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Property Options Quick Start Seminar CONFIDENTIAL

Copyright Simon Zutshi 2010 ©

The Property Options

Quick Start Seminar



Disclaimer Terms and Conditions 1. Disclaimer and waiver of claims

a. Investing in property is a speculative method of investment and so you could lose money. The material taught by property investors network is educational in nature. The intent of the course / seminar is to educate participants about property investment and related areas.

b. The information in this workbook and the audio visual content of the seminar is for educational purposes. No recommendations of particular investments of any kind are made. If particular properties are mentioned, they are only cited for educational and illustrative purposes.

c. By purchasing this home study course you have released property investors network and all those working with them for any and all liability resulting from your actions based on the course / seminar material. All course / seminar content examples & information are not to be construed as any recommendation, solicitation, prediction or advice for your actions in and dealing with property investments, as this seminar is strictly educational. You cannot hold property investors network or any people working with them responsible for any subsequent personal activity within the area of property investment.

2. Confidentiality Agreement

a. All content, workbooks, materials and systems taught in these lectures, whether written or verbal are copyright material of Simon Zutshi.

b. You are not permitted to copy, make available or divulge to any unauthorized party, in any way, any of the materials, notes, strategies or teachings of these lectures, whether for financial gain or not. Having signed the disclaimer if you should allow any of these materials to be made available to any unauthorized party then you will be liable to consequential legal action.

c. No photocopying, audio, video, photographic recordings of Simon Zutshi’s seminars or previews, or any of the copyrighted materials provided are allowed without the consent, prior-approved knowledge and arrangement of property investors network.

3. Unconditional Guarantee

By participation in any property investors network home study course / seminar, you are agreeing to abide by all of the Terms and Conditions listed above.



Personal Action Plan

No. Action By

1 2 3 4 5 6 7 8 9

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32



Questions

No. Question Page

1 2 3 4 5 6 7 8 9

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30



Your personal action plan

Fill in your action plan as we go through the seminar

Recap the day and pick up extra action points

Prioritise the actions

Commit to your buddy

Do something EVERY day

Support your buddy



Objectives of this workshop

1. This workshop is designed to give you a basic understanding of options

o What are they?

o Why should you be using them?

o When to use them?

o How to use them?

2. Set your personal option strategy

3. Inspire you to take action and keep going

4. Enable you to quickly secure your first option deal

5. Minimise the risk and maximise your return What do you want to achieve from this workshop? __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

On a scale of 1 to 10 how would you rate your knowledge of options before and after this workshop? (No Knowledge) (Experienced)

Before 1 2 3 4 5 6 7 8 9 10 After 1 2 3 4 5 6 7 8 9 10



What is an option!

• Purchase option is the right to buy: – For a fixed price – Within a certain period – Not obliged to purchase – There must be a consideration – Options should be assignable

• Purchase Lease option

– As above but also have use of the asset – Monthly option fee is payable

• You can either buy options, sell them or both

• Sandwich option

– You buy an option from one person – You sell on the same option to another person

• Options are no suitable for every situation

In this workshop we are going to focus on ________ _________ options.

What can you do when you have a purchase lease option?

1. ________ _________ ________

2. ________ _________ _________

3. _________ _________

4. _________ __________



2 key factors to identify potential options There are two very important factors to look out for: 1: The seller does not need revenue for the sale of the property

Consider what circumstances this might be true

__________________________________

__________________________________

__________________________________

__________________________________

___________________________________ Remember with an option the seller may get a small option fee but they will not get a large lump sum of cash until the property is actually sold. 2: Favourable mortgage conditions

What might these be?

__________________________________

__________________________________

__________________________________

__________________________________

A clue to look out for is if they mention a ____________ ____________. When looking to do an option you need the seller to disclose full details about their ____________



So why would someone agree to do an option?

WHY? > Ultimately it solves a problem for them.

Want to sell but can’t

__________________________________________________________________________________________________________________________________________________________________________________________

Want to get away from liability of paying the mortgage __________________________________________________________________________________________________________________________________________________________________________________________

Don’t need the money from the sale __________________________________________________________________________________________________________________________________________________________________________________________

You can give a better return than the bank __________________________________________________________________________________________________________________________________________________________________________________________

About to lose the property anyway __________________________________________________________________________________________________________________________________________________________________________________________

Want to agree sale but not to complete for a while

o Redemption penalty __________________________________________________________________________________________________________________________________________________________________________________________

o Claw back from council

__________________________________________________________________________________________________________________________________________________________________________________________

Taxation reasons __________________________________________________________________________________________________________________________________________________________________________________________



4 HUGE mistakes made by investors - and how to avoid them!

1. They do an option ______ ____ ____ rather than it being a good deal.

__________________________________________________________________________________________________________________________________________________________________________________________

2. Try to save money ______ ______ ______ legal agreements

__________________________________________________________________________________________________________________________________________________________________________________________

3. Don’t get independent ______ _______ for the seller

__________________________________________________________________________________________________________________________________________________________________________________________

4. Give _____ ______ to the seller where they are not qualified to do so

__________________________________________________________________________________________________________________________________________________________________________________________

Worst case scenario, the seller may attempt to get the option overruled and your option becomes worthless. There will be no WIN, No FEE solicitors who specialise in getting options overturned .We want to make sure this does not happen to you



Option Deals Assessment Check List Don’t do options deals just because you can. They must be good deals. If the deal does not work for you then don’t be afraid to walk away. Here is a useful CHECK LIST for you to consider:

The deal How much is it going to cost you to do? How quick does it pay back? Is there any equity in the property? Is the option period long enough?

The seller Do you trust them? Do you think they will cause any problems during the option period? How financially stable do you think they are?

The property Is the option at a fair price? Is the property in a good location with strong rental demand? Does it stack up as a good investment in terms of cash flow? Are there extra costs such as service charges? Are there any structural issues? Will you be able to get a mortgage if you want to exercise the option? What is your exit strategy?



Understanding the legal process VERY IMPORTANT: Always use solicitors to draw up your contracts

Heads of terms These are the details that you need to provide to the solicitor so they can draw up the options contract for you. Your full name and home address ______________________________________________________________________________________________________________________________________ The seller’s full name and home address ______________________________________________________________________________________________________________________________________ The property address ______________________________________________________________________________________________________________________________________ The agree purchase price ______________________________________________________________________________________________________________________________________ The length of the option ______________________________________________________________________________________________________________________________________ The option fee payable ______________________________________________________________________________________________________________________________________ Details of any monthly payment ______________________________________________________________________________________________________________________________________ These details should cover most options you want to do.



Legal representation VERY IMPORTANT – The seller must have independent legal advice This does not mean their local family solicitor! The solicitor must fully understand options and so we offer to introduce them to a solicitor who:

- Has a proven track record - Can work well with our solicitors - Get things done quickly - Is cost effective

We offer to cover the cost of their solicitor if they use the one we recommend for the above reasons. Cost of Solicitors Get them to put some money on account with their solicitor. Then advise the solicitor to take the balance of payment from the option fee. You need to send to your solicitor:

- The cost of your legal fees - The cost of the sellers legal fees - The agree upfront option fee

There solicitor costs will be added to the agreed option fee to make the NEW option fee which will be sent over to the seller’s solicitor Example: Agreed option fee: Their Legal costs: NEW option fee: Doing it this way means that you are actually paying it but there is a paper trail which shows that they have paid for it from their option fee. The same is true if you agree to pay Estate agents fee. It must appear to come from the seller.



Protected Lease Options and Protected Lease Purchase

System designed to mitigate as many risks as possible

Results based reward system

You supply the information and they do all the checks

They maintain the option until it is exercised

Action : Contact Hedge Capital Options. Details in back of workbook

Your legal Power Team

Contact Details in the back of the workbook

Quick Start Process

1 Month Free use of the legal helpline.

Avoid Giving Financial advice You are not authorised to give financial advice so don’t do it! The big mistake most investors make is advising the seller about their mortgage! _______ _______ mortgages are best for us _______ mortgages are best for the seller You best look after the best interest of the seller. Fixed monthly payment or variable with interest rates? ______________________________________________________________________________________________________________________________________ ______________________________________________________________________________________________________________________________________



Massive Cash Flow Strategy Gain cash flow on property that you don’t own or have a mortgage on! __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________



How to source option deals

Key strategies

1. _________________________________

2. __________________________________

3. __________________________________

4. __________________________________

5. __________________________________

6. __________________________________

7. __________________________________

8. __________________________________

9. _________________________________

10. __________________________________

11. __________________________________

12. __________________________________

13. __________________________________

14. __________________________________

15. __________________________________

16. __________________________________

17. __________________________________ 18. __________________________________

19. __________________________________

20. __________________________________



What to do with a lead?

See the Investment Strategy Flow Chart You need to qualify the lead to work out what you can do with it.

Questions you need answering include:

Are they a motivated seller? Is there equity in the property? Will they consider an option? Will they sell at a discount?

Depending on what they want, your strategy could be:

Do a standard lease option on it?

- Live in it yourself

- Rent it out (AST, LHA or multi let)

- Assign it as a packaged deal

- Find a tenant buyer for them if the rent does not stack up

NO purchase Flipping

- Sell through EA to investor

- Sell through your own contacts

- Package for FTB if rent does not stack



Own Dream home or Holiday Home Strategy Live in the home you have always dreamed of or have a holiday home. __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________



What to say to the sellers! You need to understand __________________________ We are looking for ________ _________ Qualifying questions to gauge their interest:

Would you be interested in renting the house to me for 3 to 5 years?

And if I like it would you be interested in selling it you me? This is not like normal renting:

First of all there are no void periods

You get the rent on time, in full every month

You have no management agent to pay

No maintenance - costs we look after it

Basically no hassle you can forget about the property! If they really don’t want to do an option maybe we can help them to sell. See the assisted seller strategy

Building rapport with the seller

Be friendly – smile – first names

Confident – certainty

Empathy - listen to them and engage in conversation

Reassuring

Professional and courteous

How can I help this person?



Fact finding

Their contact details

Address and postcode

Property description and details

Estimated value (Why that value?)

Reason for sale

All the mortgage details

Related information such as amount of debt

What is important to them?

How much do they need?

What timescales?



No Purchase flipping Strategy Help a seller to sell their property for which you get some of the profit __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________



What is your ideal options strategy!

Which strategies best suit your circumstances? ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

What are your top 3 actions to take? ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Is there anything that might stop you from taking action? ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Who can you get to help you? ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Do you have any questions? ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

How many deals are you going to do in the next 12 months? _________________________________________________________________________________________________________________________________________________________________________________________________________ ___________________________________________________________________



Round-up and summary

Actions required now:

1) Share your biggest learning point

2) Complete your action sheets

3) Work out the priority order

4) Commit to your partner

Further learning

Monthly property investors network meetings o Southampton 1st Tuesday of the month o Worcester 1st Wednesday of the month o Cardiff 2nd Tuesday of the month o Bristol 2nd Wednesday of the month o Watford 2nd Thursday of the month o Nottingham 3rd Tuesday of the month o Manchester 3rd Wednesday of the month o Birmingham 3rd Thursday of the month o London 4th Tuesday of the month o Leeds 4th Wednesday of the month o Cambridge 4th Thursday of the month

Put the dates in your diary for the pin meeting closest to you. There are no meetings in August or December.



Most people believe that their pension will be enough to support them in their old age but the truth is that 90% of the UK population will have to continue working until they day they die or end up living on Rivita and Kitty Kat, unless they take control

of their financial future now!

The Property Mastermind Programme Now you can learn how to become a professional investor with 12 months of learning, support, accountability and GUARENTEED RESULTS! We have put together the most comprehensive programme in the UK to help you build a pension and give you cash flow now to accelerate the point where you can chose to retire and spend your time however you want. The main components of the Mastermind Programme include:

The Brain Transplant Pack

10 x 1 day advanced workshops

Monthly group coaching with Simon Zutshi

Access to all monthly pin meetings

Personal 1 to 1 Coaching with a successful Mastermind graduate

2 days of personal mentoring

24/7 online Mastermind forum We run 2 programmes each year, one starts in April with all the advanced workshops on a Friday and the other programme starts in October will all the workshops on a Saturday. To find out more details visit: www.Property-Mastermind.com We now have a new system where you can get back your entire investment in the property Mastermind Programme direct from HMRC. Ask us for full details.

http://www.property-mastermind.com/



Power Team Contacts

Solicitors Richard Spencer BPE Email: [email protected] Telephone: 01242 224433 Dean Alexander Alexanders Email: [email protected] Telephone: 01245216050 Paul Gelder MS Law Email: [email protected] Telephone: 0161 772 4500

Protected Lease Option Carolyn Holt Hedge Capital Options Email: [email protected] Telephone: 0121 233 3312

mailto:[email protected]

mailto:[email protected]

INVESTMENT STRATEGY FLOW CHART

Copyright Simon Zutshi 2010 © www.Property-Mastermind.com

39

36

30

22

40

38 37

35

34 33

32 31

29

19

28 27

26 25 24 23

21 20 18 17

16 15

14 13 12

No No 3

2

4

5

6 7 8

9

10

11

1

Yes Yes

Yes Yes

Yes

Yes Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

No

No

No No

No

No

No

No

No No

No No

No No

No

Motivated Seller?

Sell to Tenant Buyer

for fee

Will they sell at a

discount?

Do you want it as a

Lease Option?

Equity in Property?

Is there good cash

flow?

Would they do an

option?

Suitable for Assisted

Sale?

More than 20%

Discount?

Sell to Estate Agent

‘s list of investors

Does it stack up for

an Investor?

Sell to First Time

Buyer

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