Structuring an Option That Pays

Option fee, monthly payment, purchase price and where your profit is

A lease option needs little money to start, and that is exactly what lets beginners talk themselves into deals that were never going to work. This book teaches you to work out whether a specific option will actually pay. It explains the numbers that matter, including the option fee, the monthly payment to the owner and the purchase price, and where to find reliable local data for free rather than relying on the seller's optimism or your own hope. You will learn to build honest income and then the full cost stack, rather than simply subtracting the owner's payment from the rent and calling the result profit. The deal is stress-tested against a bad month, a void and a rate rise. A complete worked example shows how the numbers move together on one deal, and the final chapter gives you a calculator along with the legal questions it cannot answer. Next in this series: “Option Agreements and Solicitors”.

What’s inside

• The only numbers that actually matter
• Where to find reliable local data for free
• Working out true income, not optimistic income
• The full cost stack nobody mentions
• Stress-testing for the bad month, the void and the rate rise
• A complete worked example, start to finish
• Your deal calculator, and the legal questions it cannot answer

Educational material only, not financial, legal or tax advice. Results are not typical and are not a guarantee of income. Freedom Property Academy LTD, registered in England and Wales.