Lou Brown has been buying, selling and holding property for 40 years and you are about to discover what a lot of so called gurus are missing.
* How to buy all the property you want without ever visiting a single bank or needing to qualify for a loan…These are exactly the kinds of deals he does day in and day out. Most ‘investors’ are getting it wrong. It’s not about the property, it’s about the buyer. Buying right and buying cheap is what you’ll do after you have the buyer.
* How to have a buyer or renter before you even buy property…* How to have them already pay you money before you sold them anything…
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Hi, it's Lou Brown. I'm back with another of my 101 cash
flow accelerators and now we're going to talk about lease with the option to
buy, get a better resident, and increase your cash flow. Now, how in the world
can you increase your cash flow? Well, number one, when they move in, they're
going to pay you a non-refundable option consideration. In our world that
generally no less than 3.7% of the value of the property all the way up to 10%.
When we get to the 10% level, then we're going to go to a different program
called owner financing. I'll teach that to you in a different segment, but
what's valuable here is instead of a traditional landlord tenant relationship,
typically landlord only gets a security deposit, which they can't spend and
they get their first month's rent. Well, in our world, we're not only getting
the first month's rent from the resident, we're also getting a purchase from
them.
flow accelerators and now we're going to talk about lease with the option to
buy, get a better resident, and increase your cash flow. Now, how in the world
can you increase your cash flow? Well, number one, when they move in, they're
going to pay you a non-refundable option consideration. In our world that
generally no less than 3.7% of the value of the property all the way up to 10%.
When we get to the 10% level, then we're going to go to a different program
called owner financing. I'll teach that to you in a different segment, but
what's valuable here is instead of a traditional landlord tenant relationship,
typically landlord only gets a security deposit, which they can't spend and
they get their first month's rent. Well, in our world, we're not only getting
the first month's rent from the resident, we're also getting a purchase from
them.
They're purchasing the option to purchase the property.
That's a significant cash flow accelerator, because it's a hunk of money. Think
about a $100,000 property. Now instead of getting, say a $1,000 security
deposit that you can't spend, you're getting $3,700 $5,000 $7,000 that you can
spend. Why? Because they're purchasing the option to buy that property. Now I
give them up to three years to purchase that property so their money is well
spent because I'm going to give them one year of that option at a fixed amount
and then it's going to increase typically a half percent per calendar month
until they exercise their option to buy. So it's a really great cash flow
incentive. Cash flow accelerator, you got a better resident, different mindset.
It's always valuable to have somebody that's got some skin in the game baby.
And also if they were to move out in the middle of the night, if they were
leaving any damages. Remember you got a significant sum of money at the
beginning that helps you over that hump.
That's a significant cash flow accelerator, because it's a hunk of money. Think
about a $100,000 property. Now instead of getting, say a $1,000 security
deposit that you can't spend, you're getting $3,700 $5,000 $7,000 that you can
spend. Why? Because they're purchasing the option to buy that property. Now I
give them up to three years to purchase that property so their money is well
spent because I'm going to give them one year of that option at a fixed amount
and then it's going to increase typically a half percent per calendar month
until they exercise their option to buy. So it's a really great cash flow
incentive. Cash flow accelerator, you got a better resident, different mindset.
It's always valuable to have somebody that's got some skin in the game baby.
And also if they were to move out in the middle of the night, if they were
leaving any damages. Remember you got a significant sum of money at the
beginning that helps you over that hump.
Well, I hope this has been valuable to you. To learn more
about leasing with the option to buy, go to my system StreetSmartInvestor.com
click on tools, click on lease options, volume nine and all the paperwork to do
this with, along with the audio CDs, six different audio CDs that walk you
through the entire process. Very very valuable, is brought us a fortune in our
business. Well worth it, and it is a great cashflow accelerator. If you like
this, if you love this, share this and definitely subscribe. I'll see you soon.
Yeah, baby!
about leasing with the option to buy, go to my system StreetSmartInvestor.com
click on tools, click on lease options, volume nine and all the paperwork to do
this with, along with the audio CDs, six different audio CDs that walk you
through the entire process. Very very valuable, is brought us a fortune in our
business. Well worth it, and it is a great cashflow accelerator. If you like
this, if you love this, share this and definitely subscribe. I'll see you soon.
Yeah, baby!
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