I love meeting with students and seeing how they’re making lease options work for them. And Ray Shurman from America 2nd Chance is proof that you don’t have to stick with just one way of doing business. He shares how he started with lease options and tenant buyers, and why he moved into fixer-upper lease options (FULO).
Ray must be a quick study because he’s only been doing this 2 years. He shares how he structured his first deal with tenant buyers, and why he likes to keep the terms simple. He’s found that simple terms help everyone involved feel like they’re not being taken advantage of.
One of the beauties of lease options is that you’re not limited to distressed properties. So Ray uses that to find solid deals that promise great ROI. He shares how he finds leads with expired FSBO listings.
And this part was really cool to me; Ray’s doing something a little different with wholesaling. Instead of offering lease options to tenant buyers, or just buyers, he’s offering lease options to rehabbers. He finds rehabbers with a great reputation and partners with them.
He calls these fixer-upper lease options (FULO), and they require a little different deal structuring. He talks about how he seasons the deal in a trust to fulfill FHA requirements and the benefits of partnering with a rehabber.
Instead of getting cash right away, the FULO offers you cash a little bit down the road. And the beauty of this is, if the rehabbers don’t sell it on time, you’ve still got a beautiful house to sell. It’s a great win-win situation for everyone involved.
Watch and learn:
Listen and learn:
- What a FULO is and how to use it.
- How Ray finds deals and leads.
- Why you don’t want to use a tenant-buyer in a FULO.
- Why he puts the houses in a trust to season them.
Mentioned in this episode:
- Joe’s Book: REI Secrets
- Apple Podcast Reviews
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