Property Millionaire Starts Again with Nothing in a Foreign Country (Part 4/4)

Samuel: So, I’ve got seven days to buy a house
in the United States of America using none of my own money. Samuel: I’m not going back to the hotel until
I speak to someone who’s prepared to give me that house, man. Child: That’s gay! Samuel: I mean, I’m common, I’ll go freaking
anywhere. Samuel: What am I supposed to do? Confirm
with him every 15 minutes? Samuel: What’s that? Samuel: Do you want to come? Alasdair: No. Speaker 5: We need the money, I want to get
out of the city, na, na, na. Samuel: Thanks for nothing. Samuel: How would this happen? Samuel: We have a lease option on it, and
then he has rate to rent on it. Alasdair: [laughing] Samuel: Would you never consider just renting
this out yourself? Rich: I did, like I said you see the clothes
and everything they just moved out march first, and this has only been rented, the middle
of February . Samuel: Yeah, I’m just thinking if the appreciation
is going to be so good, and the rent is so good- Rich: Like I said, right now I’m trying to
do two other projects, or else I wouldn’t even sell this one. Because for me to sit
around and fix this up and collect nine hundred a month, well, eighteen hundred between the
two floors, what’s the sense of selling, you know? Samuel: Yeah I know I’m just- Rich: What’s the sense in selling? I’m collecting
eighteen hundred for something I don’t have to do anything to, you know? Samuel: I think you’re crazy not renting it
out yourself. What would you do with the money? Where would you- Carla: I’d buy a new property. Samuel: You’d buy another property? And then
you’d fix it? Carla: And sell it. Samuel: And sell it. Carla: I want rentals which give me which
give me the stable income, and I want the flips- Samuel: She’s a smart lady this one. We need
to learn from this one. Carla: So if this is going too fast right
now, this is still here. Samuel: Yeah, that makes sense. Samuel: What would be the lowest you could
accept and live with and make profit still? Carla: What are you thinking? Samuel: Obviously, I need to do some number
crunching and that. But from what you’ve told me about the tenants and stuff like that…
I mean hey, obviously I have to work for you and it would have to work for us. What are
you thinking? Carla: I’m asking seventy-four. You tell me
what you would like to offer. Samuel: They always do this in the states.
They always make you put the figure in first. Carla: Yes. Samuel: If we were to buy it cash, tomorrow,
what would be the lowest you could accept, and still live with? Mike: What number do you have in mind? You
know, sixty-five? Samuel: Its hard because there’s a lot of
properties that are really really cheap. Samuel: If we bought it cash, and we just
went for it, it’s on for seventy-four. If we put an offer forward for the low sixties,
would that offend you? How would you feel about that? Carla: Sixty-nine? Samuel: Sort of low sixties, like sixty-three,
something like that. Carla: Or sixty-nine Samuel: Or sixty-nine. Is that as low as you’re… Carla: That’s pretty close to the bottom. Samuel: If we did sixty-nine, but asked for
you to pay for the transfer fees and stuff, would that work for you? Carla: He’s trying to play with numbers…
if you paid sixty-nine, and I could contribute three percent. Samuel: Okay, so you’re basically saying,
if we bought it for sixty-nine, you’d go halves on the- Carla: Right. Samuel: If we bought cash then, eighty-one,
would that not work for you? Rich: Let’s do this. If you’re really really
serious about it, right? That’s going to be about forty-seven hundred in total, with closing
costs so… Okay, if I pay the closing costs and everything, right? Let’s do eighty-six
cash, everything. That’s everything. Samuel: Eighty six thousand and you’ll pay- Rich: I’ll pay the closing costs, I’ll pay
the transfer tax. Samuel: So how long would it take for the
title deeds to be in my name if I had the money? Carla: They could do it next week. Samuel: Really? That’s quite cool. That’s
quite cool. Samuel: I’m going to go for a lease option
agreement. Samuel: We will either pay the price that
you want but on our terms, or, we will pay the price that we want but on your terms,
upfront. Samuel: See if we were to buy this in cash
tomorrow, we’d want a bit of a low- Mike: Yeah that’s what I’m saying, just buy
it cash and id rather have cash. Samuel: Why’s that? Mike: Verses in three years, because I’ve
actually got a lawyer. I got two people interested who ain’t got the cash, but this is weird. Samuel: But they’ll maybe give you what, sixty-five
thousand or something? Mike: Yeah. Samuel: And then we can fix it up, put tenants
in it, and then we complete… if we don’t complete and we say “actually we changed
our minds” then we lose our deposit, which can be five thousand pounds or something like
that. Rich: It would be like a seller financing
it to you. No, I’d rather do like all cash offer, because like I said, I am trying to
do two other projects at the same time. Speaker 10: The benefit though, is we will
do the refurb in the house, and if you never hear from us again you’ve got a fully refurbished
house. Rich: I can easily say, let me go to the bank
take out three grand and fix everything up, put tenants back in, you know? Speaker 10: This would cost more than three
grand. Rich: No. I can have a guy come here tomorrow
take this back, this whole floor for me and then start painting on Saturday, for at least
nine-hundred dollars. Speaker 10: In five years how much do you
think this could be worth? Rich: Oh shit, five years it’s going to go
way up. Like I said, take over the panels- Speaker 10: Like what? One-fifty? Rich: No more than that. Easy more than that.
You can look at the Zestimate it will tell you more than that. Speaker 10: Yeah. Speaker 10: You want sixty-five? Mike: Yeah. Speaker 10: Would you be up for any sort of
deal? Any sort of arrangement? Or any sort of deal where perhaps we come to an agreement
for a higher amount but not straight away? Mike: You talking like rent to own? Speaker 10: No, not rent to own, like a lease
to own. Where we take care of everything, so maybe, I don’t know? Eighty-five? Mike: Wait eighty-five hundred down? Speaker 10: Eighty-five thousand, in three
years, but in the meantime what we’ll do is we will essentially be your tenants. We’ll
give you a monthly rent. But we’ll give you eighty-five thousand for it, in three years. Mike: No, I’d rather have the money upfront.
I’m in no rush to sell it. Speaker 10: No, no, I’m not saying that. Mike: See, a lot of people offered me that
same deal, the same deal as you, I’m like nah. Just straight cash because what I’ll
do is, I’ll take that cash, and buy more. Speaker 10: Yeah. Samuel: If we got a really good deal on this,
for cash, like a really good deal- Mike: Well you shoot the number, the only
thing I could say is no. Samuel: Well we’d have to crunch the numbers,
we don’t have time to look for sure, but if we got it like… it would have to be 20,
at least 20, 25 percent lower than what you were asking. Maybe around fifty. Mike: I could do like fifty-five. Samuel: Why would you do fifty-five, but then
not eighty-five in three years? Mike: Because I need a lump sum. Samuel: But you don’t need the money? Mike: Yeah I don’t need it. No, I don’t need
it. I’d rather sit, because I’ve got a lot of offers. Samuel: And there’d be no way you’d be prepared
to do a delayed completion, you wouldn’t do that? Carla: No. Samuel: Under any circumstances? Carla: Because, well no, not now. Because
I have other things in place. Samuel: Its been a pleasure. Thank you for
your time. Samuel: We’ll be in touch. I’ll give you
a shout tomorrow. Bye. Rich: Twenty-four hours, whenever you’re ready,
let me know Samuel: Alright man, I really appreciate your
time. Samuel: Thank you. Samuel: He was just standing in the middle
of the road, what the heck is he doing. He looked like he wanted to kill me. Samuel: I can’t even answer, look at that.
Hello can I help. Mervin: Hey SAM, how is it going man? This
is Marvin, the house seller just following up with you. Samuel: Cool man, I’m good buddy, how are
you doing? Mervin: I’m good man, I can’t complain, just
hanging in there. So I was talking things over with the seller. Just wanted to let you
know what the consensus was. Samuel: Okay one second. Hold on. Samuel: Are you filming? Samuel: Yeah go for it man, what did they
say? Mervin: Okay, so basically, he’s open to the
idea, very much so open, but, he’s a little bit concerned about a few things. One of which
is if you guys will be able to effectively manage the property, with tenants. What if
tenants were to trash the property and you guys were away in the UK? Samuel: I understand mate. Mervin: You don’t really have hands on approach
with that, unless the property management company is solid. And then also, he wants
to be clear on terms of the agreement itself. What exactly is the total duration like years?
How long would it take to repay off the agreement? You know pretty much that’s it, those things
he just wants out lined. He wants to be sure. Samuel: Okay, no, no, I totally understand.
So, basically he’s open to the idea of us taking over his mortgage, and everything,
like we talked about, but, he’s just got a couple of concerns, and wants to make sure
its done properly. I totally get that. That’s cool. So, are you around? Do you want to maybe
meet and just go through all the different ifs and buts, and I can talk you through…
I don’t know, what do you want to do? Mervin: Well, I’m actually maybe about twenty
minutes or so, away from the property, but I could be there. I could meet you guys there.
If that’s okay for you? Samuel: Okay. Yeah. Were just leaving Camden.
It’s not been great, so I think this property would be a lot better. I guess we could probably
be there in about half hour. Speaker 13: Yeah half hour, forty minutes. Mervin: Alright, half hour sounds good. Samuel: Call it forty minutes just in case,
traffic, but yeah that’s great. We can have a chat and see what happens. Mervin: Alright, okay, sounds good. Samuel: Would you do me a favour? Would you
just text me the address again, because I can’t remember the exact address and were
just in the car at the moment. So, if you text me the address, and we’ll be there in
the next forty minutes. Mervin: Okay, I’ve got you. Samuel: I appreciate that man. You’re awesome,
I’ll see you in forty minutes. Mervin: Alright no problem. Samuel: Cheers bro. Bye bye. Mervin: Alright bye. Speaker 13: What the fuck? Samuel: Oh dude. I think we’re going to get
a deal. Come on! Samuel: So what’s the plan? How far is it
from here? Speaker 13: It should be in here. Samuel: Really, really hope that we don’t
miss this appointment. Listen- Speaker 13: Hold on mate. Samuel: What did he say the concerns were?
The tenants? Speaker 13: His concern is that we’re going
to bugger off back to the UK, the tenants are going to trash the place, and then he
never hears from us again. Samuel: Okay, we need to meet him, if we get
the agent on side, that guy, we can one billion percent do this. I think. I mean, if we can
get Mervin on our side, if Mervin wants this deal to happen, it will happen, because the
seller is motivated. So, we need to go over and get him on side. Big time. Maybe let me
do the talking. Samuel: Hey Marv, you alright? Its cold out
man. How are you doing? Mervin: So he was wondering if you guys would
be opposed to maybe giving him an extra couple grand up front, just to get it done and seal
the deal. Maybe two grand up front. Samuel: Okay, I think we can do that. Mervin: Okay. Samuel: I say it doesn’t matter. Speaker 13: Mate no, I wouldn’t- Samuel: Hold on Speaker 13: I get why, but that means we’re
going to have to raise two- Samuel: Come on, we can afford it. I think
the thing is, so what’s the crack then? What’s he actually- He’s happy to do a lease option
on it? Mervin: Yeah he’s happy to do it. He’s just
concerned about everything else I mentioned, with the tenants and the five years. He’s
open to it but its still half a decade, obviously so. Samuel: What are his mortgage payments? Mervin: His mortgage payment is roughly two-hundred
dollars a month. So, that’s what you need to- Samuel: Is that interest only? Mervin: Yes. Samuel: Okay, that’s cool. What’s his main
concern. Mervin: His main concern is just the duration,
that’s the biggest thing, the duration of the deal. Can you give a little extra upfront?
That’s what concern- Samuel: Yeah, because obviously, he’s not
got much equity in the property, so I get that. Okay. If we said to him, we’ll give
you two thousand pound upfront, then we will pay two hundred pound a month, to cover his
mortgage, and then in five years we will give him seventy-five thousand pound, would he
be up for that? Mervin: It may be possible, because that sweetens
the deal. Its more money than what you offered initially. Speaker 13: Why don’t we say to him, no money,
and give him more money per month. Like three-fifty. An extra hundred and fifty bucks a month,
he’s going to get his two grand in the first year. He’s going to get an extra six, seven
grand. Samuel: What are you going to get out of this
deal if we do this? How are you going to get paid? Mervin: Well the fee I have to get would have
to be negotiated. To negotiate anything above that mark up would be my fee, or you guys
could pay me on the side if that’s something you’re open to, but usually, there’s an assignment
of these types of deals, that’s typically the traditional way. Samuel: Basically, what you’re saying is,
you would like potentially something upfront from us, in order for the deal to happen. Mervin: That would have to be the only way
around. Alasdair: We have more options from other
buyers. Samuel: You know what could work. You know
how much money we’re going to make off this deal if it goes on. Mervin: I could calculate, I don’t know? Mervin: We know the rent is approximately Samuel: Well you tell us- Mervin: You told us eight to twelve. Now we’ve
confirmed with other people, other neighbours that, for instance, we know there’s a house
just down the road that’s renting now for eleven-fifty. We know that because we’ve spoke
to the person living there. Samuel: How much would this rent out for? Mervin: This one would rent out for roughly
minimum 8 hundred, 12 hundred gone up. Mervin: [inaudible 00:15:36] Samuel: Basically if were paying him 2 pounds
a month, we’ll rent it out and make that profit in difference and then in 5 years this property
will point to a lot more than 75 Mervin: Yeah, a lot more. Samuel: And then when we pay him 75, we’ll
obviously be able to cash in the difference, we could even sell it at the end of the term. Alasdair: If you want a fee, what do you think?… Samuel: Shut up. Can I just have a little
chat with Alasdair, just give us one minute? Samuel: Okay, I’m filming, if we said, if
we said to him, because he could cut us out. Alasdair: Yeah, don’t think he’s gonna. Samuel: He has never done a lease option before.
We’ve done loads. Alasdair: Yeah.. Samuel: If we say to him, we’ll take over
the mortgage payments we’ll be the person that makes everything happen and all that.
He can have all the cash flow. Alasdair: Yeah Samuel: All the cash flow, so anything above
3 hundred, no 2 hundred Alasdair: No well we said we would give 350
so can we factor- because we don’t want to pay 2 thousand pounds. Samuel: No no cause that £2000 was really
for him. Alasdair: You’re right. Samuel: Yes 100 percent. Alasdair: Okay Samuel: 100 percent. Samuel: So if we give the vendor, also we
leave him to own this, because if he owns this he will make it happen. If he doesn’t
care, it won’t happen. Because we can’t speak to the seller. Are you with me? Alasdair: Yeah Samuel: If we say to him look, well help you
and teach you what lease option is, right? Alasdair: Okay yeah. Samuel: You pay the owner, 200 bucks a month,
anything above that you keep. Samuel: But your responsible with that money,
for the maintenance of the property. Alasdair: Mm-hmm (affirmative) Samuel: But then at the end of the lease,
we have the option to buy it. This is the most complicated agreement ever. Alasdair: Do you think that’s fair? Samuel: Yeah, yeah, yeah. We have a lease
option on it, and then he has a rent to rent on it. No, honestly because then when we go
back to England, we don’t have to do anything. Alasdair: Yeah Samuel: We won’t make any cash flow. Alasdair: Yeah, don’t matter. Samuel: But we will have the option to buy
it for 75, in 5 years time. Alasdair: Wait, let’s do that. Samuel: And it’s going to be worth hundreds
of thousands in 5 years time. Alasdair: How we going to get him to go for
this though? Samuel: I’ll get him to go for it. I’ll be
able to do that. This is hustling…this is hustling! Right now we’re upstairs Alasdair: In a dark room. Samuel: In a dark room, okay heres the deal,
heres the rules, I do the talking Alasdair: Right Samuel: But if I say what do you think [inaudible
00:18:11] that means I am struggling Alasdair: Yeah. Samuel: And then you take over it, his risks
are that the tenants will trash the place. Alasdair: Yeah. Samuel: So he just needs to keep an eye on
it for his money. I’ll sort it out, It’s time, It’s cool. Okay. Samuel: Alright, so we have a proposal for
you. Mervin: Oh yeah what’s that? Samuel: I know you like to make money, what
do you do at the moment? Mervin: At the moment, I am wholesaling, I
am pretty much full time and so of course I want to grow that into a more lucrative
business and other real estate realms so. Samuel: Are you married? Mervin: Oh no, Samuel: Kids? Mervin: No, kids no. Samuel: Where do you live with? Mervin: Family for now Samuel: Uh-uh (negative) Mervin: Yeah Samuel: How much money do you make? A month
wholesaling On average? Mervin: On average any where from 3 to 5 grand,
if not more. Samuel: How much did you make last month? Mervin: Uh, last month ? I made about 25 hundred. Samuel: Okay Mervin: It’s a bit slow, this beginning of
this year has been slow. Samuel: So basically its been slow because
you only get paid when you make a deal right? Mervin: Yeah Samuel: Have you ever thought about managing
properties? Mervin: Yeah, I am opened to it. Samuel: You’re just opened to making money
right? And learning new things. Okay heres the thing, if we buy this property on a lease
to buy agreement, we will make really big cash flow every month, the problem is from
our point of view is we’re not in the area, which is also a problem for the owner because
he’s thinking these guys aren’t in the area, what happens if the back tenants does that
make sense? Mervin: Absolutely. Samuel: Were suggesting that we buy on an
option, but you manage it, and you keep 100 percent of the cash flow. 100 percent. So
we pay the landlord 200 bucks a month, the owner. Mervin: Okay Samuel: Then you rent it out, how much will
you rent this place out for? As it is. Mervin: As it is, probably 800 bucks. Samuel: 800 – so you pay him 200 and you keep
800 and you might have to pay some cost and stuff but as a profit you keep 100 percent
and then in 5 years, well buy it for 75 grand , that will be our option to buy it, and then
you can continue to manage it for us and well give you the percentage of rent probably but
that’s 5 years, you’ll be a millionaire by then, ill be a millionaire by then. I don’t
know, what do you think? Mervin: Oh yeah, I mean I’m open to it that
sounds really good, that sounds like a good proposal. I think that’s something that we
can work out, so at this point what do we have to do to have everything set up and [inaudible
00:20:50] Samuel: You need to speak to the owner. Mervin: Okay Samuel: You need to tell him we’ll pay him
200 bucks a month, we’ll buy it for 75 pounds in 5 years, I’ll give you all the contracts
and stuff, to do that which he can sign, I will also send you another, memorandum of
understanding which we can sign which is what I basically just told you the bullet points
of this conversation, and the agreement and you can sign it, we’ll sign it and if you
can get the seller on board you should be making at least 3 hundred to 400 bucks a month
and just from managing it. Mervin: That’s awesome. Let’s do it, Done,
Let’s do it. Samuel: Deal man. Mervin: Deal! Samuel: Your friggen awesome, Mervin: You’re awesome Speaker 15: I did it! Samuel: I am absolutely stoked we just sent
over the contract to Marvin, the broker he has sent it back , the deal has been agreed
and tomorrow morning we are flying back from New York to London. Samuel: What a week, what a week. You know
what it’s been an incredible, incredible journey. Samuel: I hope that you have managed to make
sense of what’s been going on, so basically we are buying the house on a no money down
lease agreement but the estate agent will be managing it and taking control of it and
benefiting from the cash flow. It is the perfect joint venture. Samuel: We also spoke to Marvin and do more
deals with him and he’s learned so much and inspired he’s now going to be looking to do
more lease agreement options himself. Samuel: You know what it just blows my mind
and the lesson in this is not that I am fantastic, not at all, I was actually a bit of a dummy
this week, the lesson is with the right knowledge and the right grit and determination, anybody
can make money in the property industry any where in the world. You just need to take
action, get the knowledge and go do it . WOW Samuel: Come on! Look at this whoo! Boom ! We
did it. I can’t believe we did it but we did, what a day to be alive. Samuel: To think when did we found you just
from Zillow? Mervin: Yeah Samuel: And now we’re in business together.
So this is going to be on you tube. Are you okay with that? Mervin: Hey you tube, my name is Marvin. We’ll
see you soon alright? Samuel: Are you okay with this going on you
tube? Mervin: Yeah that’s fine absolutely . Samuel: Oh man you know what were really killing
it in the UK, Mervin: What’s your name on your youtube profile? Samuel: My name is Samuel Leeds Mervin: Okay, alright Samuel: Yeah, yeah were killing it in the
UK. We came to the states with no money basically on a challenge to try and do a deal on no
money and if it wast for you we wouldn’t have been able to make a deal so you are the friggen
man Mervin: Oh wow, I feel like I’m on… Alasdair: You’re famous man! Mervin: On a TV show or something . Samuel: Nah nah nah, but you know what? This
is awesome and I can’t wait to do business with you, so well [inaudible 00:24:06] tonight Alasdair: Yeah yeah well get what is called
a memorandum or sales to the vendor, its basically just it lays out what we’ve agreed you sent
us the contract what were going to do and then that’s what you do mate. Mervin: When you say the vendor, you mean
the owner? Alasdair: Yeah the owner, yes the owner, sorry
that’s my english slang… Mervin: Alright Alasdair: Give it to the owner, he will sign
it and then we can put them in touch with the realtor. Samuel: Is this the strangest agreement you’ve
ever made? Mervin: This is the most unique deal I have
ever been involved in Alasdair: And obviously going forward your
going to be responsible for fitting tenants in here? Samuel: You can do that can’t you? The only
thing you’re going to have to pay obviously just the basic it’s going to be like you own
the property. Mervin: I see, alright Alasdair: So don’t go spending the rent every
month, maybe just keep 2 to 3 hundred bucks back. Samuel: That’s cool, Man you’re awesome Mervin: Thank you guys, I appreciate this
opportunity, this is awesome Samuel: Your awesome bro. You’ll have to come
to the UK man, thank you so much I appreciate your business , I look forward to working
with you, I’ll look forward to it man!

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