I grew up on a council estate and now my property portfolio is worth MILLIONS
SCOTT Lyons had no experience of investing in property, but after enrolling in the Samuel Leeds Academy he transformed into a successful entrepreneur.
Lyons, who grew up in a council estate in Leicester, has been growing his portfolio over the past four years. It’s now worth around £2.3 million, a rapid rise from the £29,500 home he first acquired in Grimsby.
Today, his portfolio includes a block of four flats in Hartlepool, a bed and breakfast, a three-bedroom property in Cleethorpes, and two lease options in Scunthorpe.
“I don’t look back now,” Lyons said, reflecting on his portfolio. He believes he now has the magic formula to become a millionaire – which includes a lease option agreement as part of his strategy.
What is the lease option agreement?
Under this technique, Lyons rents the property from a landlord instead of buying it outright. But, crucially, he’ll have the option to purchase the property in the future at a pre-determined rate.
Since property is a naturally appreciating asset, meaning it increases in value over time, the pre-determined purchase price often enables him to buy the property at a discount.
Until that time comes, he’s free to rent out the property to other prospective tenants to cover his rental payments and perhaps earn a little profit on the side.
Lyons said most of these deals have come from ‘tired’ landlords – those who are looking for an exit strategy.
“We’ve come in and said we’ll pay you the rent every month and take the stress off your hands with an agreed purchase price down the line. That’s an ideal situation for that landlord,” Lyons explained.
The strategy is often likened to financing a car on a Personal Contract Purchase (PCP). Here, a buyer will pay a monthly fee for the vehicle before deciding whether to pay a settlement to own it outright or hand it back to the dealer and walk away.
The home in Cleethorpes which brings in over £10,000
Lyons said his best purchase was a £152,000 bed and breakfast establishment in Cleethorpes.
Originally, he wanted to renovate the property and rent it out as a House in Multiple Occupation (HMO) — a term used for a property which is shared by three or more tenants.
But that changed when he found out he could use the home to provide some emergency social housing accommodation for the local council.
“We get between £50 and £140 a night per room. It makes us on average £12,000 turnover per month,” said Lyons.
He further stated that in one month the home brought in £18,000, which he described as a “great deal”.
As for outgoings, he spends between £900 and £1,000 a month. This is broken down into £416 a month on mortgage costs and between £500 and £600 a month on bills.
Lyons also said that the property’s value has already grown at a rapid pace.
“The day we bought it we got it valued again and it was £250,000. That was 18 months ago. It’s probably worth £300,000 now,” he said.
How can I invest in property?
Looking back on his life, Lyons remembers that he always wanted to “get into property”, but he just didn’t know how.
After reading Samuel Leeds’ book Buy Low Rent High, Lyons had a changed mindset. He shortly enrolled in the Samuel Leeds Property Academy where he honed his skills and learned the lease option agreement strategy.
“The academy is a programme which will completely transform the way you think about property and yourself,” Lyons said.
The programme is known for its fostering yet exciting environment, where students are mentored by the likes of Lyons and Leeds.
“If you want to go into property, then hands down the academy is the one for you,” said Lyons.
For beginners, Samuel is hosting a Rent to Rent crash course — which is taking place between 23 August and 1st September.
Entry costs £1, and you’ll spend the day with Samuel in-person — learning the property investment strategy that helped him build a property portfolio that made him a multi-millionaire.
What will the course cover?
The course will cover a number of important topics to help grow your portfolio. This includes how and where to apply legislation to find the right “goldmine” areas for maximum growth. You can find out more about the course and how to book at samuelleeds.com.
Other topics such as how to profit from Airbnb and Booking.com will also be discussed, as well as the importance of building your network.
When will the course take place?
If you’re looking to join the Rent to Rent crash course, Samuel Leeds will be in the following cities:
- 23rd August – London, Millennium Gloucester Hotel, 4-18 Harrington Gardens, London, SW7 4LH
- 24th August – London, Millennium Gloucester Hotel, 4-18 Harrington Gardens, London, SW7 4LH
- 31st August – Birmingham, Macdonald Burlington Hotel, 126 New Street, Birmingham, B2 4JQ
- 1st September – Bradford, Cedar Court, Rooley Lane, Bradford, BD5 8HW
You can find out more about the tour here and book a place at one of the above courses at samuelleeds.com.