CEO & Founder - Lawton Hopwood Started His Property Investments With Zero Money
Lawton Hopwood, based out of Manchester UK, is an entrepreneur and real-estate investor who started the journey of property business with absolute zero investments and he went on to make over Â£20,000 a month. He shares some insights of how one can start their journey too with zero money.
Check the seller's existing financing to evaluate if the current loan has a low interest rate. The buyer receives the title to a property in return for making payments on the seller's mortgage. Check if the existing loan is imperative, however, in some loans they do have a certain clause that prohibits the new buyer from assuming the old mortgage.
You can always try to convince the property owner to rent a real-estate before buying it out. Keep a lease/option agreement ready where the buyer and seller negotiate a fixed amount to be paid occasionally. Rental payments will be credited toward the purchase price, here. You can further go on to rent smaller sections of the property for rent based on your clauses, conditions, and requirements.
If you already own a real-estate property, combine the mortgages and provide the seller with cash at closing without using your own money. If possible, you can also suggest that the seller buy a place for the second property, in addition to the first, and keep the cash, while you, the buyer, assume both loans.
Home Equity is a good option too. As the property values have gone high in the recent months, it is possible that there could be more capital value available than you could imagine. If you are looking to capitalize this way, you can either rewrite the first mortgage amount or do a cash-out refinance. You can also keep the first loan in check while you also add credit for home equity too.
At this point, it is important to understand that somebody's money will be eventually involved, if not for yours. Somebody's cash is going down because it is not possible that one does not spend a penny for real-estate. How do you get the money from other people?
Finances are about playing offense, not defense. Never chase your budget and be ruined. Chase a bigger deal. If you can't have a manager you're either not going to have your attention on the property or your property will become your full-time job.
Lawton shares, 'I believe my story alone will inspire so many people because it's real raw scenarios and with the pandemic so many people can relate to it. There's a good chance it has already happened to hundreds of thousands across the UK. I am a very normal northern lad who's taken the chance to make a difference. You can, just like I did!
If you're looking for Investment properties offering returns in excess of 20%, Hopwood Homes can help.