Lease Option Contract – Sandwich Lease – What is a Lease Option – Part 4
This is it, today’s the day where we get to share with you how you can actually purchase homes on lease, how you can sandwich them, put someone else in the home, if you’ve ever heard about this, no money down, no credit, real estate thing, we’re about to take it to the bank and show you exactly how it’s done. Alright, we are back and this is our fourth final video in the series. Steven, what are we talking about? – We’re talking about sandwich leases. Now the sandwich lease is one of those amazing like gems and jewels, this amazing nugget that if you learn it, will allow you to do real estate with no money, no credit and really just jump in right into the gam. – And this is what I love about what we’re about to teach you. If you’ve been holding out for this fourth and final video saying, “Guys, show me how to get real estate with little or no money at all and no credit.” We’re going to give that to you right now and sandwhiches is all about the spread. All about the what? – The spread. Now we’re not talking my mayonnaise, we’re not about Cool Whip, we’re talking about what you can sandwich in between these two people right, what kind of profits you can sandwich together in a deal where you’re coming again with no money necessarily and maybe no credit as well. – So watch what you do, go onto Craigslist, go on to the classifieds, go in the for rent section and what you’re looking for is homes that are renting for less than they probably could and you’re giving them a call and you’re basically saying, “Hey, I’m interested in renting your house but I’m also interested in buying it. Would you entertain in time if I rented it long enough and then eventually bought it? Would you be okay with that?” And you only want to look at homes where the person says yes. Now this is pretty easy, you call them up, you start, you just start asking, it’s like, I’m interested in renting, would you consider letting me eventually buy it from you and if they say, well I guess under the right circumstances I would. Those are the houses that you want to go to and what you’re going to do is, you’re going to negotiate on the five profit centers. Now like Steven said on the spread, we’ve already created a scenario here, we’re going to break this down for you, this is what you’re getting the home for and then this is what you want to actually sell the home for and then you get to make money across the board on these five different areas. Now you might only win in two of the five areas or maybe all five of the areas or three of the five, as long as you win enough that the numbers pencil out, man, you are in real estate and we’re going to show you how awesomely easy this is. – So let’s talk about the deal first of all that we’ve got right here. This is a home, we’re going to say that it’s valued at a $175,000 but you’re able to negotiate a price of $150,000. Now let’s just think about this scenario for a moment. There are people all day long who maybe cause of death in the family or divorce or they’re moving because they got a job out of town or whatever, they need to sell that home and they’re in a little bit of a distress situation, right? They need to sell it quickly. So that will give you that spread first of all. So you negotiate this home, you’re going to pick it up for a $150,000. – Also understand there’s a lot of people that are renting houses that are not investors. It’s, I tried to sell my house and I couldn’t and I moved and now I’m renting it. There’s reasons why people have houses that they’re renting and it’s absolutely not a business and so as we’re out there in the marketplace, we have a house worth 175 and they’ve agreed to sell it to you if you buy it for 150 grand, they’re looking at $1,000 a month payment on it which works great because it would normally rent for $1,200 and it might lease for $1,400 or $1,500 so right now, you actually have a good solid rent on it and in this situation, they may not be looking to make a whole lot of money on this rental, portion, you may even just be assuming the payments for them like this is very common, where someone’s distressed, they just want to get rid of it and if you say, “Hey, look, I’ll take over those payments for you if you’ll allow me to do a few of these different things.” It just opens up the door so let’s just say you’ve got $1,000 a month payment. – Now you’re also letting them know, I’m going to be renting this for a while, I’m going to be taking care of this, you can count on me, my payments are going to come through, will you give me a 7-year contract? And you’re looking for three, five, seven, you’re looking for a length of time because remember, on the other side, you want to let it out to somebody for one or two years at a time and you want to give yourself some space to actually sell this home by seven years, gives you time for the market to increase, seven years buys you a lot and so you want to have, I would say always, a minimum of five years but if you can get seven or ten, go for it and then this fourth one is, well how much do I have to put down? Now we told you no money down real estate. In this example, we want to show you one where the person might be asking for a thousand dollars down plus first month’s rent, we’re also going to show you how you can recuperate that money really quickly by collecting someone else’s downpayment but you’ll absolutely walk into homes that you don’t need to put money down and there might be killer deals out there where they might want five grand down, this is your discretion and I want to ask you a question.. I could show you a deal where you can make twenty grand with nothing down, I could show you a deal where you can make fifty grand with five grand down, what are you going to do? You might be thinking, “Well I don’t have the money so I guess I just have to do the $20,000 profit option.” That’s not true. If you knew that $50,000 was on the line, how many of you think you could go out and find someone saying, I need five grand. I need a credit card. I need something that can get me $5,000 because how many of you would trade $5,000 for $50,000? I would trade $5,000 for $50,000 but the deals are out there that don’t need money, we’re going to use a thousand dollars down in this scenario because you’ll find that also often, you get to pick which deals you do. This last row here is talking about the accumulated credit. In other words, this is the credit that you’re getting if you’re making on-time payments, right. On this example in particular, we’re showing zero credit going towards each monthly on-time payment and again, like Kris said, you may not be able to negotiate the very best situation for yourself in every aspect but you can see here, we’ve won in several situations and so we’re going to talk about now the spread here of what you can create as you go to sell this home on a lease option as well. – So check it out, you’ve got this deal under contract and you’re thinking,”Okay, now I’m gonna follow Steven and Kris’ system. I’m going to put the signs up, I’m going to do the open house and game on.” And this is what ends up walking through your door. Number one on price, someone ends up saying, ‘Alright, we’ll let the market determine the price of the future but I need to have a minimum price.” And you might say, “I’m unwilling to sell the house for less than $170,000” and when the contract says that, this isn’t what it will sell for, it just can’t sell for below that. Why? Because you’ve guaranteed a minimum gain of how much here? – $20,000 A $20,000 gain. How many of you were liking that? Now by the way, in actuality, you might sell the house in five years for $225,000 and get a $75,000 gain but what we’re saying is I need to make sure that I’ve covered my assets and my bases, there’s a $20,000 spread here. Steven, tell me about what might happen here on rent? – Absolutely. So we already know again the value of the home is about a hundred and seventy five thousand dollars on a hundred seventy five thousand dollar home here in our area, this same home may rent for $1,200 a month, it could rent for $1,300 a month. Again, remember, we talked about the flyer or you’ve got these different options, right? So really, what you’re going to do, let’s just say at a very minimum, you’re able to rent this out for or put on a lease option for $1,200 a month, let’s just say you’re able to do that. – Now I’m going to tell you right now that Steven’s giving you a super conservative number here because often, there’s a three four or five hundred dollar spread but let’s give you a scenario kind of on the low ultra realistic side. – So you got $1,200 here, there’s a $200 per month spread. Now think about this, if you’ve got this on contract for seven years, you could be collecting an additional $200 a month for seven years. Could that be worth $1,000 down payment? – Absolutely. I’m going to recuperate my money in five months. – Absolutely. – But you’re actually going to get it faster than that because watch what happens here. Now we’re going to do, when Steven and I earlier were referencing a two-year contract, our legal contracts actually say, hey there’s a 24-month intention but at 12 months, we’re actually going to be determining whether we want to re-up with you, meaning, if they’ve been making their payments on time, you’re good but if they’ve been trouble, if they’ve put their money down but then they got into a hard situation, this happens sometimes. You need to have an out, you might say, hey because you’ve actually broken the contract by missing certain payments, I’m not comfortable renewing another 12 months with you and and that’s the reality that can happen in real estate. Let’s just say though that you end up doing, I’ll still call it a two-year contract, you might check it after 12 months, re-up with them, that means that you could do this up to three and a half times, that’s plenty of time to sell a house and then on that, let’s just say, because they ended up getting a really low cash flow, it meant that you collected a really strong downpayment, so in this situation, we’re going to go with $7,000 because if they have put $3,000 down, this number might be $1,400. So we collected $7,000, now I want to ask you, could you come up with $1,000 if you knew that in a couple of months you might be collecting three five or seven thousand up front? – That’s powerful. – Not only that but you don’t have your person in the home yet and there’s a period of faith of, okay I felt the system, guys. I got the house, I gave them a thousand down and I even gave them the first month’s rent and guess what? I haven’t sold it yet and next month, I’ll have another thousand dollars due and let’s say it takes you two months and you’re four grand in but now you collect first month’s rent in $7,000, guess what? You’ve made it all back, you’ve also got money in the bank and then lastly on this one, you might actually decide, hey, when you make your payments on time because you put more money down, I’m going togive you $200 a month. Now remember, you’re not giving them $200, you’re just knocking it off of the price without ever dropping below what? $170,000 or so let’s just say that two years from now, we’re going to do some quick math. Two years from now, the person that you lease it out to actually goes to buy it and you’re thinking, great and the market says that the home is worth a $180k and so there’s a $30,000 gain minus the money that you’ve gotten in some of the credits, you sell this house, you only put a thousand, couple thousand dollars down upfront into it and you ended up selling it and making, maybe making $25,000 to $35,000 without banks and without any more money than that. I can show you sooner is where you put zero down and just assume the mortgage because that’s where some people are and I can also show you some deals I did where I put $10,000 down because I was securing a sweet equity position and it was too profitable and even then, I still had someone else come in and put up the money to partner because I really just don’t believe in using my own money to make money. – Kris, we’re wrapping up here, we’re talking about, you know, the sandwich lease is an amazing opportunity for people like, we said before, that who have no money, no credit or don’t want to use their money and don’t want to use their credit and I want to transition you for just a second because you’ve recently used this exact same system but on a much larger purchase, would you mind talking a little bit about that? – Well I actually just did a commercial deal, the skills that you learn in, Steven, in my lease option life systemn it gives you tools that you’re going to use your entire life. I actually did just negotiate, there’s a business building that I’m buying, I was able to acquire it for a million dollars and thirty thousand and it’s going to require about a million dollars of improvements and it’s worth over two and a half million dollars so by the time I buy it at a million without any my own money, because it’s on a lease option, and then I put the money in, which is none of my own and then I’m left with a half a million dollars, my personal net worth increases $500,000, it’s closer to three quarter million dollars, on doing a lease option commercial so you’re going to find that you can do rent to own everything and this strategy in the system is something that you can apply everywhere. Now coming back to the, Steven, if let’s just say at the end of the two years the family can’t buy it but I’ll give you a few thousand more dollars down, go for another year, maybe something takes them away and they need to move away, you lease it out again, you hold this for five years, finally it sells, no realtor fees, no maintenance, they gave you the deposits and the down payments, you make $50,000, now just for a moment, I just want to calculate your return. You put $2,000 in and you got $50,000 back. Yes, this happens and you calculate that you want to amortize that out and you’re like, alright.. what is it? Steven, give me a calculator. – Okay let’s pull this up here. I want to actually demonstrate what happens when you put in a small amount of money and get a really big return.. – Okay, go for it. – Okay, so we’re going to take the $50,000, we’re going to divide it by $2,000 and that gives us? – That’s 25. – So that’s a 25 times return. That is a, no, just for a moment, think about this, this is a two thousand five hundred percent return, a 2,500% return. What are you getting in your bank? A half a percent. What is your IRA doing? 3% What your 401k doing? 4% 2,500, now we got to divide it by five years and that’s going to be a 500% return on your money. Friends, the reason why I was able to retire 26 is because I figured out how to put very little money to get a whole lot out, that’s what this entire system is about. If you’re looking for a financial meteoric rise then over ten years, you can create extraordinary wealth for yourself, you’re not going to feel rich overnight because, oh, I made three or four thousand dollars here, I got a little cash flow but you need to have the bigger picture which is, this house in five years may make me fifty grand but in the meantime, if that’s all you need down, how many more of these can you do? Five, ten, a hundred? Some of you in this country are going to get back with me and Steven and a couple years and say, “Hey guys, I just want to thank you. High five. We watched your videos and ended up making millions of dollars.” That happens all the time but even if this only helps you do one extra deal in your life and you make an extra $50,000, how many of you want to be fifty thousand better off? These are wise are amazing and just because we’re finishing this four-part series, I want to thank you first of all, for watching it. Thank you for joining us. Thank you for taking the time to take some notes. You can always come back and watch it and I want to invite you to do one of two things right now.. The first one is, take this information and run. If you’re a self-starter, self-motivated, go make it happen. If you’re like, I was when I started saying, “Hey, I really don’t want to mess up. I would like to have the flyers, I’d like the contracts, I’d like a manual on this, I want the scripts on the conversations, I want to know how to do it verbatim.” Then you also have a chance to do Steven and my lease option life program and there’s a program that we’ve been doing for over 10 years, we have perfected it, there’s nothing to change on it, it works so beautifully and this is something that we’ve been able to help so many people succeed at. If you click the link above, what you’re going to do is, it’s going to take you to a page where you can’t buy the system because we want to connect with you and talk with you but what we will do is, educate you more on what it looks like and essentially, the lease option system comes with four main components.. Number one is, you got to get trained. Here we’ve given you maybe 30 40 minutes of training, it takes about 6 hours to teach you everything verbatim and so we have about 30 minutes a day for the next 10 days that we want to give you and then after you’ve done that training and you followed number two at the manual, then the third thing that’s going to happen is, you’re going to access our toolbox of editable documents. All the flyers already done, the contracts are already done, all you need to do is just plug and chug and boom, you’re done. The fourth part is the most important. Yes, you’re going to learn the system in the next ten days. Yes, you’re going to be able to take this and go out and powerfully use it but now you’re going to need help. You’re going to have questions, you’re going to have questions about an open house and something you could have said different, you’re going to have a question about how to do the sandwich lease, you’re going to have question about something and we want to give you access to our private real estate community where we work with all of our high-end investors, our 3,500 clients, we’re working with them in this community where every question that you have has a perfect answer and we can reach out and reach out through you that way and work with you closely. That program that we’ve been selling over the years, people have paid $3,000 for but when you click the link below, I think you’re going to find that we’re doing something different than anyone else in the market, it wasn’t until just recently I decided, hey we got so many amazing YouTube friends coming on board, I keep getting message by people saying, give me more help, give me more tools. So Steven and I actually decided to drop the price to a ridiculous low place where anyone can work at and so, whether you’ve got money to invest in real estate or you’re starting like us where we didn’t have any money, click the link and and submit your information to talk with me, Steven, someone on our team and then at the end, will be able to share with you how we can really find a plan to help you get in and start doing this because we believe in you because someone believed in us and if this is your time and if this is resonating, I don’t care how young you are, I don’t care how old you are, I don’t care whether you went bankrupt or have good credit or horrible credit, I don’t care whether you have job history or not, that’s not important, no one gets to decide your fate, no one gets to decide your destiny but you and success is not fated to certain individuals, it is available to everyone that rises up and takes advantage of what’s given to them. I had someone that showed me how to do lease options and I did improve upon it and Steven helped me get it to a space of perfection and you know what? That was the best investment I had made at that time in my life because I retired at 26 with $1.6M and $12,000 a month residual income. If it’s time for you to step up and take action and you want to just step into a team that can facilitate the whole process then give yourself that fair chance, click the link below, go ahead and take the opportunity to work with our team, we’ll get in touch with you, decide if you’re really a good fit if we believe we can help you and if we can, let’s go, make a 10-year commitment that real estate moves in the back and funds your future, your investments, your life, – Let’s rock this. Everything that you want, friends, and hopefully we get to see in there. Either way, take this information and run with it, if you want hands-on help, we’re providing it and rock it out.