How To Lock Up and OWN 1,000,000.00 in Property NOW!

Well here I go with another of my brain spurts so just bare with me.

For a while now I have been working on a project to not only gain a great monthly cashflow, but lock up enough property so that I will OWN my Million dollars in 2-3 years time, max.

LEASE OPTIONS.........

There it is. So let me explain. I want to find 10 large properties for sale by lease option over the next year - properties with 5-6 bedrooms or more. I set my max lease rate at 2000.00 per month. I will lease the properties under my company and avaoid all of the credit check and other obstacles that an individual runs into when trying to rent.

I will then rent the properties out but not as SFR but at rooms rentals. In a 6 bedroom house I can rent to up to 9 people comfortably, with some of the master suites carrying double occupancy at a rate on the average of 550.00 per person, which in the area I live, is a steal for a monthly room rental rate.

Rental Rate = 2000.00
Rental Intake = 4950.00
GROSS CASH FLOW = 2950.00
GROSS YRLY CASHFLOW = 35,400.00 per Property
(10x) = 354,000.00
(-) 25% of Net For Expenses = 88,500.00
NET CASHFLOW YRLY = 265,500.00

Now if the average cost of the properties that I lock up on the lease options are 300K - 350K, and this is the current fair market value of the property in TODAY's market, then in three years when the market has rebounded some and prices have gone baack up, I will go then hold the options on not 3 or 3.5 million in properties but somewhere around 5 - 7 million. Please understand that housing prices are high in my area so if your area is lower thats all the better it only means that you will have to lock up a few more properties to acieve you million.

You see in the market I live in, the home values dropped significatly. So when I say a homes current FMV is 300K then that means thatone year ao that same home or mini mansion, if you will, was selling for and worth around 500-600K.

So when I lock in the 10 properties with the 2-3 year options at todays FMV, when it comes time to exercise the options I not only have the option money from the lease for the Down Payment, but I also will be walking into these homes with substantial equity (which any mortgage broker will tell you is almost as good as cash in hand).

So whereas, I am putting out 20K a year for lease payments and bringing in 49,500.00 in rents, I am Cash Flowing like crazy and also locking up solid real estate deals in a market the is volitile at the moment.

So when the time comes to start exercising those options, I will pretty much be set. I will also be negotiaging some of these options to include owner financing which is even better. The owners will also be well aware that I will be obtaining these properties to rent as room rentals. I will hold a liability policy do cover any incidentals and I will assume responsiblilty for any property damage outside of the roof, piping and other standard major repairs.

As far as renters, that will not pose a problem either. I have contacted some local aganecies and found that there is a real need for transitional housing so all I would have to do is purchase a business licence, list each home under the license and they will then send me referrals for occupancy. Right now they are sitting on a waiting list of over 2500 people needing rooms.

It may seem like a huge project to take on, but I am on a mission to a million and I will not fail. So for all of you out there who wonder how you can do it, or even just start making deals period, all I can say is step out there and DO IT!

In case you are wondering how I will be funding the initial rental of these properties, I am in the process of taking on eqiuty investors and or investment partners.

I am sure I will get a lot of questions on this one, but ask away.

Thanks for reading.