If you’re looking at Lease Purchasing as a business, you’ll obviously want to earn much more than the $20,000 per year in our “How To Give Yourself A $20,000/Year Raise Without Asking Your Boss” article.
Let’s review the numbers from that article:
For every 100 calls Sue makes on For Sale By Owner property, she either speaks with or leaves messages for about 60%. That’s about 60 people she puts the concept of Lease Purchasing in front of.
Out of that 60, approximately 10 will develop into true prospects. From these 10, 2 or 3 will develop into property we are willing to take on. The others may become consultations or manual sales.
(Please keep in mind, these numbers will vary a bit depending upon your particular area and current market conditions).
Now let’s condense these numbers for calls into a one month time frame.
What do you get?
The probability of two or three properties per month that you could do deals on. That equates to $10,000 to $15,000 per month.
But let’s be more conservative. Let’s say you do one deal per month for a $5,000 assignment fee (which is what we look for in a typical single family home). Now you’re looking at an income of $60,000 per year ($5,000 multiplied by 12 months).
Right there, you’ve built a very good income. But now factor in the additional income stream from consultations you can do on property out if your area, and you can significantly add to that yearly total.
Keep in mind, we’re only talking about one strategy here. Lease purchasing offers multiple strategies for doing business.
Bottom line, very conservatively, a realistic first year income for those working their business full time, is $50,000 to $75,000.
Your second year, as your referrals increase and you continue to grow your business, has the potential to see you well into six figures.
Now do you understand why we say Lease Purchasing is the best business we have ever owned and why we believe that it is the Perfect Home Based Business.
Oh yes, full time for us on deals and consulting is about 20 hours per week.
For additional information on this topic, see Making Money With Creative Real Estate As Your Business Tape Set.
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
