Lease Option Real Estate Investing: Advantages and Disadvantages | Real estate

One creative way to get started investing in real estate is to use a lease option. The biggest advantage of using lease options to invest in real estate is –control. This method of investing, basically gives the investor the right to possess — be in control of — and profit from a property without owning it.A real estate lease option contract is a combination of two documents.The lease part of the contract is where the owner agrees to let you lease their property, while you pay them rent for a stated period of time. During the lease period, the owner can not raise the rent, rent it to anyone else, or sell the property to anyone else.The option part of the contract represents the right you purchased to buy the property in the future, for a specific price. If you decide to exercise your option to buy, the owner has to sell it to you at the negotiated price. The option part of the contract obligates the seller to sell to you during the option period — but it does not obligate you to buy. You are only obligated to make rental payments as agreed during the lease period.When the lease option contract is written and structured properly, it can provide tremendous benefits and advantages to the investor. If the lease option includes the “right to sub-lease”, the investor can generate a positive cash flow by renting the property to a tenant for the duration of his lease, or lease option the property to a tenant-buyer for positive cash flow and future profits. If the lease option includes a “right of assignment” the investor could assign the contract to another buyer for a quick profit.Lease option real estate investing, is a flexible, low risk, highly leveraged method of investing that can be implemented with little to no money.High LeverageIt is highly leveraged because you are able to gain control of a property and profit from it now–even though you don’t own it yet. The fact that you don’t own it, also limits your personal liability and personal responsibility. Only if you decide to purchase the property by exercising your “option to buy”, would you take title to the property.Little to no moneyThe real estate investor’s cost to implement a lease option contract with the owner requires little to no money out of pocket, because it is entirely negotiable between investor and owner. Also, there are a variety of ways the option fee can be structured. It can be structured on an installment plan, balloon payment or other agreeable arrangement between both parties. The option fee can even be as little as $1.00.In order to secure the property for purchase at a later date, tenant-buyers typically pay a non-refundable option fee of approximately 2%-5% of the negotiated future purchase price to the seller. Depending on how the lease option agreement is written and structured, the investor could possibly use the tenant-buyer’s option fee money to pay any option fee owed to the owner.FlexibleLease option real estate investing is a flexible method of investing because the terms of the agreement, like payment amounts, payment dates, installments, interest rate, interest only payment, balloon payments, purchase price and other terms are all negotiated between seller and buyer. Responsibilities of both parties are also negotiable. For instance, if the investor doesn’t want to act in the capacity of a landlord, he could specify in the lease option agreement that tenant-buyer will be responsible for all minor maintenance and repairs and the original seller will remain responsible for any major repairs.Financially Low RiskIt is low risk financially, because if the property fails to go up enough in value to make a profit, you have the purchased the right to change your mind and let the “option to buy” expire. Even if your tenant-buyer decides not to buy the property, you have profited by a positive monthly cash flow from the tenant-buyer’s rent payments, and upfront non-refundable option fee.Let’s look at an example of a lease with option to buy structured in a way that the investor profits in 3 separate phases of the investment.Profit #1: non-refundable option feeFuture sales price negotiated with the current owner is $125,000 with an option fee of 2% of the sales price. Option Fee you owe the owner is $2,500. The future sales price you set for your tenant-buyer is $155,000 and the option fee is 4% of the sales price. Option fee the tenant-buyer owes you is $6,200. You collect $6,200 from tenant-buyer and pay $2,500 to the owner and your profit = $3,700Profit #2: monthly cash flow from rental paymentsThe Monthly rental payment you negotiated with the owner is $1,000. You set the monthly payment at $1,250 per month for your tenant-buyer. Each month you collect $1,250 from your tenant-buyer and pay the owner $1,000 each month. Your profit is $250 monthly positive cash flow during the lease period.Profit #3: is set up when the lease option contract is initially writtenThe third profit is the difference in the negotiated future purchase price with the owner, and the future purchase price set for your tenant-buyer. Let’s say the property goes up in value to appraise for at least $155,000. Your tenant-buyer decides to exercise their option to buy. You buy the property from the owner at $125,000 and then sell it to your tenant-buyer for $155,000. $155,000 – the $125,000 you pay to the owner = $30,000 profit.Of course the key to making lease option real estate investing work, is finding motivated sellers and buyers. Finding these motivated sellers and buyers shouldn’t be difficult. The continuing down turn in the real estate market, has created a large number of sellers who can’t sell their property and buyers who can’t get financing to buy. The seller could possibly get a fair offer to be paid in the future, by selling their property to a real estate investor on a lease option basis. A potential tenant-buyer could obtain home ownership, without having to qualify through traditional home loan guidelines.One disadvantage of lease option real estate investing, involves the tenant or tenant-buyer possibly defaulting on monthly rental payments. This would make it necessary for the investor to come up with money out of pocket to pay the owner, and possibly have to proceed with eviction process. However, there are certain provisions that can made, and also various “contract clauses”, that can be included in the lease option agreement, to deter buyers from defaulting on payments.If the investor fails to do “due diligence” before entering into a lease option agreement, he could end up with a property that is unmarketable. There could be a number of liens on it, issues involving ownership of the property or it might be in foreclosure. By diligently performing research before entering into a lease option agreement, the investor can avoid these mistakes. A few things the investor could do is– perform background and credit checks on both the seller and buyer, search public records in reference to ownership and property status, or do a title search.Despite the few disadvantages, lease option real estate investing continues to be an excellent way to invest in real estate with little to no money and low financial risks. It also remains to be an excellent way to gain control of a property you don’t own, to generate cash flow now, and possible future profits on flexible terms.Bottom line– you don’t have to miss out on the lucrative profits being made by investors in today’s real estate marketThe more you understand creative real estate investing strategies, and apply them now, the more profits you will make in today’s real estate market. Don’t put off getting the real estate investing education you need — to succeed in today’s real estate market.Learn these things and more:
Creative investing strategies and concepts for Lease option real estate investing, foreclosure investing, and wholesaling and flipping real estate.
How to structure every deal right so you make more on each deal and eliminate your risk.
What needs to be included in your real estate contracts now– to safely avoid issues that could cost you thousands!
The most powerful legal clauses you can use to completely eliminate your risk in all your offers.
The step by step approach to invest in real estate with minimal risk.
How and where to research properties effectively to save hundreds of hours in time.
The best ways to creatively finance your investment properties.
How to know the true market value of properties so you never overpay again.
How to control properties with no money, credit or income verifications so you can make a lot more.

What is Fashionable? | Fashion

Fashion is fitting into the scene and making one look the best that he or she can look. Fashion is the norm of clothing, cars, homes, and yes, even pets. Fashion is fashionable. What is fashionable though?Fashions change all the time. There are some constants about fashion though. The outfits should fit appropriately and be flattering. The vehicles should be safe and clean. The homes should be comfortable and personable. The pets should be well cared for. Now that we know the constants, how does one achieve these constant fashions?Fashionable outfits typically sport the name of a high end designer. This is not necessary though, since in other parts of the world, say the Philippians, fashionable pants include the Levi pant line. This is considered an expensive brand in the United States, but in other parts of the world, it is. Fashionable clothing is clothing that fits well and compliments the body of the wearer. Fashionable clothing does not show too much skin or appear to be too tight. Fashionable clothing does not restrict movement, but rather enables the individual to be as comfortable and natural as possible.Fashionable cars are much like fashionable clothing. What is expensive in one country is not in the other. In America, the BMW is considered one of the most expensive cars on the market. In Bosnia, everyone drives a BMW and people want the Ford Taurus. How is that for luxury and fashion? A fashionable car is a vehicle with personality and is clean at the same time. There should be plenty of the driver in the car and plenty of car to be seen. Dirty is never fashionable and clutter is much like dirt.Fashionable homes are sketchy. Everyone wants a home. Homes in themselves are fashionable. A fashionable home is a home that is well put together with general themes for each room. The living room should not have lawn chairs. The dining room should not have a weight bench. The kitchen should not be storage room. Fashionable homes are all about themes and cleanliness.Fashionable pets are scary. While it can be “fashionable” to have a specific breed, it is far more ‘fashionable” to have a healthy and happy pet. Remember though, pets are for life, not for fashion. Once you get a pet, you are in a till death-do-you-part relationship with that pet. Think before you purchase.

Making Money in Real Estate | Real estate

Making money in Real Estate is the most popular strategy to build wealth. If you’re not currently making money and building wealth in real estate you need to start. I have been making money using four very simple strategies that are very simple to duplicate.All of the millionaires I have learned from make money and build wealth in real estate. That’s right, all of them! These real estate strategies can set you free for life!If you learn and implement them you can build a massive amount of wealth in a very short period of time. I use a system for all four of the strategies that all go hand in hand.These strategies can easily make you rich in a very short period of time. I use the first strategy to make money fast, the second strategy for making money in chunks and the third strategy is for building wealth and creating income for the rest of my life. The last strategy I use to buy real estate extremely cheap.I use a step by step system for all of these money making systems. The first strategy requires in many cases no money and no credit. It’s the strategy I use to create anywhere from three to fifteen thousand dollars in profits per deal in a short period of time without ever even buying real estate. This strategy is known as wholesaling.It’s easy to begin making quick money. You don’t need money to make money with this strategy! If you have bad credit don’t worry, you don’t need good credit to make money with this strategy. My goal is for you to have a check in your hands of $5,000 or more in 30 days or less!I can show you my exact system on how to do it. Wholesale is nothing more than making an offer on a piece of real estate, getting that offer accepted, then simply assigning to contract to someone else. Don’t worry, making an offer on something doesn’t mean you’ll be forced to buy it”.Making offers on Real Estate is easy! You can do it two ways. Through a realtor or directly to sellers who don’t have their homes listed with a realtor.I developed a specific step by step system to find listed and unlisted properties to make offers on. Most of my deals are through listed properties. I use a realtor to make offers for me on properties that are listed.There are a lot of realtors who won’t understand what you’re trying to accomplish. I’ll teach you exactly the process I use to find my realtors as well as how to get them on the same page as you with what you want to accomplish.There are so many properties for sale. You need to learn how to find the best one’s to make offers on. Learning how to wholesale is the first step in becoming a real estate investor and getting out of the rat race! In all of my money making strategies I believe it is the easiest one for both beginners and advanced investors.I use the second strategy to create larger chunks of cash anywhere from twenty to sixty thousand dollars in profits per deal. It takes a little longer to generate those profits than the first strategy but one deal generates much more money. This strategy is called retailing.This strategy has some great advantages. It’s easy to make consistent $20,000+ on every deal, it can be done part time, and it can and should be done with someone else’s money!Flipping real estate is nothing more than buying a house; fixing it up if it needs repairs, and then selling it for a profit. Most Real estate flippers that fail don’t understand the number 1 rule, Buy Cheap! When they buy a house most of them think they’re buying it cheap but chances are they’re not.The biggest mistake investors make is they don’t calculate all of their costs before they do the deal. There is a specific formula that’s easy to follow that will make sure you follow this very important rule. The way you buy your real estate is the difference between winning and losing.If you are new to real estate investing the first strategy you should implement is wholesaling. The reason is with wholesaling you learn how to make extra money without risking your own money. When you accomplish that then move to retailing.After you learn how to earn extra money wholesaling, you will have accomplished your first step in becoming a successful flipper. That first step is learning how to buy cheap!The third strategy I use to build wealth and get paid forever. By doing this I create a monthly income that will last forever. Making money in Real Estate is not just creating quick cash; it’s also about creating enough wealth where you can literally never have to work again! This strategy is known as buying and holding.There are many ways to build a Money Making Machine. The best way is through real estate investing focused on building wealth. Making money now is important but creating wealth for the rest of your life is what will set you free!Buying real estate isn’t hard, but, buying real estate correctly is where most people go wrong. Understanding what makes up a good deal is your greatest asset with this strategy.You make money when you buy; you get paid when you sell. If you’re a beginner this will be the most important thing that must be understood. If you buy right you will have a lot of equity and great cash flow for the entire time you own a particular investment. This is what I refer to as building a money making machine.In real estate there are many strategies to make money quick. Those are the strategies you should begin with because you have to learn how to buy cheap enough to make money.After those strategies are executed that is the time to worry about building for the rest of your life. There are multiple ways to buy cheap it’s all about learning the ones that will work for you.Now, once you know how to buy cheap creating wealth is easy! Simply make sure you have great cash flow with each deal you intend on doing and before you know it after multiple deals you will start building monthly cash flow.Continue this simple recipe over and over and in a very short period of time you could be generating enough cash flow to live on then you can focus on getting rich and wealthy! Best of all you can focus on whatever you want because you don’t have to work if you don’t want to.The reason this is my favorite real estate strategy is because I love residual income. Creating something once that pays you for the rest of your life is the smartest thing you can do financially. All my rich mentors made this lesson very clear to me.Building a money making machine first starts with making quick money in real estate. Once you learn that you will know how to buy real estate the right way. From there all you have to do is hold it for cash flow for the rest of your life!The final strategy I use to buy real estate extremely cheap from distressed sellers. Buying cheap through properties in pre-foreclosure is a tremendous opportunity.There are so many ways to make money in real estate. Many people have a hard time finding which way fit’s them the best. Some people like to stick to one strategy, others like a lot of different strategies.I recommend doing some research and reading some books to learn about all the different ways there are to make money before you choose one. I recommend the following products because they should help you decide what kind of real estate strategy you want to pursue.Making money in real estate goes hand and hand with all of the other best money making strategies. The reason is the tax advantages you get blend very well together with all of the other money making strategies. Real estate investing is also one of my favorites because it is the best way to build ultimate wealth that will last forever!Learning a simple money making strategy is easy. The hard part is where and who do you ask to teach you? This used to be my problem until I met some very successful mentors.I learned for them many strategies to get rich, this one is one of the best. Making money in real estate is all about buying cheap! By finding and buying distressed real estate you will be able to buy extremely cheap.Those who have a way to buy real estate extremely cheap will succeed. Pre-foreclosure investing is a great way to buy cheap from distressed sellers. It’s a win-win situation for you and the seller.There are a few ways to buy real estate in distressed situations. If a seller is in pre-foreclose which means they are behind on payments but their home hasn’t been foreclosed on yet they would probably be very interested in selling.Most of the time people end up losing their homes and would have been much better off if someone was there to help them out of that situation. Like I said, Win-Win situation.There are two scenarios for the buyer. There is either already sufficient equity in the property for them to purchase it or there isn’t enough equity. Most of the time there won’t be enough.There is a simple money making strategy know as short sales for properties that don’t have enough equity. In this case the bank or mortgage company that has a lien on the property will most likely accept a huge discount on what they are owed in exchange for a payoff of some amount for what they are owed.For example, if a property is worth $200,000 and the bank has a lien of $180,000 for a property in not great shape they will probably accept a huge discount. The reason is the cost they have to incur to foreclose, list, and resell is huge.You make them and offer at $100,000 as a payoff. After negotiations they accept $120,000. You’re now able to buy a $200,000 home for $120,000 through your knowledge.All in all, these four Real Estate Investing Strategies all have their advantages and disadvantages. There is a sequential order they should be implemented in. Take this information and use it to the best of your ability and be smart and savvy out there.