Business Entity Structuring Creating a Real Estate Investing Business Plan If you were to get in your car and take a road trip across the country to an area you have never been before — would you just trust your gut and start traveling in the general direction you want to get to? Most likely, you'd take with you a road map or G. The reason we use road maps is because oftentimes the road is unpredictable, and the right road may seem to lead to the wrong place.
So check this out… It seems Joe has developed his own special little niche: And as a result, Joe found himself in a position so many new investors dream of: His part-time income from wholesaling lease options surpassed his full-time J. All thanks for his quiet little discovery of wholesaling lease options.
So when I reconnected with Joe, I was — as you might imagine — intrigued. And I thought you might be too. By Joe McCall Let me first tell you a little bit about my background. A few years ago, I was buying a lot of homes with traditional bank financing.
Pretty soon, I owned about 12 homes within 12 months. And I was selling all these homes on Lease Options. Yes, I owned 12 homes. I thought I was a successful real estate investor! But… I was equity rich and cash poor…can you relate??
I had lots of equity?
OK, actually I thought I had lots of equity… but then the market crashed! All of the sudden, I found myself with a serious cash flow problem. I realized I needed to fix my cash flow problem, and fix it quick.
So I started wholesaling houses. So next I found myself spending thousands and thousands of dollars on marketing — direct mail, Google adwords, websites, signs, etc. And I was getting a lot of leads, and actually starting to make some good money!
But before too long I started getting very frustrated because I was spending so much money on marketing and throwing away so many leads from sellers who were not motivated!
As a textbook wholesaler there was nothing I could do to help them, and I was getting really frustrated!
So there I was. I loved buying properties and I was really good at selling them on lease options. But that approach left me with a serious cash flow problem.
And while I loved the cash flow that traditional wholesaling was giving me, I was frustrated with the amount of time and money I was putting in marketing for wholesale deals with relatively little to show for it.
So I thought to myself, why not stop throwing away all those leads and do something with them?Lease option sales first became popular financing instruments in the late s and the early s. They were used primarily used as a way to circumvent alienation clauses in mortgages, but they have some other advantages as well.
Proponents claimed the sale was not really a sale because it was a lease but courts have argued otherwise. Choose the right AT&T wireless plan for you, including plans with unlimited data, prepaid calling, travel plans, and more. Explore plan options now.
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When you lease, while you don't own the phone, you could pay up to $10 less on your monthly bill on some My Plan Flex and phone combinations, when compared to . In a lease option, you lease a property for a period of time with an option to buy it in the future at a predetermined price.
In other words, you control a property without owning it. This is an incredibly powerful strategy. Creative real estate investing is any non-traditional method of buying and selling real estate. An option is defined as the right to buy a property for a specified price (strike price) during a specified period of time.
however they may ask to see a business plan or exit strategy for .
Buyers enter into a forced savings plan when part of the lease payment is credited toward the purchase price at the end of the lease option agreement. If the buyer defaults, the seller does not refund any portion of the lease payments or the option money and he .