How do you earn at income from property without the huge deposits??
Today, we will be covering an exciting topic which works for people looking to get on the property ladder but don’t have enough but also for people who are already in property but looking for additional sources to supplement their income especially in times like this. It also works for parents who need to juggle work with raising a family so there’s a strategy here for every single scenario. I’ve had to adapt it to suit the new normal we are facing so some strategies can be adopted now while some will require you get the knowledge and education to get into which is really good since we all have more time now.
This is part 1 of my 2 series podcast that shows you the strategies you can use to get into property starting from almost ZERO to £5000 starting out…
So, Can You really make money with little or no money down?? The real truth is not quite, clearly you’ll need to commit at least a few hundred pounds to get the knowledge, create your business, website etc, but it is by no means anywhere near as much as looking for the initial deposit to buy a property to start earning an income from that.
With technology and the fully emerged digital marketplace it means the philosophy of making money by owning the asset is completely old school. Certainly, you should and can aspire to owning your own property and/or create your own intellectual assets if you can and I always advise people to work towards this. However, creating INCOME and CASHFLOW from a property or asset, it is no longer a requirement that you OWN it.
Now I emphasis Asset separate from property because in today’s world you can earn income not only by leveraging brick and mortar assets such as property but also levaraging and marketing online digital assets which you don’t own. We are now able to transform traditional businesses into a digital one which you can run from the comfort of your home where you can start to develop an online global platform now that will set you up for the future.
The 1st key principle is understanding the difference between OWNING and CONTROLLING. Owning requires you BUILD UP the initial cash, intellectual capital or funds to acquire the property or Asset while controlling requires you BUILD UP your network of people to market these services to. With the online digital marketplace, the sky is really the ultimate limit for you to apply any of the below strategies to generate significant income. It also helps you to diversify your income capacity and create multiple streams of income.
To get into most of these property strategies I’m about to discuss means you need to network a lot! Whether it’s online or physically when we are able to do so again. By the way this list is by no means exhaustive but it covers a lot of strategies I have used and narrowed down to the ones that work for me or people directly in my network.
In this 2 part series, I will show you 14 ways you can earn good income in property with almost £0-£5K starting out. I’ve tried to order them with 2 things in mind one is the cost of getting in (barrier to entry) next is the complexity as some will require you invest a bit more money and that you have a deeper understanding of property concepts and calculations. And the great thing is you now have the time so that when this corona craziness blows over you are in a position to cash in on some of the opportunities that will be out there. Let’s get into it:
STRATEGY ONE: AFFILIATE MARKETING FOR PROPERTY RELATED COURSES, TRAINING
In todays market, having an online business is the quickest way to generate income. There are lots of property related courses and training websites you can sign up to market and generate good income especially as people have more time on their hands. They work well because you don’t need to have much expertise, since the owner of the content has the proven expertise and you just direct traffic to these courses, websites etc to earn your commission, You could earn as much as 20-50% of the course or training when sign up as affiliate. Often they will have a detailed course or marketing scripts templates on their website which you can adapt and use to market.
STRATEGY TWO : EARN COMMISSION BECOMING A SERVICE ACCOMODATION AGENT
This strategy will be a great strategy once the market picks up – first it requires no money to get into as you don’t need to own or even rent the property. To Become a SA search agent requires matching property providers (owners) with visiting guests to your city or remotely to another city where you have established links with trusted property owners. You become an agent for property owners offering their properties and in turn receiving a commission. There are 2 commission structures 1) where you take a set percentage or where you agree a set amount you pay the owner or agent and you can then charge your guest a marked up rate and earn from the difference. This is a great strategy especially if you have established good contacts with property owners directly and can negotiate rates per booking you receive. It also works if you have access to multiple properties in a location as you can then divert multiple booking request for 1 property to another property in the same area with similar features.
So my company Londonshortstays offers this model where you sign up to Become an AGENT and you have instant access to properties to start to market and generate good income.
STRATEGY THREE : CREATE BOUTIQUE CONCIERGE SERVICES COMPANY
Create a boutique concierge agency matching guests to their many local needs – most guests when they travel to a country don’t always know where and how to source things so you can leverage off your knowledge and offer services from budget to luxury items. Some Travel websites provide the opportunity for you to create a profile and then market tours and local events and activities within your city, The real margins come when you can package your own services and include your mark up to services such as transport, airport pick ups, tour guides, au pairs, sourcing goods and sometimes sourcing accommodation for these guests who can range from time poor guests who just need help navigating a city and will pay for the expertise to create efficiences or Luxury clients who have a myriad of requests that they want attended to and you can charge a good mark up for providing such services.
STRATEGY FOUR : HMO/ SERVICES ACCOMODATION PROPERTY MANAGER
This service is highly lucrative especially as most of the landlords of these strategies experience burn out very quickly once they understand the amount of work required. If there are such properties local to you, it can easily become a source of good income if you have the time to dedicate to ensuring each property runs smoothly. Landlords will usually be happy to pay up to 10-15% for someone to fully manage the property and you can try easily scale this up. It does require you have people skills and can effectively manage the property.
The better your understanding of the nuances related to managing HMOs or Serviced accomdation properties will help you to sell your services and give you a good understanding of your landlords expectations, Managing a HMO could range from sourcing tenants (for a separate fee) or just managing the existing tenants and informing the landlord of any upcoming safety checks or certificates, managing the tenants issues and escalating them when necessary. It can be time consuming but with good systems and outsourcing handyman activities this can easily be managed.
STRATEGY FIVE: BECOMING A RELOCATION AGENT
A Relocation agent works with individuals or companies needing to relocate their employees, their families, and/or entire departments of their business to a new location or country. Because they usually will need help settling into the new environment, finding schools for their children, locating short term accommodation (30 days – 90days) as well as longer term accommodation, they are often a very lucrative source of income.
Business owners or even medium sized companys don’t always have a local contact to help them settle in effectively so setting up a relocation agency and sourcing a few of these deals can really work out very successfully especially if you’re able to provide exceptional services they will usually always come back to you. You will need to have good local knowledge and a clear understanding of the accommodation, schools for their kids and potential areas that suit their requirements and budget and you charge them or their a fee for helping them settle in as well as negotiate a fee payment for any services providers you refer them to. Your aim is provide a good professional service that directs and managed the entire relocation process for getting them settled into their new environment which shouldn’t be rocket science for you since you already live there and just need to package that information.
STRATEGY SIX: BECOMING A BUYING AGENT FOR OVERSEAS (OR BUSY) BUYERS
Become a buying agent for overseas buyers or investors and earn between 2%- 5% on the sales value. As a Buyers Search agent, you are able to charge your client anywhere from 1-3% to use your services to source and buy in your location. In the UK, you are not required to have a license to do this, but you should have the knowledge to effectively source the right properties to match your clients requirements. You will need to understand the property market and help your clients set a budget and realistic targets, occasionally clients have an unrealistic expectation of what they can afford and you will need to clearly manage this and find suitable properties within their budget (if it is fixed). You will also need to understand why they want to buy the property, if it is for investment or just for a second home so they have a base in the City and what they want to use the property for. If you are successful in helping them find a property you will also need to work out if you offer add on services such as sourcing a good mortgage broker, lawyer etc to ensure the deal goes through. An additional source of ongoing revenue would be for you to also manage the property for them.
By the way, in some instances you are also able to charge an agency split fee with the agent or developer you’re buying from which means you’re getting paid a further 2-3% for finding them a buyer. So it works out very lucrative if you’re sourcing for million pound properties and can very quickly become a great source of revenue at a max potential 5% of sales price!
STRATEGY SEVEN: BECOMING A DEAL PACKAGER FOR SERVICE ACCOMMODATION AND HMO DEALS
For both strategies there are always people in the market looking to acquire the right property. And once the market picks up again these people will be out there searching Becoming a Deal packager for SA/HMO deals requires a good understanding what the right deal looks like. Knowing the right locations, type of property that is suitable for each strategy and negotiating the right price point to make sure the deal stacks up is crucial. You’ll need to contact landlords and agents in the area you’ve identified or network at property events to market your services to them and then market these deals with value worked out to property investors who are looking to diversity their income streams. For making the connections, you can charge anywhere from 2-5% per deal and keeping and developing a clients list of both investors and landlords is important to ensure you’re getting these deals through on a regular basis
I’ll finish up with the next 7 strategies next week and for more information about how you can get started in any one of these strategies , sign up to get notified once the 14 ways workbook and bonus toolkit is available.
The book delves into more detail about how you can get started, narrow down what strategies work for you, and what you can start doing now to build an income stream in the next 30-90days. you will also receive a toolkit with the websites and resources you need to get started.
