Browse All Tribes or choose a Tribe below:
By signing up I agree to Property Tribes Terms and Conditions
Already a PT member? Log In
Sign Up With Facebook, Twitter, or Google
By signing up, I agree to Property Tribes Terms and Conditions
Already a PT member? Log In
Don't have an account? Sign Up
To reset your password just enter the email address you registered with and we'll send you a link to access a new password.
I've been reading Kevin Mcdonnell's "No money down property investing" and I really got excited about the idea that this could work, however after coming across this forum I've realised I got sucked into the false fantasy of investing in property and gaining significant cashflow without using my own money.
I'm currently in a low salary job with 2 hours of travel a day and after expenses, I'm only able to put away a small amount of savings per month. I've worked out, on my current trajectory, to save £10,000, it will take me 66 months, and that's being extremely frugal: not buying clothes, not eating out, buying the cheapest food possible, no holidays etc. By the time I've saved up things would've become a lot more expensive and this is only for £10,000 which won't be enough deposit for anything other than a box, not including stamp duty and fees etc.
I don't want to spend the next decade of my life living like that for a goal where the timeframe will keep extending.
So, my question is, are there any ways or strategies in the NMD ethos that can be achieved, or are there any other strategies where I can get my foot on the property investment ladder for as little money as possible, even if the cashflow is very low, I can then get started on compounding and building a portfolio?
Hi Sion,I have never heard of Kevin McDonnell. What strategies does his promote?With £10K deposit you will struggle I am afraid, as most BTL lending starts around a minimum of £40K, so you are looking at very cheap properties.I think the best thing you could do is start a property related business, such as a lettings agency, and then use business income to invest in property and manage your own properties.Not sure if you have seen these threads?No money down deals - de-bunking the hype Search results for "no money down" One thing you might be able to consider - if you have suitable parking where you live - is to buy a motorhome and rent that out as short term accommodation.I put one free ad on gumtree and was inundated! You can buy a reasonable motorhome for £25K and rent it out for between £45 and £70 per night. If you work the maths, the returns are actually much better than property. Sorry I cannot be more helpful but hopefully a few ideas as food for thought?
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
Hi Vanessa, thanks for your response,
Kevin Mcdonnell's book mainly focuses on the 'Lease option agreement' strategy in order to acquire properties to then execute other strategies (Rent to rent, rent to own, HMO etc.) to generate cash flow. After viewing some of the posts on this forum, including the ones you suggested in your response, I've realised this is just another fantasy strategy that doesn't work and that's pushed to newbies like myself in order to sell a book.
I like your idea of setting up a lettings agency, are you able to list some resources, websites and/or books where I could learn more about how to do this? It would be much appreciated.
Unfortunately, I don't have suitable parking where I live to accommodate a motorhome but I really like the idea.
Hi Sion,Glad you found my input helpful and you are not going to waste your time with these fantasy strategies!With regards to lettings agencies, there are various models where you can join a "hub" like Keller Williams for example, or buy a franchise, like one from Northwood for example.Alternatively, you can set up your own business from scratch and ARLA and NALS have training courses and resources to assist you in doing this.Hope that helps and good luck!
I hope you have not been paying fees for your education
If you are, you are throwing money down the drain
The truth is you need a lot of cash today to join in this game of Monopoly
Even as an experienced landlord I know to do a deal I need around 30% in my bank to get it off the ground
Anyone telling you different is telling fibs .
Learn Change and Adapt ?????
All comments are for casual information purposes only. If you wish to rely on any advice I have given please ensure you obtain independent specialist advice from a third party. No liability is accepted for comments made.