They did it the hard way! They were determined and would not allow themselves to fail... even though they had barely enough income to feed their families.
They recognized that real estate was the one way anyone could reach financial independence... starting from zero.
They blazed the trail and created the clever techniques that successful investor are using today... like leases and options
OPTIONS
A real estate purchase option is simply a written agreement between a buyer and a home seller that does the following..
For an agreed upon fee, gives the buyer the option to purchase the land or real estate in question within a certain period of time at a specified price
The fee is not refundable/returnable or can be used as a down payment.
If buyer does not exercise option within specified time period, the option expires and the seller keeps the fee.
Seller cannot sell the property to anyone else while option is in effect.
Buyer can sell or convey his/her interest in the option.
All details of a purchase agreement are included in an Option to Purchase Agreement.
Did you notice that an option binds a property owner to sell... but the buyer is not bound to buy. The investor has the option of buying or not buying.
This feature of an option means you can find a motivated seller... Give them $50 to sign an option agreement... And you have control of the property for the term of the option.
If you have negotiated a deep discount on the purchase price of the optioned property you can now sell that option to another investor for FAST CASH.
Look what you've done! You've found a motivated seller and negotiated a very profitable purchase agreement and option....investing just $50 of your own cash.
Now you can sell the option for anywhere from $2,000 to $15,000... depending on the amount of the profit for the investor you sell to.
(Or... if you understand how to sell a home in 5-days you can flip it to retail buyer for full value!)
What if you made a mistake when you negotiated the deal with the home owner and there is not enough profit in the deal to interest an investor?...
Or what if you can't find an investor willing to buy your deal? You simply do not exercise the option and you are out just $50.
Is that a $50 mistake? No! You just paid $50 for some valuable real estate education that will make you plenty of money in the future. You'll never make that mistake again! You will always negotiate profitable deals.
With options you can make a nice income and never own property. Many clever investors do just that. With a good marketing program supplying a steady stream of motivated sellers you could soon be earning more than the president of your bank!
LEASE
You can use a lease and a purchase option to buy "rent to own" home with no money down. It works like this...
You find a motivated seller... They have an urgent need to sell... They don't have much equity in their property, so you make a lease-option offer.
You explain you will lease the property for two years and make the monthly loan payments. That gets them out from under the mortgage payments almost immediately, but the mortgage will still be in their name. That will make it difficult for them to buy a home in the future.
You promise to have the mortgage paid off within the two years of the lease term if they will sign an option that allows you to buy the property during that time period. You agree to give them $800 as option consideration.
This type of offer has many benefits for a truly motivated seller and home owners often express their gratitude for your offer.
Now you control the property for two years with the right to buy it anytime you wish.
You immediately find a renter for the property who gives you $1,800 for the first month's rent and security deposit. Give $800 to your home owner for the option... spend $300 for any repairs the property needs and put the remaining $700 in your pocket.
In many areas you will be able to rent the property for more than the monthly mortgage payment, so you will have a nice stream of monthly income.
The property will appreciate in value during the 24-months that you control it. At the end of the lease you will sell it and put a fat profit into your pocket. All of this with a no money down deal!
We implore every investor to use leases and options to earn the most money in the shortest period of time.
Now... Hold On To Your Hat.... because you're going to learn about buying single family homes......
"SUBJECT TO EXISTING FINANCING"
Lease-option tactics work very nicely when buying "subject to existing financing".
Go to the "Subject To" page to learn more.
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Mark Walters
Lease Option Investing
9524 W. Camelback Rd #130-198
Glendale AZ 85305
director@lease-option-sub2.com
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possible... Or at least as much real estate as needed to become very wealthy.
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