Options

So…….. acquire a Property for £1 - REALLY……………??

"To good to be true" i hear you say

"It must be bad for someone somehow" i hear you say

Let me tell you about my first option on a property in the UK

In a position where I had no money, well no surplus money for luxuries such as extra houses

I had no ability to get a mortgage as my income didn’t amount to enough on its own

And absolutely no support.

Having been taught this strategy by Ben and Barry, I did this incredible strategy to acquire a 6 bed house with a one bed annex.

I viewed it, discussed the idea of the PLO purchase Lease Option, (that’s what we call this strategy) with the agent and found myself a few days later in a meeting with both the vendor and the agent.  

Great tactics on the agents part as it meant the vendor could see that I was genuine and I could explain confidently how such an agreement could work for all parties.

All done through solicitors making it watertight for us all, the strategy was so simple.

What I would agree to buy it for (if indeed I decided to buy it)

In Up to a how many years the agreement would be for

And what I would pay the vendor each month.  

You see a PLO gives you the option to purchase but not the obligation.

£1 is exchanged between solicitors, this is where the term ‘ to buy a house for a pound' came from

The property was at the time generating £2850 per calendar month and I offered the asking price 

£350,000 for a period of up to 5 years and an £1800 fee (or rent) a month.

The final agreement after negotiations was 

£340,000 for 

4 years and 

£1800 pcm

3 months later I had changed the tenant type and was generating £4000 giving me £1700 profit per month which was £20,400 per year that equated to a 501% return on investment.

At the end of the option agreement I bought it borrowing the deposit from an investor.  6 months later it was valued by the banks valuers as a refinance for £600,000 so I was able to pull out the investors money and have some tax free money in my pocket as well.

Done correctly, where all parties get what makes them happy, this strategy brings HOPE to many, including those struggling to sell, and those with no funds to buy.