a live special masterclass on just that. Um, I offered my nine secrets, my nine top systems in my business that you need. It's not just like you could do. You need to do these in your business. If you miss that, I will.

[00:03:32] Actually, I'm not going to link it in the bio because it's only going to be live for a limited period of time. But DME on Instagram and I'll send you a link at Simon Smith on line. If you're listening, you know, quite, quite a while after this is dropped, you missed it. Sorry you missed it, but make sure you, um, stay tuned for the next one.

[00:03:56] So how fast should you scale your renter and business? That is the question. There is such thing as too fast. There definitely is such thing as too fast, but one of the great dynamic things about winter rent is you can do it quickly. And I know if you are in a job that you hate, if you're in a, excuse me, it's not, COVID, don't worry.

[00:04:25] If you are in a job that you hate. If you are in a job that's uncertain. If you want to spend more time with your loved ones, if you want to spend more time traveling, you might not want to scale this business over five years. You might want to scale it over five months and it is possible, especially in terms of your first financial independence goal.

[00:04:51] It's so possible. Let me just turn up onto silent. So for me in my business, I got one deal and then it took me about another seven, eight weeks or whatever it was to get another deal. And I was struggling for funds at this point. Um, so my deal number three and four, uh, what deal number three did to JV on, I use finances from a JV partner.

[00:05:24] They put the money in and they actually did the refurb. I got the tenants, I sourced the deal. I managed the property and we did a joint venture. So my third deal was no money down. And my fourth deal, I used the cashflow I'd been making off the first three. Deals. And at that point actually sourced some investment to fast-track my journey.

[00:05:49] And I did about four or five deals really quickly. At one point I had three refurbs going on in one month when I was scaling up. And that was the way I did it, but it was kind of cool because I learned how to do rent to Haitian on my first deal. I learned how to do rent to essay on my second deal. And then I just.

[00:06:11] Rinsed and repeated. Um, I did a combination of both because I believe that is one of the key things to scaling quickly. If you're only looking for strictly six bed, plus HMO's, you're narrowing your options down. And that's why I do the hybrid approach. And I believe in doing a combination of HMO NSA to super, super, super, super fast track your cashflow.

[00:06:37] So you need to scale sensibly and you need to make sure that you're educated and that, you know, it works before getting five, 10 deals. And there is ways of doing that by the way, through dummy ads and through talking and networking and stuff. But you won't ultimately know until you do it once, you know, it works.

[00:07:01] Dan you've got to scale up. And the way to scale up is you're going to need multiple streams of leads. I many different types of lead generation. You can't just be relying on one form. You know, I'm going to do let us end once a month. And that's my only stream of leads. I mean, don't get me wrong. You could do that.

[00:07:23] But if you want to scale, you need lots of deals. You need lots of options. You need lots of leads. So you need multiple streams of leads, and then you're going to need the cash in the bank to actually feel confident to press the go button phone. Let me turn that off as well. I got two phones. I got two phones, because what I realized was in terms, I talked about this last night in terms of systemizing and freeing up my time and making sure, you know, my wife doesn't kill me.

[00:08:00] I need to make sure that I've got a work phone and a personal phone. So my work phone is on from, I know, half eight until five, six o'clock. And then what I do is I lock that off. I put it in a drawer and I forget about it. And then I've got my personal phone for my friends. I'm a family and communication that, you know, isn't gonna eat up my energy.

[00:08:26] Um, I went into this in loads of detail last night. So once again, if you miss the masterclass, DME on Instagram at Simon's before line, I'll send you a link for you to replay it only if you do it quickly though. So yeah, I kind of lost my train of thought. So essentially. You're going to need multi shames of leads.

[00:08:46] You're going to need cash. The confidence to actually do that. You know, you're going to need five grand a deal, roughly. So if you want to get five deals, that's going to be 25 grand. But if you've not got that money, you've got a couple of options. Option. Number one is you find somebody that will JV with you.

[00:09:05] So they put the money in, you do the work and you split it. And I I've seen a lot of people do that successfully. The second option is you could take, um, you know, take some type of loan. Uh, this is not financial advice. So please don't go out and get some mad loan, but I'm just saying there might be somebody in your network that doesn't want to JV with you, but believes in you, you know, maybe a relative and say, you know, I'm happy to give you X amount for you to set up your business.

[00:09:37] So that's another way where you can scale more quickly. But as I've touched on, you don't want to scale too fast because if you scale too fast and you don't know your stuff and you've not got your systems, you're going to, you're going to self combust. That's, that's the fact of the matter. So you need to make sure that you scale at a pace that allows you to get a deal, filler deal, get a deal, Philadel, get a deal.

[00:10:08] Philadel. I speak to so many of you in your main objective is getting the deal. Oh, I just want to get a deal. The fact of the matter is when you get the deal, that's when the work begins because getting the deal, isn't the end goal. It's getting the deal. Cash flowing is getting the income and then making the cashflow as passive as possible, three different things.

[00:10:33] Get in the deals. One thing get in the deal. Cashflowing is the second thing. Dan, you've got to get the deal cashflow in as passively as possible. That's the third thing. That's why so many people get into rent to rent and they create another job because they don't do the systems and a hundred percent.

[00:10:52] I'll be honest with you. There's been times my business has felt like a job. I won't lie. But that's when you need to focus on working on the business, not in it and maybe pump the brakes, Simon, no more deals right now. Let's get our stuff together. Let's get organized and let's get full occupancy. Let's get everything working smoothly.

[00:11:14] Okay, cool. You can do an over four or five deals now. And ironically, I'm actually in that situation right now. You know, we had a few teething issues whereby because we had so many units. It was a different level of systems and now we're fully occupied, or I think we're going to be fully occupied, should have the final room B and let this week all our essay units full it's like, okay, cool.

[00:11:40] Simon going do another five deals now. So, yeah, it's going to be a really active second quarter to, um, move it into the summer. We're going to be doing a lot of rent to rent deals. It's a great time to be involved. And of course, if you follow me, you'll know I've got loads of BR R going on at the moment as well.

[00:12:04] So stay tuned for that. So thank you very much for listening. Uh, hope I've answered the question. How fast should you scale your rent to rent business as fast as you need to. Yeah. But make sure that you get educated. So you're doing it safely, make sure that you allocate funds to do it. Yeah. And if you haven't got the funds to do four deals at once, do it organically, get one deal, get that cashflow until it builds up five grand doing of a deal.

[00:12:38] Daniel compound you'll have two deals, cash flowing, then do another deal until you can do a deal every single month off the cashflow, then the magical rule of compounding will be your best friend. And it gets to the point where you're doing three, four, five deals a month, and it's none of your own money.

[00:12:59] I've got none of my own money left in my rent to rent business, which means my return is infinite. I'm just playing with the house's cash and that's the goal. Pay off any loans, pay off yourself because when you're a limited company, you the direct after loan your business, the money director's loan and pay yourself back, pay em, any, um, any loans back and get into it.

[00:13:28] And once again, not encouraging you getting a loan here. What, uh, what, uh, I really enjoyed that kind of really got into it. Thank you very, very much for tuning in of course, whatever you do. Don't wait 25 years. Get creative. Because you're never going to scale if you don't even start

[00:14:06] Thanks for listening. For more information, check out Simon Smith, online.com. See you next time.