Amazing HMO Secret Discovered By An Almost Bankrupt Landlord Gives You Greater Cash Flow, Complete Control Over Your Costs, And Tenants That Stay For Years Rather Than Months!
If you want to confidently quit your job in a years time because you are earning £5,665 net cash flow every month, regular as clockwork. You’ve got the time you’ve always wanted because you’ve filled your 4 HMOs and the tenants look after themselves and the property. And you did it all with none of your money! Then this will be the most important letter you’ve ever read.
Dear Motivated Property Investor
My name is Bob Jones and until very recently I was a frustrated buy to let landlord desperately trying to make a job replacing income from property. After being at the coal face for two and a half years I realised that with buy to let you are able to buy and house and get all of your money back when you remortgage, if you’re really lucky… and then you’ve got an ‘asset’ that just about makes money. You’re certainly not going to get rich from the cash flow.
Yes it feels great to know that you’re building a “pension pot” but it doesn’t get you any closer to quitting the day job, or buying the car of your dreams.
My frustrations with buy-to-let took me into the world of flipping. Yes I made some chunky money with this strategy, upwards of £10,000 from one deal so I can’t really complain but the thing that always worried me was being able to repeat it on a regular basis. After all I’ve still got a mortgage to pay, I’ve still got to look after my family and put food on the table.
Now maybe you’re thinking that I’m a coward because I didn’t pursue this lucrative opportunity full time… and you’re right. But I can’t change my perception of money and risk, so I just accepted it and looked for something else.
My life changed forever when I discovered HMOs, commercial finance and the amazing power of JVs.
After telling anyone who would listen about my frustrations I heard a rumor about a property investor that was on the verge of bankruptcy and out of sheer desperation discovered a new HMO model… and was now raking it in.
When I finally tracked Arsh Ellahi down he showed me how to:
- Set up an HMO using the Arsh Model
- Gave me the confidence to approach JV partners
- Instantly enter the exclusive commercial-finance-club
In less than a year my property cash flow jumped from £497 to £5,665 simply by investing in HMOs rather than buy to let properties.
This is what my portfolio looks like now
3x buy to let properties. Yes, I’ve kept them even if they barely cash flow simply because it’s a pension pot that looks after itself.
4 HMO Properties
200 Lea Road, Wolverhampton
Purchase Price £102,000
Amount spent on the property £4,500
Monthly Income £2,210
Annual Income £26,520
7 Westland Road, Wolverhampton
Purchase Price £100,000
Amount spent on the property £20,000
Monthly Income £2,253
Annual Income £27,040
5 Westland Road, Wolverhampton
Purchase Price £108,000
Amount spend on the property £40,000
Monthly Income £3,033
Annual Income £36,400
100 Compton Road, Wolverhampton
Amount spent on the property £30,000
Monthly Income £3,055
Annual Income £36,660
That’s a total monthly income of £10,551 from just 4 properties!
Okay let’s not get carried away because there are some costs to come off that. And after all costs I’m left with £5,665 in my pocket every single month!
Believe me, that’s more money than I ever dreamed of making. It’s more than double what I used to earn from my corporate job with overtime and a long commute.
The best part of this story is that I was able to do all of this with none of my money…
The first property that I bought (200 Lea Road) was a large 3 bed terraced house that I knew would be perfect for this because most of the conversion work had already been done. It wasn’t sold as an HMO because it wasn’t licensed and it didn’t meet the safety standards but any house that has a kitchen upstairs and downstairs is an HMO in my book.
I picked it up cheap at auction which mean that I needed to buy it with cash. Now, I don’t know about you but I don’t have 100 grand under the bed, so I had to do this with someone else’s money.
This was the first time that I worked with a JV partner. Mainly because I never thought someone would give me their money so that I could grow my property portfolio.
After speaking with Arsh he made me realize that there are many people who want to get into property and don’t have the time or knowledge to do so. People that don’t know how to buy BMV property and get your money back after 6 months. Ultimately, it made me realize that I could sell myself as an investment because I would give rich people a better return than they would get on their own.
And if they invested in me, it wouldn’t require any of their time!
To my complete surprise, with this mindset shift… finding JV partners and raising finance became easy. No longer was I “Oliver” with my begging bowl “asking for more”.
Now I was a property expert who could help investors in ways that no-one-else-could. That’s a powerful position to be in and one that ultimately, gave me the results that I wanted.
So armed with my JV partners money I bought a property at auction and called in a lot of favours to do the refurb cheap. In actual fact, there wasn’t much to do. We put in a wired fire alarm, fire safety lighting and a master key system and that’s about it.
Then I held my breath… as the property was inspected by the council. I had nothing to worry about as Arsh had already inspected the property (guided me through the refurb) and told me that there was nothing to worry about.
Arsh was absolutely right. The house passed with flying colours and was given an HMO license. It then passed the real test, public opinion. All 6 rooms filled within 3 days.
That was a great feeling. A real milestone in my property journey and one that was easier than I thought. It was just a matter of following a simple checklist.
You might be thinking… so far, so simple. But how did you pay back your JV partner.
What happened next… completely blew my mind
This was the first time that I’d applied for a commercial mortgage, so I was more than a little worried about it. I knew that to apply for a commercial mortgage you had prove that you were an “experienced” property investor. I also knew that having 3 buy to let properties wouldn’t be enough to enter this exclusive club.
Luckily there’s a simple loophole. JV with someone already in the club.
So Arsh called his commercial valuer and explained that we were working together. The guy came out to see the property and it all happened just like Arsh said it would.
The property was now a licensed HMO, so was valued as a business and NOT a house. This is a simple and crucial distinction.
As I could prove a regular income from the business the valuer approved a commercial mortgage for ten times income. The property made £26,520 per year. So the bank lent me £265,200!
Just like with a buy to let mortgage you need to leave in 25%. This meant that I was able to pull out £198,900. Which is almost double what I paid for the house just 6 months ago.
After paying back my JV partner (and the 8% interest that we agreed) I was still left with a cash surplus of £80,100.
Right there in one deal, I had made more money than I had in any other area of my life. More than flipping, more than with buy to let and much more than from my day job.
The best part is that even after pulling out all of that cash I still get a monthly net cash flow of £673.
Nothing succeeds like success
After earning £8,800 in less than a year for doing nothing, my JV partner was keen to do the same thing again. And that’s exactly what we did.
You may have noticed that the cost of the refurbs went up dramatically; £4,500 to £20,000 to £40,000. There’s a good reason for this. One that has a dramatic impact on your cash flow.
After the success of the first HMO I felt bullet proof. Which gave me the confidence to push the risk-boat out a little further. You see Arsh had told me about a new HMO strategy that he was using that doubled your cash flow. The only problem was, it required more money upfront, and for my first HMO I wasn’t comfortable with that much risk.
For the second HMO, my JV partner was willing to lend me more money and I could see that even if the cash flow didn’t double I wouldn’t have a problem pulling out all of my money.
It was a wonderful surprise when I experienced first hand the promise of this new model.
Double the cash flow from your HMO
The “Arsh HMO” model was discovered by Arsh Ellahi 9 years ago when he was a landlord on the verge of bankruptcy.
Extraordinary things happen when you are staring down the barrel of a gun, and that’s exactly what happened here.
Arsh had bought a 17 bed care home out of his investment area because on paper the deal stacked in several ways.
- There was already a care home operator in place with a 9 year lease.
- The care home operator was paying £60,000 a year, net after all costs.
- There was a personal guarantor for the care home operator.
So on the face of it, Arsh was buying a property that wouldn’t have any management challenges for the next 9 years. Even someone as cautious as me would have bought it on that basis.
The deal also stacked as a flip. Arsh bought the property for £480,000. Commercial valuers were giving ten times income so it could sell for £600,000 which would make a quick £120,000 profit for absolutely no work.
The only problem was, it didn’t sell!
Then the care home operator went bust.
Okay, no immediate problem as there’s the guarantor. Well it didn’t take long for the guarantor to declare himself bankrupt so Arsh was left with an empty property and a very big mortgage to pay.
Arsh needed a solution fast, or this property was going to bankrupt him.
The property was in West Bromwich, which is 13 miles away from Wolverhampton. Not ideal when trying to fill and manage a 17 bed HMO.
Arsh needed 3 things from this property
- To fill it fast
- To maximize the cash flow
- For it to virtually manage itself
For maximum cash flow, big becomes bigger
To maximize the cash flow from the property, Arsh took an HMO that was too big and made it bigger.
This sounds crazy but there was a lot of empty space that could be converted into rooms. This meant that when the conversion was complete the property became a spacious 23 bed HMO.
I say eventually because the refurb had to be funded by the cash flow. So it took a year rather than 2 months.
The biggest problem that Arsh had was the location of the property. This forced him to find a way for it to manage itself, or it would dominate his time. It was this problem that created the innovation. He pulled together the best parts of single lets and HMOs to create the Arsh HMO model.
The solution was simple and obvious. But would it work? Most people thought it was the fastest route to bankruptcy. Arsh tried because he had no alternative. He was completely desperate.
What he did was to turn each room into a self contained flat. The rooms could still be classed as a room because they didn’t have a kitchen in them. From a tenants perspective a kettle and microwave is all you need to cook so with that, a fridge and an en-suite it had everything they wanted.
The plan worked better than expected as the rooms filled like hotcakes. Tenants loved the idea of having their own flat and only paying a room rate for it.
Maybe it’s because the tenants saw their room as their own flat that created the dramatic change in their behavior. Whatever the reason… the results speak for themselves.
- 23 bed HMO that takes only 30 minutes a week to manage
- Tenants that stay for an average of 3 years. One of them has been there for 8 years!
- £120,000 a year rental income
- A property now worth £1.2 million
No bills. No hassles. More cash flow!
You might be wondering how this system works on a 4 bed property? With a care home you’ve got lots of space to create these self contained units. But can you do this with a normal house?
The simple answer is yes!
The more involved answer is that it takes longer to convert and costs more. So, why would I do this? Because it doubles your monthly cash flow.
Let me show you the numbers from my second HMO…
7 Westland Road, Wolverhampton
Purchase Price £100,000
Amount spent on the property £20,000
Monthly Income £2,253
Annual Income £27,040
With a quick glance it looks like I spent £15,000 more on the refurb to get an extra £40 a month in rent. And if that was the case I wouldn’t be raving about this model.
The real beauty of this, lies in what you can’t see.
Because each room is a self contained unit the ONLY cost that I have is the mortgage. The mortgage on £100K is only £286 which means that I’m making £1,967 per month net cash flow. That’s more than double what I’m making from the first HMO.
Even after I’ve paid back my JV partner (and pocketed a cool £51,600 for myself) the mortgage jumped to £901.
This means that after buying a house with none of my money, paying back my JV partner, I’m still left with an asset that generates £1,352 net cash flow per month.
This is in contrast to the first property that after all costs makes me £673 per month.
That’s double the cash flow from the second property, using the Arsh HMO model.
It’s also £2,025 net cash flow from 2 properties!
Plus there’s the properties themselves that have equity in them and can be passed on to my kids.
Will this system work for you?
I’ve been able to replicate this success across 2 other properties, both of which give me a net cash flow of £1,820. That’s a total of £5,665 from just 4 properties.
Each time you buy and convert a property, it becomes a little easier as you’re just following the same proven model.
Each time I’ve been able to pay back my JV partner and put some extra money in my pocket.
If you’d like to learn the exact same system that I’ve used, so you can copy it and achieve the same results then you must attend The Ultimate HMO Bootcamp on the 16 & 17 April. You’ll discover:
- The only HMO course to give you both the academic (classroom) and practical knowledge that you need to confidently take action the very next day.
- How to set up an HMO – just follow this simple checklist for quick success.
- The 3 fundamental HMO models to maximize the cash flow from any property and any tenant type.
- How simple and low cost changes to the floor plan will make dramatic differences to your cash flow.
- Complete understanding of your legal, safety & amenity obligations… and how to easily keep the Council on your side.
- Specialist guest talks
- HMO Architect – Meet the man who gets all of Arsh’s plans approved
- Commercial Finance Expert – How to pull all of your money out of the deal
- Property Tax Expert – How to make HMRC fund your next HMO
This is what it will do for you
- Gain the rock solid confidence to set up and profit from HMOs the very next day… thanks to our proven simple system, the academic and practical understanding of what needs to be done and how to do it.
- Complete understanding of the 3 fundamental HMO models… and the best one for your area and tenant type.
- Discover how much money you are leaving on the table when you are a one trick HMO pony (knowing only the all bills included model)… and being able to forecast your profit with the alternative models.
- How to see the potential and maximize the cash flow from any property with some simple, low cost layout changes.
- Experience a mindset shift from property income to rentable rooms… this instant and unbelievably powerful change will enable you to double the cash flow from any property.
- Sleep well at night knowing that your HMOs are set up to the highest fire safety standards. As you quickly move from 5 to 20 to 50 tenants you’ll be thankful that you set your portfolio up correctly in the first place.
- Retire on the cash flow from just 4 properties… which you can achieve from a standing start in a year just working at the weekends!
- How to get HMRC to fund your next HMO! Yes this really is possible when you know the insider secrets of what to put on your tax return.
- There’s a high tenant turnover with HMOs, right? Wrong! You’ll discover how to make tenants want to say in your rooms for years.
- How to make an HMO no more work to manage than a single let. This easy-to-use trick is the difference between the time freedom that comes with passive income and creating another job for yourself.
- How do you stop tenants opening the windows when the heating is on full? Simple, make them pay for it… But how do you do that? By using the Arsh HMO model.
- Discover how you can profit from both capital growth and high monthly cash flow. The current market uncertainty makes now the best time to get into HMOs. The savvy will make fortunes while the uninformed shy away from the “risk”
- Commercial lending is where the Big Dogs play. You can instantly join this experience-only-group by gaining access to Arsh’s power team.
If you’re anything like me, then the biggest difference that this will make to your life is time freedom. You won’t have to endure the long commute or put in the overtime that the job requires. You’ll finally be working for yourself, to make your dreams a reality and in the process you’ll finally make some real money. Best of all, this gives you a regular income so you know that you can always provide for your family.
If you’re smart, hungry and motivated,
YOU CAN DO THIS!
As you’ve seen, you can have a regular job replacing income of £5,665 from just 4 HMOs. And you can buy these with someone else’s money in a year just working at the weekend. If you’re able to dedicate more time to it, then you could achieve this in just 6 months.
But it all starts with learning the proven model and having someone to JV with so that you can immediately join the Big-Dogs in the commercial lending arena.
You can have all this and more when you attend The Ultimate HMO Bootcamp in April.
You might be wondering how much the course costs. The standard price (that has never failed to sell at) is £1,997 +VAT.
You can get it for half of what everyone else had to pay!
For a limited time only, you can get your hands on the course for £997 +VAT. And you can bring your life or business partner for free!
I know what it’s like to come back from a course like this with fire in your belly only to be forced to justify your plan to your wife. This certainly delays your progress and can put doubt in your mind at the worst possible time.
To help you avoid this pain, you can bring your husband or wife with you. This way they can help you take action quicker.
This offer expires at midnight on 6 April. After that the price returns to £1,997 +VAT and you’ll have to pay the full price for your partner.
No Risk 100% Money-Back Guarantee
If you buy the course today you risk nothing because you are covered by our 100% Money-Back Guarantee. Here’s how it works:
Attend both days of the course and if you are not completely and utterly satisfied with the academic and practical how-to-set-up-an-HMO knowledge, then all you have to do is say so, and I will give you a full refund. No questions asked. No hassles or forms to fill out. No problem at all.
How can I afford to be so generous?
Easy – so far, every single person that I know of that has experienced the thrill of doubling their cash flow using the “Arsh HMO” secret has been using it ever since. So I’m pretty damned confident it can work magic for you too.
Think about it: Standing by your bosses desk with your resignation letter in hand knowing that there is nothing anyone can say to convince you to stay because you are earning £5,665 per month from property cash flow… that would be something, wouldn’t it?
You bet it would. And you have absolutely nothing to lose with this super-generous money-back guarantee.
You can book your seat on The Ultimate HMO Bootcamp just click the link below:
Can you afford NOT to do this?
So what happens if you do nothing? You don’t have to worry about learning something new. And you don’t have to worry about getting out of your comfort zone when you take action on what you learned.
That also means that your life will not change. So your frustrations at work will remain. You will still have to suffer through the commute every day and you’ll have to accept that your choices are limited when you work for someone else.
Don’t get me wrong. I’m the most risk averse person you’ll ever meet. Which is why I love this strategy so much. It’s a “job” that has part time hours and a better than full time wage. It gives me the time freedom that I’ve always wanted AND a regular income.
You don’t have to walk the high-risk-tightrope that most business owners do. With this strategy all you have to do is follow a proven business model and you’ll enjoy a regular income.
You can set up 4 HMOs in a year while working full time. At that point you’ll have a regular income that exceeds your salary so you can quit your job with complete confidence that you can provide for your family and finally start to live life on your terms.
Don’t you owe it to yourself to give this is try? To learn these secrets at no risk to you all you need to do is click the link below:
To your success