Lease Options and Estate Agents

In this video, John talks about getting lease options deals from estate agents.

Ask your property investment question here.

In this episode

0:17 - I don't do very much of this
0:35 - Avoid this traditional newbie mistake
1:12 - Only deal with motivated sellers
1:24 - Don't introduce all your terms at once
1:40 - If you encounter resistance
1:58 - This is how the agent commission will be paid
2:06 - Once the agent realises that you've got the gold...

Video transcript

John Wilson here with some tips on finding lease options deals from local estate agents.  This question comes from Brett in Australia.  I will say that I don't do very much of this because I far prefer sellers to come to me, using marketing techniques but I will give you my thoughts on this.

Now, the traditional newbie mistake is to just wander into the estate agent and just ask them what deals they have available for you. But you want to avoid that by making sure you know what property you are going to bid on because you will have done your research beforehand to make sure that you know which of the properties -- if any -- on that estate agent's books are taking a long time to shift, or perhaps have recent price changes. Anything that indicates that the seller is motivated because of course, you don't want to be dealing with any seller who is not motivated.

I then suggest that you make a verbal offer to the estate agent on that property but don't introduce all your terms at that point; you want to make sure that that offer is going to be acceptable before introducing the terms that you're looking for, so agree one thing at a time.

If you encounter any resistance from the agent then just remind them that they're going to be getting their commission, because at the end of the day that is what they're looking for out of this. And if it's a property that has been on for a long time, they will be quite happy to get it off their hands and get that commission into their back pocket.

Now the agent commission will of course be paid out of the downpayment that the incoming tenant buyer makes. And once the agent realises that you are able to shift properties that you are unable to then he is going to come back to you with future properties that he is having trouble with.

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