I have attended a lot of property and business network meetings. One of the big questions that gets asked during these meetings is “Which property owner would do a deal like that with me, when they could just do it themselves?” Now you may not actually hear this said out loud but I know a lot of you are thinking it.
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Creative deals like Rent to Rent or Lease Options are great deals for investors. After all, they provide great cash flow, you don’t have to put a lot of money in (you may even have put someone else’s money in) and that means you get great positive cash flow.
Once you’ve put in the hard work and learned what works in your area, then you know where the landlords are, which agents will help you, where to find tenants and how to keep everyone happy. In short, you’ve learned how to systemise the business. And a systemised business has the potential to make money every month just like a bank note printer (if such a thing exists).
That’s great from your point of view but what about the owner/landlord? What’s in it for them? Quite frankly, there’s a lot in it for them.
Imagine you’ve acquired a property and it just isn’t working for you. A property that doesn’t work for you is hassle! And no-one wants hassle in this world anymore. So what is hassle? Well, I’m sure people take on different levels of risk and workload and in doing so, alloacte differing amounts of time. This means that one person may hate doing a task while another person will thrive on it.
I perceive hassle to mean that the activity I am pursuing does not give me enough cash or takes up to much of my time (or maybe both!)
Based on this definition we can see how landlords and owners can get to a point where they say “Enough is eonugh! This property is just too much hassle!!”
After all, who wants to deal with tenants that don’t pay, or trash the property? Who wants to deal with phone calls at all hours? And who wants to continue with a situation that didn’t turn out as well as they expected?
This is when we see the power of the creative strategies. If you can offer a solution in which an owner gets to keep their property, gets paid every month and, critically, has NO overhead on their income, don’t you think they’d bite your hand off to do such a deal?