How To Get Your First R2R Deal?

Are you looking for your first Rent-to-Rent deal?

Remove the overwhelm and complication by listening to this episode and following these seven simple steps...

Have you done the courses, read the books, listened to podcasts, watched YouTube videos but still struggling to find your first rent to rent deal. Don't worry; in today's episode, I will break down exactly what you need to do right now to get your first deal.

I will be sharing seven simple steps to achieve your first Rent-to-Rent deal. I get a lot of feedback from members of my Facebook group, and sometimes because there is too much information, it can be overwhelming, which causes you to procrastinate. So today, I'm going to make it simple, I'm going to put together the information in one place, which I wish I knew when I first started.

Number one

Set up your business foundation. You have to set up to have the confidence and professional image from day one. If you want more information on this topic, download my free 12 step guide to setting up your Rent-to-Rent business.

Number two

Find motivated Landlords. That's key because Rent-to-Rent is not for everyone. However, for the Landlords, it is for, it really, really is for them. The Rent-to-Rent model solves a lot of common issues and problems. Landlords have.

There are two types of motivated Landlords. Firstly, landlords with tired properties may be physically tired and can't let out the property (just be careful here, if the property needs too much work, it may mean the breakeven is too high for the deal). The second type of Landlord is motivated by circumstance. They could be accidental Landlords, they may have been unable to sell their property, or they may have relocated for work. This Landlord is looking for convenience and security.

Number Three

Once you have identified a potential Landlord, you have to reach out effectively. The next objective is to arrange a viewing.

Number Four

Attend the viewing. You need to build rapport with the Agent/Landlord and find out what they need for the property. Discuss their long-term aspirations and plans for the property.

Number Five

Make it simple, say yes and make an offer. Most people overcomplicate this. The best thing you can do is say yes, I'll take it. Are you in? Too many people go away, take a day, take two days, fill in the application form. This shows you are not confident. You should know the figures and have prepared before you go in there and put yourself in a position to say yes straight away.

Listen to the rest of the episode to find out the final two steps to get your first Rent-to-Rent deal! If you still need further information or support after listening to this episode, check out my Start: Set-up and Success mastermind. You can join a group of other individuals on the same mission as you, setting up their Rent-to-Rent business looking for their first deals.

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

Podcast Transcript↓

Done the courses, read the books, listen to the podcast, watch the YouTube still can't get your first rent to rent deal. Don't worry. I've got you into today's episode. I'm going to break down exactly what you need to do right now to get your first. Yeah,

[00:00:20] 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 I've systemized the business to free up my time.

[00:00:49] So join me to find out how I've done it. How well does the dominion every day and how you can do it too.

[00:01:12] Had to get your first rent to rent deal. That's right on today's episode, I'm going to be sharing the seven simple steps to your first rent to rent deal. Let's simplify it. I get so much feedback. From people doing courses, listening to podcasts, going on websites, doing research, and they just get mind fog or brain fog and the over procrastinate.

[00:01:39] And it seems like too much of a mountain to climb. So on today's show, I'm going to make it easy. And this is the podcast episode. I wish I'd listened. That's that's my motivation that I wish I'd listened to when I started in rent to rent. So if you're brand new, you're in the right place, do me a favor, subscribe to the podcast.

[00:02:02] And if you find this stuff, Please give me a review and let me know. What's good. How I've helped you. Um, maybe questions that you want me to cover in future episodes so I can serve you best, please. Don't be a stranger. Um, alternatively, you can DM me on Instagram and I, you know, I'll do my best to help you on your journey.

[00:02:24] If you're brand new to me, I'm Simon and best-known for my rent to rent business. I started with very little. Very little money and very little experience in property and have since managed to build a seven figure rent to rent business. Um, but I'm very active in however, I have systemized and scaled and do have a team in place now.

[00:02:48] And I started this podcast. I'm a YouTube channel to give back and share value. And my biggest motivator is. I want to use rent to rent as a vehicle to reinvest the cash flow into assets I own. And we now also own a seven-figure property business of properties that we own. And that's the, the, the motto you get money.

[00:03:13] And then you buy the cashflow, you get money in and then you buy the income. That's what it's all about. Too many people spend the money there. Rather than spending the money down money earns and rent to rent is a great way of doing that and building up a high income generating business. So today seven steps on how to get your first deal because too many people put rent to rent on a pedestal.

[00:03:42] And let me tell you this. It's once, you know how it's easy and once you get your first deal and it's cash flowing, you're a renter renter. You're a property investor. So I want to simplify it. So let's get into today's podcast. Number one, you've got to get set up and you've got to get set up, right. You've probably heard me say this so many times, but I can't stress it enough.

[00:04:08] Don't try calling agents and find a motivated landlords and stuff. You're not settled. And if you want some help on how to get set up, I've got my 12 step setup guide. Jump onto Simon Smith, online.com and download it over. There is free. Have a little wander, explore the website, click start here and you'll find it.

[00:04:29] Number two. You've then got to find motivated. Landlords that's key. Because rent to rent is not for everyone, but for the people it is for, it really, really is for them. It really solves their issues, their problems. And that's what a good business does. You know, that's what great ideas do they solve people's problems.

[00:04:55] And that's what rent to rent is at its core. Now there's two types of motivated landlords, the first type of people that. You know, they've got tired properties, maybe they're tired and they just physically can't let their property out. And they tend to have lower standard properties. And with these set of landlords, you've got to be careful because if it needs too much work, it's going to not be right for rent to, and you're probably going to want to buy.

[00:05:26] Unless the landlord's willing to put some money in, but typically if you can get the right balance of a tired property, it's still possible to add value. It's not going to be the Ritz, but it could be right for a certain demographic of tenant that can help you cashflow. So, you know, some of my early deals, they're not the best looking properties in the world.

[00:05:47] They are standard terrorist properties. You know, they have got wood chip. Um, you know, they have got slightly older bathrooms and kitchens, but I've done my best to add value through a cosmetic Reese, uh, refurb and they do cash flow. Good thing about these properties is you normally have more leverage to negotiate on the rent because they're desperate.

[00:06:10] Second type of landlords, a lot of people overlook, and these are motivated because of circumstance, not because of the standard of the product. Could be they're accidental landlords, you know, they sold a property or they tried to sell a property, but they couldn't, but they brought another, another left with an extra house.

[00:06:30] Maybe they relocated due to work, you know, maybe they left the UK, maybe the inherited approach. You know, maybe they've had a bad experience through bad tenants, and now they want somebody professional. That's going to take on all the strain. Maybe they've just had a young family and they used to manage their property on their own, but now they need help.

[00:06:52] They don't want voids and they don't want loads of turnovers. So point number two is you've got to find them and you can find them direct to vendor. You can find them through agent. But whenever you're with a landlord or an agent, make sure you're asking the right questions. So you know what their situation is.

[00:07:11] It's somebody is in an affluent area. They let their property easily. There had 11 people go to the viewing and you know, they've got no mortgage on the property and they're just like, problem-free, they're probably just going to opt for the traditional route. They're not motivated. There's no pay. So rent to rents about finding them people.

[00:07:34] And that's why it's a numbers game. There's no like magic, holy grail strategy, but it's a numbers game. Find the people that are looking for so service like yours. Number three, once you find them, you got to get in touch, you got to get in touch and say, I think I can help. Yeah, I think I can help you. And the only objective of that conversation is to what it's to arrange of viewing, which is step number four, conduct the viewing, build rapport, find out more, find out what they need for the property.

[00:08:13] Find out their long-term aspirations and plans for the property. And number five is simply say yes. Make an offer. And a lot of people they're. So in their own head or getting in their own way, when the best thing to do when you want to make a deal is just say, yes, I'll take it. Let's do it. Are you in?

[00:08:41] Yeah, we're in. Okay. Let's do it, Dennis. Figure it out. Too many people go back, take a day, take a do days, you know, fill out an application form, ask this one, I start one, do the figures, do the calculations, and then not operating with that confidence. You should know your figures by then time you get there.

[00:08:59] And then you should say, yes, let's do it. Once you've said yes, then you're good. The other advantage of saying yes is once they commit and you agree on maybe the rent and the term, that's all you separate the rest of the terms that you're after. So it becomes more compelling. So you say, yeah, I'll take it free years thousand pound a month.

[00:09:27] Sound good. Bang. Number six is then negotiate. So then you negotiate and go back and forth. You know, maybe the price and the term, but probably other things start dying. Termination clause, break clauses, who looks after war, who looks after the garden. Uh, is there a break clause? Is there a rent review? How often are you going to be in contact with them, but you don't want to do all that at the beginning on step five because it's too complicated.

[00:09:58] Think about it. I say, look, I'm willing to offer you 500 bucks. And I'm doing five years, but I needed to change the carpet. I need three weeks. Rent-free I need you to do the gasser, the EPC and the AICR. If you haven't already, I needed to change your insurance. Did you have a mortgage? I know you've not got a mortgage gray.

[00:10:17] Okay. That's fantastic. But on top of that, I also want the keys now, so I can do X. Okay. I can do Y and I need you to pay for the new carpets and that, can you see what that sounds like? It's like, whoa, too much information. Way, way too much. So you got to chill say yes. And then once they've said yes, and you agree in principle, then move on to the negotiation and seven last but not least is the legals AKA the agreement.

[00:10:51] And this is when all you do is you. Um, you formulize the terms that you've agreed in five choke six. And if you need help with agreement, speak to a lawyer, cause I can't give legal advice. Any joking, but no seriously, but yeah, if you need help with agreements and you want to reach out, hit me up, I might be able to help you with an example of the type of equipment I use.

[00:11:17] But as I just said, I cannot give legal advice. Um, none of the advisors. On this podcast is legal or I'm saying it's going to work. It's just my opinions or my experience. So please do your own due diligence. Please speak to your accountant, your lawyer and all that good stuff. So just to run through the seven steps, number one, set up correctly, Simons online.com for a free guide.

[00:11:42] To do that. Number two, find motivated landlords number three. Get in touch, whether that be through the language, through an agent, through Oprah Renfrew Gumtree, through being nosy through calling through knocking, do what it takes. Number four. Arranged of you in number five, say yes. And I recommend offering the term and the prize only don't overcomplicate it.

[00:12:06] Number six, then negotiate on those other terms, the nitty gritty to make sure that you're, de-leveraging your risk. You know, whether that's the COVID clause or termination clauses or rent free periods or whatever it is. And number seven legals, make sure you get your legals right. And make sure it protects not only you, but the landlord is.

[00:12:27] So that's all from me. I hope you find this find. I hope you found this useful if you have, or if you have any more questions, do me a favor, DME on Instagram at Simon Smith online, and I will see you here next week. I've got special guests on the podcast, so make sure you subscribe to be the first to find out who, and of course, of course, whatever it is, don't wait 25 years.

[00:12:53] Get crave.

[00:13:05] Thanks for listening. For more information, check out Simon Smith, online.com. See you next time.