Property Option Expert Blog

Have you ever watched bread rise? It’s amazing! Almost magical.

Helping a motivated seller with lease options can be similar. Under the right conditions and with a considered mix of vital ingredients something quite special happens. This is what makes working with Options so rewarding! You can become a highly skilled baker.

You may remember from previous articles, for Property Options to benefit all, we need three essential ingredients – a genuine interest in the Seller, honesty, and the right measure of information. We also discussed how to find those who need the creative solutions you can offer.  Do you remember the moth and flame analogy? Or sniffer-dog sourcing? Please feel free to review those earlier articles at www.optionexpert.co.uk

So – your marketing is flying and the phone is red hot! This is where the real fun starts! What are some important things you want to keep in mind when taking calls?

Making Trust Grow

If your option deal is a loaf of bread, then trust is strong flour. Make it grow. The water of communication and the yeast of motivation are also indispensible. A sprinkle of salt will enhance the flavour – humour is always welcome. You’ll need a little elbow grease too.

Some advocate a twenty-four hour recorded message service, answer machines or call centres. I’m not keen. Never underestimate the power of the first point of contact! When Sellers call, if at all possible, answer them personally.

Research shows that when communicating face to face 45% of what we say is conveyed through the voice. Of this 38% is conveyed vocally (the tone, rhythm, inflection) and just 7% verbally (words). Stop and think about that! Rather than getting hung up on precise words and phrases, focus on the way in which you communicate. The vessel from which water is poured into the mix matters little… much more the temperature.  Freezing water hinders growth.  A warm tone and a smile work wonders, so let your smile speak. Friends step in time when walking side by side. They talk in time too, matching rhythm and pace.  With practice, this will become natural for you on the telephone even with strangers, and trust will grow.

Asking the Right Questions

Start with, “How can I help you?” Ask about the situation, before you ask about the house.  And find out why they would ever consider selling! During this first call you aim to get the ingredients together and in the mixing bowl. Keep it brief, three minutes is fine, but don’t be afraid to digress to find common ground.

Are you talking with the owner?
What is their situation?
How long have they lived there?
House address and description
Is the house currently on the market?
How much do they want for the house?

Allow time between calls for the bread to prove. Follow through without chasing, and get more information stage by stage, not in one sitting. Bread doesn’t rise in the freezer – so keep things warm and friendly, but professional.

Kneading takes a little effort, but without it the yeast or soda can’t do its work. Decide if a Lease Option Strategy is the best solution early on, but do remember that Lease Options are only one of the tools in your tool-bag, and they are often not the best one.

You should have answers to the following questions before you agree to view the house or suggest a solution

Do they have a mortgage?
How much debt do they have?
Will they sell for what is owed?

As the trust grows you will need to find out:

Who is the Lender?
What are the monthly mortgage payments?
How will these payments change over time?

Need to Knead!

We have a responsibility to the Vendor to “stress test” the proposed agreement to ensure our kneading has created something which will grow and not cave in (more later in YPN or visit www.PropertyOptionExpert.co.uk).

If interest rates rise by x% over the term of the agreement – can you still cover it? You will want to see specific details when you meet the Vendor – but if you can get facts now you will save time and energy.  Bread half-baked makes your belly ache.

Some investors are very excited about Options and claiming to be baking by the dozen. It is wise to see the difference between a motivated seller with massive debt agreeing to a Property Option – and a genuine sustainable Option Solution. For this you need practical knowledge, not romantic ideas. It’s not the sun, sea and sand of Property Options we need, it’s the deepening of the harbour. So be thorough before you visit the Seller.

When you have your Heads of Agreement and other initial paperwork signed, you are ready for the oven. Baking bread in a plastic mixing bowl would spoil your hard work, so be sure to use solicitors who are familiar with Options (Richard Spencer at BPE is excellent) and UK solicitor approved paperwork – to download simply visit www.PropertyOptionExpert.co.uk

There are few things in life more appealing than the smell of freshly baked bread, especially when it has been created in your own kitchen!  But it’s more than the magic of the dough rising, putting bread on the table and attaining financial freedom fast.  Skilfully helping motivated sellers with well-baked Property Options is very rewarding – truly magical!

Besides distributing a regular newsletter with Option Expert tips for investors in the UK, Mark Jackson conducts regular workshops and offers personal mentoring.  For details please visit www.PropertyOptionExpert.co.uk or write to mark@optionexpert.co.uk