Strategy. Lease Option
Agreed purchase price (within 5 years)
Deposit paid now
Solicitor Fees Vendor
Solicitor Fees Buyer
Yearly net Income
Estimated capital Appreciation
32.0% (5 years) from current valuation (£105,000)
Estimated capital appreciation over 5 years
Rental profit over 5 years
TOTAL PROFIT OVER 5 YEARS
This property was was sourced using gorilla marketing techniques.We had placed a number of postcards in shop widows and take aways in the area. After a few weeks of no calls we were contacted by a landlord who was fed up with his rental properties and wanted to sell them.
After reviewing his properties we quickly discovered that he needed to sell them for very close to the market value which would not be very profitable as a investment.
Rather than walking away we decided to get creative and suggested a lease option would be the best solution for both parties. This allowed the vendor to receive a up front cash instalment and allowed us to 5 years to make money through renting and hopefully capital appreciation.
This type of strategy takes a lot of face to face time in order to fully understand what the vendor needs. Only then can you create a truly win win solution. We feel that we were successful in creating such a scenario.