6 deals closed since the EDGE!

Congrats Michael! For me it's no mystery who's post I'm about to read when I see the heading.... Awesome-sauce! Much continued success to you!!! God bless

Hi Michael,

That's really amazing. Surely hope we can emulate what you've been doing.

I do have a question regarding L/O. My wife's friend is looking for a house but don't have enough down. If I found someone who is willing to do a L/O on the house being rented, what is the process. How do you make money and is this also like an assignment where you assign the L/O contract? What would normally be the option amount.

Thanks in advance for your help

Dan

What a great run you are having! So glad to hear this! Yep, I think you guys have figured it out!

Karen

Continued success to you and God Bless you and your beautiful family.

Michael

I love hearing this it brightens my day although it is raining here (the rain mellows me out and calms me down) in the north east I hope you make a video and possibly post it on deansmedia or insider elite

I love hearing that people are making money Cangrats! Don't stop now... keep em going!

Hey Micheal congrads. So whats the answer to Dans question.

Thanks

Lease Option Specifics
Motivated Seller
-Price you negotiate with the seller for the future closing
-Option payment to the seller
-Time frame for the lease option
-Monthly price to cover the seller’s mortgage, insurance and taxes

Tenant Buyer
-Price you negotiate with the buyer for the future closing (must be higher than price with seller)
-Non-refundable option payment from buyer (must be higher than option to seller for no money down)
-Time frame for the lease option (make sure it is less than your time frame with the seller)
-Monthly payment to cover the payment to the seller along with your monthly profit

Your Profit

Up Front
Non-refundable option price you negotiate with the buyer
- Subtract the option price you negotiate with the seller
= Your profit up front

Along the Way
Monthly payment with tenant buyer
- Subtract the monthly payment to seller
= Your profit each month

At the End
Price you negotiate with the buyer for the future closing (less option)
- Subtract the price you negotiate with the seller for the future closing (less option)
= Your profit at the end

Example
Motivated Seller
-Price you negotiate with the seller for the future closing is $110,000
-Option payment to the seller is $2,000
-Time frame for the lease option is 5 years
-Monthly price to cover the seller’s mortgage, insurance and taxes is $800

Tenant Buyer
-Price you negotiate with the buyer for the future closing is $125,000
-Non-refundable option payment from buyer is $5,000
-Time frame for the lease option is 3 years
-Monthly payment to cover the payment to the seller along with your monthly profit is $1,100

Your Profit

Up Front
$5,000: Non-refundable option price you negotiate with the buyer
-$2,000: Subtract the option price you negotiate with the seller
=$3,000: Your profit up front

Along the Way
$1,100: Monthly payment from tenant buyer
-$800: Subtract the monthly payment to seller
=$300: Your profit each month
Note: $10,800 total profit at the end of the 3 years

At the End
$120,000: Price you negotiate with the buyer for the future closing (less option)
-$108,000: Subtract the price you negotiate with the seller for the future closing (less option)
=$12,000: Your profit at the end
Total Profit at the end of 3 years: $25,800 ($3,000 + $10,800 + $12,000)

Best of Success,
Andrea

Really nice, Micheal. Keep them rolling. I love seeing these successes. This is inspirational. 25:1 works. Well done.

Andrea, thank you for putting the Lease Option recipe on the table for the newbies to follow.

Be your very best always-Judy Williamson

What you focus on is where your energy goes-Kristin

With gratitude,
Patrick

way to go

you guys are amazing! What a system you got going! I am so impressed and so happy to hear about your deals!!!

Val

Shows you can succeed with the proper mindset and techniques! Stories like these give hope. Can anyone help out with a question i have on my blog? Much appreciated. Thanks

Andrea, I have been reading about this strategy lately and still found it somewhat confusing. Thank you for sharing the steps and most important Lu, in the easiest way to make it comprehensible. One question though: do you go with the Lease option when it is a seller that is in no hurry to sell? Great information.

Nice, Michael! How many deals is this for you? 200?

We learn new things every day, continuous education is the key to success in any business.

Thanks again and hope you enjoy your upcoming trip.

Michael

Your success is contagious... I really admire it..

All the best!

Thanks Andrea for sharing the info. I'm still a little bit confused on the process. For one thing, you're selling the property to the buyer before the L/O expires from the seller -- how is that done.

Also, is this strategy only applicable to motivated seller's renting the property or to any motivated seller. How will you negotiate with a seller who's not renting the property -- will you tell them that you will be renting it to somebody else during the lease option?

Appreciate your help.

Dan

Thanks.

I have several videos that should be showing on the IE site any time.

Michael

Thanks! As you know as wholesalers we are only as good as our last deal. Making more offers to keep that pipeline full!

Thanks again and it was good to see you at the EDGE

Michael

Michael do you have the same screen name on Insider Elite?

Thanks for the explanation on L/Os. I would add that this strategy only works on motivated sellers that don't want or need to "Cash Out". That is the first thing you need to determine when applying the L/O strategy. Can the seller take payments over the next few years or do they need to sell outright and pay off the mortgage. Once you determine that the seller is open to a L/O then the negotiations begin.

Thanks again Andrea and see you soon!

Michael

It is great to see the forum with success stories. i read them and i say to my self, what do these people have that i don't have? No offense but i had to put you in my little home office as a person to beat. you motivate me and i guess alot of dgers to strive more. if you are doing 5,6,7,8 or more deals a month, than i got to step my GAME up.

The time frame is "up to" 3 year or two years, etc. You can exercise it earlier or later. The key is to make sure your tenant buyer never goes longer than your motivated seller time frame. I use the lease option for those that want to seller, but do not have to sell or those that want/need more than the deep discount that I can wholesale.

Best of Success everyone,
Andrea

Thanks! Yes, 25 to 1 works when applied correctly.

Michael

Thanks!

Michael

It was fun bumping into you at the airport and then seeing you at the EDGE. You inspire us! Thanks and talk to you soon,

Michael

You two are CRANKIN IT !!! it was great to see you at the edge !! This shows what hard work and persist will do !! AMAZING.
jay

I am glad my post gave you hope! If I can do it, you CAN do it!!

Michael

I truly don't keep track!! I think I am in the 185 range.

Thanks,

Michael

Congrats awesome! so inpsiring. God bless.