Wholesaling Lease Options Made Simple

Get Started. It's Free
or sign up with your email address
Wholesaling Lease Options Made Simple by Mind Map: Wholesaling Lease Options Made Simple

1. Goals Of Project

1.1. Teach you how cool Lease Options are

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

1.3. Not hold anything back

1.4. I am writing a book

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

1.6. Join FB Group

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

2. 1 - What Is "Wholesaling Lease Options"?

2.1. My story on how I got started

2.1.1. Doing a lot of wholesaling

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

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

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

2.1.5. I had everything almost 100% outsourced

2.2. What is a Lease Option?

2.2.1. Lease

2.2.2. Option to buy

2.2.3. Control with Ownership

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

2.3.1. Instead of flipping to a investor buyer

2.3.2. You're flipping to a tenant-buyer

2.3.3. You assign your contract for a fee

2.3.4. And you are out of the deal

2.4. Bottom line...

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

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

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

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

3. 2 - Benefits of Lease Option Deals

3.1. Watch this on video:

3.2. Or they may be upside down

3.3. My vision for my business

3.3.1. I wanted a business that would...

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

3.3.3. Doesn’t cost any money to start

3.3.4. Can produce immediate AND consistent cash flow

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

3.3.6. Has VERY low risk (if any)

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

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

3.3.9. It helps people and benefits the community

3.3.10. Was FUN to do

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

3.4. For Sellers

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

3.4.2. They may not have enough equity

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

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

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

3.4.6. Good book for Sellers Wendy Patton: Rent-to-Sell: Your Hands-on Guide to SELL Your Home When Buyers are Scarce Note: in my course, I actually have a book that you can print and give to your sellers

3.5. For Tenant-Buyers

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

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

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

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

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

3.5.6. Good book for Tenant-Buyers Rent-to-Buy: Your Hands-On Guide to BUY Your Home When Mortgage Lending is Tight

3.6. Remember...

3.6.1. Ethics...

3.6.2. Only create win-win's

3.6.3. Otherwise pass on the deal

3.7. Want More Information?

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

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

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

4. 3 - Basic Steps of a Wholesaling Lease Option Deal

4.1. Video:

4.1.1. Marketing, Marketing, Marketing - always be marketing

4.2. Find a Seller

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

4.2.2. Get other wholesalers trash leads

4.2.3. Only nice houses in nice areas

4.2.4. Maybe they don't have lots of equity

4.2.5. Maybe they're upside down

4.2.6. They have very few choices

4.2.7. Many times they cannot afford a realtor commission

4.2.8. They don't want to be a landlord

4.2.9. They are at least semi-motivated

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

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

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

4.2.13. You send them an offer

4.2.14. 3 Option Letter Of Intent

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

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

4.3.2. SLO Terms Price At least 15% equity Minus repairs "I will give you the same equity you would get if you sold thru a Realtor.  Is that fair?" Rent At least $300 / mo cash flow Term At least 5 years

4.3.3. WLO Terms Price Whatever the seller wants Bump the price up to cover your profit and buyer's closing costs in 1-2 years Rent Whatever they need in rent, as long as it is at or below market rent The rent goes to the seller every month (thru the escrow company) Term Usually 1-2 years If it's slightly underwater, do it for longer (price = loan balance in X years)

4.4. Advertise for a Tenant-Buyer

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

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

4.4.3. Someone who has a good reason for bad credit

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

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

4.4.6. Marketing Take pictures & video Craigslist Zillow Facebook Marketplace Signs

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

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

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

4.5.3. Assign all responsibility and liability

4.5.4. You are completely removed

4.5.5. You are not responsible for payments

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

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

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

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

4.6.4. Create notes for the difference

4.7. Want More Information?

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

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

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

5. 4 - Example Deal - 1

5.1. Video:

5.2. Find house on Craigslist

5.3. Spreadsheet - How The Numbers Work

5.4. Lease Option Offers

5.5. The seller says "Yes"...  The numbers

5.5.1. Seller wanted $175,000

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

5.5.3. Rent = market rent = $1,200

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

5.5.5. What does the seller walk away with?

5.5.6. $183,500 - $5,000 - $3,500 = $175,000

5.6. Craigslist

5.7. Advertise the house

5.7.1. Short Offer Form

5.7.2. Signs

5.7.3. Zillow

5.8. Paperwork

5.8.1. Attorney... Lease Option Agreement Assignment Seller's Disclosure Lead Based Paint

5.8.2. $175,000 + $5,000 + $3,500 = $183,500

5.8.3. Escrow Collect the Option Consideration Collect the rent Pay the mortgage Distribute the money

5.9. Example deal - 2 Details

5.9.1. Expired listing Seller wanted $150,000

5.9.2. Nice home in a nice area

5.9.3. Didn't need any repairs

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

5.9.5. They owed $145,000

5.9.6. PITI Payments $1,100/mo

5.9.7. Market Rent: $1,200/mo

5.9.8. Give the Seller options 1) Cash offer 2) Sandwich Lease Option offer 3) Lease Option Assignment 4) Consulting

5.9.9. My offer: 1) Cash: $95,000 2) SLO: Option Price: $127,500 Rent to Seller: $900/mo Term: 5 years 3) WLO: Option Price: $145,000 Rent: $1,200/mo Term: 2 years 4) Consulting: One month's rent Get my calculator Retirement Calculator

5.9.10. They took #3 (WLO) I assigned that contract to a great tenant-buyer for a $4,500 assignment fee My Realtor (Leasing Agent) found a Tenant-Buyer that needed 12 months to get their credit fixed My mortgage broker & credit repair guy is working with them I am done, out of the deal

5.9.11. I am not responsible for... Any of the repairs or maintenance Making any payments after the tenant-buyer moves in Nothing if the tenant-buyer doesn't buy the home or gets evicted

5.10. Want More Information?

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

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

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

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

6. 5 - Important Concepts

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

6.2. The Two Sins...

6.2.1. The Sin of Complicating This Business There are really only 3 things you need to do deals... Marketing Talk to sellers Make offers (and follow up) Everything else is secondary

6.2.2. The Sin of "Anticipatory Thinking" The sin of over complicating it Stop focusing on steps 7-8. Just focus on Steps 1 & 2 Stop asking "What If?" and start asking "What's Next?" You don't have to have all your questions answered. In fact, you never will Progress not perfection

6.2.3. You need to stay FOCUSED on the basic things & get really good at them. Check out these podcasts about Lease Options

6.2.4. Do what your competition is not doing Not having a marketing plan & scorecard Picking up the phone Making offers to every seller you talk to Follow up with every lead at least 100 times

6.3. Licensing Issues

6.3.1. Should you get your license?

6.3.2. You can do lease options as a realtor

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

6.3.4. Hire a Realtor to market your house for you

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

6.4. Want More Information?

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

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