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Property Pro Series - Lease Option Deal Analysis
Rating: 5.0 out of 5(2 ratings)
184 students

Property Pro Series - Lease Option Deal Analysis

How to check your Lease Option works for the entire life cycle of the deal.. from Entry to Exit!
Created byTracy Cartland-Ward
Last updated 3/2025
English

What you'll learn

  • How to analyse a Lease Option deal from start to finish
  • The true costs of getting into a Lease Option
  • How to calculate cash flow and ensure monthly profitability
  • Maximising the deal by incorporating other creative property strategies
  • How to determine if a deal is worth pursuing
  • Answers to questions asked about Lease Option deals and other property strategies

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Course content

2 sections • 5 lectures • 44m total length

  • Analysing Profit & Income during the Lease Option term.8:42

    Lease Options come in many shapes and forms, but in essence they are a Creative Strategy in property, that enables you to lease a property in the short term, with the option to buy in the long term.

    Some people jump into lease options without fully analysing the deal.

    In this session, we’ll cover the full financial picture of entering into a lease option deal — including entry costs and cash flow during the lease term.

    A key question is whether to refurbish before owning the property, given that increases the cost of entering into the deal.  If rentability depends on upgrades, some investment may be necessary, but it shouldn’t exceed expected cash flow.

    In this and the following session, we break down a real example. 

    What you'll learn

    • How to analyse the "Lease" stage of the deal. (Stage 1)

    • The true costs to consider when entering into a lease option.

    • How to calculate cash flow and ensure monthly profitability

    • Whether or not to refurb before the "Option" stage of the deal. (Stage 2)

    • Incorporating other creative strategies like Sandwich Options during the Lease stage of the deal.

    • How to determine if a deal is worth pursuing based on potential returns.

  • Analysing Profit & Income at the end of the Lease Option term6:09

    Many investors overlook what happens when it's time to exercise a lease option, the term for moving into Stage 2 of the deal.

    In this session, we break down the refinancing process, potential profits, and long-term cash flow considerations, using our real life example we began with in the previous session.

    While property values may rise, mortgage lenders will only base financing on the original purchase price. Understanding this is crucial when planning your exit strategy, of keeping the property for rental income or selling it on for profit.

    We analyse how refinancing can unlock capital, calculate cash flow after ownership, and determine whether a deal remains viable, through the full life cycle.

    What you'll learn:

    • How to refinance a lease option deal and pull out capital

    • Why mortgage lenders base financing on the original purchase price

    • How to calculate post-refinance cash flow and ongoing profitability

    • The impact of rising property values and when to exercise early

    • Why it’s crucial to assess refurb costs against expected returns

    • Alternative exit strategies such as assisted sales and flips for profit, rather than income

Requirements

  • A basic understanding of utilising Property as an asset is an advantage, but not a necessity

Description

Lease Options come in many shapes and forms, but in essence they are a Creative Strategy in property, that enables you to lease a property in the short term, with the option to buy in the long term.

Some people jump into lease options without fully analysing the deal.

In this course, using a real deal as an example, we’ll cover the full financial picture that covers the entire life cycle of a Lease Option deal including Entry, Cashflow during the option term and and most importantly profit/cashflow when you  exit the option using your your Right to Buy),  something often overlooked when analysing these kinds of property deals.

After going through the details of analysis, you will have the skills to know when a Lease Option Deal will and won't work!

What you'll learn

  • How to analyse the "Lease" stage of the deal. (Stage 1)

  • The true costs to consider when entering into a lease option.

  • How to calculate cash flow and ensure monthly profitability

  • Whether or not to refurb before the "Option" stage of the deal. (Stage 2)

  • Incorporating other creative strategies like Sandwich Options during the Lease stage of the deal.

  • How to determine if a deal is worth pursuing based on potential returns.

  • How to refinance a lease option deal and pull out capital

  • Why mortgage lenders base financing on the original purchase price

  • How to calculate post-refinance cash flow and ongoing profitability

  • The impact of rising property values and when to exercise early

  • Why it’s crucial to assess refurb costs against expected returns

  • Alternative exit strategies such as assisted sales and flips for profit, rather than income, plus

  • Answer to common questions raised when analysing Lease Option deals

Who this course is for:

  • Intermediate Learning for Property Investors looking to analyse property opportunities in the creative funding space

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