OfflineHow To Do A Lease Option Assignments
Where I work in the suburbs of Cleveland, we are blessed to have good high income due to the Cleveland Hospitals. As such, there are many nice houses with no work needed in at least 30 zip codes. They range in $150K to $200K +.
FHA has changed the rules in January 2010 for home mortgages. 580 FICO and below are going to need at least 10% down.
So here is what I do every day in my Lease Purchase business.
Step 1. Go on the internet and look for 4 B 2-3 B full basement properties in good school districts, middle to upper middle class neighborhoods. Ask if they would consider getting their price if I could lease option the house. Get the appointment and show them my success stories of successful transactions. Get them to accept 24 - 36 months of market rent and no hassles. If their PITI Payment is more than market rent, ask if they could "contribute" the negative cash flow until the Tenant Buyer gets financed.
What kind of seller would contribute say $100 to $300 a month to get $900 to $1200 a month? One that has PAIN! One that wants 24-36 months of 80% - 90 % of the financial problem solved. They do not mind pitching in. Many of my sellers have had a vacancy for more than 6 months. Or they are working 2 jobs to pay for a vacant house.
Once the Property is signed up (I act as principal in the transaction, as in Wholesaling Flip), and I do a walk through VIDEO (I use a flip cam, around $100 and place it on my property website) I immediately start marketing the property.
Blitz Guerilla Marketing For Buyers....
a) Minimum of 50 hand written signs everywhere within 1/2 mile of the seller's house, same suburb, up on Fri Afternoons, down on Sun eve.:
4B 2B Rent to Own Home
Morris St.
Owner Finance
216-xxx-xxxx.
b) I go door to door or hire someone, up and down the seller's street, and sometimes around the block, give a flyer to occupant, $250 referral fee for calling in a buyer's name and cell# (only if they move in and pay us).
c) Classified ad in the major newspaper same as sign (see a).
d) emails and faxes to special contacts to find buyers
e) "tear off tab" flyers where ever there is a bulletin board, Rent To Own, we give $250 Referral Fees!
f) CraigsList (home Rent To Own), postlets, etc.
You get the picture, GUERILLA Marketing!
Usually in 2 weeks I get a buyer, and we make $5000 a house (sometimes I take a note on maybe 20% to 33% of the down payment.)
This is in and out, not a sandwich lease option.
We act as a principal in a lease option, then assign. We work with land contracts too in the same manner.
I call this "chunk cash" from non-pre-foreclosure sellers. Sellers are not behind, just want a non-traditional solution.
A.K.A. GET THIS HANDLED!
Nice people, nice houses, no rehabs, fast cash.
I love it!
Brian Gibbons
"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"
"SUCCESS WALKS HAND IN HAND WITH FAILURE"
Hay sistreat got any short sales leads...i outsource them for chaching$$$. If you want to make some xtra $$$$$ send them my way and we'l split the referal fee ok? Reputable company can close in as little as 30 days..WOW!!
Cb