Building a Property Portfolio With None of Your Own Money

Thinking of buying or building a property portfolio?

We can help you either way.

Choose to buy a ready-made portfolio (often at a reduced fire sale price)...

This option may not be as out of reach as it sounds, by the way, using our creative methods...

OR choose to build a portfolio yourself, using one or more of the new breed of innovative property strategies...

You can even opt for some combination of the two.

That's what I did, and it worked for me.

So, let's take a look at your options now, in a bit more detail.

Building a property portfolioBuilding a property portfolio with none of your own money

Option #1 -- Buy a portfolio...

If you have deep pockets, then you can opt to purchase an entire ready made portfolio...

This may be an option that you'd consider if you're cashing out a retirement pot, to purchase a cash flowing asset instead.

You won't find a portfolio for sale down at your local estate agent though...

No, due to the often sensitive nature of these sales, they are usually handled privately by specialist brokers...

But, if you move in the right circles, then you will hear about portfolios for sale, certainly from time to time.

And when they do come up, they are often offered BMV (below market value). 

So, if you're ready to buy, then you may be able to snag yourself a 10% - 30% "bulk" discount off market value.

And have a huge chunk of equity built-in from day one as a result.

Option #2 -- "Buy" a portfolio...

As I alluded to earlier, acquiring a portfolio needn't necessarily require you to have hundreds of thousands of pounds sitting in the bank...

You may have heard of lease options, but if not, here's a quick rundown of how they work...

The seller of the portfolio allows you to purchase the portfolio over a period of time: anywhere from just a few years up to ten or even more.

You don't need to qualify for a mortgage now, as the existing ones will remain in place...

But you can benefit from the rental income in the meantime, in exchange for paying the seller a monthly option fee.

This fee usually equates to the monthly mortgage amount, plus a bit more.

The clever bit is that part of this monthly fee is agreed to go towards the purchase price of the property...

So that by the time the option matures in several years time, you've essentially "saved up a deposit".

BUT, the deposit was paid for by the cashflow from the properties, and not by you!

Clever eh?

Options are often used if the portfolio is sitting in negative equity, which obviously puts a roadblock in the way of selling the properties in the traditional way.

Property portfolio

Option #3 -- Build it with "recycled" deposits...

If you don't want to buy a ready made portfolio by using either of the methods above...

Then there are a bunch of options available for building a property portfolio from scratch, using little to none of your own money.

The first method I'll talk about is called "deposit recycling"...

If you were thinking about building a 100 property portfolio from scratch, then you'd be forgiven for thinking that you'd need 100 deposits...

But actually, you don't...

You only need one deposit.

And that deposit can be "recycled" over and over again, to buy each property in turn.

Here's how it's done.

You first purchase a property as discounted as possible...

I won't go into how to do that here, but you can find out more either in this post on finding discounted property, or in our Guerrilla Property Marketing course, here.

To use this strategy, the target property must be one that you can easily add some sort of value to.

For example, with a light refurb, replacing a kitchen and/or bathroom, and so on.

The valuer just needs to see that you've done something to the property in order for them to be able to value it higher than they did when you bought it.

The aim is to get the property valued high enough above what you originally paid...

So that you can re-mortgage the property, and pull cash out of the property equal -- or at least close -- to what you put down as a deposit.

Of course, we can help you find the right mortgage to do that with...

(Note that not all mortgage brokers understand this strategy. Ours does.)

And when you're done?

Rinse and repeat.

Finally, if you don't have enough for one deposit to get started with this strategy, don't worry...

You can do it with other people's money instead.

Option #4 -- Building a property portfolio with other people's houses...

I know what you're thinking...

Sounds a little to good to be true, right?

How can you possibly think about building a property portfolio with property that you don't own?!

But you can.

With the awesome rent to rent strategy.

Rent to rent has been growing in popularity for nearly a decade now...

And, yes, it is completely legal (if done correctly, anyway).

How does it work?

What you do, is you find a landlord who is happy with you taking over the management of their property...

(You're normally looking for a decent size property, probably a three or more bedroom house.)

In return for you giving them guaranteed rent every month, over an extended period -- two or three years as a minimum.

(Never underestimate how attractive guaranteed rent can be to a landlord!)

Next, you will get an HMO license, and rent out each room individually...

Thus, boosting your cash flow way above the rent that you're paying the owner/landlord.

You're normally looking for a minimum of £1,000 net monthly  cashflow for this type of deal.

You can learn more about rent to rent in our Rent to Rent Deal Generator course

Or you can let us find rent to rent deals for you.
Property portfolio builderLet us lend you a helping hand building a property portfolio

Can we help you building a property portfolio?

Whatever option you choose, I am confident that we can help...

If you decide to build your portfolio yourself, I recommend you start by checking out our great value property courses.

If you decide to have it done for you, and have someone find a whole portfolio or individual properties for you... 

Then I recommend that you sign up for our property deals alerts service...

And I guarantee it won't be long before you see something that you'll want to add to your portfolio.

Either way, thanks for taking the time to read this far...

And I look forward to serving you soon!

Property portfolio - Index

Property Portfolio Example

How To Build A Property Portfolio From Nothing


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John Wilson

Your Host, John Wilson -Investing In Property Since 2003, Amazon #1 Bestselling Author.





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