Freddie Rayner tells how he went from cleaner to 8 deals in less than one year!
John: OK! So we're here at the backstage at the Property Cashflow Conference and with us is Freddie Rayner. Freddie came into property with quite a successful business background. I don’t know; were you doing property before you came to this business?
Freddie: No! I am a cleaner. I was running my cleaning business. So this was totally different and this was for me as opposed to for a business. That was the point of it, I wanted something for me.
John: OK, great! And how did your property business develop? How fast was it before you had your first deal after you came to Rick's course?
Freddie: I went on course like the one we are doing today and I knew I wanted to get into property. I knew I needed more information, so I decided to go to the Go Direct Course and that was held in London and that was in July. So it was July last year 2012 and that's when I made my mind up to go for it big time because it was really, really exciting and got all the info and then simply rushed out and did something. And that's what I think is necessary to do something, not sit back and learn everything. You learn every comma and "t" and try to learn how to spell stuff; just get out and do it; which I did and I’ve done 8 deals to date and that’s it July to date and I know that I will finish on 12 deals July to July. That’s 12 deals and each one makes money in the different way.
John: And you are doing that as well as managing your other businesses?
Freddie: Yup! We are doing it part-time.
John: That’s amazing. Can you try to tell us something about one of the deals that you've done just to give us an idea of what you're are up to?
Freddie: Yeah! I bought a car and had it wrapped and it said “We buy houses!” and it's very in your face and someone saw it and said, “Do you buy houses!” I mean “Yes!”. She said, “I've got one for sale!” So I went by to see her. It was about two miles away from where I live and the house was valued at £100,000. She owed £107,000, so she was in negative equity and had she sold it the normal way, she would have got around £95,000 and her costs would have been around £3,000. So she was seriously in debt if she sold the house in the normal way. She would have had to make a cheque for over £10,000 to the building society simply to move and she couldn't afford to do that.
John: She would've needed to pay the estate agent as well.
Freddie: Yeah and the solicitor too. So it was a costly exercise and so she was, what they call, in the property trap - and I recognised that from the stuff that Rick had been going on about at Go Direct and I said, “OK! When do you want to move?” She said, “As soon as possible!” I said, “OK! Pack your bags, here’s a quid!” One pound! She said, “What’s that for?” I said, “I am not taking the mickey, there has to be a consideration and the consideration in this instance is a pound and I will take the debt over from now on. She said, “Freddie! You are a star!” And within two weeks she packed up and was gone. I then did some of Rick's marketing which is called “Ugly Marketing” and went out there and did some of that and attracted someone else who said, “Oh, that’s good! I will buy that house!” because they could buy it. Getting in for £3,000 - cover my costs plus £145 time and then £3,000 on the back end. So to summarise, I bought house for a pound, someone else comes in and gives me £3,000 plus £145 a month for seven years and at the end when they buy me out, I get another £3,000 so it creates just over £10,000 for £1. And I think that's a good return on investment.
John: Pretty good! And how many mortgages did you have to get to do this deal?
Freddie: No mortgages. No turn downs. No inspection fees. No annoying surveyors letting you down and the person coming in is a fantastic tenant because there's no worry. It's their house, they get on with it.
John: Awesome! That’s great Freddie! So thanks for talking to us.
Freddie: You are welcome! Cheers!