Samuel Leeds - Ross Orrock
Category
🛠️
LifestyleTranscript
00:00 How did you transition from the military to leaving that to go into property?
00:03 When you're undervalued, it squashes you.
00:06 And you're buying properties, putting high rents, selling it to them. It's awesome.
00:10 How much do you expect to make per month in the next six months?
00:12 I think by month six, we're going to be in excess of 20,000.
00:15 You're like one of the most hardworking people ever.
00:18 How many deals have you sold in the last year?
00:20 In excess of 20. You have to be absolutely relentless and you really have to want us.
00:24 You operate as if you've been in the game 20 years.
00:27 But actually all of the risk factors involved have been quite obsessed with me.
00:30 Ross from the military transitioned into property.
00:39 Now making how much on average a month?
00:41 Well, over the last 30 days, I've earned 12,000 pounds.
00:44 And that's profit?
00:45 Profit. Well, I've got my off takes are around 300.
00:48 Absolutely awesome. What do you mean 300 pounds?
00:50 It's like your software and see how it is. Do you know what I mean?
00:53 Yeah, yeah.
00:54 No off takes. Fuel expenses.
00:55 Did you think a year ago that you'd be able to make 12 grand in a month?
00:58 No, absolutely not.
01:00 What were you making if you don't mind me asking in the military?
01:02 So my take home was two and a half thousand pounds a month.
01:05 Okay. Wow.
01:07 Which is an average salary. It's a decent salary.
01:09 So tell me Ross, how did you transition from the military to leaving that to go into property?
01:14 What's your story? What happened?
01:16 Because I know we're going to get a lot of gems, inspiration from this interview.
01:19 I was always trying to live a life that I couldn't afford.
01:23 I was always, you know, my mother always said, you know,
01:26 champagne lifestyle, lemonade wages. It was a bit of a running joke in the family.
01:29 I didn't just sit down and complain about it.
01:32 I did try things. I tried drop shipping, for example.
01:35 That didn't work out for me.
01:37 Believe it or not, during COVID, I actually imported a load of geodesic domes for COVID.
01:43 So everyone could have corporate events.
01:46 Everyone would have their own bubble.
01:47 You know, I thought that could be something to jump on.
01:50 I invested quite heavily into that.
01:51 My dad and I used to travel around the Northeast, setting up these domes.
01:55 I ended up losing quite a lot of money on that as well.
01:59 And then I was actually deployed in support of the Ukraine crisis.
02:05 And during my downtime, I started watching YouTube videos, found Samuel Leeds.
02:11 And from there I was hooped.
02:13 There was actually one video in particular, which is why I chose you as a mentor.
02:17 And it was actually the one where you were accused of being a fake guru.
02:21 And I remember watching that and thinking, what a difficult situation to be in.
02:24 He was in your home.
02:25 He was calling you these things.
02:28 And actually the way that you responded to that, I thought was quite inspiring.
02:31 - What was it about my response?
02:32 Because if I remember, I just sort of absolutely destroyed him.
02:36 - Yeah, well, it was just that the professional manner that you did it in.
02:39 You could have quite easily lost your head.
02:42 But I thought you handled that very well.
02:43 - So that made you think, actually, maybe this...
02:46 It's funny how negativity, like someone coming into my house
02:50 saying you're a fake guru, challenging me,
02:52 having all these questions, trying to do a hit piece on me.
02:55 And then that kind of...
02:56 People are wanting to watch it because they're interested.
02:58 But then it ends up people like you watching it and going, actually.
03:01 And now we're working together and do deals together.
03:03 That's really interesting.
03:04 So you tried lots of different things in the pursuit of making more money.
03:09 And then you came down to my one pound crash course.
03:12 Then what happened next?
03:13 - I was hooked.
03:14 We went down to London for a further educational training course.
03:18 It was an all or nothing situation.
03:20 I was all in.
03:22 I was committed.
03:23 I was prepared to sacrifice things for success.
03:26 And I was desperately trying to leave the military at the time.
03:30 - Why were you so desperate to leave the military?
03:31 - Because after 17 years, I was undervalued, underpaid,
03:36 really struggling to progress.
03:39 I had a further three years to serve for a full pension.
03:44 So if I had served a further three years,
03:47 I would have left with a huge lump sum of money
03:52 and then paid for the rest of my life.
03:53 But actually I couldn't even face the final three years.
03:56 - Really?
03:57 - I couldn't do it.
03:59 Because when you're undervalued, it squashes you.
04:03 And I couldn't stand it any longer.
04:06 So I threw myself into the academy.
04:10 - But then you did regret the decision.
04:11 - I did.
04:12 So I felt like I had an aptitude for it quite quickly.
04:15 So I picked it up.
04:16 I felt as though I knew what I was doing.
04:20 Things were rolling well.
04:21 - You picked up to it like a duck to water.
04:23 - Yeah.
04:24 I felt as though I was doing everything right.
04:26 - Right.
04:26 - And I became compliant.
04:28 Started a website.
04:30 Everything that I did was professional.
04:32 - Yeah.
04:32 - I was working for free in many regards,
04:35 you know, making hundreds of phone calls,
04:37 connecting with people, networking, following the training.
04:40 And things weren't going my way, you know.
04:44 So I called the academy and said,
04:46 "Look, guys, I'm struggling."
04:48 I had some motivational words and things did start to improve.
04:52 Sometimes it's not about overanalyzing what you're doing.
04:55 It is just a time thing.
04:57 If you can gain people's trust in the industry,
05:00 then you're on for a winner.
05:02 But sometimes it's a little bit of just serve your time.
05:05 - How did you feel when you were doing everything
05:07 that you were told to do,
05:08 and then it wasn't working and you weren't getting results?
05:11 - Yeah, it's difficult.
05:14 It's difficult, but you've got the network to lean on.
05:18 I mean, I've got hundreds of new friends,
05:20 hundreds of new friends created from the academy.
05:23 We all lean on each other.
05:24 And together you end up finding what works.
05:28 I think ultimately the key is finding a niche in the market,
05:31 becoming a specialist.
05:32 - Yeah.
05:33 - You know, having that real understanding for what you're doing.
05:38 And I can't wait to delve into your niche
05:41 because you're like one of the most hardworking people ever.
05:45 You're very militant in style.
05:46 You'll take something, you'll run with it.
05:49 And that's why I think you're so successful now.
05:50 You've mastered, you know, BRR, you've mastered deal sourcing,
05:55 you've mastered how to build relations with estate agents.
05:58 And that's why you're so successful.
05:59 But I think it's very interesting, the transition.
06:02 And even the mental transition,
06:04 from you going from military to property,
06:08 how was it transitioning?
06:09 - It was tough.
06:11 It was tough.
06:12 You have to be absolutely relentless
06:14 and you really have to want it.
06:16 You really have to want it.
06:17 I think joining the academy is one thing,
06:20 but you really need to want.
06:23 - Do you know when you had a call with Tony
06:26 and you were saying like, "I think I want to quit this.
06:28 "I just, I want my money back.
06:29 "I've changed my mind."
06:30 What do you think would have happened
06:33 if Tony had just been like, "All right, no problem.
06:35 "See you later."
06:36 Like, 'cause Tony kicked your ass, didn't he?
06:38 - He did, he did.
06:39 And that's exactly what I needed.
06:40 - What did he say on the phone?
06:42 - He asked me if I knew everything about property.
06:45 - Right.
06:46 - You know, a bit of a rhetorical question.
06:49 - Yeah, I don't know anything about property.
06:50 - And I said, "Well, no, of course not."
06:52 He says, "Well, get a grip."
06:53 (laughing)
06:54 - Wow.
06:54 - Get a grip of yourself and push on, you know?
06:58 - Yeah, yeah, yeah.
06:58 - And that's exactly what I needed to hear.
07:00 And I really have grinded.
07:02 I really have been relentless.
07:04 - How many deals have you sold in the last year?
07:05 - In the last year, in excess of 20.
07:08 I think 22.
07:09 - And last month you sold four,
07:10 but how much are you charging on average for a fee?
07:12 - Between three and 4,000.
07:13 - That's worth 12 grand.
07:15 That's like a serious income.
07:17 - Yeah.
07:17 - And also, you're buying houses yourself.
07:19 - Yeah.
07:20 - What have you got going on for yourself?
07:21 - So I've used the money generated from deal sourcing
07:25 to buy my own BRO.
07:26 - Oh, you've bought it now?
07:27 - Yeah, completed it.
07:28 - Completed today?
07:29 - My dad's collecting the keys right now.
07:31 - Oh, mate, congratulations.
07:33 - Cheers, man.
07:34 - I didn't even know that.
07:35 - And how much do you pay for it?
07:36 - So it's actually, I got it for 158.
07:40 We're going to spend around 25 and GDV 220.
07:43 - And you know your figures well
07:44 because it's spreading butter for you, it's what you do.
07:46 So then once the refurb's done, you'll refinance it?
07:49 - Well, actually what I've done is
07:51 I've actually bought this on a residential.
07:52 - Okay.
07:53 - And the plan is to live in it.
07:54 If it's a flip, obviously the capital gains,
07:58 I'll save on capital gains if I've lived in the property.
08:01 - Yeah.
08:02 - So the flip is an option there.
08:03 If not, with the equity I've built in the property,
08:06 I can refinance on to buy it later.
08:07 - It's a really good strategy that, Ross,
08:09 because you presumably didn't put down a massive deposit.
08:12 How much did you have to put down?
08:14 - 10% of the 158, yeah.
08:16 - So you buy it for 158,
08:18 you only have to put down about 15, 16 grand
08:20 and then you're going to do it off with a refurb
08:24 and then you can either sell it
08:25 and make a nice profit of 50 grand or something
08:27 and pay zero tax or get a new mortgage
08:32 and you deposit back and go again.
08:35 - Well, I've actually placed it on a tracker mortgage,
08:37 which means there's no...
08:38 - Oh, so you can refinance it straight away.
08:40 - Yeah.
08:41 - That's smart.
08:41 - Yeah.
08:42 - What is a tracker mortgage?
08:43 - A tracker mortgage is where you're not fixed into a term.
08:46 - Right.
08:47 - So if, for example, I chose a two-year fixed term,
08:50 if I completed the refurb, let's say after six months
08:53 and refinanced at that point,
08:55 I would be charged quite heavily for exiting the mortgage
08:59 during that term.
09:00 With a tracker, there's no early repayment charges,
09:04 essentially, it's still a two-year term,
09:06 but you've got the flexibility to remortgage, exit,
09:09 you know, whatever you chose.
09:10 - That's right.
09:11 How did you go from not knowing loads about property
09:16 or having any properties experience
09:18 to now being one of the most trusted deal starters
09:20 in the academy,
09:21 having people ask your opinion on mortgages,
09:25 fixed rate, trackers, refurbs,
09:27 you're not just packaging, selling deals,
09:30 you're project managing the process,
09:32 you're connecting them with housing associations,
09:34 like you operate as if you've been in the game 20 years,
09:37 but you've only been in the game a year.
09:39 How have you done that so quickly?
09:42 - I just think the guys that know me know that I'm
09:44 quite intense, quite OCD in some ways in my approach.
09:48 And I don't ever advise or help on matters
09:53 that I have no understanding of.
09:55 - Yeah.
09:56 - So I've spent an awful lot of time
09:58 with commercial broker,
09:59 an awful long time just sat with agents and law firms
10:04 and really started to understand the market, you know?
10:06 And interestingly, as I'm sure we'll touch on,
10:09 and, you know, from private HMOs,
10:11 looking at the comparison then to social housing HMOs,
10:14 and I found that quite interesting.
10:15 - We'll talk about that.
10:16 - But actually all of the risk factors involved
10:18 I've been quite obsessed with.
10:19 So showing a client a deal,
10:22 but actually saying, well, look,
10:23 here's some pinch points you may, you know,
10:25 we need to address
10:26 and we need to get our ducks in a row
10:27 before we progress to purchase.
10:29 And I think you've got to really understand
10:31 what you're getting into.
10:32 And I've got the respect for the client
10:34 in that they're the ones investing
10:38 hundreds of thousands of pounds.
10:40 And it's my duty and responsibility
10:42 to make sure that that's being done with limited risk.
10:45 - Last month you sold four deals.
10:46 - Yeah.
10:47 - Who are the investors?
10:48 Where did they come from?
10:49 - So I would say at the moment,
10:51 it's about a 75, 25% split between Academy
10:55 and then just people who found me online.
10:56 - Nice.
10:57 - So 75% being your Academy members
11:00 and 25% being-
11:01 - And because they're on the Academy,
11:02 they know that you're registered,
11:04 you've got PIMS covering,
11:05 there's any issues, we'll mediate.
11:08 You've also got the familiarity
11:11 where you see them every Monday,
11:13 but also you're building your own brand.
11:15 - Yeah.
11:15 - And what's the name of your company?
11:16 - Oric Properties.
11:17 - So talk to me about the, in the early days,
11:21 some of the struggles mentally between,
11:24 you know, 'cause you've got people,
11:26 you know, normal people that go into property,
11:27 you've got friends and family and work colleagues.
11:31 What are you doing?
11:31 You must have had people saying, "You're mad."
11:34 - Yeah.
11:35 - Especially when you're turning down a big pension.
11:39 They're like, "No, just play it safe,
11:41 continue in a job, get your pension.
11:44 What are you doing?"
11:45 - I mean, it was tough at home.
11:47 I think my parents particularly
11:48 could not understand the logic.
11:51 You know, you've got your pension in three years,
11:53 you know, they're trying to look after my future.
11:56 I was a real bit uphill to swallow,
11:59 but they did support me.
12:00 They had their concerns, especially, certainly friends.
12:03 I know friends, one in particular, you know,
12:07 instructed me to go and get a refund
12:09 and that I was being hard
12:10 and that it was all a big scheme.
12:12 I'll never forget that.
12:13 - Did you believe it?
12:14 Or did a part of you believe it?
12:15 - Do you know what?
12:15 I was worried, but I think, I did have my concerns.
12:20 You should always be a little bit wary,
12:22 but there was something you said in one of the meetings
12:26 and it was sort of like 95% of academy members
12:30 achieve financial freedom.
12:32 I was thinking, "Surely you can't lie about that."
12:34 You know, like that was something I'd stood on like 95%
12:37 and I really wanted financial freedom, you know?
12:40 And so I was all in.
12:42 I think when you make the decision,
12:44 you just need to go and commit.
12:47 And yeah, you've always got that niggling feeling
12:50 in the back of your mind going,
12:51 "What if this doesn't work out?"
12:52 - When did you realise that actually this does work?
12:55 You've not been had.
12:56 There's no scammy, schemey.
12:59 No, this is a legitimate property,
13:01 professional property training course.
13:03 It works.
13:04 When did it click and you're like,
13:06 "This is actually..."
13:07 - I think selling the first deal.
13:08 I think selling the first deal was like,
13:10 "Wow, you know, seeing the money in the bank."
13:13 But a lot of it you learn yourself
13:16 because you have to implement your own systems
13:19 and procedures
13:19 and you have to have your own approach.
13:21 You've taught me how to get into the business
13:25 and you're there to help me moving forward.
13:28 But I think you have to develop your own systems
13:31 and be known for your own niche.
13:35 - Yeah, be unique.
13:37 Otherwise, if everyone's doing the exact same thing,
13:39 you found your niche with housing associations,
13:42 the North East, your area,
13:43 you've got your way of doing things.
13:46 How long did it take from deciding to go for it
13:50 and going on the courses to selling your first deal?
13:53 - So I think that was a little bit of a slow burn
13:54 and it was because I was juggling the military.
13:56 So for the first three or four months,
14:01 maybe three and a half months,
14:02 I was still in the military
14:03 and I found that very hard.
14:05 And I think that's one of the challenges
14:06 a lot of academy members face
14:07 is they've committed to the academy,
14:10 but they've got essentially now two jobs
14:14 and a family and a life.
14:16 And it's really hard to get going.
14:18 I think whilst you're running the two jobs,
14:21 there's nothing you can do apart from graft.
14:24 And that's where you really need to want it.
14:27 But then eventually you can give one up and pursue.
14:31 - Yeah, and it is, especially,
14:34 I mean, for some people that have got money,
14:36 if you've got a few hundred thousand pounds
14:37 and you join the academy
14:38 because you just want to learn how to invest it,
14:40 that's a whole different story.
14:42 But when you join the academy
14:43 and you're looking to do deal sourcing and rent to rents,
14:46 and it's very active, isn't it?
14:48 It's not passive.
14:48 There's nothing passive about deal sourcing.
14:50 - No, no.
14:51 I think deal sourcing in particular,
14:53 I mean, I've been engrossed in deal sourcing.
14:55 I haven't looked at rent to rents,
14:57 really I've been so laser focused on deal sourcing.
15:00 And it does take a while,
15:02 to master your craft, it takes a while.
15:06 And there's nothing wrong with that.
15:09 But I think in terms of time,
15:10 I think it was around that sort of three months mark
15:14 to sell a deal.
15:15 - And when you sold that first deal, how did you feel?
15:18 - A sigh of relief, really, a sigh of relief.
15:21 And I hoped to build some momentum and I did.
15:24 I sold another one in short succession.
15:25 So that was two.
15:27 And yeah, really sort of pushed on from there.
15:30 - When you sold your first deal,
15:31 how long did it take before quitting the military?
15:34 When and how did you decide to quit the military?
15:36 - So it was sold in around the November time.
15:40 Of last year.
15:41 And I officially left the military on the 1st of January.
15:44 - So about what, six, seven months ago now?
15:46 - Yeah, yeah.
15:47 So from the 1st of January.
15:48 So this year has been my property year.
15:51 - How's life different now from a year ago?
15:54 - Oh my God.
15:56 I mean, last year, for example, I deployed,
15:59 in support of Ukraine,
16:01 and deployed and a real collar around my neck,
16:05 quite sort of chained down.
16:06 I mean, I've missed 800 days of my daughter's life.
16:10 You know, in terms of sacrifice, I was so committed.
16:14 I was actually a loyal serviceman,
16:16 and I wanted to stay in full term.
16:18 I wanted the pension.
16:19 That was what my life was about.
16:20 I was a military man.
16:21 Yet I was undervalued and underpaid.
16:26 I was struggling to get promoted.
16:27 And I was really quite, I suppose, hurt by that, you know?
16:32 That was what I wanted to do.
16:33 I loved the military.
16:35 But when you're feeling squashed and, you know,
16:37 you just, for your own sanity,
16:40 you need to do something where you've got that self-worth.
16:42 And I needed to have that feeling like I was successful.
16:45 - When you first heard about deal selling,
16:46 what were your thoughts initially?
16:50 - Deal selling was not the one for me.
16:51 When I first found out about deal selling.
16:53 - When did you find out?
16:54 How did it happen?
16:55 Was it a course?
16:56 Was it a YouTube video?
16:57 - It was YouTube.
16:58 So it was YouTube.
16:59 I remember watching the videos at the start and thinking,
17:01 networking, building an investor list,
17:05 compliance, social media.
17:08 I just thought, no, no, no, no, no, no.
17:10 (laughing)
17:12 I think when you first start now,
17:14 deal sourcing, you think, well, hang on, I'm the advisor.
17:17 So I'm advising and I'm also coordinating.
17:20 And people are buying property based on what you tell them.
17:25 - Yeah.
17:25 - And I felt like it was, whoa, you know, surely not.
17:28 - And you are right though.
17:29 It is quite a big responsibility.
17:31 You can't watch a YouTube video and then start making,
17:34 you know, selling loads of deals.
17:35 You need to really know what you're talking about.
17:37 - Yeah, you do.
17:38 You need to be trained.
17:39 I heard someone recently saying,
17:41 you know, I might do what you're doing,
17:42 deal sourcing, you know, pretty easy,
17:44 you know, fast cash.
17:45 Yeah, yeah, it's sort of educated them on.
17:48 Really, it's actually a role of responsibility.
17:51 You know, you need to take it serious.
17:52 - Yeah.
17:52 - And I think actually,
17:53 although there's lots of deal sources out there,
17:56 I feel as though I stand out in that.
17:58 - Well, you invested a lot into education for a start.
18:00 If you're getting on a plane and the pilot says,
18:03 you know, I've not done any training,
18:04 but I've watched some YouTube videos,
18:06 you're going to be very afraid.
18:07 And in the same way,
18:08 you wouldn't put your life in the hands of an untrained pilot.
18:12 Why should someone put their life savings
18:14 into the hands of a deal sourcer
18:16 that won't even invest 2000 pounds
18:19 learning how to understand the foundations of the business?
18:23 People won't.
18:24 And you have, and you've worked extremely hard.
18:27 How did you feel when you handed your notice
18:28 into the military?
18:29 - Great.
18:31 It was mixed feelings.
18:33 Mixed feelings because it was a huge risk.
18:35 - Yeah.
18:35 - Huge risk.
18:36 You know, I don't necessarily like living on the edge.
18:39 I'm quite a safe person, really.
18:41 - Yeah.
18:41 - I'm quite risk averse.
18:43 And to do that was a really big deal for me.
18:45 So very proud of myself, very proud of myself,
18:49 but it was a mixed feelings.
18:51 - What do your family think of what you're doing now?
18:53 - They're excited by it.
18:54 You know, they're excited about it.
18:55 My parents are actually sort of at that pension age
18:59 where they're wondering what to do that.
19:02 They're sat on an awful lot of equity.
19:04 I've actually given them a bit of a pension plan.
19:07 - Oh, wow.
19:08 - You know, of how they can enjoy the rest of their life.
19:10 And although they're hesitating a little bit, I think, yeah.
19:14 - Why do you think people are so scared to leave their job
19:18 and get into business or property investments?
19:20 What do you think it is that makes people feel so hesitant?
19:24 Because it took you,
19:25 you had to be pushed over the edge, really, in the military.
19:29 If the military had been just a little bit,
19:30 if they'd have given you a small pay rise
19:32 and given you a little bit more recognition,
19:33 you'd have probably stayed there.
19:35 So they just pushed you a little bit too much
19:37 where you thought, "You know what? I'm done."
19:38 - That's it.
19:39 - But why do you think people are so afraid to take that risk?
19:41 - I suppose because it's huge sums of money.
19:46 I think a lot of people aren't from money.
19:47 So when you start gambling with huge sums of money,
19:52 that makes them feel uneasy.
19:54 Certainly in an area that they're not educated on.
19:58 - Yeah.
19:59 - So I think the level of financial commitment sometimes
20:05 can be the main reason of concern.
20:07 - I guess it makes sense.
20:08 And if your parents had a paycheck
20:10 and their parents just had a monthly paycheck,
20:12 it's against the grain, isn't it?
20:15 Does that actually, "I'm gonna get into property and sell deals."
20:18 What makes you unique as a deal sourcer?
20:20 - I actually care.
20:21 I really want to set someone up with an investment,
20:25 which is a success.
20:26 I don't just want to sell you a deal
20:28 and walk away.
20:29 Every single deal I sell, I'm involved with for six months.
20:34 That's the level of commitment.
20:35 - Because of the refurb and everything.
20:36 - Because of the refurb and because I want to fill it with tenants.
20:40 I want it to be a success.
20:41 - Right.
20:42 - So the vast majority of my deals are BRR.
20:45 - Yeah.
20:46 - So I'll introduce them to the bill team.
20:48 We'll go through the whole design and implementation phase,
20:51 you know, the whole project management service that I offer.
20:54 So I'm involved throughout the refurb.
20:56 And then on the back end, I'm also helping with refinance
21:00 and tenant management and things like this.
21:01 I'm involved for quite some period of time.
21:04 - Yeah.
21:05 And Albert Einstein, he says, "Don't try and be successful.
21:08 Try and be valuable."
21:09 - Yeah.
21:10 - And then the success will follow.
21:11 Do you think maybe some deal sources are just trying to make a quick buck?
21:14 They're trying to sell as many deals as they can.
21:17 But actually, that's short-sighted, isn't it?
21:19 Because if you're thinking about the longevity of your reputation
21:22 and of your client base, if you've got a happy investor,
21:25 they'll recommend you to all their friends.
21:27 They'll buy from you again and again and again and again.
21:30 And I think that's probably what you're doing.
21:31 You're thinking about the long-term.
21:32 - Absolutely.
21:33 And I think when you first introduce yourself to an investor,
21:37 one of my first questions is, you know, what is your experience level?
21:40 Because if you're dealing with someone who has never invested before,
21:44 you naturally have to help more.
21:47 You have to guide them more.
21:48 - Yeah.
21:48 - You know, I'm not saying...
21:49 I would never take on the responsibility of it being...
21:53 I would never say, "This is a sure thing.
21:54 This is a guarantee."
21:55 - Yes.
21:56 - However, I know if someone's done it before or haven't,
21:59 what level of involvement I'll have.
22:02 - And there's also the time to walk away, isn't there?
22:04 Like, we've had many people that will say, "Actually, you know what?
22:07 We don't think now's the right time."
22:08 Because the investor's got completely unrealistic expectations.
22:11 They'll...
22:12 If they ask questions like, "I am guaranteed to get all my money out."
22:16 There's no guarantees.
22:17 The market might drop.
22:18 Probably you might get downvaluated.
22:20 The definition of an investment, there's always an element of risk.
22:22 Otherwise, it wouldn't be an investment.
22:23 - Absolutely.
22:24 And I never promise anything, but what I do is make them aware of the process.
22:32 - What's your intention of...
22:34 I know you just bought a BRI today.
22:36 Congrats.
22:37 What's your goal then within buying your own properties?
22:40 Because I know you're using a lot of the money you're making
22:42 deal sourcing to pump into your own portfolio.
22:44 - Yeah.
22:44 So I suppose my skill set in social housing HMOs was noticed by a few angel investors.
22:51 - Yes.
22:52 - They're now funding two properties.
22:56 - Oh, so you've got a couple more in the pipeline going through.
22:58 - So we're actually buying it on a joint venture agreement.
23:00 - Nice.
23:01 - So two five bed social housing HMOs.
23:03 - And congrats because that's what we said at the ACPV.
23:05 - Yeah.
23:06 Well, exactly.
23:06 So Russell's advice was to get involved in some flips.
23:09 - Yeah.
23:10 - So I went off and that was the intention.
23:12 - Nice.
23:13 - So there's quite a unique element to this in that once we finished the refurb,
23:22 and we've achieved a HMO license on the property,
23:24 we've refurbed it to the right compliance level for social housing.
23:30 We move the tenants in and have the lease signed,
23:32 the long-term guaranteed rent lease.
23:35 We can then sell the property based on a yield to a cash investor.
23:39 So some overseas cash investors will buy property if it's got a fixed guarantee yield.
23:45 - Yeah.
23:46 - So we work backwards off a 10% yield and we can actually sell them at 168.
23:51 168,000 pounds is what we can sell these five bed social housing HMOs for.
23:58 - Because I guess to some extent it's a bit like a commercial valuation.
24:01 - It is.
24:02 It's not a commercial valuation issued by a bank.
24:05 - Yes.
24:06 - But it's when you consider what overseas cash investors are looking for.
24:11 - Yeah.
24:11 - They're looking for a fixed yield and a nice strong yield
24:14 that that's a 10% is a relatively strong yield.
24:17 And we can make massive profits on flipping.
24:19 - And from their perspective, a lot of these guys, they'll just buy cash.
24:22 So it doesn't even matter if the bricks and mortar valuation is a little bit lower
24:26 because they're just wanting a 10% yield.
24:28 They're overseas, they're pumping money.
24:29 They've got massive businesses.
24:31 They're pumping it in and you're buying properties,
24:33 putting high rents, selling it to them.
24:35 It's awesome.
24:36 - We can get into one of these deals for 110,000 pounds approximately and sell at 168.
24:42 - What about the refurb?
24:43 - That's all in.
24:44 So 110 is-
24:46 - Okay, including the refurb.
24:47 - All associated costs.
24:49 - And then we can sell at 168 and there's no estate agent selling fees
24:52 or anything like that straight to the seller.
24:54 - What is the moment you've been most proud of over the last year?
24:57 - I think leaving full-time military.
25:01 - Yeah.
25:01 - Leaving full-time military to pursue a life in property
25:06 and actually becoming successful at it.
25:07 And I'm actually very proud of me reputation.
25:09 - Do you ever have to pinch yourself for how much money you're making now?
25:12 - Yeah, I hope this is just the start.
25:13 I think 12,000 pounds is a hell of an achievement,
25:16 but actually the way that I'm forecasting the company is-
25:19 - How much do you expect to make per month in the next six months?
25:21 - I think by month six, we're going to be in excess of 20,000.
25:24 - What's your experience been like?
25:25 I know on the academy, you wanted to quit after a few months
25:27 and we told you not to, but you decided not to.
25:30 Was that a good mistake?
25:31 Or was that a good thing?
25:32 Was it a mistake?
25:33 Are you glad you stuck with it?
25:35 - The truth is the academy has changed my life.
25:37 There's no other way of saying it.
25:39 There's no other way of saying it.
25:40 My life has transformed because I joined the academy.
25:43 - That's awesome.
25:44 - You know, and I'm a much happier person.
25:46 I've got a much more flexible life now.
25:48 I see my daughter much more.
25:49 - Yeah.
25:50 - I earn more.
25:51 - And you've helped your family.
25:52 You helped your sister out.
25:53 - Yeah, and I love what I do.
25:54 You know, I've got a passion for it and I've got an aptitude for it.
25:56 I'm doing something that I love.
25:58 - Talk to me about your sister's deal, because that was quite powerful.
26:00 - Yeah, so my sister lives in London, about half an hour's drive from here.
26:05 And she was going through a bit of a rough time.
26:08 I was down for some advanced training.
26:10 I was here for the week and we went into rent to rents.
26:14 Together, we trained her up, told her how to do it.
26:16 We made hundreds of phone calls throughout the week.
26:19 We dealt with lots of failures.
26:20 But together, we secured a rent to rent in Chelsea.
26:23 - Yeah.
26:23 - And the feeling that that gave my sister actually pulled her out of a bit of a hole,
26:29 actually, and filled her full of confidence.
26:31 And actually doing it together was fantastic.
26:33 It was a great experience.
26:34 - But still, getting it.
26:36 - But actually just the process, you know, and she got a real kick out of it.
26:39 And it really, sort of like I say, pulled her out of a bit of a hole.
26:42 And my sister and I are now looking to do things together.
26:46 I mean, I've just started a management arm of the company.
26:49 So I now do management.
26:50 I've got lots of contractors on my books and I'm actually filling these properties with.
26:53 Essentially, it's an SA management company.
26:56 - Well, mate, I'm so glad to see what you've done.
26:58 And you grow as a person as well.
27:01 It's just awesome.
27:02 What would be your final piece of advice for somebody that's wanting to
27:06 maybe transition from their job and get into property full time?
27:10 Get started, get on the ladder.
27:11 - Yeah.
27:12 - Best pieces of advice.
27:13 - Best piece of advice is find a niche.
27:15 Work hard, master it, become a master of your craft.
27:20 Build your reputation.
27:21 Tell people what you're about and what you're doing.
27:24 I am not a social media person by any means, but you have to use social media.
27:29 The big difference between the companies that are doing well and maybe the people
27:33 that are struggling a little bit, they're not actually telling people what they do.
27:36 That's the big difference is social media is so powerful.
27:40 You know, tell people what you're doing and just keep going.
27:43 Throw yourself into it as well.
27:44 Really throw yourself into it.
27:45 You've got to really want it.
27:46 - That's awesome.
27:47 Well, Ross, massive thank you for coming down to share today.
27:51 And I wish you all the very best in the future and look forward to continue working with you.
27:54 - Thanks, Samuel.
27:55 [Music]