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articles > Lease Options - Good Catch or Red Herring?!
Articles > Lease Options - Good Catch or Red Herring?!

Article kindly provided by Wendy Patton & Mark Jackson

Property Option Expert.co.uk is an online learning resource centre for landlords and investors who wish explore the possibilities offered by property options.

 

People often send us deals dressed up as “tremendous” and lined up as “a great catch”, enticing and exciting to part with precious £££s ...

But... you know what...? with a little consideration and attention to each word of this short article (and perhaps you’ll even be tempted to click and watch the video clip that’s been crafted for you) you will clearly understand that “a great catch” is sometimes, disappointingly, a red herring.

But before we get to that – and for just a moment, suppose we were to ask you: “Are you serious about Lease Options?” You may be inclined to answer, “Yes!” If that is so, then please do all you can to join us at our special event June 2nd at the Royal Armouries, Leeds

Before you secure your place for that, allow us to share a little more about good and bad deals. As you study the numbers below, ask yourself,

“Is this a great catch, or a red herring? Fresh lobster or three-week-old dressed crab? Should I swallow it hook, line and sinker? Do I truly know its net worth?”

A little time invested in this case study will save you literally £housands – guaranteed!

So, here it is:

A nice semi-detached 2 bedroom with a small third office / box room not far from Northampton with Gardens at the back and parking. The house is in excellent order and boasts a new kitchen and bathroom (...baited breath?)... currently empty, the seller wants to move away from this family home

Market Value: £115,000
Mortgage £115,000
Option Price: £117,000
Option Term: 78 months max

Monthly mortgage payment: £350
(currently @ 3.5% tracker )
Market Rent: £550

Hooked? Does it feel like a great catch, or is something fishy going on?

And what’s the ticket price? £5,000 as an option fee... plus you have your legals and possibly seller legals to pay... another £1,100... Yes – there’s more to this than meets the eye. Why is this deal not so swell?

Ask yourself: “Would I buy this deal?”
“How much equity do I have locked in?”
“What about the cashflow?”
“The house is empty. How soon can I find a tenant?”
“How fast will my cash-flow go (evaporate) when the base rate rises?”

Now to really learn good lessons from this and get what makes a deal a great catch – why not take a look at our short clip here? - CLICK HERE

What you will discover will save you £housands – guaranteed

P.S> CLICK HERE if you want to get started on crafting REAL deals!

P.P.S> The Leeds event June 2nd will help you sort the red herrings from the real catch!

Just CLICK HERE to learn more


P.P.P.S> Buy now and you are ready to steal a deal on the ticket price – just use this special discount code on the sign up page - discount25 - See you there!

 
 

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Wendy Patton & Mark Jackson
Invite You To...

Lease Options Made Simple (Live in Leeds)

Practical, Profitable,Safe

Wednesday, 2nd June 2010
8:30 AM - 5:30 PM

The Royal Armouries, Leeds

BOOK NOW

 

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