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Hi Todd Toback here and thanks for visiting Lease Purchase TV. Lease choice is today’s topic. Lease option is an excellent method to assist you to quit your job, help you escape the corporate jungle, earn more income, and have more freedom. Lease choice is a fantastic business that doesn’t require cash, credit, tenants, experience a treadmill that doesn’t require you to possess a real-estate license whatsoever.
As with the word lease option, this is a two part agreement. It’s a lease that you can are now living in the home, sublease or assign your contract and it’s an alternative, the legal right to obtain a piece of property not the obligation. There’s multiple methods to generate income on this niche, nevertheless the reason why there’s an industry with this is that you simply have motivated sellers as well as tenant buyers.
Motivated sellers are those who have a residence; they can’t sell it and whatever reason they’re willing to do an untraditional deal so that you can solve their problem. After which however you will find the tenant buyer. They’re people who would like to get right into a home today but cannot be eligible for financing; and last time I checked that has been like 70% of America. If you will find a method to put these individuals together, you will make great money. Lease option provides you ways to place their present position [right] and improve it from other present position. I’m planning to explain to you exactly three strategies how to earn money within this market at this time.
The very first lease option method is what we call the sublet. We discover a home then control that property for little to no money down and we all will find a buyer – somebody that desires to enter a house, who’ll lease it from us then obtain us at sometime in the long run. The second part of that is what we call the choice money. Once we put a buyer in to a property, they pay us a premium for the right to purchase 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 plus it goes 100% towards the cost when they do. And also the third part will be the spread in price.
That has been only 1 strategy where we’re earning profits on seventy one levels but let’s say you didn’t desire a handle tenants and you didn’t really would like 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 to try and negotiate an arrangement with an owner with all the sole intent of flipping that contract to some tenant buyer. Now when you flip a contract because of this you basically put buyer and seller together. And in the process you’re planning to collect anywhere between 2.5% and 5% on these houses.
Now I’m going to speak about an additional way here and also this is to can be a lease option consultant. In which a seller won’t would love you to stay in the guts or put a tenant buyer within the property that you’ve found; they don’t like the idea that you’re earning profits; you might basically earn money for your knowledge. Show them how they can fill a house themselves without you; let them have the forms, contracts and basically collect a consulting fee of $2500 — $3000.
Everybody is able to feel better about a lease option transaction.
Making Money With Lease Options 
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