Expert Options in Practice

The real value is the way these help others move on… and the profit created!

Purchase Option: Case study 1

The situation: A flea infested 2 bed terrace badly needed some attention. The owner and his daughter wanted to sell after a long term tenant had left.
The want: As high a price as possible for a property which needed a full refurbishment.
The need: £33,000 within 12 weeks.
The Solution: A 3 month purchase option with access agreed in order to carry out works. The property was refurbished, and bought within 8 weeks.
Commentary: This option served as a lock-out agreement and gave me the security of knowing any money I invested in the property to carry out the refurbishment was protected. It was valued at £52,000 when I bought it.

Purchase Option: Case Study 2

The Situation: A family needed to sell their empty large end-terrace – the mortgage was crippling them.  £93,600 would clear the debt and inject capital into their restaurant business.
The Want: £110,000 in 4 months.
The Need: A quick sale of £95,000 and instant relief from mortgage payments.
The Solution: A 4 month Purchase Option (£93,600) with mortgage payments (£475) coming off the balance at completion.
Commentary: This Option was assignable. The investor I sold it to made 3 mortgage payments before buying.  He converted it to two flats and achieved an end value of £200,000.

Purchase Option: Case Study 3

The Situation: Two brothers own an empty modern 2 bed house with no debt – 6 months marketing at £85,000 found no buyer. Unwilling to become landlords and struggling to pay the mortgage on their new home, they needed a quick fix.
The Want: Clear the mortgage on the new home.
The Need: Monthly money to cover the mortgage on their new home.
The Solution: A 48 month Instalment Purchase Option (£67,000) with permission to let.
Commentary: I pay them £280 pcm and let the house for £650 pcm. I will buy within the term and hold. There are many houses out there mortgage free, which seem to the owner to be a liability!

Lease Option: case study 4

Tired of problem tenants, Allan responded to my line add. His 3 bed semi was perfectly located. It was important for him I didn’t negotiate on the price.  The property was mortgage free. We quickly forged a 48 month Instalment Purchase Option at £82,500 and agreed my £250 monthly payment would be credited to the purchase price.
The Financials: I get rent of £500 pcm. The family improved the property hugely and can buy within 36 months for £110,000.  £2,000 was the deposit, work’s credit of £10,000 and £50 a month instalment. If they buy in 36 months they will pay £96,200. I will owe Allan £73,500. My total profit will be £36,620. The family are ecstatic in their dream home. Allan has peace of mind and a monthly income. I made some new friends…and an amazing return for a couple of hours work.

Lease Option: Case study 5

Caron owns a beautiful 2 bed semi with a conservatory and well kept gardens in a good part of Darlington. Although she had moved into a Park Home in the countryside 40 miles away, she was unable to settle and enjoy life with her partner Lee. They were paying £490 for the mortgage on the empty house, not to mention insurance and council tax. Their concern had matured into anxiety. Thoughts about vandals and burglars were taking the joy out of life. They wanted to cut the 40 mile elastic band tugging them back to their house, but couldn’t sell it and didn’t want to become landlords.  They even considered giving up their dream of living in the countryside.
We agreed a 48 month option to buy at £97,000 (the house was on the market for £125,000). The mortgage has now been reduced to £278 pcm and we have an excellent tenant who pays £104 per week. Caron has peace of mind and no stress! You can meet Caron at www.PropertyOptionExpert.co.uk.

Remember – for Expert Lease Option Strategies, education and real support – to enjoy the journey – help is at hand with Option Expert