Finding houses to 'do up' is gettin harder and harder.

If the tenant don't pay or can't rent it all fall like domino

@ladyn5273

11 ай бұрын

Best to rent it to a Local authority or the home office.

@Darkman155

10 ай бұрын

If the boiler breaks down that's few months rent gone

@ladyn5273

10 ай бұрын

@@Darkman155 you’ve never heard of boiler insurance??

@dabznslugg9492

10 ай бұрын

@kurtsmccallie7593 they got squatter rights n can't evict them until the court orders

@Leethetypeofbloke

10 ай бұрын

@@dabznslugg9492 yeah my mistake, you can only kick out short stay tenants using your serviced accommodation. It’s more complicated with regular buy to let tenants.

The issue is that you're exposed to falling home prices. If prices fall your equity is whipped out in the short term. This strategy only works if you can refi for a 15 year mortgage and hold until the mortgage is paid off. Then after 15 years you'll own all properties outright at 100% equity. Its a long-term strategy that ties up your capital ($75k in this example) for 15+ years. Overall, its a solid model if you don't need the liquidity.

@odycmboden3580

Жыл бұрын

you aren't selling the house. you're renting it. so it doesn't matter if house prices fall. youre still getting the passive income from the cashflow of the monthly rent.

@XCALIBURSHOES

Жыл бұрын

@@odycmboden3580 exactly. It's a longer-term investment strategy with little or no liquidity. Good deal if you want to tie money up for 15+ years.

@splashbros4651

Ай бұрын

How is it an issue repairing a damaged house, which then immediately increases the value?

This guy is dropping gems

The bank still owns the house you never own any of the houses until the mortgage is payed off.

@smartnothard2400

Жыл бұрын

In one word? Sad. On the flip side, it’s not to late for you. Wake up! Positive dept is tax free. And it is 100% yours regardless of if the bank has financed it. Don’t be negative.

@Pugz_punny

Жыл бұрын

And the mortgage will eventually be paid

@deanroy7936

Жыл бұрын

@@smartnothard2400 How many homes do you own?

@kevindonnelly3399

Жыл бұрын

It's all about making passive income you fool

@riboid

Жыл бұрын

U can use the rent to make.10% over payments per year and clear it that way.

Keep it coming 🤙😎

It’s not as easy as it sounds, although it’s very possible but without the correct know how, education & knowledge it’s just a dream for many.

What about when the WEF change the landscape - “You’ll own nothing and be happy”. This method used to work a charm but seems the powers that be are making it less feasible.

You can use bridging for refurb, saving you the £20k.

@FontaineBrothers

2 жыл бұрын

Yeh nice and can also buy with mort

@smartnothard2400

Жыл бұрын

10 months later….. 1-3% apr has become 5-10%. Grrrrrrrr. But still doable. Ideally only use bridge short term as it’s considerably more costly than refinancing.

Best method

This is exactly the nonsense that lead to the 2008 crash .. House prices fall Tenants don’t pay rent Your in trouble .

@Benst2178

Жыл бұрын

No it’s not what lead to it.

@Benst2178

Жыл бұрын

Obviously you’ve never heard of Blackrock and what it’s founder has been upto over the years

@asmith5149

Жыл бұрын

@@Benst2178 actually it is. An over inflated property market in 2006 / 2007 fuelled by the everyone's a property developer mentality led to a crash, which sparked a liquidity crisis in the banking system leading to a credit crunch and a collapse of the whole deck of cards. I seen it first hand.

@Benst2178

Жыл бұрын

@@asmith5149 It was high risk mortgages as a whole that was a major contributor to the crash, not a particular subset of borrowers.

@swirledworld340

Жыл бұрын

Banks caused it... if you don't over leverage by taking a lesson from 2008 you could due it... don't be Icarus.

Genius

So what happens when the tenant stops paying rent for months on end, after the section 8 you have to go to court for possession order then for a warrant of possession, then get the bailiffs, then get your property back which is trashed, and the tenant has no money, so no point going to the courts on that, so you have to cover the cost of the repairs, plus the lost rental which was covering your mortgage which your paying? I know not all tenants are like this, but if it happens when you do this, you are going to need another source to cover the costs, so....

@ronburgundy1033

Жыл бұрын

This business isn’t for you mate move on to something else

@martynshaw2551

Жыл бұрын

U pay a good letting agent 4% extra and after 2 months they pay the rent if the tennant doesn’t! Bit of extra insurance that’s all

@kevinboyle8855

Жыл бұрын

@@ronburgundy1033 Yes, thanks for the advice, I luckily have another business already providing a good income. My comment was in relation to the system explained, and the consequence of such an event. You didn't explain why this is not for me, or how you manage such a situation. That would help more.

@kevinboyle8855

Жыл бұрын

@@martynshaw2551 Thanks. So do letting agents provide an insurance or guarantee to cover this eventually, not just managing the process, but actually for lost rental income, like a good landlord insurance might? And the damage, is that covered under insurance as well?

@ronburgundy1033

Жыл бұрын

@@kevinboyle8855 what is your other business

Youll never find a house up the street for half the price what needs doing up. Back in 2002 you could.

buying is very different than owning.

Outdated information, it use to be like that, not anymore..

@howard5854

Жыл бұрын

How comes ?

@AlexSavage

Жыл бұрын

@@howard5854 the math is not the same, market conditions have changed

You’ll only get it back if it’s your own money. You can do this with OPM and essentially not use any of your own if structured correctly.

20k refurb and instantly 50k more value doesn’t sound right

@FontaineBrothers

6 ай бұрын

It’s an example

@benlackenby1435

6 ай бұрын

@@FontaineBrothers didn’t know youse replied ow lads

@benlackenby1435

6 ай бұрын

@@FontaineBrothers isn’t there a law that you can’t refinance until three years in to owning the house

@FontaineBrothers

6 ай бұрын

If you buy with a 2 year fixed mortgage then you can’t refinance until that point. Most people buy cash to avoid this. We bought one cash for 60k and spend 30k on it and it got revalued at 130k. So that’s a 30k refurb and 70k uplift in value.

Lol. Assuming of course u can get a 100k valued house for 50k, not likely and even less chance of doing it more than once.

@FontaineBrothers

Жыл бұрын

Just done a 60k house spent 30k on it. All in with fees 93k. Now valued at 150k. That’s in aberfan South Wales

@andypreece1754

Жыл бұрын

​@@FontaineBrothershaha no u haven't

@smithbrownjones

Жыл бұрын

The math works on the premise of buying at, typically, 20-30% below market value in the first place.

When you refinance the interest rates are higher.

Do you have a mortgage broker that you would recommend?

Give me the address of that bank who gives 100 number of loans for 1k rent😂😂😂😂

So if tenant skips for 3 months, ur house is up for auction that too with 50% discount.

How much cash flow on the first house

CGT bill how much?

What about the monthly EMI ? The emi of debt on 75k will be more than your rental income? Unless you have a rental yield of 14 or more this method won’t work. Kindly Correct me if wrong

They won't give you 75% of the new value but yes 75% of the difference of the values

All the rent should go on buying your first house outright then do it with your other houses rent If not u will lose your shirt

Can you refinance if you started with your own money? I thought that for refinancing you needed a mortgage in the first place..can you confirm?

@rpk-yk5gv

9 ай бұрын

Nah you can, that's what a lot of 60 year olds do with their home so they can invest the money in other properties

But after refinance you have a mortgage which is debt, which is factored into your ability to get next loan for new house. after a couple you will have too much debt to be approved for a loan. too high debt to income ratio or no?

@c.hustle7790

Жыл бұрын

You can take out a second charge mortgage which is a second mortgage completely separate from your existing mortgage. The bank will allow this because like your existing mortgage you’re using the property you have as security to take out the second mortgage for another property.

There’s one near me for 50k, the bank said I can have mortgage for 50k but I don’t have any of my own money really at the moment but I understand it and need to do this at some point

Good luck with that one 😅

Two words. Negative equity.

Forgetting one point, you pay tax on the profit so you aren't left with 75k.

@lifeofadividendinvestor1206

Жыл бұрын

That only happens if you sell which he doesnt. if you tap equity on a refinance its not a taxable event

KZreadr Mouthbreather: HeY DiD YoU KnOw YoU CaN GeT iNtO MoUntAIns of DeBt !?

Great until intrest rates go up. Just like they have. Buy to let is dead

Nice vids bros! How do I get 75k in the first place tho?

@boomerang4918

Жыл бұрын

Grind.

@george-us-them

Жыл бұрын

Buy a crypto coin called Hathor $HTR - and no I’m not a bot

Repeat the process till your running around collecting a growing proportion of everyone's wage packet in rent for the bank's who get the house if it fucks up ...in the meantime everyone gets poorer and disposal income flows into the economy dry up.

@FontaineBrothers

Жыл бұрын

Tesco sell water and food. Go protest about them evil scammers for making money.

A 20k refurb? That's the lawn trimmed.

Why would you refinance a property that you paid for in cash, fixed, and now have a tenant in giving you steady cash flow? Why go into debt?

@viasenzafine

8 ай бұрын

He explains it in the video, you can use the money to repeat the process

Can get a new way of gnashers an all kid

Just wish I had 75 k lol

@FontaineBrothers

Жыл бұрын

Just keep stacking by any means

You would be better off leveraging your money on property developers/reits on a spread betting account

@tonys8448

Жыл бұрын

Spread betting 🤣

Where you buying houses the 1970s?

@FontaineBrothers

Жыл бұрын

South Wales

@lcameron2480

Жыл бұрын

Good luck renting it out

Once the project is done, do you use the 25% equity in the refinance as a deposit for another property or some portion of the released 75% to repeat the process again for buying another property?

@salsabila786

7 ай бұрын

You do it all cash. Started with 75k, now that you've uplifted the value of the house to 100k, when you take out 75k (75%), you have 25% equity in the house as well as 75k cash, which you can repeat the process

@sahab999

7 ай бұрын

@@salsabila786 yes but then where do you get the cash to uplift the next one?

@sahab999

7 ай бұрын

@@salsabila786 as in building costs, where do you get it from in the next project

@salsabila786

7 ай бұрын

@sahab999 did you not watch the video? He bought a house in need of renovation for 50k, refurb (as in building work) cost 20k and 5k legal and fees. It's all included in the 75k, it's not easy to find such deals but they are there

@sahab999

7 ай бұрын

@@salsabila786 I’ve watched the video, but I’m talking about worst case scenario. What if you don’t get enough from your refinance to then have enough funds for the building cost on the next project? Can you not borrow at 100% bridging loan instead

How do I go about getting 75k i earn £10 per hour so should I just keep saving or is there a smaller investment I can make to flip my money?

@FontaineBrothers

2 жыл бұрын

We started with rent to rent

@KILLMALAKI

2 жыл бұрын

@@FontaineBrothers ok ill do some research and get into that

What happens when they stop paying rent

@MaximilianvonPinneberg

Жыл бұрын

Or rates go up and new landlord legislation comes in or changes to taxes on landlord income or property development.

@ChrisDodges123

Жыл бұрын

Get a new tenant

@TheRyan909

10 ай бұрын

I’m no rocket surgeon… but I would imagine you would evict them probably?

Did you know you can buy an unlimited amount of houses for the price of 1 house?? = buys 1 house 🤦‍♂️

If only you had 75k chief. How's the modeling business coning on? Fill in the paperwork before you're struck off. Again.

Yes you get a tenant and the fuck chooses not to pay the rent then you got a 4 to 6 months battle to get them out at which point you have to cover the rent and legal fees to get him gone so if this is your first time trying this you will lose everything because you can't cover the rent

@FontaineBrothers

Жыл бұрын

Rent insurance covers all of that

Haha.

Who has $75k in savings

This is 75% cap 🧢

Hahaha.

You forgot the part of obtaining 75k in the first place 😂

@george9089

Жыл бұрын

Thats your problem. There's so many ways. Use your brain

@FontaineBrothers

Жыл бұрын

Guess I have to spoon feed. Ok what you do is earn money, save money, create a buisness, go to a sales job, sell the shit you don’t need. Lol and then keep doing that

🤣🤣🤣🤣🤣🤣 That's definitely some logic

Don’t you need 100k seeing as your going to need 25k towards the mortgage

@Abf_-oq8ps

Жыл бұрын

Not with this method. Not a traditional residential loan. Banks here only care about the rent more than covering the debt. Basically there’s no need for the DP with debt service coverage and equity you’ve created from rehab.

And I bet you have a total of 0 houses

@FontaineBrothers

Жыл бұрын

How much u wanna bet

@Yesterday23071

Жыл бұрын

Yes how much you wanna bet ? S-o much fuc… hate ! This made my day .❤

Aint worth doing now doe

@FontaineBrothers

Жыл бұрын

Yeh it is

@martynshaw2551

Жыл бұрын

Always worth doing, people told me not to move when brexit was announced, we’ve had covid, internet rate rises, Ukraine Russo war and my value has gone up 45%! There’s never a bad time, on average over the last 4 years, property has gone up 25.7%!

@martynshaw2551

Жыл бұрын

Interest lol

How do you find the run down house

@FontaineBrothers

2 жыл бұрын

Gave me an idea for a video haha lots of ways

@pocketman5510

2 жыл бұрын

@@FontaineBrothers let's see that video 👍

@stephen_combs

Жыл бұрын

Yeah so basically you have to have 75k to start with and find a rundown house that's lost half the values so when you throw money it in its worth 100k. So how many ppl ya know that how's 75 k saved up that's needs financial advice lol.

I have maybe £400k in positive equity in my houses and want to do this but can never find the right house with at least 20% below market value.

@FontaineBrothers

Жыл бұрын

There are deals out there 👊 keep going

I get the meaning but your statement of unlimited houses is so false Jesus 🤣

@FontaineBrothers

Жыл бұрын

You can keep repeating

Such a show off lol