Go to my website http://www.leasepurchasetv.com for a free quick start workshop.
Hi Todd Toback here and thanks for visiting Lease Purchase TV. Lease choice is today⤙s topic. Lease options are a fantastic method to assist you to quit your job, assist you to escape the pit of debt, earn more income, and possess more freedom. Lease option is a great 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 Options
As in the word lease option, it is a two part agreement. It⤙s a lease in which you can reside in the property, sublease or assign your contract and it⤙s an option, the right to purchase a piece of property not the obligation. There⤙s multiple approaches to earn money in this niche, but the reason there⤙s a market for this is you have motivated sellers in addition to tenant buyers.
Motivated sellers are people who have a house; they can⤙t sell it and whatever reason they⤙re prepared to do an untraditional deal so that you can solve their problem. Then however there is a tenant buyer. Theyre those that want to get right into a home today but cannot qualify for a loan; and last time I checked which was like 70% of America. If you can discover a method to put these individuals together, you are likely to are excellent money. Lease option gives you strategies to place their present position [right] and improve it from other present position. I⤙m likely to show you exactly three strategies how to earn money on this market at this time.
Lease Option
The initial lease option strategy is what we call the sublet. Look for a house then control that property for virtually no money down therefore we will discover a buyer - somebody that wants to get into a home, that will lease it from us after which buy from us at sometime in the near future. The 2nd a part of it is precisely what we call the choice money. When we put a buyer in to a property, they pay us reasonably limited for the best to get the home and reside in it today without purchasing it - that⤙s option money which range ranging from 2.5% and 5%, it⤙s 100% non-refundable if the buyers don⤙t buy also it goes 100% for the purchase price if they do. And also the third part is the spread in purchase price.
Lease Purchase Options
Which was only one strategy where we⤙re earning money on all three levels but let⤙s say you didn⤙t want a handle tenants and also you didn⤙t want any risk whatsoever. That⤙s where you⤙d wish to accomplish a lease option assignment. Some individuals have called them lease option assignments and also this is where you negotiate an offer with an owner with the sole intent of flipping that contract to a tenant buyer. Now when you flip an agreement this means that you basically put buyer and seller together. And in the process you⤙re going to collect between 2.5% and 5% on these houses.
Now I⤙m likely to speak about one more way here which is to try and may become a lease option consultant. Where a seller is not going to would like you to stay the guts or put a tenant buyer inside the property that youve found; they don⤙t like the thought that you⤙re earning money; you can basically get paid for your knowledge. Demonstrate to them how they may fill a home themselves without you; let them have the forms, contracts and basically collect a consulting fee of $2500 -- $3000.
Everyone is able to be ok with a lease option transaction.
