All subscribers of Just Do Property are already entered into the 2011 Competition.  But you can gain more entries by recommending friends to subscribe to our site.  The more friends who subscribe the more entries you will get.

http://www.justdoproperty.co.uk/2011_prize_competition

We have 8 amazing prizes to win in the competition.

Our 3rd prize, to be drawn in November 2011 is a coaching call with Mark Jackson

- 3rd Prize –

30 minute coaching call with Mark Jackson of Lease Options Made Simple and a copy of his Working with Estate Agent Course.

“Mark Jackson is a prolific Property Options Investor and educator, author and problem solver. Having had outstanding success in the UK using Property Options he founded Property Option Expert in 2009 and founded Lease Options Made Simple with  Wendy Patton shortly afterwards from a strong desire to share his knowledge and experience.”

For a chance to win, simply subscribe and recommend your friends:

http://www.justdoproperty.co.uk/2011_prize_competition

Break-through purchasing plan excites First Time Buyers

If the housing market is an orchard, then first time buyers might be described as honey bees. Vibrant and active, their role is invaluable in encouraging trees to convert blossom into ripe, succulent fruit. Dark skies, cold, and prolonged downpours complicate their task, potentially reducing the value of the harvest. In this time of unprecedented financial gloom, even a ray of sunlight would be welcome! When first time buyers start buzzing with confidence, commentators agree, we will begin to see a return to a healthy market.

At Last – Sunshine!

The sunshine has arrived! This exciting break-through for the UK housing market is causing quite a stir. Why? It allows the first time buyer (and not only first time buyers) to move in, settle down and start enjoying their own home without bank finance. What does that mean? It’s possible to escape the rent rut even without a large deposit, or if you are unable to secure a mortgage in view of strict lender requirements! The solution is called Rent to Own. How does it work?

How it Works

With an initial fee of just 3 – 5% of the agreed purchase price the proud home-owner to be can move in, settle down and start enjoying the freedom and flexibility Rent to Own brings. Rent is paid normally each month with a little extra, an instalment, paid on top. It’s this little extra that builds up over a period of years to produce a sizeable deposit by the time the buyer is ready to secure a mortgage. This is where it gets really exciting. The future home-owner has moved from the rent rut to a position of strength. They have a good deposit, and have had time to clear any issues on their credit file. Now they have bargaining power. Rather than feeling the pressure of having to arrange things quickly, Rent to Own homeowners can move at their own pace, finding the best mortgage on offer. Time is working for them, not against them. This gives peace of mind and confidence, like a burst of warm sunshine through thick cloud.

There is a growing number of Rent to Own specialists in the UK, who can offer a home which meets your family’s needs, goals and aspirations. This may be one they themselves bought previously and wish to sell.

A specialist will also be able to match your requirements with one of many sellers who are keen to help others and sell their property through Rent to Own. Everybody benefits. More and more developers are so impressed with the results Rent to Own brings, that they have been actively promoting and marketing new homes through it.

The Benefits

• Affordability – a small initial fee gets you started
• Easy and understandable legal process
• Free from huge legal fees and costs to start
• Clarity of simple, solicitor approved contracts
• Faster than a traditional purchase
• The freedom to improve the property
• The freedom to enjoy the property as your own
• The security of a fixed purchase price
• The satisfaction of gaining from increased value
• The freedom to walk away if you want

The opportunity for first time buyers, divorcees or others, who might struggle to get a mortgage, or are unable to afford the deposit for that dream home, is huge. Granted, Rent to Own will not excite every one. But it is already creating quite a buzz among those looking for a simple way out of the rent rut and into their own home.

For landlords too, it’s reassuring to know that the light at the end of the tunnel need not be the train coming towards them. Rent to Own attracts first rate tenants who care for the house as if it were their own home. It gives peace of mind and a degree of security and certainty to both buyer and seller. It is a gift for those who dream of owning their own home. Rent to Own brings the sunshine home.

If you would like to ask Mark a question click here

Mark Jackson's Top Tips

1. Have the right attitude – and keep it:

Develop a successful attitude by actively creating a positive mindset, working on your self-control, becoming more disciplined, focused, and by learning from your mistakes. Crowd out weeds of doubt and inactivity with action and expectant belief.  Cultivate the mind and create an orchard. You can do this by reading both property investment related books and self-development books like Feel the Fear and Do it Anyway and Eat That Frog!. Be sure to put some time aside for yourself every day – just thirty minutes is a good start – and focus on what you want to achieve and how you are achieving it. Write your goals down and put them where you can see them. The time I give myself every day acts like a keel which keeps the yacht stable when the sea swells get rough.

2. Network for success:

A sponge absorbs whatever surrounds it. When you associate with like-minded people your growth and progress skyrockets.  Embers glow and warm only when they are together, take one away and it soon cools and dies. Simon Zutshi’s PIN networking events are the biggest in the UK and offer you a chance to learn from speakers’ presentations as well as meet people you will connect with.  Is it wise to take the person sitting next to you on as your mentor if they’re just starting out in property investing? Perhaps not, but meeting such people is powerful, enriching and through networking you can grow together and share your learning.

3. Learn from the experts:

If you want to be successful then get the right training!  This is true for any field, not just property investment. Learn from the best by spending time with somebody who is a specialist in your chosen field, even shadowing them as they go about their daily business. You will also learn much faster through experience when you’re associating and joint venturing with somebody who is already successful. Consider getting a coach who will be able to answer all your questions, or investing in a good course.  Always ensure your mentor is an investor who is actually doing deals in the UK and not just teaching theory.

4. Take it one step at a time:

This might sound like a contradiction to my earlier point, but be careful where you spend your money. It’s tempting to spend thousands of pounds on courses and seminars (and there are many people who would happily relieve you of your hard earned cash) which could be better spent investing in property. Many courses give information that is too advanced for a beginner investor’s needs, so be selective.  Cool your engines and do one course at a time, implementing what you learn and only allowing yourself further learning when you start making money from the new skills and techniques already gained. Make sure the presenter has a track record of successful deals, as well as being a great teacher.

5. Enjoy the journey:

You will make mistakes, everybody does. An expert is someone who has made all the mistakes in a narrow field.  Learn to laugh about them, to know that it is acceptable to make mistakes – that’s how we learn.  Just enjoy the amazing journey that is property investment! Isn’t that, after all, what this is all about?

If you would like to ask Mark a question click here

Described as the Power Steering of property investment, Options are powerful problem solvers and cash-flow creators. Though not suited to all situations, they are transforming the way investors view and transact residential property in the UK. They can fast-track you to financial freedom.

Property Options in Brief

Purchase Options, Lease Options and Sandwich Options are becoming familiar terms with Property investors. Perhaps you are already using these powerful legal agreements to add to your portfolio, to generate cash-flow, to sell property which might otherwise stick, or to secure your family home.

Understanding Property Options and using them with skill is important. Why? Because Options can open locked doors, or become trap-doors.

Property Options in Essence

An Option gives choice and freedom. Depending on the wording of the document, a Property Owner (Optionor or Grantor) grants exclusive freedom to buy, use or sell the Property, or a combination of these freedoms. The Buyer (Optionee) can choose to buy, or not to buy during the term of the Option. Should the Buyer wish to buy, the Seller must sell. That is the essence of an Option.

Essential Ingredients of Option Agreements:

• a willing seller;
• a written document;
• a specified period of time;
• an option fee;
• a purchase price; and
• a willing buyer.

Property Options fall broadly into two categories;

• A Purchase Option is often short-term and grants the holder the freedom to buy the property at an agreed price within a specified period of time.
  
• A Lease Option is a Purchase Option together with a lease giving the added freedom to use the property during the term

A property owner may grant a Lease Option to a tenant, (the tenant now has an Option to Buy) allowing them time to save a deposit, arrange finance, add value to their home and or wait for the property to appreciate before buying. This “tenant buyer” can choose the best time to “exercise the option” and buy. This is known as ‘Rent to Own’, or Rent to Buy.
When two Lease Option agreements run at the same time we have a Sandwich Option or Double Lease Option. The property owner grants an investor a Lease Option and the investor grants a second Lease Option to a tenant buyer. This effectively means the investor can control property and sell it without even owning it.

Property Options in Control

Option holders who take a property on a Lease Option will make a regular payment to the Owner or pay the Mortgagees direct on their behalf. This is a bit like piggy-backing to get through a muddy patch.

Lease Options can help these people move on;

• Tired Landlords
• People who need to relocate
• Divorcees and others who have separated
• Home-owners struggling to maintain mortgage payments

They can help these people move in;

• Upsizers
• Investors
• First time buyers

Options are not without risk. This is generally limited to the Option fee (a payment making the Option binding at the outset) and any costs incurred during the Option Period. You need to be sure your Option Agreements are properly drafted, that they are fair and transparent, otherwise you may not be able to exercise them.

Options should create cash-flow, since the monthly payments to the Seller or the Mortgagee would be lower than payments taken as rent. If property prices increase, you also benefit from the capital growth.

Property Options in Practice

Option agreements can provide relief for homeowners in many situations. Take Ms D and her partner. They own a two-bed semi with a conservatory and well kept gardens in a good part of County Durham but had moved 40 miles away to settle in a rural location. They were unable to sell the house. Concerned about vandals and burglars their quality of life was suffering. Unwilling to become landlords, they were paying £490 a month for an empty house.

Rather than allowing the situation to spiral out of control, they granted a 48 month Lease Option with the purchase price set at £97,000; less than the marketed sale price. We contribute £300 a month, which covers the interest on the mortgage. An excellent tenant cares for the property. We benefit from a modest £120 profit a month.

We intend to buy the property when the market recovers. If it doesn’t, we will negotiate an extension with Ms D, or allow the option to lapse or expire. In this case, and by mutual agreement, the house will be returned in excellent condition. We will have benefitted from the cashflow, and Ms D will have had 4 years of peace of mind.

Rent to own goes a step further. It is a simple arrangement allowing a tenant to live in the property, paying rent in the usual way. In addition the tenant has a legal document giving them the right to buy the house within an agreed time period at a set price. Tenant Buyers tend to be people who can’t get a mortgage immediately, or don’t yet have the needed deposit, but have a strong prospect of securing finance in the future. The money paid when they move in, together with the monthly instalments, goes towards creating their deposit.

Imagine you own an investment property which owes you £100,000 and the value now is closer to £90,000. With an Option you might set the future purchase price (to be paid within, say, 48 months) at £110,000. When your tenant buyer moves in you collect an Option Fee of 3-5 per cent of the agreed purchase price; collect market rent and monthly instalments of up to 20 per cent of the rent. When the Tenant Buyer decides to exercise her Option and buy, the Option Fee and monthly instalments become the purchase deposit.

Selling to a tenant-buyer in this way has many benefits. Late payments and void periods are extremely rare. The responsibility for day to day maintenance and improving the property lies with the future buyer who takes pride in his home. This home-owner mindset safeguards your cash-flow and frees you to focus on other aspects of your business. Giving back to the community by helping local families own good homes is rewarding.

Property Options and You

Option Agreements are transforming the way we buy and sell property in the UK. You can control a substantial portfolio without the need for personal mortgage debt or liability. Hard pressed landlords can re-organise their finances and transform portfolios. Through Rent to Own, Property Options are opening doors for potential home-owners when finance is not readily available.

Investing this way may well be an Option you can’t refuse!

If you would like to ask Mark a question click here

Use a Purchase Option to Lock in a Discounted Price

You can use a purchase option to lock in a discounted price.  This means you are protecting the time invested in sourcing, negotiating and structuring the deal, and you are effectively locking out the competition.

The power of this lies in the fact that the seller has granted you an exclusive right to buy within a defined and agreed time period.  Notice the word “exclusive”.  The seller is not able to sell to anyone else, except you.

At the same time you are able to sell the contract on to another purchaser, transferring the right to buy at the discounted price to them for a fee.

Let’s look at a real example from a North East town.   The seller had been marketing a very large and now empty house for nine months.  With no rental income the monthly mortgage payments of £475 was crippling.

Having started a new business recently and with a need for capital to support it and very little time to cope with an empty property, the seller’s motivation was keen.  After some discussion a purchase price of £93,600 was agreed which was below the marketed price of £110,000 and still enough to clear the mortgage and inject funds into the seller’s start-up business.

The seller was very concerned that he would be unable to make the mortgage payments before the house sold.  A four-month purchase option at £93,600 was agreed and a maximum of four monthly mortgage payments to be made by the buyer, which would be credited to the purchase price at completion.  Once the simple paperwork was signed the option was assigned to a waiting developer-investor for a modest but welcome fee.

Confident that planning would be granted, the developer exercised the option and later successfully converted the building into two flats achieving an end value of £200,000 and about £80,000 in equity after costs.

This case shows how you can profit from property deals that don’t really fit your personal buying criteria, or if as a finder you want to create quick cash.  Simply put, it shows how you can use a purchase option to lock in a discounted price.

Please email me at Mark.Jackson@justdoproperty.co.uk if you want to grow your wealth with simple lease options.

If you would like to ask Mark a question click here

It has been rebranded from the BMV Quick Start to include other ways of buying property in the current climate.

The day started really well, everybody was friendly and welcoming and I soon got chatting to other investors, so it was a great networking opportunity too.  Simon did the majority of presenting and he is an excellent speaker.  The room was buzzing with energy and I was frantically taking notes!  I was pleased that Simon talked a lot about mindset and your reason ‘why’. As I come from a network marketing background it was interesting to hear, I truly believe that your reason ‘why’ will be your main motivator – even if you have a bad day.

We were taught how to calculate the ROI to compare investment opportunities, I found this a very useful exercise.  If you’ve been a property investor for many years then this probably something you do quickly in your head, but it was good for me to go through the basics.  Simon then discussed how to actually find these BMV deals.  You can of course buy leads from various companies, but mainly we were taught how to do it ourselves.

He then showed us how to do your research on the internet, searching through comparables. I knew most of this already but it was good to go through this again.    Funding was discussed and how to creatively finance your investments.  Simon discussed an interesting finance option that I didn’t know about, this was Vendor Finance, where the vendor actually loans you the money for your deposit. Doug from Henderson Ponsford came along to offer advice about mortgages. 

We had a great presentation from Mark Jackson who discussed Property Options with us.  He told us an interesting story about a recent house he had just done an option on where they were attacked by fleas when they walked through the front door! I guess you’ve got to do these things if you want the bargains! Mark went through the 3 different types of options – Purchase; Lease and Sandwich.  This is very exciting. You get to control the property without actually buying it – so – no mortgage and no capital required! 

Simon then went through how to make money by selling leads, which sounds good to me!  He also went through a very tax efficient exit strategy.

All in all it was a great day and I came away with lots of ideas and some good contacts.