No Money Down Property in the UK | Simon Zutshi

No Money Down Property in the UK | Simon Zutshi

– Hello, it’s Simon Zutshi here, and in this video, I’m
going to talk to you about no money down property in the UK. In fact, what I’m going
to talk about works not only in the UK, but actually no money down property anywhere. But I want to talk about this because a lot of people think, “Is it true? Can you really buy property no money down? Or is it just a load of BS?” Well let me tell you, I and literally hundreds of my students have purchased property using none of their own money and I’ll share with you four or five ways in this video about how you can do the same. So when you buy an investment property, typically you put in a 25% deposit to go with the 75% mortgage you get from a bank. Now, the banks want you
to put some money in because they want you to
have some skin in the game. If something goes wrong, they want to make sure
you don’t just walk away from the property, which is what happened in the late 2000s after the credit crunch, where many people had
got very low money down investments, they had high mortgages, and when things went south,
they just threw the keys in. Quite rightly, banks
want to see you have some skin in the game. Generally, when you buy
property, some money needs to be put in, but
here’s the key distinction I want you to understand:
it doesn’t necessarily have to be your money. Let me explain some of
the ways you can do that. The first thing I want to talk about is what we call a joint venture. If you’ve gone out and found a really good investment property, and that’s the key thing,
you’ve got to learn how to find great investments, and that’s probably the most important thing you need to learn first of all. Once you can find great
deals, even if you’ve got your own money, you’re probably going to run out of your own money at some point. So, you might want to start thinking about doing joint ventures. A joint venture is where you’ve got a great deal, someone else has got the money, and they
maybe don’t know how to find deals, they don’t want to find deals, they don’t have the time to find them, or they don’t have the
inclination to do it. So you go out and find a great deal, they come and put the money in. You’re both putting value
into the equation here. And so that’s the first way to do deals. And the other way actually,
that people don’t think about is maybe the joint venture partner could be the property owner. What do I mean by that? Well maybe you find a
property where you can maybe convert it from a house
into a six bedroom HMO, so you can add value to that property. Or maybe it’s a commercial building, can be converted into
residential building, broken down into small units. So you can add some
value to that property. Well, maybe if the owner
doesn’t need the money now, and they’d like to make
a bit more money than just selling you the property, but they don’t have the money to do the work themselves, they don’t have the knowledge or expertise to do the work, maybe you can bring the knowledge and expertise and you can bring the funding. See, there are banks, there
are lenders, people like, if you have a good enough project, the owner can put the project in, you can bring the money from Crown Properties, so you don’t have to actually use any of your money, as long as it’s a good enough project, and the project can be funded 100% using other people’s money. Then, at the end of the project, either you refinance or you sell it and the owner gets their share, Crown Property get their money back, and you get to keep the profits. That’s another way of
doing a joint venture, but you joint venture with the owner, again, not using any of your own money. The next thing you can do is
there are people out there, maybe friends or family, who’ve got money in the bank, that’s doing nothing for them at the moment. Interest rates around the world are really, really low. And if someone’s got money in the bank, actually, they’re probably losing money because inflation, the rates of prices is going up is probably more than the interest they’re
getting in the bank. So you can help these people. And I want you to
realise that, that if you use someone else’s money and give them a great return on their money, this is not just them helping you, it’s
you helping them as well. It’s a win, win. So again, you go out and find
a great property investment, ideally somewhere where you can buy it, you can add some value, and then you can refinance it or
sell it to make a profit. So you can use the other person’s money, they put the money in, they get a fixed return on their cash, and once you sell or refinance, they
get their money back, plus the interests, and you walk away with the profits, or if
you want to retain it, hold onto it, and rent it out. So you’ve got all their money back, you’ve got none of your money in the deal, you’ve got a property
that’s going to give you cash flow for as long
as you own the asset. So again, another really good strategy. Thinking about working with the seller is sometimes people will
sell their properties and they don’t want to sell it at a discount and they’re not going to give you any deals, but they’re just going to put the money into the bank. So I’ve done a number of deals where I’ve bought the property, so I’ve had to put money in at first, someone else’s money, and then the owner, once they’ve got all that money sitting
around, I’ve actually done a loan with the owner. So I then will be able to
pay back the person who lent me the money to buy the property in the first place, and I’ve got a loan, I’m paying interest to
the person who sold it. Well, they’re happy,
they’ve sold the property, and they’re getting a really
good return on their money. So that’s another strategy you can use. Then also, you can do what’s
called a purchase lease option. Purchase option is where
you have the rights to buy a property at
some time in the future, within a fixed time period, and you rent the property in the mean time. You can rent it out,
you’ve got your cash flow coming in straight away,
and then you can buy that property in the future,
if you want to buy it. Now, you don’t have to
buy it, you can assign it onto someone else, or
at the end of contract, you can walk away. To be ethical, I think
you need to give the property back to them
in the same condition or even better condition than when they first gave the property to you, but it means you get cash flow, and potential extra growth
from a property you don’t own. Now, you might think, “Okay,
Simon, how do I actually buy that property?” Well, hopefully if the option
periods been long enough, the value of the property might have gone up over time. So, if you have a number of these deals, you can sell a few of them on, take the cash profit to use as the deposit for the ones you want to keep, or, again, you do joint ventures, you do private loans, whatever, and then because the value’s gone up, you buy it, you refinance it, take the money out. So these are some of the
strategies, and it’s about knowing how to help the seller. Not every strategy will
work in every circumstance. You got to get good at
finding sellers who are a bit more flexible on the
terms of the sale maybe, you’ve got to find out
what’s important to them, ask them lots of questions,
listen to what they say, and then come up with an
ethical win/win solution that’s going to work for
them, and also work for you. People are out there, but
you’ve got to believe it. If you think no money down
deals are not possible, you’re absolutely right, you’ll never find or never be able to do
no money down deals. One of the best ways
of building your belief that this is possible is by learning from other people just like you, who’ve done this kind of deal before. That’s why watching case
studies of people who’ve bought property no money down. Because they’ve done it, it
means you can do it as well. So you have a choice,
either you think yeah, this is just BS, I don’t
think it’s possible, and that’s fine if that’s your belief. Or, you have an open
mind, you look into it, and start learning from people
who have actually done these kind of deals and believe actually, maybe this is possible. It’s not possible in every circumstance. You got to educate
yourself, you got to get out there and find some great deals. But if you’re finding great
deals, there are lots of ways of financing them, as I
explained in this video, using none of your own money. So I do hope this video
has been enlightening and opens your mind. If you liked it, please do like it, please share with other people, come and comment below, I’d love to hear your feedback on this. But also, make sure you subscribe to this YouTube channel, so you can get more free information from me about successful property investing. My name’s Simon Zutshi, as always I encourage you to invest with knowledge, invest with skill, thanks for watching.

5 thoughts on “No Money Down Property in the UK | Simon Zutshi

  1. Is it possible to own 600 cash flowing rental properties in 4 years? That’s my goal and obviously, this is assuming you have the necessary funds. I want to meet this goal and I’ve broken it down into how many houses I need to buy every week ( 3 houses a week ) and I’ve just been wondering how likely it is I’d able to get in a good amount of due diligence whilst still having a few hours of my day to generate some cash from my business( I only need about 2-3 hours a day on the business ).

    I’ve worked it all out and I’ll be working myself to the bone for 4 years to achieve it and I’m fine with that but as I’ve only been studying property investing for a little while now all my ideas are purely theoretical and I have no practical experience. I will listen to and take any advice on this subject but – not to sound arrogant – I plan on achieving this goal regardless. I’d just like some insight that I don't have as I'm coming from a purely theoretical standpoint.

    All opinions and advice are greatly appreciated. Thanks.

  2. Hi Simon if you refinaced the deal before a year do you pay them their percentage based on how many months its taken? If i offered them 10% a year but finished deal in 6 months for example.

    Also do the mortgage company have to see 3 months of money in the investors account?

  3. Hey Simon am worried about not having a good credit rate does that have anything to do with the no money down buying deal ?

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