In the latest episode of Deal Finder’s Corner, our host, Guillaume Black, had the honour of hosting the renowned property investor, accredited property educator, and lease option specialist trainer, Mr. Barry White. Barry’s impressive credentials include being an international speaker, an NLP master practitioner, and a social psychologist. He’s also the author of the Amazon best-selling book, “The Psychology of Property Negotiation.” Together with his wife, Jannette, they’ve not only achieved financial freedom but are also committed to helping others reach their financial goals. Through their company, Barry White Training, they’ve trained over 15,000 individuals and personally mentored more than 500.
Challenges Faced by Property Investors Today
Barry White begins by highlighting that challenges are part and parcel of the property investment journey, whether you’re a newcomer or an experienced investor.
Common problems faced by property investors today include:
- High Property Prices: Acquiring affordable properties can be a daunting task.
- Investment Challenges in London: The London market presents unique hurdles.
- Lack of Income: Some investors struggle with inadequate income.
- Limited Deposits: Many face the challenge of insufficient seed capital.
- Bad Credit Files: Poor credit history can hinder investment opportunities.
- Unstable Job Market: The uncertainty of permanent employment is a concern.
- Market Volatility: Fluctuating market conditions can be unsettling.
- High Interest Rates: Interest rates can impact investment viability.
- Limited Availability: Finding suitable properties can be challenging.
- Building a Team: Assembling a competent team for property projects can be time-consuming and expensive.
The Game-Changer: Lease Options in Property Investment
Barry White explains why lease options can revolutionise your property investment journey:
- Property Control: With lease options, you take control without immediate ownership.
- Mortgage Struggles in London: Lease options are especially beneficial in a market where many are grappling with mortgage issues.
- No Income Proof Needed: Unlike traditional purchases, you don’t need to prove your income upfront.
- Zero Deposits: Lease options don’t require substantial deposits.
- Credit File Repair: Lease options often extend beyond six years, allowing time for credit file improvement.
- Employment Status Unimportant: Employment status isn’t a hindrance.
- Property Value Appreciation: Property prices tend to rise over time, benefiting lease option holders.
- Accessibility: Lease options are easily identified through Property Filter, a proprietary framework simplifying the search process.
- Team Minimisation: Minor refurbishments are often required, eliminating the need for an extensive team.
A screenshot from Property Filter shows 59 properties for sale and for rent, with 259 in negative equity in South Yorkshire. Plenty of PLOs options found in seconds.
Barry emphasises that lease options aren’t a strategy but a control and purchase technique. It grants the right to lease or rent a property with an option, but not the obligation, to buy it in the future.
Versatility of Lease Options
Lease options can be used for various property types, including:
- Buy-to-lets
- Properties in negative equity
- HMOs
- Commercial properties
- Mixed-use properties
- Title splits
- Assisted sales
- Hotel purchases
- Option swaps
- Even your own primary residence
Debunking Lease Option Myths
Barry dispels common myths about lease options:
- Buying for £1: You control a house for £1 legally, but usually you can’t buy it for that amount.
- Complexity: Lease options become simple with knowledge.
- Opportunistic: They’re about asking the right questions to solve the seller’s problems.
- Difficulty Finding: Property Filter makes finding them easy.
- Illegality: Lease options are legal.
- Only for Commercial Property: While easier with commercial property, residential properties can also be involved.
Why Lease Options NOW?
The economic and market turmoil forecasted, including a recession, high inflation, interest rate hikes, and property value declines, makes lease options a smart choice. Mortgage interest rates may rise, but with lease options, you avoid the 25% LTV deposit, saving tens of thousands. High demand may prevent property prices from dropping, yet many individuals may struggle to afford mortgages, leading to potential negative equity. The Bank of England reveals that mortgage payment arrears have surged to their highest levels since 2016, with outstanding mortgage arrears approaching £17 billion.
The Power of Negotiation
Barry underscores the importance of negotiation skills. The ability to understand the seller’s situation can allow you to control a property for as little as £1 when solving their problems. Negotiation skills often determine whether property offers are accepted.
Lease options are accessible techniques suitable for anyone, regardless of their current circumstances. They offer transformative power, allowing you to build wealth through win-win solutions.
Barry White’s presentation is filled with enlightening case studies, making it a must-watch for anyone interested in property investment.
