How You Can Use Property Options to Create Multiple Streams of Income.
So you want to invest in property using lease options? Is that because you are looking to create an income stream for financial freedom? What about using property options to create multiple streams of income?
You will probably agree that creating multiple streams of income is a good approach. All eggs in one basket means a financial blow, knock or drop could crack them all. So it’s wise to avoid relying completely on one particular income stream. Lease options can deliver financial freedom, but be sure to take full advantage of their flexibility.
You may already have read the preceding articles about other strategies. Let’s briefly review two broad approaches to using lease options (and property purchase options) to create multiple streams of income.
Two Broad Property Option Strategies
Creating multiple income streams by mixing your approach is simple and wise. A strong strategy is a combination of holding and flipping using property options.
Holding Property Using Lease Options
The first approach would of course be a holding strategy. Beware of taking on certain types of property with options. Spread the type of property you hold with lease options.
Some investors who exclusively bought off-plan 2 bed apartments in city centres are now suffering. A combination of over-inflated valuations at the peak of the market, strong competition from other investor-buyers leading to depressed rental values and voids and high service charges, has severely challenged some buy to let investors. These are not the best properties to be taking on a lease option now.
Focus more on acquiring second hand property with an established track record which includes three bed semi detached homes in areas near good schools. You will generally enjoy enormous demand from rent to own tenant-buyers and families looking to rent longer term.
So spread your investment choice across several different types of property. Avoid investment property that is easy to agree a deal on, but difficult to profit from.
Flipping (or Selling) Property Option Deals
A second string to your bow (or another basket if we skip back to the egg analogy) would be securing property option deals with a Heads of Terms and selling that to a trusted and experienced investor. You can ‘flip’ option deals this way. They don’t have to be long term agreements, but they do need to represent a win-win for all parties.
Want to Sell Property Option Deals?
One strategy that the Lease Options Made Simple team is having huge success with at the moment is working with sourcing partners to secure potential refurbishment opportunities, including probate property.
We are willing to pay for any leads or deals you source which meets the following criteria:
- Needs refurbishment (probate property works well).
- Vendor is willing to allow access for works before the property is sold.
- Houses anywhere in England or Wales.
- Off-road parking is a huge plus.
- There is no upper purchase price limit.
- Remodelling or refurbishing the property will increase its market appeal.
- Properties which don’t stack from an investor’s rental perspective can be perfect for home-buyers.
If you come across anything suitable and want to create multiple income streams from property, why not drop me a personal email on mark@leaseoptionsmadesimple.co.uk.
Remember – by mixing your approach to investing in property using lease options you can create multiple streams of income – one from holding and letting property, and a second from flipping deals you don’t want to keep. Imagine that! You don’t even have to get your hands dirty.
Drop us a line and we will do what we can to help you succeed and create multiple streams of income using property options.
