Create your own awesome maps

Even on the go

with our free apps for iPhone, iPad and Android

Get Started

Already have an account?
Log In

Crash Course in Wholesaling Lease Options & Case Study by Mind Map: Crash Course in Wholesaling Lease
Options & Case  Study
5.0 stars - 4 reviews range from 0 to 5

Crash Course in Wholesaling Lease Options & Case Study

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

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!

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 (2 payments)

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 assignment fee + $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 my contract to him for $10,000

Look at an example deal on Zillow / Craigslist

Marketing

Market Research

Trulia Heat Maps

Talk to Realtors

What to look for in virtual markets

Market Plan

Talking To Sellers

Making Offers

Automation

Podio

Freedomsoft

Get 2 week free trial at http://joelikesfreedomsoft.com

Phone Systems

CallRail

Vumber

Skype

Answering Services

Answering Service

YellowLetters.com Service

Texting

Freedomsoft

EZTexting

Email Autoresponders

Freedomsoft

MailChimp

Send Mail to Sellers

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

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 you for the next 3 months. If you do what I say, and you still don't do a deal, I will refund your money

3) Send me a video testimonial & a copy of your check

Let me PROVE to you that this is the EASIEST & FASTEST way to make money in real estate today