If you come across a seller that absolutely has to sell because of a job transfer or divorce, but they don’t have any equity in their house, what kind of options do they really have? If they sold the house outright, they’d still have to bring some cash to the table to get rid of it, and they don’t want to be a long-distance landlord.
There are a lot of different ways to make lease options work for you. Depending on how you structure the deal, you can get all of the benefits of owning an investment property without actually getting a loan or a mortgage.
I explain the sandwich lease option, where you pay the seller’s mortgage for him and then rent his house out to a tenant buyer. It’s like cash now, cash flow, and cash later model.
If there’s not only no cash flow, but no equity, what can you do then? That’s a great time to use an assignment deal, where the money you make is from the assignment fee the buyer pays you.
Even when you find a seller that refuses to sell to you because they think you’re going to make too much money off of them, there’s still a way to make a little money. You can hire yourself out as a consultant to them, and teach them how to create their own lease option for their property.
The beauty of all of these different kinds of lease options is this: you’re going to find a seller that’s stuck on the terms or the price. Either one is so important to them that they can’t see themselves to a deal. So you can put together all of these options, and give them some choices. They can pick one, and then BAM. You have a deal.
If you’re interested in learning more about lease options, you should check out my webinar class.
Watch and learn:
Listen and learn:
- How to structure a lease option deal when there’s no equity.
- I talk about the different circumstances you might want to use a lease option.
- What to do when the seller doesn’t want to budge on the price.
- The three profit centers in a sandwich lease option deal.
- How to make money on a deal when there’s no cash flow.
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