Monday, 6 July 2015

Rent to Rent: What Are Lease Options & How Do They Work?

Rent to Rent: What Are Lease Options & How Do They Work?

  • ‘Lease with the Option to Purchase at the end of the tenancy’
  • Total Control of the property and create an income
  • Future agreed price to purchase property
  • Locks in the landlord for 5 – 10 years
  • The right but no obligation to buy
  • Sell on for the market price if you prefer at a later date
  • Pay £1 deposit for the Property Option
  • Pay £500 per month to rent the property which will come off the final price
  • Rent out for £1,500 per month if Multi letting the property
  • £1,000 per month profit
Controlling property without ownership creates wealth without the risk – we like this a lot!
For what we do and how we work Lease Options in our Rent to Rent strategy is by far the most simple. We the buyer has the option to but the seller does not so there is no obligation to purchase at any time unless you wish too, in fact you don’t have to purchase at all, you can sell the option onto another party. 
We use them in Rent to Rent because if we have taken the time to find a great property returning a great rental profit we may like to keep it ourselves. We can either save the rent over the timeframe and purchase we have the money to do so or set the option up so that we can pay for the property per month by way of rent.
It works like this:
  • Current value of the property is £150,000
  • We pay £500 per month to the landlord for the property
  • We rent out for £1,500 per month
  • The agreed price for the option will be £175,000 for the next 5 years.
  • If the property is worth say £210,000 in 5 years we purchase using no money left in strategy
…or we set the option up so the £500 we pay each month or £6,000 a year comes off the final price so in 5 years time we would pay £175,000 minus the £30,000 we pain in rent with a total of £145,000. 
Good deal?
You bet. When setting up and negotiating Lease Options with a vendor make sure it is right for the vendor and right for you. It’s a numbers game. If property prices fall over the time you simply don’t purchase or you can extend the option.
Are you ready to start making a residual income from property?

Then book your space today on our one day intensive content rich Rent to Rent mastermind days.
We only run these with limited numbers, so book today before it fills up!
On the day you will get the following:
Full manual printed and presented to you on the day to take away and use as a reference with electronic updates for 12 months. You also get the full one day course as mentioned and tons of tips on the day along with a fully scripted live role play with agents. 
We also provide you with all the contracts and documents you will need with letters to agents and landlords included.
You will be surprised at how much less you will pay than expected for such a course. 
Contact me DIRECT on +44 7966 871854 so I can give you access to this Incredible Training...
Adrian Hibbert
Internet and Property Millionaire