Investing Strategies
Right Now: My Top 3 Ways to Get Lease Option Buyers
When you think of Craigslist, you probably think of job searches, furniture sales, bizarre personal ads, and would-be scammers.
But did you know that Craigslist is widely used by real estate investors – including me – to not only find and sell properties but also to find lease option buyers?
After years of real estate investing in a variety of ways, including wholesaling, rehabbing, buy-and-hold rentals, and wholesaling lease options (my personal favorite), I’ve realized that the market we're in right now is one of the best I've ever seen for selling houses through lease option.
"Wait...What's a Lease Option Again?"
In case you don't already know, a "lease option" is basically rent-to-own. You find someone who'd like to be a legit homeowner, but isn't quite ready yet, either due to damaged credit, maybe a past foreclosure still haunting them (think there are a few folks around who faced foreclosure in reacent years, but would love to start moving towards homeownership again?), or other reasons.
Essentially the investment model is, you offer them a property with two separate but linked agreements: (1) a lease and (2) an option to purchase agreement. The lease is just as it sounds - a standard rental agreement. The option gives them the option to purchase for a window of time (usually a few years) at a set price, and often offers terms like rent payments credited towards the purchase price, etc.
Lease options generate quick profits by collecting "option consideration" up front from your tenant-buyers, some mid-to-longer term cashflow as your tenant-buyers pay monthly, and often a nice payday at the end if/when they excersise their option to buy your property. You just have to find homeowners who are willing to rent their homes long-term and buyers who are open to rent to own instead. If the terms are right, lease option transactions are a win-win, for everyone involved.
A Word on Ugly Houses and Bad Neighborhoods
Regardless of how you find your lease option buyers, here’s the key thing to remember: Ugly is a tough sell. You’ll always struggle to sell bad homes in bad neighborhoods, so if the home needs a major facelift, the terms must be attractive – period.
For example, I’ve done lease options for homes without kitchens or bathroom fixtures. How did I do it? Over the top awesome terms. Like offering 100% rent credit for three years and making your rental fee better than just competitive.
Heck, I once rented for $350 in an area where comp’s rented for $800. Bad house; good terms – that’s the key.
With Lease Options making a strong come back in today's arena, I often get asked my top most effective ways to quickly find solid lease option buyers.
So how do I find these lease option buyers?
Well for starters, that’s where Craigslist comes in. (For those of you who don’t know, Craig’s List is a classified advertisement website, with separate sections of online commerce including employment opportunities, items for sale, housing, personal ads, services and discussion forums.)
Of the three resources I will share with you today for finding lease option buyers, Craig’s List is easily my top choice. If your house is in a good area, just post it on Craigslist with 3-5 different ads daily and keep rotating through them.
(The key to Craig’s List is renewing often, in order to keep fresh eyes on your ad.)
Bandit signs are effective as well for bringing in the lease optoin buyers for me right now.
You don’t need anything fancy – just a blank yellow sign with phone number, property address and key phrases like “lease/purchase” or “rent-to-own” written with a black sharpie. Simply post ten signs in the home’s vicinity, and wait for the phone to ring.
Thirdly, if bandit signs are too old school for you, then Postlets is also a great option, and gets great results for me right now.
It’s a free, time-saving and user-friendly way to post your lease option property across various websites (like Zillow and Trulia). It’s a great resource to get plenty of bang for your buck, so to speak. Just make sure to check these sites frequently for your listed property.
If I had to pick only one...
If I had to swipe everything else off the table and choose only one method for bringing in lease option buyers, I'd go with Craigslist.
Hands down, Craigslist has proven itself over and over again, so it's absolutely my #1 recommendation. Because Craig’s List is so well-known, and because users update their content so frequently, it has a greater readership and market reach than bandit signs or even Postlets.com.
But whether you choose Craig’s List, bandit signs, or postlets, remember that it should typicalkly take under a month to find a lease option buyer, if your terms are good. So get out there and use as many ways as possible to get your lease option deal noticed, then make your potential tenant-buyer an offer he can’t refuse, and get “cash healthy” sooner than you ever thought possible.
After all, cash is king.
Consider – Consider using lease option buyers to provide an effective means of becoming (and remaining) “cash healthy”.
Use Craig’s List – Use Craig’s List to find lease option buyers, in addition to buying and selling properties.
Bandit Signs – Don’t ignore bandit signs in your search for lease option buyers. (They really do work!)
Use Postlets.com – Use Postlets.com to post your lease option property across various websites.
Joe McCall
has been investing in real estate for over 5 years. His background and education is in Civil Engineering. Before he started working on his real estate investing business full-time, he had worked for several large engineering & construction companies all around the country. Joe has tried tons of different investing strategies, but his favorite two have always been Lease Options & Wholesaling. When he got tired of spending over $3,000 a month in marketing for his wholesaling business, and throwing away so many leads from unmotivated sellers, he knew there had to be a better way. That’s when he came across the special niche he calls "Wholesaling Lease Options". As soon as he started implementing his simple, unique system, within 3 months his part-time income quickly surpassed his full-time income. Needless to say, he quickly left his job and has never looked back. Joe McCall is still working part-time and easily flips 2-4 lease options a month at $3,000 - $6,000 a pop. In addition to doing deals and working in the business every day, Joe coaches and mentors several select students in different parts of the country.
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“You” or “Your” means you as a participant in or as a user of a Real Freedom Inc website. “We” or “Our” or “Us” means Real Freedom Inc. “Our site” means realestatemogul.com or any of our other websites on which you found this privacy policy.
All information transmitted, printed or otherwise submitted to Real Freedom Inc via this website shall be deemed to be the property of Real Freedom Inc and Real Freedom Inc shall be free to use such information for any lawful purpose as detailed herein.
This site contains links to other sites and we are not responsible for the privacy practices or the content of such sites.
We reserve the right to release such information to law enforcement or other governmental officials as we, in our sole and absolute discretion, deem necessary to comply with the law.
Section 1: Collected Information
We automatically collect and/or track the following:
- Webpage http headers (home server domain names, IP address, type of client computer, and type of Web browser);
- information knowingly provided by you through on-line forms, registration forms, surveys, and/or other entries, such as email addresses, personal, financial or demographic information;
- information, user specific or aggregate, on what pages our visitors access; and
- E-mail addresses of visitors who communicate with Real Freedom Inc via e-mail.
Section 2: Use of Data Collected
We use your personal, demographic and profile data to enhance your experience at our site and to enable us to present content we think you might be interested in. We use your contact information to send you information about our company and promotional material from our partners. We may also use your personal, demographic and profile data to improve our site, for statistical analysis, for marketing and promotional purposes (both via email and through using your email address for targeting on sites such as Facebook.com), and for editorial or feedback purposes for our advertisers. Information collected by us may be added to our databases and used for future telemarketing, SMS text-messaging, e-mails, display and native advertising or postal mailings regarding site updates, new products and services, upcoming events, and/or status of orders placed online. By using this site, you agree that you may be contacted in any manner contemplated in this section even if your number is found on a do not call registry, in-house list or similar registry.
Section 3: Disclosure of Data to Third Parties
If you choose to provide personal information, it will be used for the following purposes:
- considering you for a Real Freedom Inc product;
- as required by law; and
- for marketing products and services which we determine, in our sole judgment, that you might find of interest. We reserve the right to share, rent, sell, or otherwise disclose data we collect to third parties. Any third party we share, rent, sell, or otherwise disclose data to will be prescreened by us, determined by us to be reputable, and will use the personal data for marketing products and services which we determine, in our sole judgment, that you might find of interest.
Section 4: Your Opt-Out Rights
You may opt-out of receiving communications from us and/or our partners by not submitting your information. We also allow you to remove your information from our marketing lists. If you remove your information from our marketing lists it will no longer be used by us to send promotional correspondence to you. You can remove your information from our marketing lists by clicking on the “Unsubscribe” link at the bottom of every email we send you, or by sending your request, in writing, via email to: supportATrealestatemogulDOTcom (Please replace “AT” with @ and “DOT” with .)
Section 5: We Do Not Intend to Collect Data from Children
The information and services provided to us or our affiliates, sponsors, and advertisers are not intended to be viewed by children (under 18 years old). No information collected from children is knowingly used for any marketing or promotional purposes whatsoever, either inside or outside Real Freedom Inc. No part of Real Freedom Inc’s website is structured to attract anyone under the age of 18.
Section 6: Our Right to Contact You
We reserve the right to contact you regarding your account status and changes to subscriber agreements, privacy policy, or any other policies or agreements relevant to you.
Section 7: Our Right to Change
We reserve the right to change this policy at any time by notifying you of the existence and location of the new or revised privacy policy or by posting the changes online at our site.
Section 8: Our Contact Information
If you have any questions about this privacy statement, the practices of this site, or your dealings with this website, you can contact us via email sent to: supportATdigitalmarketerDOTcom (Please replace “AT” with @ and “DOT” with .)
Section 9: Anti Spam Policy. Can-Spam Act Compliance
Real Freedom Inc is dedicated to ensuring compliance with the ‘Can-Spam Act’, which took effect January 1, 2004. You may receive email from Real Freedom Inc in the following circumstances:
- Acknowledging your application has been received and requesting additional action
- Requests for additional information to support your current application
- Response to your inquiries regarding the status of your transactional requests
- Thanking you for your valued business
- Advertisements for our products, services, changes in services, new product availability
Advertisements for third party products and services where we have determined that such product or service may be of interest to our customers
Section 10: Information for ISPs
Real Estate Mogul LLC
5023 W. 120th Ave, #102
Broomfield, CO 80020
United States
supportATrealestatemogulDOTcom
(Please replace “AT” with @ and “DOT” with .)
Real Freedom Inc understands consumers’ concerns over the use of their personal information. We hope this information will relieve any concerns you may have regarding our email policies. Real Freedom Inc and its affiliated sites use only an “opt-in or opt out” method of obtaining customer information, and it is not our policy or desire to send unsolicited email. We obtain email addresses and personal information from third parties that follow the same set of policies. Real Freedom Inc email messages sent always include information about the origin of the emails and instructions on how recipients can unsubscribe from receiving future email messages.
From time to time, Real Freedom Inc will enter into an arrangement with a third party website to allow individuals to opt into our marketing program on those third party websites. In each case the third party websites have represented and warranted to us, among other things,
- that the data was collected voluntarily from individuals on website registrations and co-registrations,
- that the sellers have a right, under any applicable privacy statements, to transfer the data to us, and
- that Real Freedom Inc has the right to send marketing offers to the individuals.
We hope this information satisfies any questions or concerns you may have regarding the email practices of Real Freedom Inc. If you have additional questions or wish to discuss this matter further, please contact us at: supportATrealestatemogulDOTcom (Please replace “AT” with @ and “DOT” with .)
© 2024
Real Estate Mogul LLC
Real Estate Mogul LLC
5023 W. 120th Ave, #102
Broomfield, CO 80020
FROM PRESTON ELY - MY PERSONAL DISCLAIMER TO YOU
Hi - we do everything in our power to run a good, clean business and help people succeed.
We've been in business for nearly a decade. Our mission is simple: help 1,000,000 people live lives of greater freedom. That's what gives us juice and passion.
Unfortunately, there are people and companies who do bad things and make products that don't work at all or don't work as advertised. That behavior hurts everyone.
The bottom line is there is no such thing as magic. There is no magic unicorn that will appear on your doorstep and start pooping gold bars or giving you free money.
Just because people in this program have made lots of money doesn't mean or imply the same will happen to you. In business, and in life, there are no guarantees.
Any one of the people who we happen to feature in this program have a BIG WHY - they want to make a difference and help themselves, their families, their employees and customers succeed. They want more and they apply themselves, they get outside of their comfort zones, acquire new skills, work like crazy, make mistakes, and fail, BUT THEY DON'T GIVE UP.
They implement. They don't quit. They serve. They didn't blame someone or something else for their mistakes or failures - instead, they do the HARD WORK that it takes to make a difference.
They use our tools, systems, psychology, mindset, training, community and events to succeed.
If you're the type of person that isn't willing to roll up your sleeves, learn, explore, grow and focus on helping other people succeed, our programs aren't for you.
If you're a blamer, whiner, malcontent, or just downright lazy, our programs aren't for you.
But if the content is this program and our videos resonate with you - and you can see the possibility and potential that this can work for you, then WELCOME HOME. You're in the presence of REAL PEOPLE who are helping REAL BUSINESSES succeed, thrive and survive.
It would be both mine and my team's pleasure and honor to serve and support you so you can EARN MORE, LIVE MORE and GIVE MORE.
Sincerely,
Preston Ely, CEO
RealEstateMogul LLC
FULL EARNINGS DISCLOSURE:
RealEstateMogul LLC. (The Company) does not guarantee income or success, and examples shown at RealEstateMogul.com do not represent an indication of future success or earnings. The Company declares all information shared is true and accurate, and any claims made of actual earnings or examples of actual results can be verified upon request.
The earnings, revenue and profit results that a customer will generally achieve in circumstances similar to those depicted in the endorsements and testimonials on this site depend on many factors and conditions, including but not limited to, work ethic, learning ability, use of the products and services, business experience, daily practices, business opportunities, business connections, market conditions, availability of financing, and local competition, to name a few. Because of impediments due to any one or more of the foregoing and other factors, it is generally expected that no earnings, revenues or profits will be achieved with the use of any products or services advertised on this site in circumstances similar to those referenced in any endorsement or testimonial.
Each of the purchasers of our products and services who have provided their endorsement or testimonial for use on this site have received a refund in the amount of the cost of the product and service in exchange for their endorsement or testimonial.
© 2024 RealEstateMogul LLC.
