Hey, what's up, everybody? How you doing? Joe McCall here and on this video, I'm going to show you how to create fast offers using lease options, using my lease options offer calculator. So, when I, like when I'm talking to a seller and the lead's cold and they're not ready yet, maybe to do a deal on a scale of one to five, maybe it's a one or two or three, I might send them my three-option offer template. If it's a four or five then obviously I'm not going to send them three offers. I'm going to make an appointment, I want to go meet with them, I'm going to talk to them some more. Make them an offer. So, on this little video here, I'm just going to show you how I make my lease option offers and it's really quick, simple, easy, fast. And I'm going to show you how I do it and I'm going to let you have this calculator for free, if you watch my webinar where I teach you how to do lease option deals, at sloclass.com, sloclass.com.

Okay, so I'm going to share my screen with you here. Let me hide my banner and if you have any questions while I'm going through and doing this, please type the questions in the Facebook or in YouTube and I will see the comments here as I'm doing the video live and I'll answer your questions. Okay, so I'm going to share my screen with you. Hopefully this works. All right. You all see this right now. I went to Zillow. You, a lot of you have seen course that I have on Zillow. It's called Z Code. One of my favorite ways to get deals is from Zillow. I love Zillow cause it's the biggest marketplace on the innerwebs for rental properties and for sale by owner properties.

So, just really quickly before I go live on this video here, I went to Zillow and I found this property. By the way, if you're curious about that Zillow thing, I have a course on that. You can get it at zcodejoe.com. Zcodejoe.Com. Alright. Anyway, back to my screen. All right, so here's this house on Zillow, right? I just looked at one of my favorite areas and I looked for three plus bedrooms rents under $1,800 a month in the St Louis area and these are great suburbs and so I found this property at 48 Gatewood Drive. Let's say I wanted to do a little bit of marketing. I talked to the seller, I talked to the leasing agent or something and they find out, I felt like, yeah, they might consider at least purchase, I don't know. Go ahead and make an offer.

So, this is what I would do. It's really, really simple. By the way, I'll give you this calculator right here. I'll give it to you for free. If you go watch my webinar, Simple Lease Options sloclass.com, sloclass.com. At the end of that webinar, I give you a link where you can actually get this and use it for yourself. All right. So, first thing I like to do here is go and I hope you can see this. Alright, I'll do my best to kind of zoom in. Oh, won't let me do that. Let me do this.

One of the things I like to do, if you can see right here to find the ARV, it's really simple. I don't complicate it. I don't look at sold comps and active comps. I just go to get the top five or six, you know, websites that estimate pricing, right? Zillow, Eppraisal, Redfin, PropStream, realtor.com, RealQuest, etcetera. And so, I did that, right? Just right before we started this. And you know, Zillow says it's $175k, Eppraisal, $159k, Redfin $172k, PropStream $179k, $191k, $162k… And you can find that stuff really simple like eppraisal.com gives you both of those values right here. Redfin gives you the value right here. Realtor.Com gives you the value right here and RealQuest gives you that.

And so, what I like to do is just kind of average them. And I also even take the median because I don’t know just, I'm a nerd and I'll just take the lower of the two at that point. I'll kind of like the median because it removes the outliers. But that's it. That's my ARV $173,500 okay? Pretty simple. Now here in my calculator, I have three different columns. A cash offers. I can calculate a cash offer, a sandwich lease option offer where I stay in the middle and the lease option assignment offer where if the seller doesn't want to me to stay in the middle, they want to stay in the middle. They don't care about me taking care of anything about the property, whatever. Then I offer them a lease option assignment or a wholesaling lease option, which is what this book is all about.

If you've seen this book, Wholesaling Lease Options, I prefer sandwich lease options because that's where I make more money. That's where I can stay in the middle. I get cash now, cash flow and cash later, right? So anyways, so here in the after-repair value, I want to put the $173,500 and that's where I got it from here. Just put it right here and $173,500 by the way, can you see me? Am I making sense? Type in the questions or the comments on Facebook or YouTube right now. Let me know that you can see me and hear me and I get comments like this from you guys. Thanks Hassan and.

Alright, so I think we're good. So, here in the calculator, if I'm making a cash offer in this market, I can do is about 75% of ARV, minus repairs. Now to find repairs, I usually just do, there's no interior photos and I'm assuming it's fine cause it's rent ready. I typically, if I don't see pictures, I just do $5 a square foot, right? So, about $5,500 for repairs, I want to make at least $10 grand in a wholesale fee. So, I'm going to offer a cash offer of $114,565. For a sandwich lease option, my rules are really simple. I want at least 15% equity in the house and I want at least 25% of the rent for cashflow. So, if the market rents are $1300 cause that's what they're advertising it for, $1300, I'm just going to go with that. I want at least $325 a month in cashflow and I want at least 15% equity.

So, I want to do it for five years, $1,000. So, this is my sandwich lease option right here. Okay, let me zoom into that. I'm going to give the seller a price. I'm going to buy it from the seller for $141,915, I'm going to pay them $975 a month in rent. I'm going to put a thousand bucks down. Does that money come from me? No. It comes from my tenant buyer. I'm going to do for five years.

Now you may say, why would the seller ever want to do that? Well, good question. The reason why they might want to do that is as a sandwich lease option, I'm taking the responsibility and the risk of managing the property, paying the rent, whether it's vacant or not, taking care of any maintenance and repairs. It's a way to buy an investment property without buying it. I'm controlling property without owning it. Powerful, powerful strategy in real estate investing, right?

That's why I love lease options. I can control property without owning it and so I'm going to give that seller the same equity they would get if they sold with the realtor and they don't have to worry about any of the problems and hassles of managing a rental property. I'm going to take all of those headaches from them so they get the same cashflow that they would. They get the same equity they would get if they sold to the realtor and I'm giving them the same cashflow they would get without using a property manager that they would have gotten if they used a property manager. Real simple, right?

By the way, you know if that property is vacant, was that property manager going to pay the rent? No. If the house hasn't sold, is this, is the realtor going to pay the mortgage payments? No, but on the sandwich lease option, I'm going to take care of all of that for the seller. And so, for a seller who doesn't want to sell right now or maybe can't sell right now, they don't want to be a long-distance landlord. They've got to be a little bit of motivated, right, then the sandwich lease option is going to be the best option for them.

And I always tell sellers, listen, why don't you just list it and sell it with a realtor? You know, I always make that option available to the sellers, but a sandwich lease option is a great strategy to find good investment properties. If the seller is motivated and they can't sell it, you know, all the other wholesalers are offering $115,000, I can offer the seller $142,000, right? I can give the seller more money and if they were to sell that house and list it with a realtor, they'd probably walk away with that much money anyway.

Alright. Now, what if the seller says, no, I don't want to do a sandwich lease option. I'm okay with staying in the middle. I'm okay with, you know, using my property manager, whatever, but I want to do a lease option assignment. I'm just going to give the seller whatever price they want. It's worth about $174,000 today. They say they want $170k for it. Let's say, alright, and I'm gonna give them $170,000, $1,300 a month in rent, two years, a hundred bucks. I'll put a hundred dollars down. So, you can see here, if I zoom out a little bit, I'm giving the seller three different options. I'm giving them a cash price, a sandwich lease option price, and a lease option assignment price.

Now where does the profit come from on these? Well, the cash offer, I make $10 grand on an assignment fee or double close and I wholesale cash on a sandwich lease option offer. I'm making money up front from the tenant buyers’ money that they put down. I'm making cash flow of about $325 bucks a month. And I'm making cash later. That's a difference between like I'm buying it for $142k, I'm going to sell it for about $180k. So, I'm going to make about a $39k- $40,000 spread at the back end. The lease option assignment I make my money by selling my lease option contract to a tenant buyer and I'm done and out of the deal. Cool.

That's how you make a simple sandwich or lease option offer. When I give the seller and I talk about this in the webinar at sloclass.com, I actually show you the packet that I send to sellers. I give them a, you know, an initial cover page is great talking to you. Then I give them another letter, like a letter of intent with these three options in it.

Then the next page is, explains what a lease option is and it explains the benefits of a lease option deal. And then the next three pages are some frequently asked questions and some really good answers for them. And then the final page is a list of references. You know, you could use a mortgage broker, a property manager that you work with, an attorney that you work with, a realtor that you work with, mortgage broker, credit repair companies. You may think, I don't have any references, right? I've not done lease option deal before, but yet you probably know a lot of people in the real estate investing industry that you could actually use them as references. Alright, so it's a little packet that I put together and I send it to the seller and when I use my REI Simple software it puts all that together and sends it to them for me.

Now, I want to see if we have any questions and if we don't, I'm going to show you one other cool thing here that you can do inside of REI Simple to contact these sellers. So, let me stop sharing my screen here and who has some questions about this. Okay, we've got a lot of people on. Ingenuity, he says going to watch a module after this. Okay, cool. Jason says, thanks, Joe. Well, you're welcome. Okay. Here's a good question from Tom on the sandwich lease option, do you mean you give the seller $1,000 upfront or wait until you get a tenant buyer? That's good. A good question. It depends. The answer depends… If it's a smoking hot deal, okay, I'm going to give the seller cash right now because I want to get that property under contract and I'm going to guarantee that I'm gonna start paying rent on the, you know, the first of next month or whatever.

If it's a marginal deal, I don't know if I can find a good tenant buyer or not to live in the property, I'm going to give them an option agreement that starts on a certain day. And by the way, I don't tie up the property.  It's just an option, right? That says if it, when I find a tenant buyer to live in the house, I'm going to then execute another contract. All right? But I'm not tying up the property or locking it down.

If the seller sells it or rents it before I do, they can cancel my contract and they don't owe me anything. So, there's really no risk to the seller at all. So, if it's a smoking hot deal and I got $1,000 in my pocket that I'm going to give it to the seller right then and there. Otherwise I'm just going to give the seller that money when I find the tenant buyer that moves in the house.

I hope that makes sense. Now to make a contract valid, you need to have some exchange of consideration, so you could put $100 down. If you don't have $1,000 down, then don't worry about it. Just do a hundred bucks. You can make a contract for valid consideration with $10 I'm not legal attorney. You got to talk to an attorney, get some advice on that. But yeah, that's what I do. So, any more questions? I don't see any questions live right now. Again, if you want to get this calculator that I just showed you, go to sloclass.com to watch my webinar and at the end of that webinar I'm going to give you a link. Read and get this calculator right here.

Let me share my screen with you again. This is all kind of new to me. I think it works. So, if you want this calculator right here, watch the webinar sloclass.com, sloclass.com and I explain how to use it. I explain how to send the offers and stuff like that. So, if you got another question, type it in now cause I'm going to show you all something else really quick here. And if you don't have a question then I'll just end this video here in REI Simple.

So, one of the things we'd like to do is have our VA's going through and scraping Zillow and putting this information into a web form that I have through REI Simple when they've sold it. When the VA puts this information in there, it goes here into this, into as a new lead. Now this is a property that's listed with a leasing agent. I can tell because it says right there listing agent Brian Sitarski, whatever. And there's a phone number. Now, I could go into REI Simple right here and I could text this leasing agent right now if I wanted to.

I could say, Hey Brian, I saw your property at, I don't remember the address, but I can just go right here. Property address. They wouldn't say the owners wouldn't be open to selling it would they? You got to know how to spell… Thanks, Joe. Now where am I sending this from? I'm going to send it from a local St Louis phone number. Okay. And I'll just read it really quick.

“Hey, Brian, I saw your property, dah, dah, dah. The owners wouldn't be open to selling it, would they?” Boom. I send a text to the leasing agent. Now what if I want to contact the owner of the property? Well, REI Simple, the CRM that we use makes that possible. I'm gonna zoom in a little bit here so you can see better, I'm gonna click “find owner” and I click here and the owner is Jeffrey Thyme and their mailing address is in Cottleville, which is about five, 10 minutes away, Great Park Drive. I click “save fields to lead”. And it's saved the seller's information right there. Okay?

And I'm going to do something here really quick. I'm going to just get rid of the all caps. Okay. And I'm gonna save lead at… And I can, there's a couple of cool things you can do here. You can skip trace this owner; I can get the owner's contact information. I'm going to click skip trace right here, and I'm gonna drag over owner of record and I'm gonna drag over mailing address, mailing city, mailing state, mailing zip, confirm skip trace. Now it's been added to skip trace. I'm going to go right here. I can see the order and I click on that and I'm going to skip trace one lead. Next step.

All of this skip tracing is done right inside of REI Simple… it's pending right now. I'm going to click refresh and it just takes a minute there. It's complete. Cool. So, I'm going to go back to the lead here. Let me close. I got too many tabs open. All right, so here's the lead. Look at all these emails that it came up with for this seller, Jeffrey Theme. Now, one of the things I'm going to do is I'm going to take his name here and I'm going to put it up here. Okay, I'm gonna put his name up there, I'm gonna save this lead again. And here's some cool things that I can start doing. I can send text messages to all these numbers and say, Hey, I think you own this property. I blah blah, blah. Do I have the right person? I can also send an email, so let's just send an email or two. I'm gonna click the email address here.

I'm going to go to my template. I'm going to say vacant house email. And so, it just fills it in. Hey, owner of record, I think you own a house that's in city… I'm an investor looking for some more properties in the area. You wouldn't be interested in selling it, would you? Give me a call. Use your name. Boom. Okay. I just sent an email to that first email. And by the way, can a VA do this? Yes, they certainly can. All right, boom. Sent an email there. Done. They just send one more email and kind of show you what I'm doing here. I don't know if these are the right emails, but there, just sent some emails. I could also send some text messages.

I could call them too if I wanted to, right? Not sure I have the right person. I'm looking for the owner of property address. Is this… You wouldn't be interested in selling your property, would you? Thanks Joe. Alright, send SMS. I'm gonna send one to this one too. Now I don't have a problem sending a one-off text because this isn't like a big spam bot that's sending hundreds and hundreds of texts all at once. I'm sending personalized text messages here. I just sent two text messages to the two new mobile numbers I have.

Now I also want to send this seller a letter. I want to send them a letter because again, a lot of these properties on Zillow are listed with leasing agents, right? Well, this is where the powerful comes, power of this comes in. I can click on generate document and I'm going to create a letter and I have it right here. Vacant house letter. How do I know it's vacant? Well, it's a rental property. It probably is.

And there's other, you know, you could create your own letters or whatnot. And the next step, okay, here's a letter to Jeffrey Thyme. This is why I changed from all caps to just lower case. And you could go in here and make a memo if you want. Dear Jeffrey, let's say Jeff, right? I understand you own a house in St Peters. I'm an investor looking for more properties in the area. You wouldn't be interested in selling, would you? Give me a call at, I'll do one of my numbers here. Now I could go in and I can set it up where it always has the same phone number in here, which is kind of helpful, but you can get your local phone numbers from REI simple. Okay. There's my letter. Real simple. I click complete. And the, you can see here in the attachment section that letters generating and a, there's a real powerful tool with REI.

I'm sorry with click to mail or I can S there's a thing called email to mail and click to mail and I can take this letter and I can email it to click to mail. Click to mail, we'll print it and mail it to the seller. First-Class mail next day. All right, boom. Just like that. I'm going to send this attached letter to the seller here at property, owner of record property, mailing address, city, state, zip, click, send email. So, it took me longer because I was explaining this, but here's the cool thing about this guys in my course, I teach you how you can go and get a VA or companies that I use to scrape Zillow and give me all the rentals and fsbos and with just a few clicks I can send a text message to whoever's advertising the property. I can send a letter to the owner who owns the rental property, it's vacant, and then I can send text messages to all of the phone numbers that come up with that seller.

As long as it's not an LLC, I can skip trace and get all that and I can send emails to all of the emails that come up from the skip trace. And you can have a VA, you can have a virtual assistant do all of that for you. So, can you imagine every day your VA going and getting the 20 to 50 new properties that show up on Zillow or Facebook marketplace, whatever you're getting these leads from of rentals and fsbos and sending emails, text messages and letters, maybe even Slybroadcast. What could stop you from downloading all these numbers? Sending a Slybroadcast…

I'm not advocating ringless voicemail or whatnot, but just like that with a few clicks, just taking one or two minutes, you could contact the sellers four different ways, the person advertising the home and the homeowner four different ways and just say, Hey, do you want to sell your house? If they say, yeah, maybe, you know, get them on the phone, talk to them, all that good stuff. And that's something that I talk about in the course. How do you do that? I teach you how to do that in my webinars, Simple Lease Options. It's called sloclass.com. Sloclass.com. If you go there, I will show you how to do what I just did and I'll give you access to this calculator that I used to do it.

Okay, now we've got some questions here. It just usually takes a little bit of time. All right, nice. Here is the do I ever, this is from Daniel. Do you ever do any lease options with repairs? Yes. I love houses that need repairs because I get the tenant buyer to fix them up. Now, if it's a house with a lot of equity, a lot of cashflow, I might go in and just clean it up, but you don't have to make it super nice, right?

But just make it livable. But you can advertise your lease option properties as rent to own handyman special or work for equity or something or just keep it simple. Just discount the price. If the house is worth $175k fixed up and it needs 20 grand in work, advertise it for $155 as is, as a lease option. Now when I make my offer at, with 15% equity, that's based on the current as is value, so just get it under contract, get a tenant buyer in there and let the tenant buyer fix up the house. Forget about rent credits and work for equity credits. If you're worried about Dodd Frank and how that all works out at the end, just get it under a good deal and advertise it as a good deal, but you'll never ever, ever on a lease option do the work yourself.

Rarely, I have students that do it and they make great money, but like you don't have to, you can get the tenant buyer to fix the house up. Good question. You pay their option consideration with your tenant buyer option credit. Good. Right. Good point. So, when I'm paying the sellers money, I get that money from the tenant buyer. When they give it to me or I give the tenant buyer, I mean I give the seller the thousand bucks or whatever and then you know, three, four weeks later I get that money back from the $10,000 option deposit money the tenant buyer puts down, for example. Good question here from CEO provider. How do you negotiate to the seller to for how long to wait for how long? That's a good question. I'm not sure I understand.

I think the question is how do you negotiate like five years with the lease option? Well, that's where I start. Sometimes the seller won't do it for less than three years or two years. So, it's either price or terms. So, if the seller doesn't want five years but they only want to do it for three years, well guess what? The price that I'm going to be offering them will go down as well. I can negotiate price, I can negotiate rent credits with the seller, I can negotiate the monthly payment that I'm paying the seller and the price, and there's like three or four things you can negotiate.

That's the powerful thing with lease options is you don't have when you're making a cash offer, you only have one thing to negotiate that's like the price and you have to beat them down to 60-70 cents on the dollar. I can get sellers whatever price they want as long as they're willing to wait for.

Cool. Okay, another question here. Hi Joe. Thank you for sharing. What would be the best way for a newbie to train up a VA on lease options? Training videos? Yes. Get my course and show you have your VA go through, Mike. I do that all the time. I have so many courses that I've bought over the years and I can't go through them all, so if I find a good one, I'm going to get my VA to go through it and started implementing it for me. I've done this also many times where I, like for land example, for example, I bought a land invested in two or three land investing courses and I found some friends that wanted to get into house flipping. They did some wholesaling, didn't like it too much, were interested in land and I said, Hey, listen, why don't you go through these land modules?

Here are these courses that I bought on land. I'll invest the money in the marketing. You work the deals and we'll split it as a partner 50/50 and that worked out great. We've done 30-40 deals together. All right. How do you show the principal pay down to the seller and also do you show what a traditional sale would cost them? Sometimes I do. Yeah. So you could, I used to do that a lot more, but you know, if I have to explain too much what a lease option is to a seller, if I have to try to convince them to do a lease option through logic and argument and throwing them numbers and spreadsheets, you're probably wasting your time. You're not talking to the right seller. So, the seller is motivated. They understand that. They, like…

I just talked to one the other day, she's a, she was actually a realtor. I didn't know this until after I talked to her, but like she has to move and she had to sell that property and sellers are really good at hiding their motivation. But you know, just talking to her being real nice found out why. I just asked her, why don't you list it with a realtor? You know, why don't you list on the MLS? And she said, well I can't but you know, find out later, she's got to sell this thing soon ASAP. Right? She's got motivation. She can't make next month's mortgage payment. She doesn't want to get behind on their mortgage payment. She doesn't have enough equity to list on the MLS or whatnot, but she's willing to lease it. She doesn't care how long. Right?

So, you could show the sellers, listen, the traditional way of selling it is you're going to pay all of these costs and stuff like that. But you know, again, I used to do that a lot more. I don't as much now because I'm, I'm getting… You, you don't want to be in the sales presentation mode, right? You need… The seller needs to convince you why you should want to buy their house. Don't you never try to be a deal creator. You're always a deal finder, right?

So, I just making offers. That's all I'm doing. I'm making offers and I give the seller options. That's why I have that calculator. I want them to have options and it's okay if they say no, it's not a good time, not a big deal. But by getting to this place where I'm like giving them a full blown presentation and I'm explaining all the benefits and the advantages of doing a lease option, I'm showing them like, you know, this is how much equity you would have had if you sold the realtor and if you buy it through me, it's almost like I'm trying too hard.

I'm in a sales pitch mode, right? If I can't get to the point where it within three to five minutes on the phone with the seller, I can tell whether they're ready to do business today or not. I hope that makes sense. How do you know taking that much rent? 25% is less than their PITI? I well I find out what their PITI is, right? You've got to know what their mortgage payment is, but still let's say their mortgage payment on that house is a thousand a month and I'm offering them $950 a month. Well don't you think they would rather be short just 50 bucks a month then $1,300 a month or whatever? $1,000 a month? Right. So, you always got to ask them and I'm not afraid to make an offer that's less than what their mortgage payment is.

The best scenario is to only start when you find a tenant buyer. But if it is a smoking hot deal, then you ask them for a week, three weeks, six weeks. It's a grace period. I think. So, kind of depends. How much your course is? A lot. A lot. Just go to sloclass.com. Sloclass.com. Yes, I white labeled FreedomSoft and I called it REI Simple, but I customized it for lease options. I didn't show you; I could show you if you want, but I customized with lease options. I put my contracts in there and I put my lease option proposal kit in there as well. All right, so those are all the questions I see.

Guys, again, if you want to get this calculator, I showed you, go to sloclass.com. Watch my webinar and that's it. That's all I wanted to share with you guys. Just show you really quick how to make fast offers and answer some of your questions. Hope you're doing well. Go to sloclass.com to watch my webinar and check out my class.

By the way, one of the cool things that I'm doing here is if you go through the class and you set up your lease options business, I refund your money. What? You don't even have to do a deal. No. What, why do you do that? A couple of reasons. Number one, it's an investment in you, my most valuable asset, my customers. You. Alright? I want to have raving fans.

So, I'm a refunding the money. When you buy the course, all you gotta do is set it up. Go through the course, set up the set up the business I can teach, start doing the marketing, talking to sellers and making offers. Show me what you've done. Give me a testimonial and I'll give you your money back. Don't even have to do a deal.

And so, the second reason I do it, I get great testimonials. I get raving testimonials from people, which allow me then to sell more courses. But here's the real reason why I do it. Reason number three, people bring me deals. People bring me deals. So, I partner with students on deals. If you get a property under contract and you have, if you're a student of my course, you have to be a student in my course because I don't want to sit there and train you for three hours on how to do all these option deal. You've already gone through my course. You know how to do a deal pretty much, right? At least how to get it under contract. You get it under contract, you send it to my office.

If it looks like a good deal, we'll get on the phone and we'll partner on this. This is a great way for me to find deals to do with folks, with you. Alright, so go check out sloclass.com if you go through the course, go through the modules, set up your business like I teach you how to do it step-by-step, click-by-click. Alright, do the marketing, do some marketing, talk to some sellers, make some offers. Show me what you've done. Send me a testimonial and I will give you 100% of your money back and you have six months to do it. It's insane.  I don't know anybody else who's doing that in the industry, do you? Alright. slolass.com.

I'm just going to see if there's any more questions. I don't see it right now. They're probably there, but they're not populating here. That's it, guys. I appreciate you all very much. If you liked this video, let me know. Give me a thumbs up, comment like it, subscribe. Let me know. I appreciate you guys. We'll see ya. Bye bye.