Crash Course in Wholesaling Lease Options & Case Study

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Crash Course in Wholesaling Lease Options & Case Study by Mind Map: Crash Course in Wholesaling Lease Options & Case  Study

1. Why Wholesaling Lease Options?

1.1. Fast

1.2. Easy

1.3. Other Reasons

1.3.1. Perfect for beginner

1.3.2. Cash Flow!

1.3.3. Tons of Sellers who can't sell

1.3.4. Tons of Buyers who can't buy

1.3.5. Limited risk - if any. You're out of the deal once a TB is placed

1.3.6. You don't have to make payments

1.3.7. Only nice homes in nice neighborhoods

1.3.8. You truly have the ability to help sellers who have little to no equity. (And there are still a lot of them.)

1.3.9. Less Risk - You're not taking over the deed

1.3.10. You can do this business "virtually" from anywhere in the world

1.3.11. So easy to outsource almost everything

1.3.12. You don't have to see the house or meet the sellers

1.3.13. Non-confrontational. You don't have to negotiate a rock-bottom price.

1.3.14. You don't have to talk to the sellers more than 5 minutes

1.3.15. No mortgage payments - you can do as many of these deals as you want

1.3.16. You don't need a huge marketing budget

1.3.17. All the sellers and buyers you could need already in Craigslist

1.3.18. Great tool in the toolbelt of the experienced investor who is throwing away tons of leads

2. Steps

2.1. Remember to keep things simple! (KISS)

2.1.1. One Page Simplicity

2.1.1.1. yellow page.png

2.1.2. A-B-C

2.1.3. A = Seller

2.1.4. B = Investor (you're in the middle)

2.1.5. C = Tenant-Buyer

2.1.6. Get property under contract (A-B)

2.1.7. Assign A-B contract to Tenant-Buyer (B-C)

2.1.8. It becomes a contract between A-C

2.1.9. Or, stay in the middle & make MORE MONEY

2.1.9.1. Cash Now

2.1.9.2. Cash Flow

2.1.9.3. Cash Later

2.2. Market for Sellers

2.2.1. What to look for?

2.2.1.1. Semi-Motivated

2.2.1.2. Very little equity - if any

2.2.1.3. Median Home Price

2.2.1.4. Nice Homes in Nice Neighborhoods

2.2.1.5. 3+ Bedrooms

2.2.1.6. Good School Districts

2.2.1.7. You can only sell homes people want to buy!

2.2.2. Where are the Sellers?

2.2.2.1. Craigslist

2.2.2.1.1. For Rent

2.2.2.1.2. For Sale By Owner

2.2.2.2. FSBO Sites

2.2.2.3. Newspaper Classifieds

2.2.2.4. Direct To Seller Marketing

2.2.2.4.1. Expired Listings

2.2.2.4.2. Absentee Owners

2.2.2.4.3. Make sure you're only looking in the best zips

2.2.2.5. Other People

2.2.2.5.1. Investors / Rehabers in your city

2.2.2.5.2. Other Wholesalers - dead leads

2.2.2.5.3. Property Managers

2.2.2.5.4. Bird Dogs

2.2.2.5.5. Realtors

2.2.3. How to Contact the Sellers?

2.2.3.1. Emails

2.2.3.2. Voice Mail

2.2.3.2.1. No more cold calls!

2.2.3.3. Text Message

2.2.3.4. Combination of the 3 Above

2.2.3.5. Direct Mail - Postcards and Yellow Letters

2.2.3.6. Many More

2.2.4. Important Keys

2.2.4.1. Get a Virtual Assistant to ALL this for you!

2.2.4.2. Have a marketing plan - know your numbers

2.2.4.3. Consistency

2.2.4.4. Track your sellers

2.2.4.4.1. Podio

2.2.4.4.2. Google Spreadsheet

2.2.4.5. Don't waste your time with unmotivated sellers

2.2.4.5.1. How important is rapport building, really?

2.2.4.5.2. "If you want a friend, get a dog"

2.2.4.5.3. You're in business to make money today!

2.2.4.5.4. You are the one asking the questions.

2.2.4.5.5. Play the role of the "reluctant buyer". They need to sell their house to you. You are not selling a program.

2.2.4.5.6. You should know in 3-5 minutes if they are ready to do a deal

2.2.4.5.7. 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.

2.2.4.5.8. Send them something in the mail (No one is doing this!)

2.2.4.6. Great questions for sellers

2.2.4.6.1. 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?

2.2.4.6.2. What's your situation?

2.2.4.6.3. How quickly do you need to sell?

2.2.4.6.4. What would you like to see happen?

2.2.4.6.5. What are you going to do if you can't sell the house? Rent it?

2.2.4.6.6. 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?

2.2.4.6.7. Sounds like a really nice house. Why haven't you sold it yet? (Or, why would you even want to sell it?)

2.2.4.6.8. "My mortgage broker & I have a bunch of buyers on the verge of getting a mortgage and are looking for homes in your area."

2.2.4.6.9. "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?"

2.3. Get property under Lease Option contract (A-B)

2.3.1. Go see the house & meet the seller?

2.3.1.1. Only if you want to

2.3.1.2. Get the Seller to sign your agreement on-line

2.3.1.3. Have the Seller send you pictures

2.3.1.4. Have the Seller show the home

2.3.2. No negotiating needed with sellers. What do they want? You can probably get it for them

2.3.3. Set Option Price & Rent

2.3.3.1. What does the Owner want to walk away with?

2.3.3.2. What does the Owner want in monthly rent?

2.3.3.3. Rent Credits

2.3.3.4. Option Price = Seller's Asking Price + Option Deposit (Your Profit) + Rent Credits

2.3.4. Make sure the seller is current on their mortgage

2.4. Advertise the Home (B-C)

2.4.1. Best Places to Find Buyers

2.4.1.1. Craigslist

2.4.1.2. Bandit Signs

2.4.2. Advertise on your website

2.4.3. Postlets / vFlyers

2.4.4. Signs & Flyers in Yard

2.4.5. Send to your Buyer's List

2.4.6. Social Media

2.4.7. If you're not a Realtor, hire one

2.4.8. Importance of a good CHECKLIST

2.5. Find a Quality Tenant-Buyer

2.5.1. Look for 3% Option Deposit

2.5.2. You want to make sure they have a realistic chance of getting a mortgage in 1-2 years

2.5.3. Can they afford the house? (MOST IMPORTANT)

2.5.4. Have your mortgage broker review application

2.5.5. Background Check

2.5.6. Collect a deposit to hold the house

2.6. Assign Lease Option contract to Tenant-Buyer (A-C)

2.6.1. Remove yourself from future risk

2.6.2. Make sure the seller signs off on new TB & accepts liabilty

2.6.3. Have my attorney do all your paperwork

2.6.4. Have a third party escrow payment service set up (so you can be sure the mortgage is being paid)

2.7. Collect the Option Deposit as your Profit (Assignment Fee)

2.7.1. You're out of the deal

2.7.2. You are just assigning your rights to buy the home

2.7.3. Use my Attorney & Escrow Company

2.8. Make sure the Tenant-Buyer gets into a good credit repair program and is working with a mortgage broker

2.8.1. follow up

2.8.2. stay involved

2.9. Paperwork

2.9.1. Lease Option Agreement with Seller (one page "Short Offer Form")

2.9.2. Assignment Agreement - assigning your contract with the Seller to the Tenant-Buyer

2.9.3. Misc Paperwork

2.9.3.1. Seller's Disclosure

2.9.3.2. Lead Based Paint

2.9.3.3. Pet Agreement

2.9.3.4. etc

2.10. Don't forget the CHECKLIST!

3. Case Study

3.1. Bob Georgeff, Portland OR

3.1.1. House Pics

3.1.2. Check

3.1.3. Original lead came from contacting seller on their FSBO listing on Craigslist

3.1.4. Seller saved Bob's email from 9 months earlier

3.1.5. Tried selling with a Realtor and then FSBO

3.1.6. Seller is retiring and downsizing. Can't afford two house payments

3.1.7. Bob advertised it on Craigslist - got tons of calls. See ad >>>

3.1.8. Sign in yard "Rent To Own - 3% Moves You In - Phone"

3.1.9. Advertised Option Fee $7,900

3.1.10. Built up his TB list for future deals

3.1.11. Found a lot of people with large down payments

3.1.12. Found a buyer within 7 days

3.1.13. Used our attorney & escrow company to handle all the paperwork and legal issues

3.1.14. Numbers

3.1.14.1. Seller listed for $294,000

3.1.14.2. Seller wanted $285,000

3.1.14.3. That was close to what they owed

3.1.14.4. Option deposit of $7,900

3.1.14.5. Did not do rent credits

3.1.14.6. $285,000 + $7,900 = $292,900 (Option Price)

3.2. Joe's Deal - St Louis MO

3.2.1. Nice house

3.2.2. Nice house in suburban STL area

3.2.3. Seller had it listed FSBO. Moved out of town (2 payments)

3.2.4. Numbers

3.2.4.1. Seller wanted $299,000

3.2.4.2. Market Value = $300,000 & Rents $1,800

3.2.4.3. I offered $290,000 & $1,800

3.2.4.4. $290,000 seller’s price + $10,000 assignment fee + $5,000 rent credits = $305,000

3.2.4.5. I advertised property… - Option Price $305,000 - Rent $1,800/mo - Rent Credits $208/mo for 24 months

3.2.4.6. Found a great tenant-buyer, assigned my contract to him for $10,000

3.3. Look at an example deal on Zillow / Craigslist

4. Marketing

4.1. Market Research

4.1.1. Trulia Heat Maps

4.1.2. Talk to Realtors

4.1.3. What to look for in virtual markets

4.1.4. Market Plan

4.2. Talking To Sellers

4.3. Making Offers

5. Automation

5.1. Podio

5.2. Freedomsoft

5.3. Phone Systems

5.3.1. CallRail

5.3.2. Vumber

5.3.3. Skype

5.4. Answering Services

5.4.1. Answering Service

5.4.2. YellowLetters.com Service

5.5. Texting

5.5.1. Freedomsoft

5.5.2. EZTexting

5.6. Email Autoresponders

5.6.1. Freedomsoft

5.6.2. MailChimp

5.7. Send Mail to Sellers

6. Delegation

6.1. Special Report: How To Find, Hire, Train VA's

6.2. VA Easy Button

6.3. Virtual Staff Finder

6.4. UpWork

6.5. Hire My Mom

6.6. Find Local Assistants - Local Craigslist Ads

7. More Detail / In Depth Course

7.1. Get The Entire WLO System

7.2. On my website for $1497

7.3. Today $997

7.4. Plus you get all these bonuses...

7.4.1. 30 Days Email Coaching

7.4.2. 30 Days My VA's Do All Your Marketing

7.4.3. Partner With Me On Deals

7.5. 3 Ways To Get Course For FREE

7.5.1. 1) Partner with me on a deal

7.5.2. 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

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

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