Wholesaling Lease Options Made Simple

Wholesaling lease Options

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Wholesaling Lease Options Made Simple by Mind Map: Wholesaling Lease Options Made Simple

1. I am not responsible for...

1.1. Making any payments before I find a tenant-buyer

1.2. Making any payments after the tenant-buyer moves in

1.3. Any of the repairs or maintenance

1.4. Nothing if the tenant-buyer doesn't buy the home or gets evicted

1.5. The most I have to risk is the $100 Option Deposit I put down at the beginning

2. My offer:

2.1. 1) Cash: $95,000

2.2. 2) SLO:

2.2.1. Option Price: $127,500

2.2.2. Rent to Seller: $900/mo

2.2.3. Term: 5 years

2.3. 4) Consulting: One month's rent

2.4. Get my calculator

2.5. Retirement Calculator

3. 3) WLO:

3.1. Option Price: $145,000

3.2. Rent: $1,200/mo

3.3. Term: 2 years

4. Example deal

4.1. Seller wanted $150,000

4.2. Expired listing

4.3. Nice home in a nice area

4.4. Didn't need any repairs

4.5. They had a job transfer.  Did not want to be landlords

4.6. They owed $145,000

4.7. PITI Payments $1,100/mo

4.8. Market Rent: $1,200/mo

4.9. Give the Seller options

4.9.1. 1) Cash offer

4.9.2. 2) Sandwich Lease Option offer

4.9.3. 3) Lease Option Assignment

4.9.4. 4) Consulting

4.10. They took #3 (WLO)

4.10.1. I assigned that contract to a great tenant-buyer for a $4,500 assignment fee

4.10.2. My Realtor (Leasing Agent) found a Tenant-Buyer that needed 12 months to get their credit fixed

4.10.3. My mortgage broker & credit repair guy is working with them

4.10.4. I am done, out of the deal

5. Gave me the luxury of spending more time with my family

6. Goals Of Project

6.1. Teach you how cool Lease Options are

6.2. Inspire you to take action and make money flipping lease options

6.3. Not hold anything back

6.4. I am writing a book

6.5. You can have this mindmap! Text the word "WLO" to 313131

6.6. Join FB Group

6.7. Watch free Wholesaling Lease Options webinar - WLOWebinar.com

7. 1 - What Is "Wholesaling Lease Options"?

7.1. Watch This On Video

7.2. My story on how I got started

7.2.1. Doing a lot of wholesaling

7.2.2. Spending a lot of money on marketing & throwing away a bunch of leads

7.2.3. "Why can't I wholesale lease options?"

7.2.4. Within 3 months, I was making more money flipping lease options than I was in my full-time job.

7.2.5. I had everything almost 100% outsourced

7.3. What is a Lease Option?

7.3.1. Lease

7.3.2. Option to buy

7.3.3. Control with Ownership

7.4. What is a "Wholesaling" Lease Option deal?

7.4.1. Instead of flipping to a investor buyer

7.4.2. You're flipping to a tenant-buyer

7.4.3. You assign your contract for a fee

7.4.4. And you are out of the deal

7.5. Bottom line...

7.5.1. This is the fastest and easiest way to make money in real estate today

7.5.2. Stop throwing away all the leads that don't have enough equity.

7.5.3. There are still tons of sellers who don't have any equity, who want to sell their house, but can't

7.5.4. You can literally outsource almost 100% of this business

8. 2 - Benefits of Lease Option Deals

8.1. Watch this on video:

8.2. My vision for my business

8.2.1. I wanted a business that would...

8.2.2. Gives me the same income doing it part-time that a full-time job would give me

8.2.3. Doesn’t cost any money to start

8.2.4. Can produce immediate AND consistent cash flow

8.2.5. Can help me get out of debt AND create long term capital wealth

8.2.6. Has VERY low risk (if any)

8.2.7. Allows me to run the business from home and from anywhere in the world

8.2.8. That was honest, simple, and has low overhead

8.2.9. It helps people and benefits the community

8.2.10. Was FUN to do

8.3. For Sellers

8.3.1. A lot of sellers still today CANNOT sell their house

8.3.2. They may not have enough equity

8.3.3. Or they may be upside down

8.3.4. They get to rent their house to someone who wants to BUY it

8.3.5. They don't have to deal with typical landlord headaches

8.3.6. Bottom line - they can walk away with more money than if they sold the traditional way

8.3.7. Good book for Sellers

8.3.7.1. Wendy Patton: Rent-to-Sell: Your Hands-on Guide to SELL Your Home When Buyers are Scarce

8.3.7.2. Note: in my course, I actually have a book that you can print and give to your sellers

8.4. For Tenant-Buyers

8.4.1. They can “try out” a house before they buy it (Control without Ownership)

8.4.2. They can get part of their rent back as a "rent credit"

8.4.3. They get to lock in a great price, on a nice house in a nice area

8.4.4. Gives them time to rebuild their credit and get a good mortgage

8.4.5. They don't have to move again after they repair their credit

8.4.6. Good book for Tenant-Buyers

8.4.6.1. Rent-to-Buy: Your Hands-On Guide to BUY Your Home When Mortgage Lending is Tight

8.5. Remember...

8.5.1. Ethics...

8.5.2. Only create win-win's

8.5.3. Otherwise pass on the deal

8.6. Want More Information?

8.6.1. Watch my free webinar on Wholesaling Lease Options @ WLOWebinar.com

8.6.2. Want Personal Coaching? Book a call @ CoachJoe.net

8.6.3. Join my Lease Options Facebook Group

8.6.4. Stick around, I will be doing a lot more of these videos!

8.7. Geistesblitze

8.7.1. lease options

9. 3 - Basic Steps of a Wholesaling Lease Option Deal

9.1. Video:

9.1.1. Marketing, Marketing, Marketing - always be marketing

9.2. Find a Seller

9.2.1. Most all the sellers you need are already in Craigslist / Zillow

9.2.2. Get other wholesalers trash leads

9.2.3. Only nice houses in nice areas

9.2.4. Maybe they don't have lots of equity

9.2.5. Maybe they're upside down

9.2.6. They have very few choices

9.2.7. Many times they cannot afford a realtor commission

9.2.8. They don't want to be a landlord

9.2.9. They are at least semi-motivated

9.2.10. You present all the benefits to the seller of a lease option

9.2.11. You are not really "selling" anything. You are a "buyer". You get them to sell you on the house

9.2.12. Find out what they need to walk away with & want they want in monthly rent

9.2.13. You send them an offer

9.3. Advertise for a Tenant-Buyer

9.3.1. Sign a Lease Option Agreement ("Short Offer Form") with the seller

9.3.1.1. This Lease Option Agreement  gives you the right to ASSIGN this agreement to anyone you chose (that meets your minimum criteria)

9.3.1.2. SLO Terms

9.3.1.2.1. Price

9.3.1.2.2. Rent

9.3.1.2.3. Term

9.3.1.3. WLO Terms

9.3.1.3.1. Price

9.3.1.3.2. Rent

9.3.1.3.3. Term

9.3.2. Find someone who wants to buy a home, but can't right now

9.3.3. Someone who needs 1-2+ years to rebuild their credit.

9.3.4. Someone who has a good reason for bad credit

9.3.5. They have a realistic chance to get a mortgage in 1-2 years

9.3.6. Someone who doesn't want to just rent and throw their money away every month

9.3.7. Marketing

9.3.7.1. Take pictures & video

9.3.7.2. Craigslist

9.3.7.3. Zillow

9.3.7.4. Signs

9.4. Assign your Lease Option Agreement with the Seller to the Tenant-Buyer

9.4.1. My attorney helps you complete a few more pieces of paper

9.4.2. Now it becomes an agreement between the Seller and the Tenant-Buyer

9.4.3. Assign all responsibility and liability

9.4.4. You are completely removed

9.4.5. You are not responsible for payments

9.5. PROFIT - You Keep the Option Deposit as my Assignment Fee

9.5.1. Usually, it is at least $5,000 (2% - 3% of the price of the home, maybe more!)

9.5.2. Varies depending on which part of the country you are in.

9.5.3. Sometimes, you may want to share some of this with the Seller to make this deal happen

9.5.4. Create notes for the difference

9.6. Want More Information?

9.6.1. Watch my free webinar on Wholesaling Lease Options @ WLOWebinar.com

9.6.2. Want Personal Coaching? Book a call @ CoachJoe.net

9.6.3. Join my Lease Options Facebook Group

9.6.4. Stick around, I will be doing a lot more of these videos!

10. 4 - Example Deal

10.1. Video:

10.2. Find house on Craigslist

10.3. Spreadsheet - How The Numbers Work

10.4. Lease Option Offers

10.5. 3 Option Letter Of Intent

10.6. The seller says "Yes"...  The numbers

10.6.1. Seller wanted $175,000

10.6.2. Rent = market rent = $1,200

10.6.3. I bumped up the price $5,000 for Option Consideration and $3,500 for Rent Credits

10.6.4. My profit = $5,000 ("Assignment Fee")

10.6.5. What does the seller walk away with?

10.6.6. $183,500 - $5,000 - $3,500 = $175,000

10.7. Craigslist

10.8. $175,000 + $5,000 + $3,500 = $183,500

10.9. Advertise the house

10.9.1. Short Offer Form

10.9.2. Signs

10.9.3. Zillow

10.10. Paperwork

10.10.1. Attorney...

10.10.1.1. Lease

10.10.1.2. Option Agreement

10.10.1.3. Assignment

10.10.1.4. Seller's Disclosure

10.10.1.5. Lead Based Paint

10.10.2. Escrow

10.10.2.1. Collect the Option Consideration

10.10.2.2. Collect the rent

10.10.2.3. Pay the mortgage

10.10.2.4. Distribute the money

10.11. Want More Information?

10.11.1. Get this mindmap for FREE - text "WLO" to 313131

10.11.2. Watch my free webinar on Wholesaling Lease Options @ WLOWebinar.com

10.11.3. Want Personal Coaching? Book a call @ CoachJoe.net

10.11.4. Join my Lease Options Facebook Group

10.11.5. Stick around, I will be doing a lot more of these videos!

11. 5 - Important Concepts

11.1. You are not in the real estate business, you are in the marketing business

11.2. The Two Sins...

11.2.1. The Sin of Complicating This Business

11.2.1.1. There are really only 3 things you need to do deals...

11.2.1.2. Marketing

11.2.1.3. Talk to sellers

11.2.1.4. Make offers (and follow up)

11.2.1.5. Everything else is secondary

11.2.2. The Sin of "Anticipatory Thinking"

11.2.2.1. The sin of over complicating it

11.2.2.2. Stop focusing on steps 7-8. Just focus on Steps 1 & 2

11.2.2.3. Stop asking "What If?" and start asking "What's Next?"

11.2.2.4. You don't have to have all your questions answered. In fact, you never will

11.2.2.5. Progress not perfection

11.2.3. You need to stay FOCUSED on the basic things & get really good at them.

11.2.4. Do what your competition is not doing

11.2.4.1. Not having a marketing plan & scorecard

11.2.4.2. Picking up the phone

11.2.4.3. Making offers to every seller you talk to

11.2.4.4. Follow up with every lead at least 100 times

11.3. Licensing Issues

11.3.1. Should you get your license?

11.3.2. You can do lease options as a realtor

11.3.3. Always approach deals like you're going to stay in the middle.

11.3.4. Hire a Realtor to market your house for you

11.3.5. I am not an attorney - always seek legal advice from a local, creative real estate investing friendly attorney

11.4. Some good books in Amazon on Lease Options

11.4.1. Check out these podcasts about Lease Options

11.4.2. Wendy Patton Book 1

11.4.3. Wendy Patton Book 2

11.4.4. Buy Low, Rent Smart, Sell High

11.4.5. Turnkey Investing With Lease Options

11.4.6. How to Make Money With Real Estate Options

11.4.7. Buying Real Estate Without Cash or Credit

11.4.8. Making Big Money Investing in Real Estate: Without Tenants, Banks, or Rehab Projects

11.4.9. How to Create Multiple Streams of Income: Buying Homes in Nice Areas With Nothing Down

11.5. Want More Information?

11.5.1. Get this mindmap for FREE - text "WLO" to 313131

11.5.2. Watch my free webinar on Wholesaling Lease Options @ WLOWebinar.com

11.5.3. Want Personal Coaching? Book a call @ CoachJoe.net

11.5.4. Join my Lease Options Facebook Group

11.5.5. Stick around, I will be doing a lot more of these videos!

12. 6 - Important Keys to Effective Marketing

13. 7 - Creating A Marketing Plan & Scorecard