Over 36 years of property investing experience!
The Great Recession Part 5
Repossessions are a fact of life, and even more so during a recession.
Understand that a home repossession is a last resort by a bank to attempt to at least make some money out of that particular mortgage, and it is a last resort – banks hate repossessing property – it costs them a lot of money and they just don’t need the bad press that comes with it.
Selling a repossessed property and receiving a lump sum is a small consolation for the bank; because of the way the system is set up, they make their money from the monthly payment made by the mortgagee, and the lump sum they receive helps very little.
Also be aware that the banks couldn’t care less who actually makes the monthly mortgage payment just as long as it’s made, and if the mortgagee can’t afford to pay but some other person can and is willing, the banks certainly aren’t going to make a fuss!
It makes sense then, that a perfect strategy is to identify those homeowners facing repossession and to prevent that repossession from going ahead.
We do this by taking control of their property using a Lease Option and so piggy-backing their mortgage. Simply, what we do is pay their mortgage for them! We also arrange with the bank to pay off the mortgagee’s arrears, which could be for as little as £25 a month, and the bank will be delighted, first because they had written off those arrears, and to have them repaid by you is a huge bonus, but now they don’t have to go through with the repossession either. They’re like the cat that got the cream.
The homeowner is delighted too that their repossession is stopped and also the risk of bankruptcy and all that that entails is minimised. Yes, they have to leave their home, but they would have had to leave anyway, and this way you can build a solution into the Lease Option deal whereby they can one day get their property back.
You’re happy too, because you have that great feeling that you have a) helped other people and b) acquired a property for virtually nothing.
It’s a win-win-win situation.
You can see that this is an easy way to build a property portfolio, but it gets even better.
Imagine a solicitor recommending your services to it’s clients. Imagine lots of solicitors recommending you.
Imagine the Citizen’s Advice Bureau and other debt-help organisations recommending your services.
Better than all that, imagine the banks passing you the details of their pending repossessions and asking you to help…!
This strategy, done right, is a passport to a future success that you could only dream of, because remember that repossessions go on all the time, not just during recessions.
Still think Rent2Rent is the way to go?
We are hosting a course on Saturday 23rd July when we will not only show you exactly what Lease Option contracts are and how they work, but how to source pre-repossession properties, how to negotiate then and how to seal the deal.
We give you ALL the paperwork and contracts you need, and we go through the contracts with you so that you understand them! No-one else does that!
Finally, we show you the way to set up your business and how to get the solicitors, debt-help companies and the banks on your side!
It doesn’t matter whether you are brand new to Property Investing, or a seasoned pro, this is the one course that really can change your life.
Even more so when you know that a few lucky people will have the chance to go into this very same business in partnership with myself and my business partner Jon.
Forget what other solutions to beating the recession you have read or heard about. Not one of them comes close to this one!
Oh, and if you didn’t know, I was responsible for bringing Lease Options to the UK from America many years ago when I discovered them by reading a book by Donald Trump! With close to 200 deals under my belt – my own plus assists with my students – I am almost certainly your best prospect of learning the right way to do Lease Option deals!
Please pay below to register and book onto the course. We will get back to you or you can go here for more info.