Avoiding Rent-2-Rent Mistakes with Mark Fitzgerald

If you've only just heard about it . It is a very cost effective way to build up a property business and to get started in the property world . Why is it so good ? Well , you don't have to have massive amounts of money to get started in rent to rent . You can start with a very modest budget .

Indeed , you can take on properties that have already got furniture , that are already licensed potentially , if you're doing HMOs that are already set up , and then you just manage those . Now you could say to yourself why doesn't the owner or the landlord do this themselves ?

Well , a lot of the times , they don't know how to set themselves up for , as I like to say , success . They don't know how to put the systems in place to be able to make the most and maximize their profits on their property businesses . But whilst this is a great strategy , there are a lot of people that just jump straight in at this and mess things up .

I see people doing the rent to rent strategy with short term rental service to accommodation , and they do not make money . In fact , they lose money , which is even worse . Or they do it with the HMO strategy houses of multiple occupation Yet they don't set the systems up , they don't set themselves up in the right manner , so they again .

They end up losing money . They have voids , they have high maintenance fees . Listen , if you can streamline this and you can systemize this , you will put yourself in the best possible position . Now , if you visit thepropertyonleachcom , I have a 10 step rent to rent guide ebook there that'll help you with the systems . That'll help you systemize this .

So nip over after this video and check that out . Download a copy for yourself . Okay , we have some other guides and other tools and trainings there that can help you as well , including a free masterclass . But anyway , the five mistakes that I see people making the most . When getting started here , I used to work in a nine to five job .

I used to hate that job and I used the rent to rent strategy to get out of my day job , to replace my wage and to build up a systemized business that doesn't enslave me but that works for me . So the first mistake that I see people making is to not be passionate about what they are doing .

I never got into property to become a property managing agent Okay but my business does that . I am in charge of my business and initially I had to run around and do everything myself and I had the passion to grow a business , but I had an end game . I knew what I wanted the business to look like .

I knew the systems that I wanted to put in place , I knew the people that I wanted to put in place , and that is what I have focused on and built . Now , it does take time to build .

You have to get the deals , you have to get the revenue coming through , you have to make the profits , but as you start to go up that stepping stone of taking more properties on , you can start to bring people in to work into your business as well . Now my passion is property and it is building businesses .

Okay , so that is something that makes me want to keep going when times are hard , when things are maybe not going my way all of the time , and this is why we help people with this as well , because I've made a lot of mistakes , I've had a lot of problems , I've had a lot of setbacks , but I'm still here and I've overcome them .

So I like to now help people to overcome these setbacks , mistakes themselves , or potentially not even have them . Why ? Because they know what not to do . Trial and terror can be a terrifying thing , so why ? Why put yourself out there not knowing what to do ? But you have to be passionate about what you're doing and I always say you start at the beginning .

So look at the HMO strategy , look at the service to accommodation strategy . Both of these are brilliant when using rent to rent , but make sure you pick one that you really want to do . I started with the HMO strategy , as I always say , because it was easier . Once I'd filled the rooms , I knew the rents that I was getting each and every month .

Well , it's obviously service to accommodation . Short term rentals , airbnb's can be a bit more seasonal . Yes , you can earn more money , but it's not always the same each and every month . So I went steady away with the HMOs and , of course now , as I always say , do service to accommodation .

It works very well in my package , so make sure that you're set out with the right strategy . You're going with what you believe is the right strategy for you . The money will follow . So don't think well . I prefer actually steady away HMOs over service to accommodation , but service to accommodation I can earn more money , so I'm going to do that .

If that's not right for you . There are more moving parts there . There's a reason you make more money is because it's a little bit harder or a little bit more work involved . But again , you can systemize this . Again , we can help you and show you how to systemize this and you can build a very sustainable and profitable business .

But you've got to know what's right for you and , like I say , I see a lot of people getting involved building businesses , getting involved in property only to make money . Try and not fall into that trap .

Try and be one of these people that actually wants to build something , a legacy piece , a business to be proud of , rather than just chasing the pound signs all the time . As I said before , the money will come , but you've got to do a good job first , okay ? So the second mistake that I see people take is not taking action .

They talk to talk , they walk , walk , yet they never do anything about it . They never do any marketing . They never send any letters , flyers , they never go and speak to agents . They're always talking about how they're going to do it . I'll do this once I've got my website . I'll do this once I've saved some money .

I'll go and talk to them once I can , once I know what I'm going to be saying and everything , and that is a mistake . You've got to start taking actions , okay , you've got to have a plan . You've got to set some goals , set a really big goal , yeah . So maybe in one year you want to have 10 properties , 20 properties , 50 properties , 100 properties .

Set a really big goal . That'll stretch you and then , as I say , break it down into bite-sized chunks each and every day , but take action on it . Speak to an agent a day , send out your marketing , reach out to landlords , go to networking events .

Do things one step at a time , about one foot in front of the other , and just appreciate the fact that you're going to get a lot of nodes . You're going to get a lot of disappointments in the fact that people won't always want to work with you , that your make offers and it won't go through .

That is just part of the process and the people that stick with it are the people that get deals . Okay , I've got some clients , some students in our rent-to-rent business builder and our ultimate service accommodation training as well , and they've had loads of setbacks .

And the one thing that is actually different for them than a lot of other people is they keep going . They look at the setbacks as a stepping stone to the next . Yes , so at number three for mistakes that I see people making is trying to please the landlords or the agents . Now , what do I mean by this ? It's basically they speak to a landlord .

A landlord says I want 2,000 pounds a month rent on this property . They go away , they run the numbers . They know for a fact that 2,000 pounds is too much to be paying . Yet they do a deal . Why ? Because they're motivated buyers . Okay , they're not motivated sellers . Motivated sellers will be the landlord . They're motivated buyers . Why ?

Because they just think I just got to get this one deal . This one deal doesn't even have to be that good . It's something I hear all the time . It doesn't even have to be a very good deal . It doesn't really have to make me any money . I just need that first deal . That is a mistake . That is wrong . Do not do that . You will regret it 100% .

You will regret it . If a landlord or an agent says to you this is the market , rent you go and you run your numbers . Okay , you run your numbers and you see what is a good deal . And once you've seen what is a good deal and what works , those are the numbers that you go back , whether they are less than what they're all talking about or not .

If it stacks up at a certain number point , then you give them that number . If it works at 2,000 pounds and this is just me messing about , throwing numbers about but if it works at what they put out there , happy days . But if it doesn't , do not mess about . Fudge the figures , as I like to say , to try and make a deal happen . Why ?

Because you'll regret it , you won't make any money and you will struggle to do a good job . So that is another mistake that I see people making . Do not mess about with the numbers , do only good deals . And the fourth mistake that I see people making from my five mistakes that I see is people are not consistent for long enough .

They send 100 , 200 , 300 , 500 letters and then they say it doesn't work . They speak to a handful of agents and then they say there's no agents that want to work with me . They speak to a few landlords and they get rejections from their offers and they say there's no deals in my area . That is all part and parcel of this business .

Now you think of any business that's out there that's putting a service together , that's offering a service to people . Now , whether it's selling you something , some people will shop at Tescos , some people will shop at Sainsbury , some people will be posh and shop at Waitrose , but they will like the products better and that's why they always shop there .

You have a service , you have an offering , you have a product . Not everybody will like your product and it is a numbers game as the people that will work with you , that will want to do business with you , and you've got to think of it like that . It's nothing personal .

Remove the emotion from your property business and actually just look at your property business as a way of Making money and doing a good job and serving people .

Okay , you are there to serve people and make a profit at the same time , but by doing a good job , so you're gonna look after their property as if it's your own , keep it to a high standard , make sure that it's not Falling into disrepair , and for that the landlords will give you a little bit of a premium for that .

So have faith in your product , have faith in your offering , but be consistent in your approach . If you are gonna do marketing , plan out the next six months at least with your marketing this is how long I'm gonna go at it . Why I tell you what if you do that and you are consistent and persistent with it , you will get leads .

You will potentially get deals , as long as you know what to say when you actually do get the calls . And , of course , when you're talking to agents again , even if they shoot you down , you again got to be consistent and Persistent in your approach with those agents .

You've got to keep telling them who you are , why they should be working with you and taking it from there . Okay and lastly , number five is Stop looking at problems as setbacks and start looking at problems as ways of Learning . A lot of people get the problems , they get the setbacks and then it all falls apart . Why ?

Because they said no to me , they wouldn't do this , they wouldn't do that . We're all gonna have

problems . The thing is you want more problems than anybody else . Why ? Because then you've got potential to have more deals , to have more solutions , to have more opportunities . If you have no problems in your life , you're not doing enough .

So if you look at problems as Solutions and you find those solutions , most of the time you can generate income From the problems that you find . And if , course , you're having those problems , then that chances are other people are as well . So those are my five mistakes that I see people making when getting involved in the rent-to-rent strategy .

Again , like I said before , check out the property on lease for some free training , tools and resources to help you on your merry way . Fill free to like , subscribe , share this episode and come and join me in the next episode . Now you take care and bye for now .