How to drive a Bentley for free for 2.5 years
Lazy persons guide to money
I want to explain my delay in posting as of late, aside from the recent addition, I want the content that I release to matter and have impact. I am working on some really big things that I can not talk about yet (do cool shit, then talk about it - Alex Hormozi), but for now, here is one of the most amazing ways to make you guys some money - enjoy!
Dear reader,
I used to love playing video games and sometimes when I wanted an easier game I would sit there finding cheat codes, this is like that but for real life.
I ask that you please keep in mind that I am still young (29 years old) and will be sharing what I found to work for me, so do as Bruce Lee says "take what is useful and discard what is not".
I believe that no matter what you are going through, there is always a solution to your problems and the only person that is going to save you is you. You can't change your circumstances but you can change yourself.
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Crash Course
Before I get into how this will generate passive income, and improve your life, I will briefly go over how the banks make money. As Robert Kawasaki explains in his book rich dad poor dad, there are two types of debt. Good debt and bad debt.
Bad debt takes money out of your pocket every month, good debt puts money in your pocket.
One of the main ways that most high street banks make money is by lending money. HSBC for example will borrow money from the central bank (Bank of England or Bank of Scotland) at 5.5% interest rate, and will then lend that money to their customers at a higher interest rate annually for example at 8% and they will make money on the 2.5% difference - aka good debt.
However unsecure loans will see a much higher interest rate such as 20% and so on (credit cards). This basically means that if you default on the payment they don’t have any security if you don’t pay.
Secure loans are usually backed by property, because it is safe and extremely low risk.
Crash Course part 2 - Rent to Rent
I will also explain why I love this strategy so much, and give a brief explanation below (a more in-depth post can be found here).
Rent to rent as the name implies is when you rent a property out and then sub-let it at a higher rate. There are two ways to this in the UK, illegally, which I do NOT advocate for as its a lot of headache, not as profitable in the long run and like. . . why not just do it legally.
Illegal way is simple, rent a house from a landlord then rent it yourself at a higher rate. It will get flagged up so fast, you can’t advertise it easily and the police will shut you down.
The legal way to do this is simply by leasing the property (its just a different piece of paper that you sign), its for a few years, which you then are seen as the owner for the term of the lease. “you do not have to own property to make money, you just have to have control over it”.
Hilton Hotel leases out a building, does the work it wants to and then rents the rooms out and makes a killing.
Getting to the point
A key difference between those with money, and those without is how they invest. One of the best things to do is look to the future. Get rich quick investment opportunities are usually very high risk and low chance of achieving what you want to do.
During my ventures and networking, I came across a company that deals with massive developments, big property projects and has never not delivered. Usually, investment opportunities such as these require quite a hefty amount, money makes money - but at this moment in time they have started offering a sharia compliant opportunity with a lower investment requirement.
To keep it simple they have started acquiring a rent to rent portfolio, concentrating on making suitable houses into HMO’s (houses of multiple occupancies - aka rent it room by room). The minimum investment is £10,000, with that money they will split it roughly as follows:
£3,000 on deposit
£4,000 on refurb - to get the property to code (builder on payroll hence why its cheaper)
£3,000 first month rent to landlord
HMO’s are usually long term contracts so the churn is very low and tenants tend to stay a long time.
(There are a lot of rules and regulations on HMO’s, more on how to legally profit from this strategy here)
What’s in it for me?
The company will then share the profits with the investors. They give the average investor £300 for 60 months for every £10,000 they invest. Meaning you basically get your initial investment back in 2.9years (roughly a 37% return on investment per year). Which from my experience is beyond amazing even if you put in all the work. Then go onto nearly doubling your investment in the next 2.1years.
To put this into perspective I have prepared 3 examples below (each getting crazier)
Side note - REITS in general are always a good opportunity for parking your money and beating inflation but I have not come across one that gives me a return that I find suitable for growing my wealth at a rate that I am happy with, whilst also making sure my capital is protected. which is why when I came across this company and dealt with them myself, I wanted to share with you all.
Option 1 - short term Fun
You invest £30,000 and you get back roughly £1000 a month for 60 months. If you go onto auto trader you can rent a Bentley continental for approx. £1000 a month for 24 months and then with the remaining 36 months, you not only make your £30,000 but also get an extra £6000 as profit.
Option 2 - long term (£30,000 example)
If you reinvest everything from your initial £30,000 investment and maintain the same rate of return, it would compound over time.
Assuming you consistently reinvest at the end of the term and the rate remains the same, in 20 years, you would have:
After the first 60 months: £30,000 turns into £54,000 (£24,000 profit).
Then, this £54,000 reinvested would yield £300 per month x 5.4 for the next 60 months, resulting in a total of £97,200.
After 15 years, it's projected that the initial £30,000 would have compounded to around £174,600 considering consistent reinvestment of the profits.
On year 20 you will have £313,200 (which if you have kids is a decent amount to save for them for when they get older)
Option 3 - Crazy option
As it stands you can borrow £10,000 from Barclays bank and pay back monthly over 5 years at approx. £202 a month.
Meaning for every £10,000 you borrow and re-invest in this property strategy you make around £108 profit every month.
To put it into prospective if you borrow £300,000 to buy a house, do a lot of work, deal with tenants, and pick the right property at the right time, you can be expected to make maybe £300 profit a month on a single let long term rental.
If you borrow £300,000 from the bank and then re-invest it with this strategy based on the average return to investor you can look to make approx. £3240 in profit every month £108x30. . . whilst also doing no work.
Possible downsides to consider:
It can take a lot of time before a property that is suitable is found. It can range anywhere from 2 weeks to 3 months before the agreement is made with the landlord, work is done on the property and possible tenants are interviewed.
There is also a limited supply of these types of properties as this company mainly deals in London so again getting 30 units (£300,000) on this strategy whilst possible, will take a lot of time, during which you will not have access to that liquidity and money to pursue other opportunities.
Another downside to consider is that the company only has the capacity to onboard a few investors a month and usually they onboard for their bigger property development projects, so there is a long waiting list.
Conclusion:
Although I am able to pull the trigger on things, I am extremely risk averse and want to protect my friends hard earned capital at all costs. I learned an interesting fact, that around 90% of all the self-made millionaires all made their money in property. So I figured, statistically if I am to pursue an avenue or push people to go down an avenue it will be property. I also learned that almost all the owners of companies who have gone public and made a killing doing so own less than 20% of their companies, one of the many examples is Jeff Bezos as he only owns 10% of Amazon.
I have been blessed to have a good relationship with people and have had the opportunity to learn and invest in this strategy. I have wanted to and have done rent - rents for myself but have found that I am only able to obtain a few units because of my limited finances.
This has inspired me to do the same but in Dubai, as the rules and regulations work more in my favour and also because I can help people set up their situation better so that they can legally pay no/little tax on the profits I make them. By opening the floor to people I trust, I can obtain more units and although I will be making less money per month from each property I control, I will be bringing people to the top along with me.
Only for you - for reading until the end
If you want to invest with the reliable company that I have found above, I have gotten to know the owner well and can possibly help bring you closer to the top of the waiting list - shoot me an email if you are interested and I will set up a meeting.
Equally if you know me and would rather deal with me, I would be honored to help you grow your money. I would be deploying this strategy in Dubai as I like to be on the ground to keep a detectives eye on everything. Shoot me an email or message and I will be happy to have a (no commitment) conversation with you.
Disclaimer - I am not a financial advisor, please seek professional advice on your own personal situation before proceeding with anything on my posts. I am only speaking with what I had found works in my situation.
Great content!