Mind Map Gallery Crash Course in Wholesaling Lease Options
- 180
Crash Course in Wholesaling Lease Options
This mind map is about Crash Course in Wholesaling Lease Options. Start to use a mind map to express and organize your ideas and knowledge right now.
Edited at 2020-10-09 06:08:31
- Recommended to you
- Outline
Crash Course in Wholesaling Lease Options & Case Study
More Detail / In Depth Course
Get The Entire WLO System
On my website for $1497
Today $997
Plus you get all these bonuses...
30 Days Email Coaching
30 Days My VA's Do All Your Marketing
Partner With Me On Deals
3 Ways To Get Course For FREE
1) Partner with me on a deal
2) Don't do a deal in 3 months, I will help youfor the next 3 months. If you do what I say, andyou still don't do a deal, I will refund yourmoney
3) Send me a video testimonial & a copy ofyour check
Let me PROVE to you that this is the EASIEST & FASTEST way
to make money in real estate today
Delegation
Special Report: How To Find, Hire, Train VA's
VA Easy Button
Virtual Staff Finder
UpWork
Hire My Mom
Find Local Assistants Local Craigslist Ads
Automation
Podio
Freedomsoft
Phone Systems
CallRail
Vumber
Skype
Answering Services
Answering Service
YellowLetters.com Service
Texting
Freedomsoft
EZTexting
Email Autoresponders
Freedomsoft
MailChimp
Send Mail to Sellers
Marketing
Market Research
Trulia Heat Maps
Talk to Realtors
What to look for in virtual markets
Market Plan
Talking To Sellers
Making Offers
Case Study
Bob Georgeff, Portland OR
House Pics
Check
Original lead came from contacting seller on their FSBO listing
on Craigslist
Seller saved Bob's email from 9 months earlier
Tried selling with a Realtor and then FSBO
Seller is retiring and downsizing. Can't afford two house
payments
Bob advertised it on Craigslist got tons of calls. See ad >>>
Sign in yard "Rent To Own 3% Moves You In Phone"
Advertised Option Fee $7,900
Built up his TB list for future deals
Found a lot of people with large down payments
Found a buyer within 7 days
Used our attorney & escrow company to handle all the paperwork
and legal issues
Numbers
Seller listed for $294,000
Seller wanted $285,000
That was close to what they owed
Option deposit of $7,900
Did not do rent credits
$285,000 + $7,900 = $292,900 (Option Price)
Joe's Deal St Louis MO
Nice house
Nice house in suburban STL area
Seller had it listed FSBO. Moved out of town (2payments)
Numbers
Seller wanted $299,000
Market Value = $300,000 & Rents $1,800
I offered $290,000 & $1,800
$290,000 seller’s price + $10,000 assignmentfee + $5,000 rent credits = $305,000
I advertised property…
Option Price $305,000
Rent $1,800/mo
Rent Credits $208/mo for 24 months
Found a great tenant-buyer, assigned mycontract to him for $10,000
Look at an example deal on Zillow / Craigslist
Steps
Remember to keep things simple! (KISS)
One Page Simplicity
yellow page.png
A-B-C
A = Seller
B = Investor (you're in the middle)
C = Tenant-Buyer
Get property under contract (A-B)
Assign A-B contract to Tenant-Buyer (B-C)
It becomes a contract between A-C
Or, stay in the middle & make MORE MONEY
Cash Now
Cash Flow
Cash Later
Market for Sellers
What to look for?
Semi-Motivated
Very little equity if any
Median Home Price
Nice Homes in Nice Neighborhoods
3+ Bedrooms
Good School Districts
You can only sell homes people
want to buy!
Where are the Sellers?
Craigslist
For Rent
For Sale By Owner
FSBO Sites
Newspaper Classifieds
Direct To Seller Marketing
Expired Listings
Absentee Owners
Make sure you're only looking in the best zips
Other People
Investors / Rehabers in your city
Other Wholesalers dead leads
Property Managers
Bird Dogs
Realtors
How to Contact the Sellers?
Emails
Voice Mail
No more cold calls!
Text Message
Combination of the 3 Above
Direct Mail Postcards and Yellow Letters
Many More
Important Keys
Get a Virtual Assistant to ALL this for you!
Have a marketing plan know your numbers
Consistency
Track your sellers
Podio
Google Spreadsheet
Don't waste your time with unmotivated sellers
How important is rapport building, really?
"If you want a friend, get a dog"
You're in business to make money today!
You are the one asking the questions.
Play the role of the "reluctant buyer". They need
to sell their house to you. You are not selling a program.
You should know in 3-5 minutes if they are ready to do a deal
Don't spend so much time explaining your "rent to
own" program to them. Ask them if you can send them an email that explains
everything. Tell them you're in a hurry, or you have a bunch of clients
to talk to, and it would be easier and more efficient if you just
email them some information and they can call you after they review
it if they're interested.
Send them something in the mail (No one is doing this!)
Great questions for sellers
Do you mind if I ask you a few questions about your house to see
if it would even be something I would be interested in?
What's your situation?
How quickly do you need to sell?
What would you like to see happen?
What are you going to do if you can't sell the house? Rent
it?
I am looking for an investment property that I can lease for a
couple years and then buy. That wouldn't work for you, would it?
Sounds like a really nice house. Why haven't you sold it
yet? (Or, why would you even want to sell it?)
"My mortgage broker & I have a bunch of buyers on the
verge of getting a mortgage and are looking for homes in your area."
"What if I could lease your property for 1-2 years, pay
the rent on the 1st of very month, take care of all the day-to-day
maintenance and repairs, then buy the house at the end of that time without
you having to pay any commissions, what would you want to do then?"
Get property under Lease Option contract (A-B)
Go see the house & meet the seller?
Only if you want to
Get the Seller to sign your
agreement on-line
Have the Seller send you pictures
Have the Seller show the home
No negotiating needed with sellers. What do they want? You can
probably get it for them
Set Option Price & Rent
What does the Owner want to
walk away with?
What does the Owner want in
monthly rent?
Rent Credits
Option Price = Seller's Asking Price +
Option Deposit (Your Profit) + Rent
Credits
Make sure the seller is current on their mortgage
Advertise the Home (B-C)
Best Places to Find Buyers
Craigslist
Bandit Signs
Advertise on your website
Postlets / vFlyers
Signs & Flyers in Yard
Send to your Buyer's List
Social Media
If you're not a Realtor, hire one
Importance of a good CHECKLIST
Find a Quality Tenant-Buyer
Look for 3% Option Deposit
You want to make sure they have a realistic chance of getting
a mortgage in 1-2 years
Can they afford the house? (MOST IMPORTANT)
Have your mortgage broker review application
Background Check
Collect a deposit to hold the house
Assign Lease Option contract to Tenant-Buyer (A-C)
Remove yourself from future risk
Make sure the seller signs off on new TB & accepts liabilty
Have my attorney do all your paperwork
Have a third party escrow payment service set up (so you can be
sure the mortgage is being paid)
Collect the Option Deposit as your Profit (Assignment Fee)
You're out of the deal
You are just assigning your rights to buy the home
Use my Attorney & Escrow Company
Make sure the Tenant-Buyer gets into a good credit repair program
and is working with a mortgage broker
follow up
stay involved
Paperwork
Lease Option Agreement with Seller (one page "Short Offer
Form")
Assignment Agreement assigning your contract with the Seller
to the Tenant-Buyer
Misc Paperwork
Seller's Disclosure
Lead Based Paint
Pet Agreement
etc
Don't forget the CHECKLIST!
Why Wholesaling Lease Options?
Fast
Easy
Other Reasons
Perfect for beginner
Cash Flow!
Tons of Sellers who can't sell
Tons of Buyers who can't buy
Limited risk if any. You're out of the deal once a TB is
placed
You don't have to make payments
Only nice homes in nice neighborhoods
You truly have the ability to help sellers who have little to
no equity. (And there are still a lot of them.)
Less Risk You're not taking over the deed
You can do this business "virtually" from anywhere
in the world
So easy to outsource almost everything
You don't have to see the house or meet the sellers
Non-confrontational. You don't have to negotiate a rock-bottom
price.
You don't have to talk to the sellers more than 5 minutes
No mortgage payments you can do as many of these deals as you
want
You don't need a huge marketing budget
All the sellers and buyers you could need already in Craigslist
Great tool in the toolbelt of the experienced investor who is
throwing away tons of leads