Lease/Buy options

[Champ]

Hi everyone,

I would greatly apprecite some advice.

I own one property now and I am moving forward on a series of additional investments over the next few months.

I intend to purchase inner city melbourne houses.

I wish to structure lease/buy options on these properties.

My target market is young professional couples who would like to live in the trendier inner city suburbs but don't as yet have sufficient credibility with the bank to access $500k to $600k sums but have good cashflow.

Does anyone have any suggestions or experience in attracting these types of people.

Many thanks

Mark

 

[Katalyst]

Inner City Lease Options

Hi Mark

Read your post with interest.

I also work with "lease-to-buy" options.
Am about to embark on the inner city suburbs also.
I have been working the surf coast area to date and now extending to the Bayside and Port Phillip areas.

Marketing to the young professionals is niche.

If you haven't done this before I would suggest tapping into an established network of finance and real estate people in your desired area. This is not easy and requires great patience and brilliant connections. Your legal contracts will need to be in order and compliant with state legislation. Of course, thorough due diligence will aid your efforts.

I use a network of established and ready property investors also. This has taken time and effort, nearly two years to build to a stage of solid professional trust and integrity. This can be crucial in finalising a fair and suitable deal for the buyer tenant.

What kind of marketing ideas did you have in mind for this market segment?

There is another superb technique which I would gladly discuss with you in more suitable surroundings. It is sometimes known as a "Sandwich".

Hope this is of some benefit.

Regards,

Andrew

www.katalystsolutions.com.au

"GO the Roos!'

 

[Champ]

Thanks Andrew.

I have left message direct to your email and also on your site.

Regards,

Mark

 

[Tony]

Hi Champ,
Not trying to steal Andrew's thunder, but i do have a customer wanting to purchase a property using a lease option & the deal is as follows:

Property purchase price $455k
less tenant deposit $45k
90% loan $410k

Tenant pays rent of 5% based on $410K
Tenant also pays at least $200 weekly, which counts as more deposit. Exact figures still to be calculated, but will be much more than $200 per week.

Investor gets 4% capital growth compunded per annum based on $410k. Lease is for a maximum of 7 yrs. Tenant can cash out the investor, but must pay the capital gains for the full 7 yrs. If tenant decides to leave the property, the tenant loses his 10% deposit, plus any accumulated deposit paid weekly. If not cashed out before 7 yrs, the tenant purchases property at $410k plus 4% capital growth p.a. for the full 7 yrs, less any deposits paid during the course of the lease. If tenant decides NOT to purchase property, he simply walks away from the property with NO cash & NO property (although this is highly unlikely to occur).

As property is brand new & still to be built, depreciate schedule will allow for maximum tax deductions.

This should be enough info to satisfy you for now. I will not divulge any more details for public consumption & if you or anyone is serious, then please email me for exact details.

Regards Tony.
PS. Andrew not trying to steal your deal, but rather present a alternate deal which is ready NOW.

 

[Champ]

Thanks Tony.

I have sent you an email.

Regards,

Mark