Is this a good lease option or wholesale lease option? This is from one of my lease option coaching students:

Question:
Hello Wendy,
I spoke with a prospect this morning. I have had several conversations with her and she and her husband both really like the idea of lease optioning with me. It is my goal to find the right person as quickly as possible. She is very excited.

Now the numbers. She worked for the county where the house is (and where she lives) and helped develop their website. So, they looked at numbers there are trying to find out what neighbors have sold their houses for. I have run the comps for the area. Only one house within a 1/2 mile has sold recently and it is only 16yrs. old, as opposed to hers which is 36 yrs old. Within 1 mile, houses within her age range have averaged to $174K. I think she is looking at getting $170K. Her monthly PITI is $1375. I have attached the Profitability Worksheet I used for this to determine if I could give them what they want. If the terms are right for both of us, I think the deal could be really good. I have put in the worksheet a $500 rent credit for myself because they have owned the house for over 12 years, so they have some equity to work with.
One question: does the Tenant Buyer usually get rent credit? I had been told from someone I could not give rent credits to the tenant buyer because they would want to be building equity in the house and because they did not own it, they couldn't. Is that true? Do you give your tenant buyers rent credits?

By the way, I told you on the phone yesterday that I have had a great time developing a relationship with her very quickly. I told her up front that I was helping a friend find a home, but this home was too much for her, and it is. But I asked her if she would still be interested in Leasing it to me with an option. I explained to her that you are a fellow investor and are teaching me about Lease Options, so if I can't answer a question, I will ask you for help. She is a very nice, hard working woman and I have to laugh. She thinks this is such a great idea, she said, once I learn it, she might want me to teach her how to do this!

God is good and has a way to bring a smile to my face. Thank you, Wendy for your webinars, phone calls and emails. I feel blessed to be working with you and can see the work will pay off. You are, by far, the best coach/mentor I have had!

Answer:
Yes you can give your tenant buyer option credits. I do with sandwich lease options or my own properties that I sell on a lease option.
I think if you can do very long term and make the numbers work with the $500 credit a month, then maybe a sandwich lease option would work, but I would like to see you get a contract in place with her for the 174-175k and keep 4-5k which would still net her what she wants to make (170k). Take your profit of the 4-5k now, since you shared with me you need the cash now!
I hope that helps.

How to Stop Sellers from “Cheating” on You (Competition Killer, Pt 3)

Editor’s Note: This is part 3 in a series of “Competition Killer” video posts that’ll teach you in no uncertain terms how to blow your competition out of the water — SPLOOSH! These insider tips are compliments of my good friend Shaun McCloskey — a kick-butt short sale guy who’s crushing it right now, closing multiple deals in multiple markets all over the U.S. (at an average per-deal profit of $28,500). In case you missed them, here’s Competition Killer Part 1 and Part 2 is here. Enjoy!

So look, when dealing with motivated sellers, one crucial element to the success of your deal is ensuring they don’t go “cheating” on you, right?

What I mean is, they gotta understand in no uncertain terms the importance of not working with any other real estate agents, investors, etc, without talking to you first. You should be their first and only love while you’re together.
But there’s a bit of an art to this, isn’t there? I mean, you don’t want to make it a personal “thing” that says you’re afraid of a little competition. And you sure don’t want it to seem like you’re taking a “strong arm” type of approach.

But the simple fact of the matter is this: If I’m truly looking out for the homeowners’ best interest (and I am), then they really need to understand that it’s in everyone’s best interests (not just mine) that they only deal with me and only me from here on out.

In this third video from Shaun McCloskey’s “Competition Killer”, he explains exactly why this is, and how to go about communicating it in an open, friendly and crystal clear way.

You’ll hear a real life story that illustrates perfectly how to do this. It’s 100% true, and it’s the exact same story he shares on every single appointment he goes on. And better yet, it’s a story you can even have full use of to leverage yourself in your own dealings with sellers.

In other words, please try this at home. It’s a powerful way to gain a huge edge over your competition in each and every deal. Enjoy, and share your thoughts in the comments after you watch…

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PS – Please share your thoughts on this strategy below. Also many smart and sexy people have realized that hitting the “Facebook Like” button on this page gets you free promotion.

PPS – This is the third video in the “Competition Killer” series. I am hosting a private webcast “jam session” with the guy behind the curtain so to speak – my friend Shaun McCloskey. As you have already seen – Shaun is a great teacher and EVERYONE is gonna love learning from him about his impressive multi-state flipping business. He is actually doing BETTER in today’s market than in past year. Join us on Wednesday, September 22 at 9:00 PM (Eastern). CLICK HERE to register now – space is limited so take action now!