[Part 3 of 3]
Approaching lease options & Getting LO Deals From Estate Agents
If you try to explain what a lease option is and how they work to an agent, they're very unlikely to understand, could well be sceptical or feel its a lot of effort for little proven reward.
It will take time and great rapport, and you'll probably need to have done a deal or two with them first.
The trick is to articulate this in a way that EASILY benefits the agent, and solves a problem.
Use this proven script:
"Do you have any properties that just won't sell?
Have you got those types of properties that have been on your books for ages? Or in negative equity?
Do you have many vendors who have unrealistic price expectations?
And would you like to earn commissions on those deals you haven't or can't sell, upfront?"
Then you're in, and you can then gently start explaining LO's in simple terms, as explained on our no money down masterclass.
First, try to target small independent estate agents – not the big corporate chains – as the owners of independents are more accessible, and the negotiators are more entrepreneurial.
For more on options, ensure you educate yourself on how they work.
Approaching Deal Packaging From Estate Agents:
If you agree to buy a deal from an estate agent and then attempt to sell that on, it will upset the EA on many levels.
It is very important to frame upfront that you'll be sourcing deals for other investors, and not just yourself.
And there's a very specific process for this that works very well follow this system:
When you first approach estate agents and build relationships with them, let them know that as well as sourcing deals for yourself, you head a group of investors who you buy on behalf of.
Let them know conversationally that you're part of an investor community who pool funds for multiple purchases, then ASK THEM if it's OK to buy on behalf of the group, as well as for yourself.
Of course, that will be a BIG YES, and then they'll never be suspicious when it comes time to pass that deal onto another buyer.
This in fact INCREASES your credibility and the hunger of the agent to pass you more deals.
And it's upfront, gentle and, best of all, EASY!