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> Are
Lease Options For Me? |
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Article kindly provided by
Mike
Clarke - mypropertypowerteam.co.uk
AND
Mark
Jackson - leaseoptionsmadesimple.co.uk |
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Many property investors who are struggling to
obtain suitable finance are exploring the use
of Lease Options to gain control of property for
a small peppercorn fee and making arrangements
for purchase at a future date. A Buy Now, Pay
Later method of property investment.
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Lease
Options have in fact been around for many years, proven
to be a very effective investment method popular in
the USA and Australia.
In
the UK Lease Options had previously only been used
for commercial purposes until the economic crash in
2007 when investors suddenly found that lenders did
not want to lend, and cash became tight. Overnight
Lease Options became a major buzz phrase for investors
and a new way of investing / controlling UK property
hit the streets.
Lease
Options Practitioners began educating investors and
for many, the use of such agreements meant that they
were able to continue to expand property portfolio’s
and continue to profit from property without actually
owning any of it. Stalwart “Old School”
investors frowned but were soon left behind as Lease
Option fever hit the UK and those who took the time
to educate themselves on this method of controlling
property were the only investors who were left smiling
as the credit crunch bit harder.
Many
would be investors have heard about the ease of use
of Lease Options but still remain wary of how to put
agreements in place and how to use options effectively.
MyPropertyPowerTeam
were approached by Simon Clarke (no relation), an
investor based in Leeds who asked a series of relevant
questions that he felt he needed answers to before
he could proceed to use Lease Options effectively.
We put Simon’s questions directly to our own
Lease Options trainer and expert – Mark Jackson
from LeaseOptionsMadeSimple.co.uk
We
have reprinted Simon’s questions and Mark Jackson’s
answers below for the benefit of all property people
who are still unsure about Lease Options or who want
a little clarification on one or two aspects on effective
use of such agreements.
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-
Get
your FREE Lease Options Jump Start Kit –
worth £97!
-
Short
cut your route to Property Option success
by piggy-backing across muddy investment fields
on our experience
-
Make
getting powerfully practical advice enjoyable,
in this easy to read, easy to understand parcel
of investing dynamite.
-
Includes
scripts, real marketing examples, forms you
need to get started, step by step lease options
investor check-list and much, much more
- Also
available as an audio
book
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Simon Clarke Asked:
"I
would like to start with the lease options and
have seen the online presentations & DVD
from different speaker but I have a few concerns,
can you answer the following please:"
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1.
Legal paper work, does this get provided
when you go on one of the courses or does the solicitor
have agreements they can give you?
I
would personally be surprised if any course gave the
full legal paperwork in the form you need to complete
a lease option. There is a raft of documentation that
is needed to do this well. The paperwork needs to
be tailored to each individual deal. The courses that
do come with actual contracts would usually include
simple purchase options (or lock-out agreements) or
inferior legal documents.
2.
Valuation, how do you value the property? I have seen
some agents offering a free valuation; do they just
go on line and see what property sold for in the area?
Valuations
are not as critical for a lease option purchase -
this is much more crucial in the case of a purchase
with lender finance. Valuations are, at the end of
the day, opinions and are only justified or exposed
when the market is allowed in. So a property is worth
what someone is willing to pay for it. Valuations
are generally arrived at by comparing with previous
sales of similar properties in a near-by area.
3.
Survey, surely before any option is taken up a survey
must be done?
Yes.
But many investors don't do this. There are different
levels of survey, of course, and bear in mind that
they are only current for 3 months...
4.
Agent’s fees, what happens to these?
If
the property has been sourced through an Agent then
the fees will need to be paid.
5.
Sourcing property/ tenants, how is this done by going
to agents visiting the property and then returning
to the vendor?
There
are many ways to do this - and using agents is one
of them. Direct contact with the seller is often simpler.
6.
What if the vendor is behind on their mortgage and
how can you find this out?
There
are degrees of financial distress. My view is that
if the default is repeated and deliberate it is better
to walk away. Those who have fallen behind will often
hide the fact, so before you enter into an agreement
you need to ask the seller, and confirm through recent
mortgage and loan statements that what the seller
is saying is true.
7.
What if the vendor is in negative equity?
That
doesn't have to be a problem. Lease options can solve
that.
8.
If the vendor needs the equity in the property to
purchase another property and you have no capital?
Then
you need to find and partner with someone who does
have the money, or help the seller find the money
from another source.
9.
Are you completely protected if the seller decides
after you have paid their mortgage for some time and
decides they do not want to sell?
There
is always a risk. You need to weigh that up - but
the contracts are secure and binding - and can be
enforced in a court of law.
10.
Is any capital needed to start?
I
would suggest that you need capital to be in the business
of property investment. Start by sourcing properties
cheaply and flipping the contract on to another buyer
for a fee - that way you can get a pot behind you.
If
you have any questions on Lease Options for Mark Jackson
or property investment in general then please contact
us by emailing mike@mypropertypowerteam.co.uk and
we will find the answers you need to progress and
succeed!
|
|
-
Get
your FREE Lease Options Jump Start Kit –
worth £97!
-
Short
cut your route to Property Option success
by piggy-backing across muddy investment fields
on our experience
-
Make
getting powerfully practical advice enjoyable,
in this easy to read, easy to understand parcel
of investing dynamite.
-
Includes
scripts, real marketing examples, forms you
need to get started, step by step lease options
investor check-list and much, much more
- Also
available as an audio
book
|
|
|
|
Mark
Jackson
Mark is a prolific lease option expert and
property investor, educator and author. Having
enjoyed outstanding success in the UK using
property lease options he founded Lease Options
Made Simple with Wendy Patton, the leading
US lease option property expert.
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Mike Clarke
Mike
is the director of MyProperty PowerTeam.co.uk.
He has been investing since 2004 and owns property
across the North West and the North East |
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You
Want to Invest in Property but Can’t Get
a Mortgage?
Have
they said No to your mortgage application? How did
that make you feel? You could have been earning
£293 a month from that house they said you
couldn’t buy? Are you starting to feel that
your dream to make money from property is beyond
your reach?
The
annoying thing is that many are saying now is the
time to buy… But how? It could be very frustrating.
You
CAN do it!
How?
Learn lease options. Property lease options allow
you to take control. Does that sound like something
that might interest you? Good.
Imagine
saying goodbye to many mortgage applications, expensive
surveys and down-valued property! Imagine planning
and executing a sensible, personal property investment
strategy, building a sustainable investment portfolio,
without having to ask for permission!
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