How to make money with Lease with an Option Investing!

The secret is to have the current price of the property fixed at the time the lease-option is signed so when the years of the lease run out the owner cannot raise the price.

Usually there is an up-front payment of some kind to purchase the option.

The monthly amounts can vary.

You can negotiate the monthly payment to be larger than what is asked for.

Lets say its a duplex, and there are renters in the building which add up to $1400 a month, you negotiate a price of $700 a month, lets say taxes are $2500 a year, this makes a payment of $209 on top of the payment, so our total we have to spend is $910 a month.

You still have a net income of $490 a month.

Here is the secret, let’s say you want to keep $200 a month for personal expenses, which come to $12,000 in five years, not bad for just collecting rents.

After you take out your $200 tax shelter income, you still have $290 in income.

Now remember you have a five year Lease with Option, this extra payment you give to the owner, just send the $290 straight to him, he will be happy and you can apply this to the purchase of your home or rental property, which after five years is a nice sum of $17,400.

You can also apply the other $700 a month payment you have paid to the property if you remember to put this into the contract, so when you go to purchase the property you can put down $59,400.

Residual income.

Remember this is a contract so you can carry this principal over to any other deal you make.

Whether it’s cars, boats, snowmobiles, which I don’t use in Texas I might add, businesses you want to buy.

Whatever your mind can come up with. This understanding can change your life.

Other immediate income producing possibilities include:

Consulting on an hourly basis, (teach others your secrets)

Paying a referral fee to someone for lining up these opportunities for you

Charging an up front fee for your services instead of waiting for the residual income (most people are ignorant to these tricks of the trade, Mr. Factory worker could benefit from your knowledge greatly)

FIVE EASY STEPS TO REMEMBER THE BASICS OF LEASE WITH AN OPTION!

1. The tenant/buyer pays to the landlord/seller a nonrefundable option deposit that is applied to the purchase price of the home. Deposit can come in many creative ways, does not have to be currency, can be painting, windows, new car (I did that too, only it was a new car) etc. .

2. The tenant/buyer then pays to the landlord/seller rent to compensate the landlord/seller for the tenant/buyer's use of the property.

3. Rent payments are usually made on a monthly basis. Negotiate the price so you will pay at least half of the property at closing. I.E. Listed for $150k asking $130k, your lease with option comes to $65k at end of term, offer $125k.

4. During the term of the lease, but before the option expires, the tenant/buyer has exclusive right to buy the home under the terms to which both parties have previously agreed. Remember to not allow the term to expire.

5. This understanding can be used for buying and selling other businesses and items. Be creative with lease with an option and it can serve you well.

Step 1.

Contact all the “We Buy Houses” investors in town to build your buyer’s list.

Step 2.

Find a run down house and its owner or a motivated seller.

Step 3.

Ask 2 secret questions to get the absolute cheapest purchase price.

"Are you the Owner of the Property?" & "Are you ready to get out from under this financial elephant?"

Step 4.

Write an agreement to purchase using a "risk free" clause, I will show you in my manual.

For the forms go here

Step 5.

Contact people in Step 1 (your buyer’s list) to see the property.

Step 6.

Write an Agreement to sell to your buyer.

Step 7.

Turn the agreements to BUY and Agreement to SELL into the title company.

Step 8.

About 1 week later, you get $3,000, $7,000 or much more.It’s that simple!