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Hi Todd Toback here and welcome to Lease Purchase TV. Lease choice is today’s topic. Lease choices are an incredible way to enable you to quit your work, assist you to escape the rat race, make more money, and also have more freedom. Lease choices an excellent business that doesn’t require cash, credit, tenants, experience or one that doesn’t require you to have a real estate license at all.
Lease OptionsSuch as the term lease option, it is a two part agreement. It’s a lease that you can live in the property, sublease or assign your contract and it’s an option, the right to buy a piece of property not the obligation. There’s multiple methods to make money within this niche, however the reason why there’s a market with this is that you have motivated sellers as well as tenant buyers.
Motivated sellers are people who have a home; they can’t sell it and whatever reason they’re ready to do an untraditional deal so that you can solve their problem. After which however there is a tenant buyer. They're those that would like to get in to a home today but cannot qualify for financing; and last time I checked that was like 70% of America. So if you will find a method to put these individuals together, you will are excellent money. Lease option gives you ways to get their current position [right] and improve it from their present position. I’m planning to explain to you exactly three strategies how to earn money on this market at this time.
Lease OptionThe initial lease option technique is what we should call the sublet. Look for a property then control that property for hardly any money down therefore we will discover a buyer - somebody that really wants to enter into a home, who will lease it from us and then obtain us at sometime in the future. The 2nd a part of it is exactly what we call the option money. Once we put a buyer right into a property, they pay us reduced for the best to purchase the home and are now living in it today without purchasing it - that’s option money which range between 2.5% and 5%, it’s 100% non-refundable in case your buyers don’t buy also it goes 100% on the cost when they do. And the third part will be the spread in cost.
Lease Purchase OptionsThat has been only one strategy where we’re earning money on all three levels but let’s say you didn’t desire a deal with tenants and you didn’t really would like any risk whatsoever. That’s where you’d wish to accomplish a lease option assignment. Many people have called them lease option assignments which is to try and negotiate an offer with an owner using the sole intent of flipping that contract with a tenant buyer. Now when you flip a contract that means that you basically put buyer and seller together. And in the procedure you’re going to collect anywhere between 2.5% and 5% on these houses.
Now I’m going to discuss one more way here and also this is where you may become a lease option consultant. The place where a seller is not going to want you to stay the center or put a tenant buyer inside the property that you've found; they don’t like the thought that you’re earning profits; you can basically get paid for your knowledge. Demonstrate to them how they can fill a house themselves without you; provide them with the forms, contracts and basically collect a consulting fee of $2500 -- $3000.
Everyone is able to be ok with a lease option transaction.