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Welcome to part four of this valuable series of tele-seminars that guide you through the UK’s first ever £1M Lease Options challenge! On this call we took a question from the listeners and we revealed some exciting ‘never before revealed’ lease options strategies, namely:
Welcome to part three of this valuable series of tele-seminars that guide you through the UK’s first ever £1M Lease Options challenge! This call walks you through how to structure a lease options deal. Our lease options solicitor will take you by the hand and show you how to fill in the initial documentation including the ‘heads of terms’ agreement that you will need to complete when putting lease option deals together.
We also answered the following questions on the call:
Dear Mentors,
the last webinar was great (sadly I could only join 1/2 way through) and the role play by Phil was excellent pointers – great simple script and I’m a big fan of Phils. It was clearly a win win with Richard and with lease options being so flexible and creative there is potentially nearly always something that can be done.
However, in the rough and tough world of negotiation and the 1st phone call there is of course a lot of objections and objection handling from landlords and vendors even for the simply laid out concepts. Ive found in London particularly hard getting a landlord to agree 20% off rent as apparently rents always rise, there are never voids and they’d accept the guarantee for 5 years if it was at current open market rate – hmmm why would I want to do that? there clearly is no logic in that for an investor. not a win for me.
My rapport building is very good and my negotiation is probably fair to middle over the phone in the first call as I’m struggling on occasions to convince a pretty savvy 10 years experienced London landlord for example who’s never lost out of property yet.
So what I wanted to ask – could you compile or provide a dossier for frequent and common objections that we can put in the toolbox to try and convert more calls.
As sometimes is just one more hurdle to keep that golden egg in tact. Craig.
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Hello all did we all enjoy last night ? i did but i do have a couple of questions such as i now understand how to approach landlord/vendor with the old i have a client who is interested speech, but i don’t where do i find them/generate them, especially tenant buyers? and it was mentioned by phil to send over a draft proposal when potential deals are on the table, is there a copy of this anywhere we can download and tailor to our needs? i do appreciate that the answers are in forthcoming conferences but i do want to get the ball rolling on this one.
Now just for a minute if you could imagine that the challenge was laid down a month earlier could it have been called the £10 million challenge in time for the next workshop? or would Shimons and his team not been able to cope?
Now with comments like that i had better at least be able to get 1 deal done in time hadnt i? so please team you may call me 07500104844 with any early pearls of wisdom you may have for me Craig G
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Many thanks chaps for another great teleconference. A couple of really good nuggets of info, one of which I would like to ask a further question about;
re; Future value of an option;
example; 5yr sale option agreed 110k,
TB wishes to leave after 3yrs,
option fees paid to date 10k,
what would the value of the option be if;
RIS value of property 105k.
110k
115k
Is there a formula to calculate this or would demand determine the value of the option by auction?
Having just asked this question, I now realise that there is a whole other world of trading options out there and is this something you guys do regularly? many thanks Ian
Welcome to part two of this valuable series of tele-seminars on the UK’s first £1M Lease Options challenge!
We answered the following questions on the call:
Say you have a lease option with some tenants and they pay you a deposit upfront and monthly top-ups for the option to buy the house they are renting years down the line. What happens to the deposit money and top up money if they decide not to buy the house in the end? Would you return it to them or is it yours to keep?
It was stated that it should be a fee up front not a deposit to avoid confusion etc.. The top up, does this go towards the purchase price or is it just a premium rent? I can see 110k (option purchase price) less 100k (current price) = 10k where does the other £1 come from?
I can see the benefit to the TB as they can purchase the house at 110k and presumably if its over 5yrs or so the house will then be worth much more, so a good incentive.
I want to do some leaflet drops is there a particular area that lease options work best? if im doing a lease option deal were there is no mortgage on the vendors house but they want a lump sum to spend on thier new house could i get them to re mortgage and me to +pay the re payments if this is possible what type of mortgage do i take out ? Im guessing a buy to let mortgage if so how would I raise the 25% deposite for the buy to let mortgage ?
Typically what % below open market rent do you offer for guaranteed rent to landlords for say 3 to 5 year leases? And do you typically cover maintenance? To what amounts? e.g. £100 per issue…etc.
Do the options need to be registered with the lenders ( as per commercial) to make them valid
What is the best way to cover yourself against interest rate inflation for the term of the lease?
I am in talks with a vendor at the moment he has a property thats worth 100k but has a mortgage on the property of 120k ! I am struggling to structure this deal…..any advice would be really appreciated!! mortgage is 450.00 rentals in the area between 625-650
Welcome to another Property Tycoons Community member interview.
This month I am interviewing a member of my Tycoon Mastermind Alliance mentoring program David O’Donnell who lives in London and works in the consumer goods industry.
David explains how he came to the realisation that working for somebody else for the rest of his life was not going to give him the kind of freedom and security that he would need to be truly happy and secure for the rest of his life. He decided that things needed to change (sound familiar?)
He started by researching the property market thoroughly, visiting networking events and speaking to people in the know. Before long he did his first deal and now he is well on his way to buying many more properties. Within a few years he hopes to be financially secure for life.
During the call, David reveals some of the techniques that he uses to research deals including what to look for on the Internet before you visit the property and how to assess the deal when you make a physical visit.
Whoever said property investors will suffer in this climate is obviously talking to the wrong people!
At our recent Renovation Mastery Workshop for our Tycoon Mastermind Alliance members, we shared tips and strategies for making money from buying properties needing work, renovating them and selling them on for very substantial profits.
One of our members Sue Elkington, who is in the process of making £155,000 on a single property development deal (in this climate) kindly shared with members the costings for her project along with explanations of various ways in which she saved money on the development. You will also hear some of our other Tycoon Mastermind Alliance members sharing their experiences of profiting from property development.
I’ve just finished interviewing our August 2009 Member of the month, Mr Phil Martin from Milton Keynes. Phil has a truly inspirational story to tell and I’m sure you’re really going to enjoy listening to it.
By listening to this call you will discover:
How to do deals even if you have bad credit or no money for a deposit…
How to get started in property even if you are brand new to investing…
How to find bargain properties - Phil shares some of his proven strategies…
How to stay motivated to do well even through the rough patches…
Can anybody do well in property or do you need special skills or other talents to do well?
and much more…
Enjoy the audio!
Please note, this audio is a sample of the full recording. The full recording is available for members of the Property Tycoons Community to download from here. If you are not already a member of the Property Tycoons Community you can learn about the huge range of benefits and take advantage of a FREE trial here.
Welcome to another Property Tycoons Community member interview.
This month I interviewed a member of my Tycoon Mastermind Alliance mentoring program named Greg Mowat who lives in sunny Cumbria in the North of England. Greg gave up his job and started investing in property just three months ago… Since then he has found and purchased three below market value properties (that’s one deal a month!)
He has been using some very unique and interesting methods for finding deals that involve using technology to his advantage.
On the call you will hear how Greg used lease options to take control of a £250,000 property that now generates him £300 per month cashflow for just £900 of his own money down. He then explains how in a few years time he will make an additional £31,000 for minimal work or hassle in the meantime.
Whoever said property investors will suffer in this climate is obviously talking to the wrong people!
This is a call I did with one of my Tycoon Mastermind Alliance members named Leslie Parr who recently won the coveted “Property Tycoons Community member of the month award”.
Les has made fantastic strides in property in a very short period of time. On the call you will hear how Les started in property after working in the chemicals industry for many years, the mistakes he made in his early days and how he went on to much bigger deals including the purchase of a letting agency in Liverpool that he has recently completed.
Enjoy the recording!
Please note, this audio is a sample of the full recording. The full recording is available for members of the Property Tycoons Community to download from here. If you are not already a member of the Property Tycoons Community you can learn about the huge range of benefits and take advantage of a FREE trial here.
The Property Tycoons Podcast is hosted by Parmdeep Vadesha and his team of property experts from the Property Tycoons Community. The Property Tycoons Community offers the world's largest selection of tools, ideas and people that make it easy for anybody to buy cheap below market value properties.
Join us as we discuss important property related issues - from how to find bargain properties to how to finance the purchase as efficiently as possible to maximise your return on investment.
From interviews with inspirational multi millionaire property developers to in depth discussions with leading property experts, the Property Tycoons Podcast covers a wide range of relevant property topics each week.
Parmdeep Vadesha created the Property Tycoons Community website because he couldn't find anywhere on the web that brought together people who shared his passion - the art of finding and buying investment properties at knock down bargain basement prices.
Parmdeep stumbled into property at the age of 23 whilst working nightshifts as a warehouse operative at a local crisps factory for £5 per hour. He started in property without any experience or knowledge of the business. He invested all of his spare time into learning how to find distressed sellers of bargain properties. Within 3 years he was financially free purely through his property related investments and businesses.
Parmdeep and his team of property experts are intensely passionate about property and love to share their knowledge of the business. We believe there has never been a better time to get involved in property - it's the sale of the century! Our community now has 4,000 members who have contributed over 122,000 property investment articles to our hugely popular discussion forum so come on in and join us - we'd love to get to know you.
I issued a S21 a year ago, changed my mind when the tenant begged to stay and promised to pay rent on time etc. Anyway 12 months later, the situation...
Lease Options are really starting to take off and getting a lot of coverage amongst investors, I do know however that there are some (including very...
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