The following are some examples of the power of Lease Purchase Consulting with both Buyers and Sellers.
The seller contacted us after a phone message we left on his machine regarding the Lease Purchase of his home. When we spoke with him he said he needed $8000 upfront, since he was moving into a new home. We told him that we could consult with him. He opted for the complete manual with forms and contracts. We told him if he needed to we would consult with him and take the manual price off the consultation. This seller had previously owned rental property, so he was well versed in real estate and familiar with the process. With our manual and contracts he moved his home in 15 days and received the $8000 he needed. He got $6000 up front and took a note back for the remaining $2000.
This seller contacted us through an e-mail we sent him. He lived out of state and was unsure of what lease purchasing was. He opted for a full consultation. We sent him the manual and contracts and forms, and told him once he received the package to call us and set up his consultation. We went through the package with him and outlined exactly what he had to do. He was selling a 4 bedroom 3 bathroom, 2200 sq. ft. home, with a nice backyard and pool. He said, he didn’t need any up front money other than deposits. We again explained the difference between renting and lease option. His payments were $1200 a month for his mortgage. We showed him how to get money up front and positive cash flow. He got $1400 for a monthly payment, which gave him $200 a month positive cash flow, and $5000 option money. He set the term for 3 years, with a rent credit of $600 for the first year only. This seller, with no experience, moved his home in 21 days. He called us recently and said that the tenant/buyers were getting ready to purchase the home.
This couple contacted us on an ad we had placed for a 3 bedroom 2 bath, 1800 square foot home. The home was already lease purchased. However, we did tell them we had a step by step manual that showed them how to find their own lease purchase home. The couple bought the complete manual along with the contracts. They found their own home within 2 months time. They were looking in a very well defined area. They negotiated a three year term with a 50% rent credit. They expect to option in the last year.
We had placed an ad for a 4 bedroom 3-1/2 bath home with pool and spa. This couple came to look at the home, but didn’t like the pool being so close to the home. They had small children and were afraid that would be too tempting. They asked us if we had any other properties like this in this area only. They liked the school district and only wanted to look in this area. We told them we didn’t at the time, and it was difficult for us to specifically look in such a narrow area. However, we told them we offer a step by step manual on how to do a lease purchase, the manual and contacts, or that we could consult with them in addition to the manual and contracts. They chose for us to consult with them. They didn’t feel comfortable doing it all on their own without our support. We helped them define their parameters and set up a plan for them to find their own Lease Purchase within 45 days (their time frame). They did as we advised, followed our plan, and found and moved into their dream home within their time frame.
As you can see, consulting with both sellers and buyers is a win-win-win situation for everyone. The buyers and sellers are happy, and you’re very happy. You’ve made a good consulting fee.
For additional information on this topic, see The Anatomy Of The Deal Book 2: Consulting Your Way To A Six Figure Income In Creative Real Estate.
Article by Chuck & Sue DeFiore of Home Business Solutions, helping folks start successful home based businesses for over 17 years. Visit http://www.homebusinesssolutions.com for the latest FREE tips in creative real estate investing and home based businesses. Or, Subscribe to the FREE Home Business Solutions Digest, subscribeHBS@homebusinesssolutions.com
