So you would like to make an extra £1000 per month?
Imagine how this would impact your day to day finances....
You see, around the Progressive Property Community you’ll see and hear a lot of success stories of how ordinary people are replacing & exceeding their income from property related projects...
Someone just went straight from single lets to a big commercial conversion. Someone just flipped a property and made £40k! Someone just bought an office building and converted to a big HMO. Someone just crossed the threshold of a million pounds on their property projects...
These are pretty inspiring stories right?
But if you’re just starting out or been around the property scene for quite a while and are overwhelmed the above might seem unattainable then you’re in the right place.
(There’s nothing quite like having analysis paralysis and property overwhelm killing your dream before it’s even started)
So rather than talking about the best ways to make six figure profits we wanted to explore some simple ways of making £1,000.
Throughout the blog, keep in mind what would you do with an extra £1000 pay straight in to your bank account.
Also note, property is not a get “get-rich-quick-easy –I’ll-be-a-billionaire tomorrow-Rodney”: but there are smart ways which will require work upfront that can make this goal very attainable...
If an extra £1000 would change or help your life then keep reading to find out exactly how.
1) Property Hack your house to an extra £1000
So what is housing hacking? Quite simply using your own personal residence with a desire to build up wealth through property related activities.
Let me give you an example...
Imagine living in a terraced or semi-detached house where you can turn one of the lounges and other bedrooms into a three or four unit property: you would live in one and rent out the other units.
So how can you earn a £1000 a month this way? Let me show you how.
Stephanie has an end of terrace 3 bedroom house which is in a good location. Her mortgage payment amounts to £660 and with bills totals to an additional £250 pcm.
The property benefits from 2 other bedrooms and a large lounge which can be converted into 2 separate units. The property has a reasonable sized kitchen with a TV and breakfast bar so there’s no need for a communal area...
She rents the other 4 units (with lender consent) for £365 per month which amounts to £1460 gross income and utilities costing an additional £210 pcm.
Stephanie is now getting paid £340 per month to house hack her own property.
“But wait a minute, that’s not £1,000 per month extra!”
Quite right. But you’re forgetting one important aspect: Stephanie is now living for free.
She was paying £660 but now lives for free. She now has an additional extra £660 per month in her back pocket and £340 cashflow totalling an extra £1000 per month.
At the same time Stephanie is building equity, has a hedge against inflation and is learning the ropes of investing and being a landlord at the same time.
If she decided to move out, she can rent her room out which benefits from an en-suite for £400 a month which can bump her gross cashflow up to £740 per month.
Not too bad for Stephanie, right?
2) Deal Sourcing Your Way to a £1000 a Month
For those unfamiliar with this term, this often also referred to as “wholesaling”.
The process is quite simple (not easy). You find a bargain property deal through pounding the streets, singing a legal contract or option with the seller to purchase the property at a great price, and then selling this option (quickly) on to another investor who will actually be buying the property (quickly)
So how can you make an extra £1000 deal sourcing?
Imagine Holly decided to become a part-time deal sourcer to earn some extra income and finds that direct to vendor marketing would be the most sustainable for the long term..
She attends the Progressive Property Deal Packaging course and prints around 2000 leaflets and leaflets in her local goldmine area
The leaflet simply reads, “I would like to buy your house quickly. If you’re interested in moving in the next 4-5 weeks, please give me a call at....”
All in all, the printing of the leaflets and delivery amounts to £1,000. Within a few short days of delivery, she gets a few calls coming in....
Holly gets around 3% of sellers to call her back so she talks with 30 potentially motivated sellers..
One of the leads looks very promising...Charlie and his 2 siblings have recently inherited a property after their father died and needs to sell quickly.
The property is very tired and needs to be modernised and they don’t have any funds to refurbish the property...
Holly does some quick calculations on her Progressive Flip App and see’s the following:
- The After Repair Value is estimated at £150,000
- The 70% Rule means the total spend needs to be £105,000
- The estimated work the property needs is £20,000, leaving her with a purchase price of £85,000
- She aims to make around £2000 gross, so she can either ask the investor to fund this out of pocket or chip down the purchase price to £83,000: she opts with latter.
The offer of £83,000 is accepted by Charlie and she then emails her list of investors she has acquired through regularly networking at the Progressive Property Network.
She talks to Paul who regularly flips property and agrees to pay £85,000 for the deal.
Upon completion, Holly ends up with cheque for £2000 of which £1000 was spent on direct marketing.
Holly simply repeats the process every month to make an extra £1000 per month in cashflow. In reality she could have realistically charged a lot more for the deal - anything from £3-5k would have been very reasonable for the numbers above.
Upon gaining more confidence, Holly knows she can make £2000 revenue for every £1000 spent: to scale up, she would quite quickly spend more on her marketing efforts until she was getting £10,000 per month per every £5000 spent.
3) Buy-Refurbish-Sell Your Way to £1000 Per Month
Lastly, let’s talk about flipping a property.
Glorified TV shows like ‘Homes Under The Hammer’ love to show simplistic formulas on how much profit is going to be made.
They make it look easy. They have to, so it doesn’t get confusing. But the reality is they completely ignore the typical costs for flipping a property. Because that’s not ‘sexy’ right?
But for those of you who are dedicated to learning how house flipping works, juicy income can seriously be made from such projects.
However, we don’t want to talk about 6 figure flips for this example. We just want to make an additional £1000 income per month.
So how does that work?
Quite simply the income derived from such projects will mean the £1000 will be “averaged” over the course of the year or two, since no investor in their right mind will take on one project per month to make £1000 per flip!
The flipper would need to make around £12,000 net profit to earn around £1000 per month in extra income...
To give an example...
Lauren just attended the Progressive Property Buy To Sell Masterclass and is excited to get stuck into her first deal...
She loves her job so doesn’t want to give it up to go full-time as a flipper: just a little extra income would go a long way to help with her daughters tuition fees for University.
Lauren finds a perfect out of area auction property and analyses the deal using the Progressive Property Auction App and runs the numbers and decides to move forward on the flip.
The property was very run down – almost fire burned which needed a complete makeover.
The end after repaired value was estimated at £245,000 with around £40,000 of works: although it was a big project she had a fantastic building team who were incredibly fast in getting the property up to scratch for sale.
After two-and-a-half months the property was sold and Lauren walked away with a net profit of nearly £24,000
Quite proud of her first buy to sell project Lauren decides to do a project every two years, but as the property bug is contagious might opt to do one every year.
Her £24,000 net profit works out to be around £1000 for two years...
So What Are you Going To Do?
What would an extra £1000 a month mean to you?
Would this mean more freedom from your job, no more overtime, more time to spend with your loved ones, a nicer car and less stress and more happiness?
But perhaps a £1000 is simply a starting point to gain more confidence and clarity to quench your thirst for more courageous and larger property deals?
Whatever your answer might be, I know one thing for certain: property can and will change your life.
It did for me. It did for Mark. And for the thousands of ordinary successful people in the Progressive Property Community.
Hopefully this post has lit the fire of what could be a reality in a few short months....but also note...
These are ONLY few ways of making multiple streams of income from property: if you have burning desire to succeed and find out the hundreds of other ways to make money from property, we would love to see you at the next Multiple Streams of Property Income Event.