Making Money With Lease Options
Hi Todd Toback here and thank you for visiting Lease Purchase TV. Lease option is today’s topic. Lease options are a fantastic approach to enable you to quit your job, help you escape the pit of debt, make more money, and also have more freedom. Lease choice is an excellent business that doesn’t require cash, credit, tenants, experience a treadmill that doesn’t ask you to use a real-estate license in any way.
As with the phrase lease option, this is a two part agreement. It’s a lease in which you can are now living in the house, sublease or assign your contract and it’s an option, the legal right to obtain a little bit of property not the obligation. There’s multiple ways to generate income within this niche, however the reasons why there’s market for this is that you simply have motivated sellers along with tenant buyers.
Motivated sellers are people who have a house; they can’t sell it off and reasons yet unknown they’re ready to do an untraditional deal so that you can solve their problem. And then however you will find the tenant buyer. They are people who want to get right into a home today but cannot be eligible for a loan; and before I checked that has been like 70% of America. When you can find a way to put these folks together, you are going to are actually excellent money. Lease option gives you ways of get their present position [right] and improve it from their current position. I’m likely to demonstrate exactly three strategies how to make money on this market right now.
The very first lease option strategy is what we should call the sublet. Look for a home then control that property for virtually no money down and then we will find a buyer - someone who wants to get into a property, that will lease it from us then purchase from us at sometime in the long run. The second part of that is what we call the option money. Whenever we put a buyer into a property, they pay us reduced for the best to buy the property and reside in it today without purchasing it - that’s option money which range anywhere between 2.5% and 5%, it’s 100% non-refundable if your buyers don’t buy also it goes 100% for the purchase price if they do. As well as the third part will be the spread in purchase price.
That has been only 1 strategy where we’re making money on seventy one levels but let’s say you didn’t want a handle tenants and you also didn’t want any risk whatsoever. That’s where you’d want to do a lease option assignment. Some people have called them lease option assignments and this is to negotiate an offer having an owner with the sole intent of flipping that contract with a tenant buyer. Now once you flip a legal contract because of this you basically put buyer and seller together. And in the process you’re planning to collect ranging from 2.5% and 5% on these houses.
Now I’m planning to talk about one more way here which is to try and can become a lease option consultant. In which a seller is not going to would love you to stay the middle or put a tenant buyer within the property you have found; they don’t like the idea that you’re earning money; you could basically get paid for your knowledge. Show them how to fill a property themselves without you; give them the forms, contracts and basically collect a consulting fee of $2500 -- $3000.
Everybody is able to feel better about a lease option transaction.
