Rent-to-Rent allowed me to finally quit my job!
Meet Anne and Jeff!
Discover their Rent-to-Rent journey so far, and how by working with Simon, they have now closed deals on three Rent-to-Rent properties...
In this episode, Simon was back on tour in Northampton, and he has travelled up to see Jeff and Anne, who he has known now for around a year. They have been on zoom calls and connecting remotely for the entire lockdown, so this is the first time they have met face-to-face.
Anne and Jeff are now full-time property investors, but up until very recently, they were still working in their prospective careers. Anne was a supply chain analyst for a pharmaceutical company. Jeff had a business building and designing pipe organs, which he continues to do on the side, with property now his main focus.
At the time of recording this podcast, working with Simon, they have managed to acquire three Rent-to-Rent deals, the third being the location for this podcast episode.
Podcast Transcript↓
Jeff, how are you? Great. Good. Good. Thank you. So good to finally meet in person.
[00:00:24] You were saying it's been about a year, right?
[00:00:29] Fantastic. Fantastic. So just to set the tone for everybody at home, welcome to the podcast where we talk all things, property, creative cashflow, and of course. How to be financially independent to today, not in 25 years. We're in north Hampton with Ann and Jeff in their latest five bed deal. Yep. Super excited for this whole lockdown.
[00:00:57] We've been on zooms and connecting remotely. So, this is the first time we meet in, um, we literally pulled up about 15 minutes ago, so we wanted to capture this energy live and direct. So for everybody at home, do you just want to introduce yourselves please? Yeah. My name is Anne habit and, uh, I'm a property investor.
[00:01:19] Like, yeah, that's very polished. And Jeff, my name is Jeff and I'm a property investor too. Fantastic. And what were you in your former lives or are you still doing the day jobs? No, I was a supply chain analyst for a pharmaceutical company. So dealing with the COVID drugs and yeah, the whole, yeah, I don't have, uh, I know.
[00:01:46] COVID related stress and yeah. But yeah, that's in the past now. Thankfully. Fantastic. And Jeff, how about you? Well, I also do a little bit of pipe organ building and design on the side, but I made the property now. Fantastic. And how does that feel? Awesome. Yeah, no one day is the same. I mean, today is completely different from yesterday.
[00:02:12] So, um, In this property now setting up is, uh, is a hands-on thing. Um, as well as dealing with any issues that come up with the other two properties. Uh, so it's, it's been amazing. We absolutely, I personally absolutely. Amazing. Yeah. And for me, um, after doing what I do organ building for about 20 years, um, this is like turning the page on a new chapter.
[00:02:44] It's all different and exciting, and it's just a different way of looking at life and a different way of living. So it's really, really been refreshing. Awesome. Yeah. I mean I've, since we first met, there's just been a real energy and, or about you. That I just loved from the start and then to see it come to fruition is just amazing.
[00:03:07] So congratulations, you've done an amazing glee. Um, and just to give everybody an overview then, so this is your third deal. Yes. Um, what's the cashflow from the first two deals looking like. We have about a fat. We have about a thousand on each. So we have nine 50 on the first deal. And then I'm about 1050 on the second one.
[00:03:35] So it's about 2000 per month. Fantastic. 2000 pounds per month from the first two deals. And then what about this deal? What are you expecting this deal to bring in? Uh, this one should be about 6 98, so really close to 700 cash flow. Yeah. Yeah, really good. Really looking forward to filling it once we finish all the setup.
[00:03:59] Sure. Okay. Brilliant. So you heading towards 3000 pounds per month. Fantastic. Let's just rewind. And so to speak. Um, take us back. When did you first decide you wanted to get into rentals? Uh, it's actually happened accidentally because I really starting last year, beginning of last year, I was really looking for property to actually buy, but where to go buy them was way up north, uh, was going all the way up to Burnley to look at properties because they're quite low up there.
[00:04:39] Um, and then COVID truck and commuting to. You know, for a few hours to look at a property was, was stopped basically. So we started looking at, uh, you know, different things, um, if we could do maybe rent or rent and see how that looks like initially I wasn't interested because I'm repairing and doing all sorts of things to someone's property was just, uh, You know, not appetizing if it's the right word, but, uh, surprisingly we found one that needed no work, you know, just furnishings.
[00:05:22] And we thought, okay, this could work. And, um, running the numbers. Yeah. Was surprising, like, okay. Wow. After everything, we can actually make some extra cash on the side then, but a good amount of extra cash. Um, so yeah, it's and from that, I think it propelled us forward. Uh, one deal that we looked at initially was up in coal country and the numbers just were not.
[00:05:54] Balancing correctly for us. And so we had to let go let it go at the last minute. And then the second one now came up, uh, which we worked with you to negotiate. And that was amazing because, um, right at the point where we needed an explanation of a contract. Uh, and not just that, but even having a conversation with an estate agent about something that we've never done before, and you just stepped in with no reservations at all, that for us was just powerful and, um, really helped us step up and really learn, you know, what to do exactly.
[00:06:41] Not just in fields. And that, that was how we started walking together. Fantastic. Yeah, I remember it. Well, yeah, I remember it. Well, you, so was that the second main property you was looking at then? Yeah, the first one had, uh, in Coventry just did in stock and, uh, we went, we would go out there. Uh, I think this is when COVID was really newish.
[00:07:07] So, um, traveling to Coventry to look at it, it was a bit nerve wracking. Cause you still don't know like how you gonna strictly against the rules
[00:07:25] yeah. At that time. Yeah. Disclaimer, don't tell Boris. He knows me. It could be perceived. Work. It was really, it was building a bridge towards the property side of things. Yeah. At that time all this state agencies were shot. Oh, they weren't doing any business. This is like in March. Yeah. That was an interesting time because there was people before COVID renter enters clients, um, whatever that was struggling.
[00:08:00] Before COVID because there was so much competition. The agents were firing on all cylinders. Then all of a sudden bang agencies closed landlords left in the lurch with empty properties. And there was a window where you could travel for work and you could meet one other person. So what was happening was if we was able to get hold of landlords during that window.
[00:08:29] And you was able to potentially go and meet the landlord at the property. It was one-on-one, their agent fell out of bed. And that was one of the main catalyst behind a lot of people taken advantage. Obviously I always say this on a podcast COVID is a terrible thing. Um, when I say take advantage, I'm talking strictly on it, economical business.
[00:08:51] Um, terrible, not endorsing making light of COVID. However, there was huge opportunities. Um, and a lot of people did manage to get deals. And, and you were somebody that managed to build your business during a pandemic? Absolutely. Yeah. Oh, recession. So yeah, I remember the first deal. So how did you find this first deal that we then went on to negotiate together?
[00:09:12] How did you source it? Uh, from Gumtree, this agent had posted, uh, An ad with, you know, some pictures with, you know, sideways pictures, you always think. So. Um, I sent him a little message and then, uh, he, he sent me a message back, you know, late in the night and said, I'll call you at 9:00 AM. And for sure, 90.
[00:09:38] And he called and he said, this is my property. And, you know, he really meant. For a few days there, we weren't sure. Is it his, is it representing someone? It was just a big mishmash of ideas going back and forth because we weren't sure ownership and things like that. Um, and, uh, then it came time to look at the numbers.
[00:10:03] Okay. We're going to look at this thing, but we sort of need to do a bit of homework before we even go. Um, then we, I remember sending you a message. I think we were in a group in a WhatsApp, then I said, do this number doesn't look. Okay. Yeah. And then you, uh, someone said, no, I don't think they knew. And then you said they do.
[00:10:24] And then I thought, yes, they do. If Simon says they do. And then, um, the following day, you said, are you available on a call? So we went through the numbers and then we're like, okay. So we went to see the property. We were shocked at the state. It was in beautiful, nothing to be done. Uh, it was fully furnished.
[00:10:46] All we needed to add. It's just so funny. Xing a few maybe bits, but nothing major. And, uh, And then speaking to the agent and just getting an idea of how to move forward. And don't, you know, when you spoke to him on the call, he was a bit rushed and a bit, you know, had to pin down. It's just how he is. He's a really good character, actually.
[00:11:17] Yeah. So that was interesting. That was wonderful to go through and, uh, Suddenly, if the thing fell through that's right. Yeah, because we later found out that the landlord had three agents working with him for the same property. So one guy would tell him this, the other guy would tell him this about the other guy.
[00:11:41] And then, you know, it was just. Things going on there that you had no idea. And then suddenly he wanted six months upfront and he wanted us to be fully repairing, insuring kind of thing, like a commercial, please pay upfront, you know, all sorts. And so we were like, it's just a no deal then, you know, oh, it's a bit depressing.
[00:12:06] Yeah. And a few weeks went by and then, uh, because we had shown the property, we had actually dressed one room. I remember I was, it was, it was sad. I remember it was sad. Yeah. Yeah. It's kind of like what comes first? The chicken or the egg, you know, you get the keys before you sign a contract is a five deal because it just gets, you really fired up and you just, you know, you're on your Mac and then the keys go.
[00:12:34] So, um, yeah, very, everything came to a screeching halt. We had to give back the key because it didn't work. We had Sean, some people, the properties, they wanted it. So, you know, a few weeks in. I called up the landlord and said, do you want this tenants? Because we don't have anywhere to put them. He was in India, he was stuck there because of COVID.
[00:12:59] Uh, and he couldn't fly in soon enough or quick enough to sort out his property and meet up the, he hadn't even seen the complete property, you know, because he had been, uh, they had finished all the renovation. He hadn't seen the final product. So even as getting the key, signing the contract, it was still for him not seen, you know, it was just, uh, yeah, one of those odd experiences, but yeah.
[00:13:31] Few weeks went by. You felt like it fell out of bed. You had tenants in the wing. So in good faith, you went back to him and said, look, I appreciate and respect it. It's just not for you, but we've got these tenants if you want them. And then that changed them. Completely. And then we were speaking directly with him.
[00:13:53] Yeah. And we said, do you do who's managing it? Do you want them? Because we don't have anywhere to put them. And, uh, and then Jeff suggested asking him if he knew what we were offering anyway. And it didn't seem like he did, because the way it ended was like, you know, too sudden. Yeah. Really strange. It was hard to explain.
[00:14:17] Um, he didn't even realize that we were offering a guaranteed rent. Well, he didn't even know that. And, and that's the best thing that has ever happened to him because he was getting ready to give it to the council and they would have housed anyone and not just anyone, but they, the people they were going to house what probably.
[00:14:40] Not working professionals, you know how the council side of things, more of a support, but not people who will come and really maintain the property the way you'd like it to be maintained. Wow. Yeah. So Jeff is gonna say something. Yeah. I mean it, yeah, he, he, I had this experience working with the council previously and like a really bad experience that ended with his house getting flooded on purpose and, you know, having a break, open doors, he had, he had this bad experience.
[00:15:15] Um, so you know, us coming to offer what we offered was exactly what he needed. He's an elderly gentlemen. He doesn't have the time or energy to run his own house to manage it himself. Um, and he's just in no position to deal with all the problems that our landlord find some self dealing with. And, um, today he tells us that.
[00:15:46] This has been God sent to him because out of all the, you know, all the changes and challenges he's met this year with this other properties, this is the one that he can really rely on for his income, because we offer them a guaranteed rent. Wow. He's got commercial businesses, which are having problems that you can issues.
[00:16:09] Yeah. And so this is the, you know, stability for him. Which is great. It's that pure? Win-win this one for, for, for him and us here. Win-win friends with we, we phone up just to chat socially on the phone, on the phone. We don't even talk about the property. Just have a laugh on the phone. What a great case study.
[00:16:33] Yeah. So for, for rent to rent, if it's done right, and you add the right intentions, you was perfectly selfless, even though he wasn't alone and. Interestingly, he didn't even know exactly what you were offering due to Chinese whispers, multiple agents. And that's why I always talk about where possible. You need to try and speak to the landlord, even if you're going to go through an agent and just make sure there's transparent.
[00:17:05] So what a deal. And I know that there's potential of a business off the back of this as well, right? Yeah, yeah. Yeah. One thing leads to another thing, Lisa, in fact, this landlord, um, gave a referral to this house's current landlords. So yeah. Well, well done. So, I mean, there's so much to speak about and I don't, I feel like there's so much value that I don't want to rush this.
[00:17:35] So let's just pivot quickly to this deal that we're saying right now. Um, I want us, so this is a five bed, is it? Yeah. Um, tell us about this, Jeff. Cause I know this is your baby. Okay. Well we're on your mastermind group. And um, one of the challenges that you set for us was to, um, use a letter system, a letter sending technique to try and learn.
[00:18:04] Um, HMO landlords know that we're out there. Um, so actually what we do is we find, um, housing for NHS staff. I mean, people work for the local, um, St Andrew's healthcare. Um, and so we sent out a letter and, um, to all the, the HMO landlords in this area saying what we do saying we have these people to house and we had quite a few.
[00:18:32] Response is actually, we had about out of two, 280 letters. We had about 10 responses. Um, and out of those, we've had about three or four viewings from those. So, um, what, what it opened up for us is that we didn't realize that this area of November. Was a place where you could do HMO's. Um, and when we ran a dummy ad online, uh, we found that there was a surprising demand in this area, which we'd never would have thought before.
[00:19:10] So it just opened up this possibility and we met the owners and we clicked straight away. Uh, we had rapport with them. Um, we'd like them instantly feeling was mutual. And they were in a position where circumstances in life changed and they found themselves in a situation where they no longer wanted to be doing this show.
[00:19:36] And it was just, it just felt right. And here we are. We've taken on the property and we're doing it up at the moment. Yeah. And getting it ready to launch next week. Fantastic. And I know that halfway through the mastermind, you confirmed the second larger property and you telling me now that's already completely loud apart from one room.
[00:20:03] Yes. Yeah. Flying seven out of eight bedrooms. That's in a few weeks. So you're in the major. As I like to call it. Um, so two and a half thousand pound a month, have you got all these free for five years? Yes. So I don't even know if you would have considered this, but these free deals alone over five years.
[00:20:26] You're probably look well. You're looking at well into the six figures, potentially 150 grand cash flow. How does that make you feel? Really good. I didn't even add that. I never thought of it that way. Yeah. Yeah. That's so crazy. All right. Well, you've, you've been an absolute pleasure. I mean, what what's next?
[00:20:46] Two and a half thousand pounds. What's next for Anand and Jeff right now. Oh my gosh. Yeah, we're still getting letters. I mean, uh, responses from the letters and, uh, it's, it's really nice to have someone call you because it means that they need help. And, uh, I think one of our ethos is, uh, always find a win-win because we want to be happy doing what we do.
[00:21:13] And we want the landlords to also be very happy with us. So, um, yeah, that seems to be the sweet spot that propel. Forward, um, yeah, a few phone calls to return and a few more deals to be made. Yeah. Five more of these five more, five more of these will give us enough cash flow to easily support ourselves and to build.
[00:21:42] Um, funds quickly so that we can start purchasing our own properties and owning them.
[00:21:50] that's it. Okay. And if you, if you would have to give any advice for brand new people starting, what, what would you talk to them? Speed. Keep learning and keep doing it. Talk to people who are doing it and learn from them. Fantastic. Don't stop learning and to just take action, even a tiny little step is, is a step in the right direction.
[00:22:14] Yeah. Wow. Fantastic podcast episode, so much value you've given. Um, so thank you very much for joining us. Can't wait to continue to see your journey, and it's amazing to meet you in person. So thanks very much. Thank you very much, Simon. Thank you for coming to see us. It's really a pleasure to see you.
[00:22:36] You're not on a screen, but live in person. And, uh, thank you for guiding us and, you know, for stepping in and speaking on our behalf when you did, that was really important for us in the moment when we needed you. Exactly. So we really find it. Yeah. Couldn't say it any concern you don't need to add anything to that.
[00:22:59] Don't wait 25 years. Get great.
[00:23:16] Thanks for listening. For more information, check out Simon Smith, online.com. See you next time.