Purchase Lease Option Agreement | Basketball Player’s £2.4M Portfolio On Property Mastermind
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Purchase Lease Option Agreement | Basketball Player’s £2.4M Portfolio On Property Mastermind


– We’re gonna hear from our first speaker, who is Shaun Brown. Hello Shaun.
– Thank you, thank you. – Take it away. (crowd claps) – Wow, good morning everyone. [Crowd Together] Good morning. – First of all I just want
to say thank you to Simon, and thank you to every single one in here because you’ve contributed
to this journey. And yeah, it’s been a
emotional rollercoaster but thank you for inviting me on stage. Yeah. So, a little bit about me, as you may or may not know I’m based in Sweden. I literally, kind of
stumbled into property a few years back. And, you know, it was quite interesting. but not really from a
professional stand point. The reason why is because this little guy, he keeps me very very
busy, this is Jayden, my six year old son. But he pushes me, keeps me
disciplined and focused. And, yeah, I grew up in
Sweden as I mentioned, typical upbringing, single mother, joined the Sports Academy
at the age of ten, which kind of disciplined me. And at the age of 16 I moved to the US to pursue basketball, which was my passion. When I was done with that, I played professionally
for about 5 minutes. (crowd laughs) And then I had to figure
out what I’m gonna do with my life basically
because I’ve been on this one track my whole life. And really just stumbled into property, and really thought it
was really interesting. But I decided to take it
a little bit more serious around 2013 and 2018, and
I bought my first property. But then, in Sweden it’s a
little bit more traditional, so I decided to join Simon
Zutshi’s course last year. So, a little bit more about my strategy, my strategy mainly is a single tenant. I’m not really motivated by money per se, but it’s really about creating something for the long term, as I mentioned. And, what I looked at
was from a single tenant perspective, very basic. So whether it’s a single
let, HMO or commercial, I’m looking at more a single tenant, and the reason for doing that is you can go and negotiate a rate for long term and secure it for a longer
base, and adding value. And also one thing I learned, because I’ve been
travelling back and forth for a couple of months, is that you need a strong
internal power team. And what that is, you
need people on the ground that you can work with and understands what it is you’re trying to achieve, but also you know just communicating and building relationships. And I think at the end of the day, that’s why all of us are in this room, relationships are key. Everyone in here has
the tools, the skillset, the knowledge to be successful, but it’s really about relationships because at the end of the day we’ll be dealing with landlords, we’re dealing with brokers, we’re dealing with people, you know. And people is what makes us
take that natural next step, so that was key for me and it
took me about seven months, in all honesty, before I realised that. That’s really when it turned for me, because those first seven
months were very challenging, I was working on some great deals and they fell through and I just had to, like, re-evaluate everything I was doing. And, luckily I had built
a lot of relationships, I was doing a lot of
viewings, like five a day when I wasn’t here so,
you know, it was tough in the beginning, but
then it kind of took off. So, talking a bit fast here. First case study, so
this is a very basic HMO. So, how this came about was basically I’d, because I’d spent so
much time doing a lot of like really analysing my area in Croydon, I averaged on average five
to 25 viewings per week. So I knew immediately what
a good deal looked like, and I knew what rent we can charge, how much the renovation would be, and yeah that’s basically
putting a deal together. So, this actually came up on Rightmove, and the funny thing is
when I started a year ago the houses were going for about four, seven, five, five hundred, but because it was a different
market and a small window, immediately when this came
about I knew it was a good deal. So I acted very quickly,
I called the agent, we went to view it with
my architect, my builder, we did the costing, we put
the offer in, got accepted, and it got done. So this is, was no magic, it’s just a very basic deal but it works. After re-financing, we’re
looking at leaving about 71,000 in the deal, this deal itself is gonna give us about
just shy over 4,000 net. And I have a JV partner on this deal, so it’s a 50, 50 split, but very basic so it was
one of my first deals that I liked actually. My second deal, this came about, so the first seven months I
was working in a massive deal and it fell through. But subsequent to that I was
dealing with a lot of people, speaking with them, and the
vendor’s agent came to me and said actually I like the way you look and structure deals, so I have a few properties
that I might wanna show you. So, we got in his car, we drove around, we looked at a few of his properties and this was a block of four
flats that was being renovated, and he basically said that, you know, he was gonna let it out
and I offered on it, and he said no. Then, because I knew that there was, you know, different options we could use, so I said well, what about
if I offer you to buy it and guarantee rent over
a longer period of time. He didn’t really understand what that was, I explained to him, we sat
down, we met a few times, but he basically, you know,
we agreed a purchase price and a guaranteed rent. Now, on this one, the rent is quite high that’s guaranteed to him, but that’s still fine
because there’s still for me, you know, you can secure a
good asset in a good location and then within a few
years time we’ll, you know, I can excise that. So, my results for the
year, basically I’ve done six purchases were four PLO’s, I basically tried to do everything. So, the only thing I didn’t do was rent to rents but I
just basically came in and was just tryna achieve
as much as possible. So, a single let, a HMO and a large PLO. And, in total, it’s a decent year but one thing I did wanna
mention about strategy, so, as I mentioned earlier, my strategy has been a single tenant and the difference between single tenants and basically doing ASTs
is that, first of all, you can secure the revenue
before you actually acquire the property. But also, the beautiful thing is when you get a long term lease,
you get what’s called a F, you can sign a FRI lease, basically they’re responsible for all the internal aspects of the house. And also, when you secure a rate, you can implement accelerators, so this is an example
of between two to 4%, but if you look at year one;
2%, this is the gross income from this one and then
each year it increases. So, from a perspective of trying to raise finances, speaking to
investors and going out there, and you can do this for anything, whether it’s a single
let, whether it is a HMO, or a large property, you can show that you
have secured the asset and it’s a little bit more
security from that aspect and one thing I like about
the single tenant approach is when you have a corporate tenant, which you can also get a lot of times is that corporate tenant that leases your property actually
guarantees the rent, or the lease, of the whole corporation. So, that’s a security from
us landlords, so voids aren’t really a big thing
when you try to do that. Top tips. Be consistent, you know, just believe in, you know, believe in yourself, don’t be afraid, to take that first step, try and be consistent, and don’t be afraid to fail. And, as I mentioned, this
isn’t rocket science, I haven’t done anything that anyone else here can’t do, you know,
it is basically just buying a house and, you know,
developing it and getting some tenants in it, and just repeating. And, yeah, what’s next? Keep on building on relationships, because I think that’s
been key for me, you know, speaking to people,
letting everyone know what you do, going to networking events. And, do at least two more JVs, and also looking to create an investment fund, which
I’ve been working on in the background,
which is quite exciting. And yeah, just grow the portfolio, and that’s basically it, thank yous. Simon Zutshi, of course, for
creating this environment that everyone’s in. As I mentioned, I think
every single person in here has contributed in some
way just by encouragement, support, always being positive, this has not been easy flying
back and forth from Sweden. A lot times, you know,
after that seven month mark I actually wanted to quit
because it was tough, you know, being here five days a month and when I’m here you have to really just maximise your time
and try do viewings and speak to people so, but you guys are just always encouraging, always positive and it
really helped me going. So, thank you, I really mean that. My coach of course, Carly Houston, my mentor that I didn’t do
but I’m here to make it up. (crowd laughs) It was really bad. Mark, Amjad, and you know you, you guys, and Mandy as well, personally because you guys really assisted me
when I needed some help with a few things, so appreciate that. And, that’s it, thank you
guys, I appreciate it. (Crowd claps)

3 thoughts on “Purchase Lease Option Agreement | Basketball Player’s £2.4M Portfolio On Property Mastermind

  1. Thanks for watching the video, this is the first of 5 Top Performer Case Study releases from my Property Mastermind programme (MM26)
    Share your thoughts on Shaun's great achievement in the comments below…

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