• Instalment Contract Sandwich Option Case Study | Part 2 [Video]

    July 15, 2013

    Property Lease Options

    Instalment Contract - Weymouth, DorsetAfter discussing various exit strategies, we decided that a tenant buyer strategy would best suit the seller’s circumstances and so structured this deal as an Instalment Contract Sandwich Option. The next step was to start using a variety of recommended strategies (e.g. guerilla signs and sandwich boards) to start marketing the property to find a suitable buyer.

    I often see hesitancy from creative investors to get out there with the sandwich boards on and market in high streets. Although daunting at first, sometimes you just have to ‘feel the fear and do it anyway’ and that is exactly what Robert and Biljana did. They didn’t worry about how they looked and they actually got a tremendous response for it. Their pictures went up on Facebook providing greater exposure and were even approached by national media outlets. After a while they actually found it quite enjoyable & now this type of marketing is a strong part of their toolkit. Very quickly they realised just how many people were hurting because of property problems & it made them feel great to be able to offer a solution.

    Instalment Contract - Weymouth, Dorset

    After being inundated with enquiries, Robert and Biljana used my unique qualifying techniques to single out the ideal candidates. One man, a builder, and his partner seemed perfect for this opportunity as although they very good at generating cash they did not have the necessary accounts in the right order to qualify for a mortgage. Therefore they were very interested by the opportunity presented to them, which would allow them to get onto the property ladder through a Sandwich Option arrangement.

    The arrangement included putting down an upfront fee, agreeing a monthly amount, locking in a fixed purchase price and setting a 2-year completion date when they will be in a much better position to buy. We often find that a lot of our tenant buyers are self-employed. As you can see, this creates a real WIN: WIN: WIN for the seller, buyer and by default my mentee, just for putting the deal together.

    Instalment Contract - Weymouth, Dorset

    I congratulate Robert and Biljana for getting out of their comfort zone, that’s what your 1st deal is all about, I am very proud of them. They have made this work from scratch and now stand to make a very healthy profit.

    The Instalment Contract Sandwich Deal is structured so that Robert and Biljana stand to make over £33,000. The best part is that this deal did not require owning a property, getting a mortgage, putting down a deposit, paying stamp duty, having good credit or even going to the bank at all showing why this is such a great strategy compared to traditional buy-to-let investing. Furthermore, it’s a great feeling when you are genuinely helping out people in need; it really provides an enormous amount of self-satisfaction.

    The key to Robert and Biljana’s success was their dogged determination and perseverance; this combined with the right support can reap lucrative rewards. I am absolutely delighted for Robert, Biljana and their family; I know there are many more deals in the pipeline, all as a result of getting out there and taking action!

    See Part 1 for the full video interview of the case study!

    Instalment Contract - Weymouth, Dorset

    Thank you for reading this case study, I hope you found it useful! If you have any questions, please don’t hesitate to get in touch.

    If you want to find out more about Instalment Contracts and other creative property strategies, call me on 0203 397 7030 or arrange a call back 

    >>Information about my unique 1-2-1 Mentoring Programme<<

    About Reena Malra

    Connect with me: Google+ Reena Malra is one of the UKs most successful property investors and mentors. The strategies Reena has discovered and developed over the past few years take the focus off the price and put it on the flexible and convenient payment terms. This is how Reena can structure transactions to really benefit both the buyer and the seller. Reena specialises in property lease options, instalment contracts, rent torent, below market value (BMV), stopping repossessions, joint venture, delayed completion and tenant buyer strategies. She also runsworkshops and webinars, and offers property consultancy services and one-to-one mentoring.

    View all posts by Reena Malra

    No comments yet.

    Leave a Reply