Tenant/Buyers Have Multiple Options
May 31, 2007
Lease Purchasing affords the tenant/buyer a wonderful opportunity to get into a home today, that he or she can buy tomorrow. But what options are available at the end of the contract? Fortunately, Lease Purchasing provides multiple options here also.
Imagine having lived in a nice house in a good neighborhood for a number of years. Now comes decision time. Let’s examine the options you have.
First, you can exercise the option and buy the house. You’ve already negotiated the terms of the sale, so you know what you’ll be paying for the property. But, you may also have an option within this option. Let’s say the housing market in your area has softened and the home is worth less than when you contracted for it. Don’t you think the seller may be willing to re-negotiate the terms of the deal rather than get the house back. There’s a good chance he will. To re-cap, you can exercise the option or re-negotiate.
Your second choice is to not exercise the option. In this case, you’ve rented a nice house for a number of years and had great terms for that length of time. Here comes another big but, if you’ve had a good record of payments with the seller, and you would like to stay in the house, possibly the seller would consider turning your contract into a straight rental.
Seller Objections To Lease Purchase
May 30, 2007
A large percentage of the mail we receive are from people that complain that sellers don’t want to do a lease purchase, they just want to sell their house. Or sellers come up with too many objections. My questions to those individuals are:
1. How soon after a property is listed are you calling? If you are calling only 2-4 weeks after a house is listed, sellers are not as interested. They still believe they will sell their home.
2. Are you following up on those sellers who say they are not interested now? While right now they may not be interested in lease purchasing their home, they might be six months down the road. Remember you are not in this business for the short term, but the long term. So be sure to follow up with every call you make. Your follow up can take the form of a call or correspondence. Personally, I like to send a letter. It allows me to send a business card and tell that person again how I can help them with my program.
Reprint Rights and How To Use Them To Generate A Steady Income
May 30, 2007
I can’t emphasize enough how important it is to have a step by step guide for sellers and tenant buyers. However, many of you are missing out on other income streams that these step by step guides can generate. In fact, they can become a business in and of themselves.
We all know that during the course of our telephone calling to sellers, that sometimes the numbers just don’t work. Those are the times you go for the consultation. While a telephone consultation is great, the seller wants some concrete information to guide them. Something they can have after they hang up with you. Taking notes during your telephone consultation is not something a seller is going to do. So what is going to happen is that seller is going to keep calling you. And while some “guru’s” insist you can keep charging them for each question they ask. Let me tell you, fat chance of that happening. In fact, I can almost assure you of the seller calling their credit card company to complain about the charge. So rather than run into these problems, have a contract that is signed, and provide a solid consultation package to your seller. Which means, have written material they can refer back to. Have a step by step guide which covers all the seller needs to do to move their property.
The Psyche of The Seller and The Tenant Buyer
May 29, 2007
For those of you who were not psychology majors the “psyche” is someone’s mind. What motivates them. What are they thinking. How can you better understand them. All of which is important to those of us in lease purchasing. In fact, it is important to any business person. The ability to know what motivates your customer, how your customer thinks, and tapping into their “psyche” is what makes some businesses successful and why others fail.
For those of us in lease purchasing when we make our calls we find out what motivates our sellers. We ask pointed questions to determine why they are selling their home. We build rapport with that seller. By the end of our telephone call we have an insight into what that particular sellers’ wants and needs are.
Sometimes you need to educate the seller. For those of us in lease purchasing we can explain the various advantages of lease purchasing. The advantages we emphasize will be determined by that particular sellers’ psyche. We can find out what is in a seller’s psyche by how she or he has answered the questions that we have asked them. Their answers to our questions is what gives us a pretty good feel for that seller.
Property Types A, B, C And D
May 28, 2007
One of the biggest problems individuals just starting out have is the type of property they look for, and working outside their immediate area. One of the constants around the country and for every state, is that there are the most desirable areas to live and the least desirable; and then those that fall in between.
The most desirable areas are those that everyone wants to live in. They are type A property. We all have those areas in our cities. The Northwest, Southwest, Northeast and Southeast, etc. Obviously our first preference for lease purchase property is the most desirable.
However, what if, like in many areas of the country, those type A properties are getting multiple offers. Are you really going to be able to do a lease purchase with them. Probably not. So what do you do.
Well you move on to the type B, C and D property. Will some of these properties be outside your area, yes, they will; however, like in any business, when your main source is slow, you open yourself up to other areas. This does not mean you work in war zone areas. Lease purchasing is not going to work there.
The 21st Century Way To Build Equity
May 27, 2007
Here to stay and firmly established in the U.S. mortgage market, biweekly mortgage payments are gaining momentum. First introduced into the U.S. in the early 1980’s by several small Northeastern Banks, the idea of biweekly mortgages has its origins in Canada.
This concept soon became the popular choice nationally within less than a decade after it’s arrival placing the biweekly payment plan in the forefront of Canada’s mortgage industry around 1972 for several good reasons. Consider the following:
1. Most people are paid weekly or biweekly, therefore, it is reasonable to have as an option “biweekly mortgage payments”.
2. On a biweekly mortgage payment schedule, one half of a loan’s monthly payment is made and credited to the account holder every two weeks. This is equivalent to making 13 monthly payments instead of the usual 12 monthly payments reducing the loan’s payoff time.
3. Faster accumulation of equity build up of up to 300%, plus a reduction in interest owed on the loan due to your prepayment is the result of using a biweekly payment schedule; that’s without any increase to your monthly output. In other words, you’ll get more value per dollar and save thousands as well; as much as 25% to 30% in interest over the life of the loan.
Buying Country Acreage and Rural Properties, To Buy or Not To Buy
May 26, 2007
Almost anyone can become a rural property owner; if you are willing to set goals, establish what your purposes are, plan ahead and set targets that are all aligned toward the same result. And, if you can be patient instead of requiring instant gratification.
There is no more $50-an-acre land; unless you count some of the inaccessible and unusable properties that are sometimes available in blocks of 10,000 acres or more; and even these properties are rare. But you can get rural properties more reasonably now than in the past IF you are willing to be creative in your expectations and in the ways you use and modify the property.
If you are in a big hurry to find rural property, you will likely not be able to find what you are looking for. Rural properties have fewer buyers who want to purchase them, but there are plenty of dreamers who have not considered the realities. There are seldom bargains available because most folks who own rural properties know exactly who to call first when they want to sell. If the property really is a bargain it is gone with one of the first ten phone calls the seller makes. However, if you are willing to “think outside the box” of convention you may end up with what is a bargain property for you.
Lease Purchasing Is The Perfect Home-Based Business
May 25, 2007
Some call it the 30 second commute. We call it wonderful. What are we all talking about? Working from home, of course.
There’s nothing more satisfying than operating a successful business from your own home office. Believe us, we know. We tried enough home-based businesses to write a book about it. Come to think of it, we did.
Seriously, imagine getting up in the morning and knowing your commute to work entails nothing more strenuous than walking down the hallway to your home office. You open the door, sit down at your desk and your work day starts.
No more wasting two or three hours per day in the car or on the train. Think about how much more productive you can be. Think about how you can turn that extra productivity into additional income.
Think about how much more refreshed you are. No tension from driving next to or sitting next to crazy commuters. Think about the extra time to spend with your family, being able to make those school plays, little league games or being there for a skinned knee.
Think about it. Now you know why we call it wonderful.
How Do You Profit From O.P.P.?
May 25, 2007
In a previous article we introduced you to the concept of O.P.P., or Other People’s Property, and the many ways in which you can profit.
In that article we asked you what you would do if you found a business that:* could generate multiple streams of income* would work in any area of the country* could be worked both locally and nationally* could be worked both on and off the web* would allow you to build your long term net worth* and, can be started either in your spare time or part time
Remember, what we are talking about is a wonderful business that allows you to generate immediate cash flow and also build your long term net worth.
That business revolved around the Creative Real Estate niche of Lease Purchasing.
This article, the third in the O.P.P. series will briefly touch on some of the strategies that are available to the Lease Purchase consultant.
The Strategies
The Many Ways To Profit From O.P.P.s Multiple Cash Streams
May 24, 2007
In a previous article we introduced you to the concept of O.P.P., or Other People’s Property.
In that article we asked you what you would do if you found a business that:* could generate multiple streams of income* would work in any area of the country* could be worked both locally and nationally* could be worked both on and off the web* would allow you to build your long term net worth* and, can be started either in your spare time or part time
What we are talking about is a wonderful business that allows you to generate immediate cash flow and also build your long term net worth.
So, what is this wonderful business. Lease Purchasing.
Lease Purchasing is a specialized niche in the field of Creative Real Estate, which allows you to control property without the trouble of ownership; and profit from this. Lease Purchasing affords wonderful benefits and opportunities to sellers, buyers, investors and those who would like to operate a home-based business. Lease Purchasing allows you to control property without ownership and this has benefits for all.
Lease Purchasing provides you with a variety of ways to make money. Some of them are:
