lease options

Founder of Lease1 Phillip Chapman joins Phil to discuss the current landscape of the lease market and provide valuable insights and advice for business owners. They emphasise the importance of being proactive in lease negotiations and understanding the terms of the lease. Philip also highlights the need for retailers to right-size their stores and manage their occupancy cost ratio. He encourages business owners to seek support and guidance from professionals like Lease1 to ensure they are getting the best value out of their lease agreements.

Summary 💡

0:02:23 | Current landscape in the lease market post-COVID
0:03:15 | Importance of proactive lease negotiations
0:04:36 | Trend of smaller footprint in cafes
0:05:19 | Importance of getting the right size store
0:06:06 | Changes in lease negotiations over the past 20 years
0:06:46 | Importance of being proactive about leases
0:07:44 | Benefits of proactive approach as a tenant
0:08:02 | Common mistakes in lease agreements, particularly missing lease options
[0:08:27] | Importance of being proactive and having a critical path or gantt chart for your lease
[0:09:17] | Occupancy cost ratio as a measure of success
[0:10:30] | Engaging Lease1 at any point in the lease cycle
[0:12:11] | Timing aspects of leases and approaching the landlord proactively
[0:13:06] | Managing outgoings and questioning increases
[0:15:21] | Free lease review offered by Lease1
[0:16:16] | Importance of lease terms for cafes
0:16:42 | Lease terms shifting from longer to shorter due to risk.
0:17:02 | Flexibility in lease terms, such as 3 plus 2 plus 3 plus 2.
0:18:00 | Importance of ring-fencing assets and directors in leases.
0:18:45 | Be proactive, seek support, and connect with resources.
0:19:13 | Recommended lease term: three years with three-year option.
0:19:51 | Pending lease review and need for national minimum lease standards.
0:21:28 | Advice for cafes in financial distress: communicate and seek help.
0:22:26 | Reach out for support, join the community, and take action.
0:23:14 | Importance of being proactive and not doing nothing.
0:24:56 | Shift in focus from CBD to suburbs in cafe growth strategy.
0:24:56 | CBD cafes in Melbourne, Sydney, and Brisbane were too heavy in CBDs.
0:25:08 | Regional cafes were more profitable due to cheaper rents and higher coffee prices.
0:25:27 | COVID-19 accelerated existing trends, including the decline of CBDs.
0:26:03 | Limited hours and changing dynamics make planning difficult for CBD businesses.
0:26:26 | CBD cafes should focus on building assets and be well-prepared for risk.
0:27:10 | CBDs may become lifestyle centres with vertical living and more traffic flow.
0:27:42 | Work from home has negatively impacted CBD businesses.
0:28:05 | Turnover rent is a smart option for new CBD restaurants.
0:29:00 | Three tips for signing a lease: review the lease, surround yourself with good advisors, and consider the future of the lease.
0:31:39 | Leasing should fit into your lifestyle in terms of health, wealth, and time.
[0:33:10] | Coffee Commune leasing bootcamp
[0:33:41] | Lease1 helps people accelerate their potential

Episode Highlights 🌟

The Current Landscape of the Lease Market
In the post-COVID era, the lease market has undergone significant changes. Landlords and fund managers are focused on recapturing asset value and revaluing leases to find rental growth. Phillip emphasizes the importance of being proactive in lease negotiations and leveraging time to secure the best terms for your business.

Trends in Commercial Leases
One of the key trends in the lease market is the shift towards smaller footprints for businesses. Phillip advises businesses to carefully consider the size of their premises to optimise their occupancy cost ratio and avoid unnecessary expenses.

The Changing Dynamics of Lease Negotiations
Phillip emphasises the importance of reading and understanding your lease, as well as being proactive in managing it. Lease1 offers a free lease review service to help businesses assess their lease agreements and identify potential areas for improvement.

Mistakes to Avoid in Lease Negotiations
Phillip highlights the importance of being aware of lease events and taking proactive steps to secure favourable terms. 

Managing Occupancy Costs and Outgoings
Phillip provides valuable insights into managing occupancy costs and outgoings. He advises businesses to focus on their occupancy cost ratio, which is the percentage of gross rent to sales. 

Navigating CBD vs. Suburbs
The COVID-19 pandemic has accelerated the shift away from CBD locations. Phillip advises businesses to carefully consider the viability of CBD leases, as the dynamics have changed significantly. 

Key Takeaways 🔑

1. Be proactive in lease negotiations and understand the terms of your lease.
2. Right-size your store to match your business needs and reduce costs.
3. Manage your occupancy cost ratio to ensure profitability.
4. Review your lease regularly and seek professional advice to leverage time and secure your business's future.

Connect With Us 💌
Share the wisdom from this episode with your network, subscribe to "Bean There, Done That!" and leave us a rating. Your insights and support help us bring more enriching discussions your way.

Have questions or topics you'd like us to cover? Reach out to us at https://www.coffeecommune.com.au/contact/. Enjoy this episode and as always, thanks for listening.

-  Lease1 website: https://www.lease1.au/ 

- Bean There, Done That! Podcast: https://www.coffeecommune.com.au/the-new-bean-there-done-that-podcast/ 

- Contact The Coffee Commune: https://www.coffeecommune.com.au/contact/ 

🎧 Produced by The Podcast Boss

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I'm thrilled to share with you the highlights of my recent podcast episode where I had an enlightening conversation with Brett, the brain behind Paperstac. We delved into the fascinating world of buying and selling debt, and I'm sure you'll find it as intriguing as I did.

1. Paperstac - A Game Changer: Brett's company, Paperstac, is revolutionizing the debt market. From mortgage debt to business loans, they've got it all covered. With over 15,000 users and a successful YouTube channel, they're making waves in the industry.
2. Innovation at its Best: Paperstac is working on a feature called Paper Price Predictor. This tool will make the process of trading notes faster and more efficient, saving days or even weeks of time for larger trades.
3. Why Sell a Note?: Brett explained the concept of the velocity of capital - the ability to turn money over multiple times in a year. Selling a note can provide immediate access to cash, fund other investments, or pay off debts.
4. Investment Opportunities: Brett shared that note prices on Paperstac range from a few thousand dollars to as high as $43 million. The best part? You don't need to be an accredited investor to buy notes.
5. Trust and Security: Paperstac has created a system to protect buyers' interests, ensuring a safe and secure transaction process.
6. The Future of Paperstac: Brett revealed their plans to develop a white label product and simplify their software. They're also working on interactive video scenarios for their academy to educate users about note buying and selling.
7. Engaging with the Audience: Many of their YouTube episodes are based on audience questions, making their content highly relevant and engaging.
8. Enterprise Product: Paperstac's upcoming enterprise product will help organize and index documents for large transactions, saving time for sellers and buyers.

I encourage you to reach out to Brett if you're interested in selling or valuing your debt. And don't forget to tune into the podcast to hear our full conversation.

Next Steps

• Share your thoughts with a review - https://www.thedealscout.com/reviews/
• Let's connect on LinkedIn - https://www.linkedin.com/in/joshuabrucewilson/
• Subscribe and Watch on YouTube - https://www.youtube.com/channel/UCBQN_Y3nhDGClfMxCSBDjOg

Join us on a captivating journey into the life of Adam Zach, a former chess prodigy turned successful real estate investor. We'll unveil the magic behind his motto, "people before profits," which forms the backbone of his innovative venture, Dwanderville. You'll get a glimpse of a loving father mentoring his daughter Beth in real estate, embodying the true essence of a family-oriented entrepreneur.

Our discussion then turns to an intriguing exploration of Adam's groundbreaking work with Home Equity Partner Dot Com. It's there that he's spearheading a mission to provide unconventional buyers with flexible homeownership options, particularly those unable to secure a traditional bank loan. Brace yourselves for an insider's look into the rent-to-own scheme, lease options, contracts for deed, and Adam's brainchild; a credit repair program designed to help tenants eventually own the homes they rent.

But it's not all business! We also take a trip down memory lane, reminiscing about the 90s and early 2000s; an era pulsating with music, the shifting perspectives on marijuana use, and the eternal debate between American and Italian pizzas. Prepare for an episode that's not only enlightening but also entertaining and engaging, skillfully bridging the gap between real estate, family, and the dynamics of modern life. Don't miss out on this rare combination of business insights and heartwarming nostalgia.

Thanks again for listening. Don't forget to subscribe, share, and leave a FIVE-STAR review.

Head to Dwanderful right now to claim your free real estate investing kit.

And follow:

http://www.Dwanderful.com
http://www.facebook.com/Dwanderful
http://www.Instagram.com/Dwanderful
http://www.youtube.com/DwanderfulRealEstateInvestingChannel

Make it a Dwanderful Day!

I hope everyone had a fantastic Christmas and I’m wishing you all a very happy new year! The subject today is setting goals. Having your game plan ready to go will allow you to start getting results right away as we head into 2022. 

The first thing you’ll need to get clear on is what is your “why”. Real estate can be challenging and there will be times when you become frustrated. Knowing why you’re doing this is going to keep you motivated and focused. From there, you can start building short-, medium-, and long-term goals. Your long-term goals will be tied to your overall vision for your business. Writing things down and then actually creating them is so powerful.

Once you build out your goals, they will come alive – and it’s all about executing your plan.
Make sure to check out the link below to get access to my free vision and goal-setting worksheet.

What’s Inside:

• Goal setting tips for 2022.
• The importance of getting clear on your “why”. 
• Three questions to ask yourself to start the visioning process.
• A look at Gavin’s goal-setting process.

Mentioned in this episode:

REInetwork.com/goals
Gavin Timms – REI Network YouTube

I wanted to bring my clients Fred and Lateresa on the show to talk about where they are in the program and share the successes they’ve been having. The two of them have been on our calls consistently and doing some great work for about four or five months or so. They just moved from Virginia to Texas and have a lot on their plates but are still sticking with it.

Fred and Lateresa put together a direct mail campaign and through some partnerships, they were able to keep it running even while they were in the middle of their move. Life happens and it was important for me to help them keep their efforts going. Their pipeline is solid at the moment and they’re also working on getting set up with texting efforts to help with follow-up. Hiring a VA is the next step on their list as well as strategizing to make the most out of that extra help.

Being on the group coaching calls has helped Fred and Lateresa stay encouraged and motivated, which is something I always love to hear. With so many different situations and scenarios, it’s important to hear what’s working out for others. A lot of people go into real estate thinking it’s going to be easy because all you hear about are the successes. Even though Fred and Lateresa made $40K on a deal, they worked hard for 6 months to get there. Always enjoy the wins when they’re simple and know that hard work really does always pay off in the end.

What’s Inside:

• Fred and Lateresa’s direct mail strategy
• How Fred and Lateresa kept the momentum going in their campaign while moving to a new state
• Why coaching and partnerships are important to your success in real estate

Mentioned in this episode:

REInetwork.com/join
creativehomefinancingsolutions@gmail.com

Pepe Campos is a client of mine and I wanted to bring him on to pick his brain on a great deal he just did. He’s a civil engineer who got into real estate a couple of years ago. Pepe became interested in lease options, started exploring on his own, heard about my marketing systems, which led him to come work with me. He really knows the value of being consistent and he couldn’t have done his recent deal without it.

Pepe breaks down how he made $35,000 on an assignment after paying a seller on a creative deal that had been on the market for 6 months and didn’t sell. Your first option might not always work with your buyer or seller so it’s up to you to get creative and transition to some new ideas. He also created a great sense of trust with the owner in this deal and stayed honest when presenting different creative financing alternatives.

Getting into a confident mindset that you’re capable of closing deals can take you far in real estate, especially when you’re just starting out. So many people want instant gratification and money for doing little to no work, and that kind of attitude doesn’t make things happen. Pepe is proof that when you stick with it, you can walk away with a lot more than you bargained for.

What’s Inside:

• Why consistency is important when finding and closing deals.
• How creating trust and building rapport can go a long way.
• Why it pays to stay motivated and get out of your comfort zone.

Mentioned in this episode:

REInetwork.com/join
thisguyleasetobuy@gmail.com

Hello everyone, I’m finally back at my home office and I’m really excited to be talking to you today about creative financing and lease-option deals.

It can be easy to hear the basics of creative finance and want to dive in right away. Passive income sounds great, right? But it’s important to make sure that you understand what you’re doing so you don’t get in over your head. Start with one strategy at a time!

Using real numbers, I show you how to negotiate with a non-motivated seller to knock a property from $140K down to 60K with a lease option. We’ll discuss how to feel the seller out, make the offer, and recover if the seller reacts poorly. Then, I show you how to suggest a creative deal that creates a win-win situation for both of you.

It’s also very important that you do not over-explain things. Don’t make it too complicated for the seller. I don’t even use language like “sandwich lease option” or “creative financing” when working things out with a seller. Instead, I like to say things like “What if we do something on terms and make some payments to you?” Keep things simple, and sellers will be more willing to work with you.

To learn more and get involved in our program yourself, go to REInetwork.com/join

What’s Inside:

• Lease options are great for passive income.
• Don’t get in over your head: learn one strategy at a time.
• How to feel out a seller and make an offer.
• Use simple language: “Can we do something on terms?”

When you’re talking to a seller and you’re trying to understand what’s driving them to sell, while also waiting for just the right moment to make your offer, it’s pretty normal to make some mistakes. I’m going to help you to see what you need to look for in a seller, and give you some examples of how that might play out in conversation.

If there’s no motivation on the part of the seller, you need to get your offer out quickly. So, the first question is: What does a motivated seller look like? You need to consider:

1. The situation the seller is in.
2. The time frame the seller has.
3. The price that they want.
4. The condition that the property is in.

As you’re talking to the seller, you need to listen to what they need from this deal, relate their need back to your offer, and then make the offer.

What does that look like in action? I’m going to give you some examples to help you see how to position your offer to make it more attractive to the seller.

If you need a cheat sheet for how you or your virtual assistants can do a better job talking to sellers, check out my free lead sheet on my website. And don’t forget to like and subscribe to my YouTube channel so that you don’t miss an episode.

What's Inside:

• The most important part of sales isn't your offer.
• How to know when a seller is willing to take a tenant buyer offer.
• 4 ways to tell when a seller is truly motivated.
• How to position yourself in a conversation to make an offer that’s attractive to a seller.

Is there such a thing as a recession-proof investing model? There is, according to today’s guest—and he has 30 years of experience to back it up! Find out how you can use the often overlooked approach of buying real estate on terms to set up an entire decade of income right now, even in the midst of the COVID-19 pandemic.

Chris Prefontaine is a bestselling author, podcast host, and founder of Smart Real Estate Coach. With more than three decades of investing experience under his belt, Chris shares lessons learned from booms and busts in the real estate sector over the last 30 years. He also gives his perspective on the impact of COVID-19 on the market and his best advice for moving forward in the new normal.

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WHAT TO LISTEN FOR

• Chris’s 30-year journey in the real estate world
• Why you should double down on your investments amid COVID-19
• Why buying on terms is a recession-resistant approach to real estate investing
• How to reach financial freedom by investing on terms

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RESOURCES FROM THIS EPISODE

• Website: Smart Real Estate Coach
• Podcast: The Smart Real Estate Podcast
• Free Book: Real Estate on Your Terms

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CONNECT WITH US

To connect with Annie and Julie, as well as with other Investing For Good listeners, and to get the latest scoop on new and upcoming episodes, join the Investing For Good Podcast Community on Facebook.

To learn more about real estate syndication investment opportunities, join the Goodegg Investor Club.

Be sure to also grab your free copy of the Investing For Good book (just pay S&H).

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Thanks for listening, and until next time, keep investing for good!

Hustle, perseverance, and the willingness to try in spite of all the uncertainty is what sets winners apart from losers. How do you eat an elephant? One bite at a time. The real estate world may seem daunting, but if you take it all one step at a time, you may even begin to enjoy the journey.

She Buys It founder Whitney Nicely shares how she was able to build a platform that helps women create passive income through real estate investing. She talks with us about creative financing strategies, through which she was able to successfully invest in 14 homes within 9 months. 

Whitney also goes into different lease options investors should consider in order to minimize common headaches. Whitney makes it a point to live her best life every single day in order to inspire other women to live their best life.

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WHAT TO LISTEN FOR

• The story behind how Whitney “buys houses like most women buy shoes”
• Whitney’s creative financing strategies
• Lease options any investor can use for maximum efficiency and time leverage
• Knowing exactly what to invest in depending on your goals
• Overcoming limiting beliefs through mentorship

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RESOURCES FROM THIS EPISODE

• Website: She Buys It

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CONNECT WITH US

To connect with Annie and Julie, as well as with other Investing For Good listeners, and to get the latest scoop on new and upcoming episodes, join the Investing For Good Podcast Community on Facebook.

To learn more about real estate syndication investment opportunities, join the Goodegg Investor Club.

Be sure to also grab your free copy of the Investing For Good book (just pay S&H).

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Thanks for listening, and until next time, keep investing for good!