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An Infinite Cash on Cash Return On Investment With Your Next Investment Property! - YouTube
Channel: Your First Four Houses
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- Today, I'd like to
share four different ways
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that you can get an infinite return
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on your next investment property.
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Okay, one of the ways is pretty rubbish,
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but three are amazing.
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(jazz music)
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Hi, my name's Tony Law from
Your First Four Houses.
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And I teach people how to build
a small property portfolio
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that generates a great income for them
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so they can give up the
day job, if they wish,
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because they're now financially free.
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If this is your first time
here, be sure to subscribe
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to the channel, and click
that bell notification icon
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so that you don't miss out
on any of the free content
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that I give you each and every week.
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So before we dive in,
I am not FCA-approved,
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and so before you take any
action on any of the stuff
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I'm about to share with
you, it is essential
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that you seek the advice from somebody
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who is indeed FCA-approved.
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So today I wanna share four different ways
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that you can potentially
get an infinite return
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on investment on that
next property investment
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that you're about to buy.
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But before I show you
these four different ways,
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we should probably just clarify
how to actually calculate
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return on investment.
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You take the annual profit
that you're gonna get
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from the deal after all expenses.
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You then divide this figure
by the cash left in the deal
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after it's all done and dusted.
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And you multiply this figure by 100.
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And this gives you the
return on investment.
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So to take a real-world example here,
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imagine you find a deal
that's gonna generate
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an annual profit of say 10,000 pounds
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after all expenses.
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But when the deal is done and dusted,
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probably after refinancing,
you need to leave
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100,000 pounds in the deal.
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So we divide 10,000
pounds by 100,000 pounds,
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and then multiply this by 100,
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and that gives us our
return on investment,
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which in this case is 10%.
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But now suppose you could
do a deal whereby once it is
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all indeed finished and
probably refinanced,
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you don't actually have any
money left in that deal.
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What kind of return on
investment would that give you?
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So again, let's imagine
we found a property
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that's gonna give us an annual
profit of 10,000 pounds.
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Once the deal's done and dusted, however,
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we don't have any money left in that deal.
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Well 10,000 pounds divided
by zero multiplied by 100
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gives you an infinite
return on investment.
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Okay, so now let me show
you four different ways
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that you can do deals where
you don't leave any money in.
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And let me quickly get the
worst of these out of the way
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straight away, and that is
to wait a very long time.
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So here you're gonna buy a property,
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probably at market value, and
you're probably gonna put in
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your own deposit, your own money that is,
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and then you're gonna
wait many many many years.
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And as the years pass,
that property should,
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in theory at least, go up in value.
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Well though of course, as we know,
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there's no guarantees here.
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When it's gone up
enough, you can refinance
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and finally pull your
deposit back out of the deal.
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But this is not a very intelligent
way to invest in property
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in my opinion.
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It takes way too long.
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And so let me quickly show
you three different ways
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that you can get an infinite
return on your investment
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within a very short period of time.
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So the second way is to buy a property
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that's seriously below market value,
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also referred to as being BMV.
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So here you're gonna find and
negotiate a BMV-type deal.
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You're gonna smarten it up,
nothing particularly major,
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not gonna do any major works on it,
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just sorta bring it up
to a much more cleaner,
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modern kind of look.
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You're then gonna go
back and refinance this
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back to its full market value,
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because don't forget, you
bought it below market value,
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didn't you, and you're gonna do this maybe
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within six, 12, 18 months,
something like that.
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And so in this way, you
can pull most or all
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of your money back out of the deal.
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Now the truth is, I did not believe,
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I did not believe that this was possible.
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I really didn't, and
anybody that knows me knows
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that that's the case.
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But I've now done this many many times.
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And for some real-world
examples of how you can find
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these types of deals and
crucially where you're leaving
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the seller entirely happy, can I suggest
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that you check out my
free property mini course,
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because I give you some
real-world examples in there.
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Now the third way is to add genuine value.
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So here, we're gonna buy
probably at market value,
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or maybe we're gonna buy the property
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a little bit below market
value, but we're not getting
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a major discount in
this particular example.
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But then, crucially, we're
gonna add some genuine,
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tangible value to that property.
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And we're then gonna refinance it
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based on the new uplifted
value now that we've added
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that genuine, tangible value.
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And then once again, we're
then gonna be able to refinance
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and completely pull all or
most of our money back out
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of that deal.
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But the crucial point
here is that you must add
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real, tangible value.
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A lick of paint and maybe doing
a little bit of decorating
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or maybe putting in a new kitchen,
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that's simply not gonna cut it.
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And again, for 12 real examples
of what I would consider
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would add genuine value here, again,
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can I encourage you to check
out that free mini course.
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I'll put the link here
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but also in the description box below.
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Because in there I share 12 different ways
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that you can do this.
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And the fourth way is
to work with investors.
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So here you're gonna find
a property that gives
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a higher return on investment.
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You're then gonna find an
investor who wants to get
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a great return on their money.
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The investor then probably funds the deal
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in its entirety, probably.
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But you organise all of the work.
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The investor is then
either remunerated via
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a fixed-interest loan or
they get a share of the deal,
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a piece of the deal, obviously depending
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on what you negotiated.
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But in either case,
you've put no money in,
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and so for your part of this deal,
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you get an infinite
return on your investment.
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Now the truth is, there are
loads of people out there
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with money sitting in the
bank earning a pitiful return,
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and many of those would greatly
appreciate the opportunity
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to earn a far greater
return by getting involved
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with a competent investor, a
competent property investor,
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and maybe kinda working alongside them.
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But if you are doing this type of deal,
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you need to be very aware
that there are some clear
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and stringent guidelines
that you must adhere to.
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In my online property masterclass,
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I teach you a whole load of different ways
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that you can fund your
deals without needing
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to put in big deposit money.
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And so if you'd like to have
a 10-minute phone call with me
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to find out if this
course might benefit you,
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simply click the link
here to book a time slot.
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(jazz music)
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