Making Money With Lease Options
Hi Todd Toback here and thank you for visiting Lease Purchase TV. Lease choices today’s topic. Lease options are a fantastic method to assist you to quit your job, help you escape the pit of debt, earn more income, and have more freedom. Lease choice is a great 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 reside in the home, sublease or assign your contract and it’s an alternative, the legal right to obtain a bit of property not the obligation. There’s multiple ways to generate income in this niche, but the reasons why there’s an industry for this is that you simply have motivated sellers along with tenant buyers.
Motivated sellers are individuals who have a house; they can’t sell it off and reasons yet unknown they’re prepared to do an untraditional deal that you should solve their problem. And then on the other hand 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. If you can find a means to put these folks together, you are going to make great money. Lease option provides you strategies to place their present position [right] and improve it from other current position. I’m likely to demonstrate exactly three strategies how to earn more within this market right now.
The very first lease option strategy is what we call the sublet. We discover 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 between the long run. The next part of that is what we call the possibility money. Whenever we put a buyer in to a property, they pay us reasonably limited for the right to buy the house 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 and it goes 100% for the purchase price if they do. As well as the third part may be the spread in purchase price.
Which was 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 also this is to negotiate a deal having an owner with the sole intent of flipping that contract to some tenant buyer. Now once you flip an agreement because of this you basically put buyer and seller together. Plus the process you’re likely to collect between 2.5% and 5% on these houses.
Now I’m planning to talk about an additional way here which is to try and can become a lease option consultant. In which a seller will not would love you to stay in 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; let them have the forms, contracts and basically collect a consulting fee of $2500 -- $3000.
Everybody can feel better about a lease option transaction.
