If someone had told us just three years ago that we would become multi-millionaires through property, mostly through doing deals without using any of our own money, we would have laughed and told you not to be so ridiculous. However here we are today, sharing with you how to get into property development with no money!
It’s a lovely idea you may have thought, but that sort of wealth only happens to a small number of people who’ve either inherited a fortune or spent decades building an empire, right? Not necessarily!
We’re happy to be able to say that the truth is anyone can get the secrets behind how to get into property development with no money. Once you have these strategies under your belt, you can achieve great wealth through property as long as you follow a few simple steps. You can be one of them, and the purpose of this blog is to give you our proven formula on how this can be done.
You might ask yourself why we’re doing this – surely there has to be a catch? Again, no. We’re sharing our knowledge and experience with you today because we know there’s more than enough money to go around the world and back a good few times. And because we’re nice guys who don’t want to keep it all to ourselves.
We believe that you get back in life what you put in, so if we can help a few other people along the way then it’s good news all round. Once you realise that the process of how to get into property development with no money isn’t as complicated as you first thought, you get some excitement helping others get no money down deals too.
So, what is the Assets for Life Property Freedom Formula?
In a nutshell, it’s a tried and tested recipe that we use with every property deal. It breaks down the key points you need to tick off as you’re building your property portfolio and guides you through everything you need to do for long term property success.
There are just seven steps, so it’s easy to remember the formula and once you’ve been through the process a few times it becomes second nature. A bit like riding a bike. Once you know the formula inside out, building a successful and highly profitable property portfolio is surprisingly easy. Especially when you follow our guidance on how to get into property development with no money.
So make yourself comfortable, grab a cuppa and set aside a bit of time to read this blog. If you’re serious about making a fortune from property, we promise you it will be one of the best things you ever do.
Walt Disney once said that anything is possible if you dream big, and he was a great example of a born entrepreneur. He started with nothing other than a pencil and a piece of paper, and with them he drew a little mouse. That mouse became the most famous cartoon character the world has ever seen and went on to launch a multi-billion company that’s still making children happy even half a century after Walt himself died.
Any really successful business person will tell you the same thing – it starts with self-belief. This is especially true if you want to master the ins and outs of how to get into property development with no money. Unless you really believe in yourself, from the pit of your stomach, all the skill and knowledge in the world amounts to nothing.
To make a real future out of property it’s imperative that you start with the right mind set. Read books like The Secret, study the law of attraction, visualise your success, surround yourself with like-minded people. If your life-long friends are unhappy in their lives or don’t earn enough money to survive, let alone enjoy the nice things in life, it’s time to get some new friends.
That doesn’t mean ditching your mates, but it does mean widening your horizons and starting to spend time with people who inspire you. Us humans are social beings and we start to mirror the people we hang around with, so go out and meet some go-getters and see how your outlook changes.
You don’t have to be stuck in a dead end job with people you don’t like. Life is short, and the world is there for you to make the most of. There’s no shame in wanting more, and when you do achieve the kind of wealth you once thought was out of your reach, you can give some back.
Once you become wealther as a result of following our guide on how to get into property development with no money, you will feel like giving back as much as possible.
It starts with making a decision. If you spend your life saying “I want to….” or “I wish I could…” you’ve already decided you’re going to stop yourself succeeding. If you keep telling yourself how difficult something is, chances are it will be. So tell yourself it’s easy. Tell yourself continually that you can – and will – do it.
Just by making simple changes to your language you move from dreaming to actually doing. So, how about saying “I am going to” instead? Sounds better doesn’t it? It even feels better. Because when you start talking positively, you’re making a decision to change your life for the better. Make a decision that you will be a success, and you’ll be amazed by how quickly things start to fall into place.
We’ve all had those days when it seems like nothing goes right. You get out of bed, stub your toe, swear, trip over the cat, spill your coffee down your shirt…everything goes from bad to worse and you haven’t even left the house yet. It’s hard to keep a smile on your face when things go wrong, but honestly, if you can try to stop, take a breath and force out a smile you might just get to save the day.
Positive, successful people find joy in life, even on the difficult days. Being thankful for the little things can have a huge impact on the overall outcome of your day, so it’s a good idea to spend a couple of minutes every morning thinking about all the things you have to be grateful for.
It could be as simple as the sun shining or a nice new pair of shoes, but by changing your outlook from a half empty glass to a half full one, good things will start to happen. We often use the saying “if you think you can or you think you can’t, you’re probably right.” So tell yourself you can, and watch your world open up.
If we told you we’d been able to build a multi-million property portfolio without using a penny of our own money you’d probably think we were lying. But it’s absolutely, 100% true. With the exception of petrol money and maybe the odd cup of coffee we really have been able to finance our projects without putting our hands in our own pockets.
Don’t worry, we have done everything legitimately and you don’t need to do anything unethical to get results – it’s just how the property industry works when you understand how to get into property development with no money. You really can start with absolutely nothing, which makes this a really attractive opportunity for people with a less than perfect credit rating or no savings to fall back on.
It’s all about making the right contacts and networking with people who do have money to invest and are looking for exciting new opportunities. In some cases, that’s high net worth individuals you can meet through charitable events or business networking groups.
In other cases, it can be people you’ve known and loved for years who have a little bit of cash to invest to support you in your new endeavours. You could also share with them your new strategies on how to get into property development with no money, so they can see how it’s possible!
When you’re building your personal brand and getting out there meeting property people, you’ll get to know development funders. You need to make these people your new best friends, because by forming partnerships with them you’re looking at some seriously great opportunities.
Development funders will practically throw money at you if you can find a profitable deal, and once you start to build your reputation you’ll find people coming to you. You may find you sometimes won’t have to work for it; they’ll just come to you when they’re looking for an exciting new project.
You can expect to get sophisticated investors to fund your projects for around a 20% to 30% share of the profits. This is fantastic news, especially when you’re first starting out or working on a really big development, but we’d always recommend hanging on to as much of your equity as you possibly can. Remember, our aim is to do as little as possible for as much as possible, so be careful about giving too much of the pie back when a project comes to fruition.
Even in these uncertain economic times, investing in property remains one of the safest things you can do with your money. People will always need houses, and the average yields are around 7% or higher. Compare that to the 1% that ISAs currently offer, and it’s easy to see why so many people are getting into the property game.
And remember, you won’t have to invest a penny of your own money if you follow our formula on how to get into property development with no money.
This is where it starts to get really exciting. Going out and searching for sites is one of the most fun parts of the job, and nothing compares with the feeling you get when you sign on your first deal.
There are lots of different property strategies you can use- multi lets (HMOs), commercial conversions, land developments, lease options and deal packaging. We’d always recommend sticking to one or two, especially in the early days. It’s pointless leaving your day job to end up working more hours for less money and being more stressed than you were before, so don’t spread yourself too thin and choose your deals wisely.
So, how do you find the right sites? It all comes through those important relationships you build with agents. It’s essential that you get to know all the agents – land, commercial, residential and letting – in your area and get your face known in the business. That’s going to mean a lot of getting to know you chats and cups of coffee, but putting in the leg work in the early days pays dividends long term.
You’ll need to set aside a couple of days for research and doing the rounds in your local area. Start with an online search of all the agents nearby, get to know their names and practice a 60 second elevator pitch which explains who you are and what you’re looking for. Then go out, introduce yourself to the agents and start going on viewings.
Be seen, be heard, be known, and before you know it you’ll be picking and choosing the sites you want to take on. Ask the right questions and choose the deals that work for you and for your agents- it’s all about creating WIN/WIN opportunities for maximum profits all round.
All good business decisions are born out of a combination of research, strategy and experience. Like any investment, it’s essential that when you’re visiting sites you have a clear idea of the yields you can expect to receive.
We use a tried and tested formula to help us work out what the overall return on investment will be, and it’s essential to do your homework before signing on the dotted line.
The appraisal can only deal with financial considerations, so it’s a purely quantitative rather than qualitative method. The process involves estimating the most likely selling price (market value) based on a number of factors, such as other similar properties in the area and local demand.
When researching how to get into property development with no money of your own, you’ll then need to strongly consider all the expenses you’ll have to pay out during the lifetime of the project. This covers things like agents’ fees, land costs, architects, designers, legal fees, construction and decorating costs.
If you’re new to the industry, you should expect to put in plenty of hours of research to ensure you really understand the market enough to successfully predict going prices. If you can find a business partner who’s already in the know, that’s even better.
Success and great wealth are not restricted to those from privileged backgrounds. Financial freedom can be achieve by anyone with the right mindset, so why do so many people end up on their deathbeds wishing they’d achieved more? Along with self-belief, it’s absolutely essential to have a plan and stick to it.
Back in 1937, Napoleon Hill wrote a book called Think and Grow Rich. He said success starts with desire, and that unwavering self-belief, imagination and great planning were what the world’s most successful people have in common.
In order to get where you want to be, you need to know how you’re going to get there. It sounds obvious, but many potential millionaires get so caught up in thinking about the end result- money, a nice house, dream car- that they don’t properly plan how to achieve it.
We’re not asking you to have a meticulous spreadsheet for absolutely everything you do (unless you particularly want to – Jay loves a spreadsheet!) but you do need a plan of action, especially when working out how to get into property development with no money.
Clear plans help people achieve their dreams – as Hill said, “A leader who moves by guesswork and without clear plans is comparable to a ship without a rudder.”
Key points to remember when making a plan:
✓ Ask yourself what you have to offer. What are your skills? What value can you give to others? Why should people give you their money? Hill called this the QSS rating – Quality of Service, Quantity of Service, Spirit of Service. If you know what you can deliver and how well you can do it, that confidence will shine through and make others believe in you too.
✓ Learn from others- this is really important in the property market, so surround yourself with like-minded people and invest in education and mentorship. When we started out in this business, people told us to invest in a good mentor and it seemed like such an unnecessary waste of money that we nearly didn’t. But the time we spent with real bona fide property experts – people who knew the industry inside out and had learned from their own mistakes- was worth its weight in gold. A great mentor is a wonderful thing, and the value of learning from others can never be under estimated.
✓ Forming a strong support network (or mastermind group as Hill put it) will help you establish your objectives and avoid common mistakes. Soak in all the knowledge your mentors have to share with you and learn from it. We all make mistakes, but learning some of the major ones before you get started will save you a lot of time in the long run.
✓ Regularly review your progress. The key to any successful business plan is undertaking ongoing reviews to check you’re heading in the right direction. If you need to take a slight detour, that’s ok- the important thing is that you end up where you want to be.
One of the most important things to know about planning property projects is that it’s best to start small and focus on one particular type of strategy. If you try to spread yourself too thin, chances are you’ll end up getting stressed and wondering if you’ve made a big mistake. That works geographically, too.
It’s best to choose a goldmine area that’s close to where you live and focus on that. If you spend half your life travelling up and down the country to view properties you won’t have any time to enjoy all that money you’ll be making. Since financial freedom is all about quality of life, that’s totally defeating the object.
Unless you’ve got a business partner who covers a different area or a cracking power team elsewhere, just focus on that goldmine area closer to home. They can help you with your new game plan regarding how to get into property development with no money.
Part of your planning process is going to involve enlisting a good power team. This is a group of experienced professionals who can take on important tasks and handle legalities while you’re getting out there finding deals. Your power team should include:
✓ Conveyancing Solicitor
✓ Structural Engineer
As your experience in the property business grows broader, you’ll be able to add to your power team and maybe have a few go-to people for each area of work. Before choosing people, do your background research and make sure they’re a good fit for what you want to achieve.
Some people are good at talking the talk but not necessarily walking the walk, so find out as much as you can about people before making a commitment, ask to see portfolios and use your networks to make informed decisions.
When following our steps on how to get into property development with no money, think about your final exit strategy. As we said, all plans need to lead to a final destination, so you’ll need to have a clear idea of what you’re ultimately trying to achieve. Common strategies are:
✓ Land developments – this is where you buy land and build on it “from the ground up”. They’re more complex and take longer than investing in existing properties, but they offer huge long term returns.
✓ Acquisitions and short term hold – also known as flipping, this involves buying a property, doing it up and then selling it on over a relatively short space of time.
✓ Rent to Rent – the same as above, but instead of quickly selling the property on you buy to let, earning money on rental fees
✓ Multi lets – also known as Houses of Multiple Occupation, this is where multiple non-family members live in their own private rooms (we recommend ensuites) share facilities such as a kitchen e.g. student accommodation
✓ Commercial Conversions – buy offices or unused retail space and convert them into flat
✓ Deal packaging – This works by you sourcing deals for other investors who then buy them from you, and is particularly profitable with commercial deals and land developments.
There is no right or wrong strategy – we recommend trying a few to see if they are for you or not!
This is when you’ll really start to see your efforts paying off. The construction process is one of the most important parts of the property industry, and we never get bored of visiting sites and watching our investments take shape.
There are two different approaches to construction:
Traditional Build– this is where you recruit your own specialists to take on different parts of the construction process. This will include your creative people like designers as well as your engineers and project managers, and it works really well if you already have a clear idea of who you want in your team. You can use all your different consultants to help you choose which contactor to use, which is great during the selection process. This method works best when you’re working on large scale projects across multiple sites.
Design and Build– this is the “all in one” method and it’s usually a much quicker process. The way it works is that you choose your overall contractor and they then assemble a trusted team who will take care of everything from design right through to the finishing touches. This works well on smaller scale projects and can be a lot less stressful than trying to manage it all yourself.
Choosing your construction company is a big decision, and it’s one that shouldn’t be taken lightly. The overall success of your project and how much you end up with in your pocket depends on the construction process going smoothly, so take your time and do your homework.
Like we mentioned in step six, when you’re choosing any kind of business partner you need to do a bit of background research first. Never just take someone’s word that they’ll be right for the job; find out as much as you possibly can through online searches and asking your contacts.
You’ll need to put the work out to tender, and we recommend inviting around ten construction companies to apply. During your selection process, find out things like:
✓ What’s the biggest project they’ve worked on?
✓ Have they worked in the local area?
✓ How long have they been in business?
✓ What’s their reputation in the industry?
✓ What are their delivery timescales?
When you receive your tender documents back you’ll want to shortlist five companies to interview. This is the really important part because here you’ll get a real sense of how well you’ll be able to work together. It makes sense to choose people who have the same vision as you and are clearly hungry and passionate about what they do – if the enthusiasm isn’t there from the outset you’re probably looking at a challenging and slow experience.
You’ll also need to know what subcontractors they work with. It’s all very well if the contractors themselves are fantastic but if they use electricians and plumbers etc. who are below standard, your project will be doomed. Don’t be afraid to ask questions and dig a little. And if you want to stipulate that they use different sub-contractors, you’re well within your rights to do so.
You’ve made it! This is the bit when you get to give yourself a big pat on your back and sit back and survey everything you’ve achieved. It’s when the fruits of your labour all become ready to be enjoyed and you can confidently call yourself a successful property developer.
You’ll need to pay your fees and everyone who’s worked on your project, so depending on what construction strategy you’ve chosen you’ll either be sending one big payment or lots of smaller ones.
But that’s just the beginning of your adventure. When your build or conversion is complete, you’ll need to make some more decisions about what happens next. Do you want to sell your units on or keep them?
At Assets for Life we’re all about creating long term assets, so we like to hold on to as many of our units as we possibly can, for maximum long term gains. Also, once you master the art of how to get into property development with no money, you can replicate this same strategy again and again on each deal you do.
That said, sometimes it is more profitable to convert and sell. Some conversions will sell quickly and give you a huge lump of cash that you can do with as you please – that might mean re-investing straight into another project or treating yourself to the car of your dreams.
When you consider that you’re looking at a chunk of money around £200k, there’s no reason why you can’t do both! We’ve recently made a lot of money through selling off-plan, so again it pays to do your research into the local market before making a decision about what exit strategy to choose. Once you master how to get into property development with no money, you can replicate this same approach again and again.
Whatever exit approach you use, you’ll need to make sure it’s clearly outlined in your plans. Your strategy is key to understanding the risks involved in the project and is essential when you’re pitching your ideas to potential investors. This is the final step on how to get into property development with no money (the right way) so take extra care with this step.
Always remember, the more you put in, the more you will get out. If you can offer people something of real value and you follow through with your promises, you will end up being presented with so many deals that you won’t know what to do with them all.
If you make a commitment to yourself that you will always work hard, go above and beyond for your clients and deliver quality at all times, you can’t go far wrong. Reading this blog is just the beginning, but once you get to work you’ll be fully equpped on how to get into property development with no money.
To summarise, our property freedom formula uses just seven steps:
✓ Changing your mindset
✓ Securing funding
✓ Finding your sites
✓ Undertaking appraisals
If you do your research, go above and beyond to deliver quality and really believe you can achieve it, we promise you now that a year from today you can truly understand how to get into property development with no money.
That means no more nine to five in a job you hate or worrying about paying the bills. Remember Walt Disney and that little mouse – if you’ve got a dream and you really believe in it, you can achieve whatever you want.
There’s now more money in the world than ever before, and there’s more than enough to go around. Don’t ever let anyone (especially yourself!) tell you that you don’t deserve to earn lots of money. You do. Just give a little back to society and be grateful.
You can change the world, one deal at a time. You can also see our related post on one of our other Colchester developments here, which is another guide on how to get into property development with no money: 7 Step Property Freedom Formula Breakdown & Why Do You Need to Know About It?
So, what happens next? That’s up to you. If we’ve got you fired up to learn more and you feel as excited about the property market as we do, we’d love to help you achieve your goals.
At Assets for Life we’re proud to be able to say we offer one of the biggest and best property mentorship programmes in the country, and we’re committed to making millionaires.
Liam Ryan & Jay Munoz
Co-Founders of Assets For Life