Have you had trouble getting all of the pieces to come together at the same time when you're putting a lease purchase deal together? Especially the sandwich lease purchase when you need a willing seller and a willing buyer? Here is a technique that has a group of buyers in place when you find the seller.

Having a group of buyers ready to go works to your advantage. It creates competition among your buyers. Often you'll only need to show the property a single time to have a signed offer by the end of the day.

Creating Competition Among Lease Purchase Buyers

It's a little like the concept agents use when they hold an open house to have as many potential buyers view the house in one day as possible. However, taking another step greatly increases the number of lease purchase deals you close and you'll be signing a lease purchase contract the first time you show the property.

You want to start building a list of potential buyers. About a week before you plan to show the property, send a note or call the people on your list. Let them know you'll be showing the property at noon on Saturday (or whenever you'll be showing it). Tell them you can only show it for half an hour and if they are interested they need to be on time.

Your goal with this marketing technique is to gather a crowd at the property. This gives the showing a sense of competition. If 10 or more people show up, it looks like there is a lot of interest in the property. Someone in the group will sign the lease purchase contract. Just as well, the other nine people will be excited to know when you will have another lease purchase deal ready to go.

You'll learn everything you need to know about the lease purchase in my book Lease Options and Subject to Deals.

 

Finding Qualified Lease Purchase Buyers

You can always run ads on craigslist looking for qualified lease purchase buyers. The sad truth is few of the people that respond are qualified buyers. Most don't have the down payment money to buy the option. You can try prequalifying them by putting a specific option price in the ad. Instead of running an ad saying "Low Down Payment" run an add saying "Own a $100,000 Home with a $5,000 Down Payment". Of course, you're going to need to explain to them what a lease purchase is but you will have more qualified buyers respond. Or you can....

Work with a person in the industry that knows who is qualified for a lease purchase - mortgage brokers. Many of the people he or she turns away are the exact people you want in a lease purchase. Set up an arrangement that any of his or her turn downs that close a deal with you earn the broker a small commission.

Now put these people on your list and set up a competitive showing of your next lease purchase and you will have signed lease purchase paperwork by the end of the day. Building your list with these people will build your success.

I'm pleased to provide these other free real estate investing training resources:

• Lease Option Contract and Working With Buyers
• In a Sandwich Lease You Are Still a Landlord
• How to Do a Rent to Own That Works Well
• Pre-Paid Legal - Be Prepared and Control Costs
• Wholesaling Lease Options Are the Answer to Today's Market

Lease Purchase Coaching - Feel free to share this post, comment, or ask questions about any aspect of the lease purchase. If you are considering lease purchase coaching, check out my Facebook page at www.facebook.com/WendyPatton or you can learn more about a lease purchase from my free book and video training.

There are several ways to structure a lease option. Wholesaling lease options is the lowest risk compared to a lease option when you own the house or a sandwich lease option when you are in the middle between the seller and buyer. Wholesaling lease options are when you get in and out of the deal quickly for a fast profit.

The fact is there are tons of owners out there that want to sell their houses but either have very little equity or have to discount the selling price to compete with all the bank foreclosures. They need a way to maximize what they receive from the sale. The fact that houses that sell on a lease option go for above market price is the answer these people need but they don't know it - yet. That's where you and wholesaling lease options come into play.

Wholesaling Lease Options - Profits Without Hassle

The other part of the formula are all the buyers that want to buy but can't qualify for a bank loan until they repair their credit. It averages about 12 months to repair credit. About the same time, the "buy" option needs to be exercised on wholesaling lease options. You can put a clause in the wholesaling lease options paperwork allowing the buyers to extend the option period at the end of the year. They would have to pay the seller an agreed to fee for the extension.

When wholesaling lease options, you bring the seller and buyer together, take a cut of the option money, but assign the sellers on the option documents. It's similar to a sandwich option but when wholesaling lease options you wholesale it back to the seller.

You'll learn everything you need to know about wholesaling lease options in my book Lease Options and Subject to Deals.

Wholesaling Lease Options - Step-by-Step

1. Find a motivated seller and explain how wholesaling lease options work.
2. Have the seller sign a wholesaling lease options contract.
3. Find a tenant that can pay the option contract payment and has a reasonable chance of cleaning up their credit within 12 months.
4. Sign the lease contract with the tenant.
5. Assign the contract back to the seller.
6. Put the tenant in a credit repair program.
7. Pocket the option payment as your payment for putting the wholesaling options lease together.

The difference between wholesaling lease options and sandwich lease options is that with a sandwich lease, you remain the landlord although you don't own the house. Wholesaling lease options gets you completely out of the picture as soon as you collect the option fee for putting the deal together. Wholesaling lease options definitely has a lease option where you own the house beat by a mile because you don't have any of your money in the deal.

Wholesaling lease options can easily put an extra $2,000 to $12,000 in your bank account each month for very little work and zero risk.

I'm pleased to provide these other free real estate investing training resources:

• Lease Option Contract and Working With Buyers
• In a Sandwich Lease You Are Still a Landlord
• How to Do a Rent to Own That Works Well
• Pre-Paid Legal - Be Prepared and Control Costs

Lease Option Coaching - Feel free to share this post, comment, or ask questions about any aspect of wholesaling lease options. If you are considering lease options coaching, check out my Facebook page at www.facebook.com/WendyPatton or you can learn more about wholesaling lease options from my free book and video training.