How to sell on Land Contract and Collect up to $8,000 down from the IRS

Fellow real estate investors:

We have a unique and short-lived opportunity to make some serious money using the "First Time Homebuyer Tax Credit," which will be in effect through December 1st, 2009.

If you own homes, or plan to this year, you can sell them on land contract and collect 10% of the purchase price - up to a total of $8,000 - as a down payment. And it won't cost your buyer a thing - he gets the money directly from the government!

This attractive and profitable strategy can be dangerous for you and your buyer unless you understand all the legalities and tax consequences, though, so on Tuesday, September 1st at 8PM EST, I am holding a free webinar on exactly how to make these deals work legally and ethically. We'll cover.

• What a land contract is, and how it helps Americans become homeowners while making you a bunch of money
• What the "First Time Homebuyer Tax Credit" is, how it works, and which of your buyers can qualify for it
• How to make sure the buyer's tax credit ends up in YOUR POCKET, not his - and which forms the IRS requires to make the refund
• How to make properties for sale on land contract, how to set up the deal to succeed, and much more

Don't miss this once in a lifetime opportunity to get cash AND cash flow selling on land contract - and don't miss this webinar about how to do it right.

The webinar is Tuesday, September 1st at 8PM EST and you MUST pre-register at:

https://www2.gotomeeting.com/register/123600618

You literally won't see this information anywhere else, don't miss it!

See this post at it's original source at http://www.wendypatton.com/blog/how-to-sell-on-land-contract-and-collect-up-to-8000-down-from-the-irs

Lease options - call for comments

Yesterday I did a post announcing that I will be doing a lease option webinar with the National Association of Realtors. The webinar will be on Thursday, August 27th at 3 PM EST. If you are interested in signing up please go to the webinar registration page.

This webinar was announced by Robert Freedman, Senior Editor of Realtor Magazine in his blog. Surprisingly, there have been some real estate agent naysayers posting close-minded, negative comments about lease options. Most, if not all, of the negative comments come from agents who have no experience with lease options. They just talk about how risky they are or voice concerns as an excuse to not help their clients.

I've been doing lease option training for a long time now and I like helping as many people as I can. My concern is that other agents who might be interested in learning about lease options and growing their real estate career will be put off by naysayers who have no experience. So I'm putting out a call for comments. If you are a real estate agent and have done a lease option transaction please post a comment on Robert Freedman's blog. Help your fellow agents understand that lease options can help their business, especially in these troubled times.

See this post at it's original source at http://www.wendypatton.com/blog/lease-options-call-for-comments

Wendy Patton Lease Option Webinar with National Association of Realtors

Think lease options aren't going mainstream? Think they aren't something you should be offering your home buyers and home sellers as alternatives when conventional sales and conventional mortgages don't work?

You might want to think again. Recognizing the need for Realtors to get creative during these tough times and offering their home buyers and home sellers solutions that work, the National Association of Realtors (NAR) will be hosting a free webinar interviewing Lease Option expert Wendy Patton. Wendy Patton has taught lease options or rent to own to thousands of Realtors, home sellers, home buyers and real estate investors.

They are a workable solution in these difficult real estate times. They can help home sellers when their home isn't selling by conventional methods (don't you hate investing all of that time and effort in a sale and then lose out?). They can help home buyers who can't currently qualify for a mortgage (don't you hate turning away those buyer leads?). And they can help Realtors earn more commissions because you can get your full commission on a lease option or rent to own deal. That's much better than turning away a buyer lead or losing a seller.

This lease option webinar with NAR is Thursday, August 27th at 3 PM EST. Space is limited so sign up now! Remember this webinar is free.

View this post at it's original source at http://www.wendypatton.com/blog/wendy-patton-lease-option-webinar-with-national-association-of-realtors

Lease Options - a Case Example

Here is an example of a lease option investing deal put together by two of my students, Rance and Ryan:

Within one week of your lease option seminar, we located a vacant rental in a nice neighborhood and were able to negotiate a lease option with the seller. We put the home under contract to purchase it for her full asking price of $175,000 (this was before the market turned down, now they probably wouldn't pay full price). We were to pay $1,000 down, payable in 90 days or when we found a tenant. We paid no interest, with 100 percent of our $900 monthly payment going towards principal reduction. We had three years to cash her out.

We sold it on a one-year lease option in about 10 days for $200,000. That was a great deal for our buyers. We're confident we could have sold it for $220,000. We took $10,000 down, leaving us $9,000 after paying the $1,000 to our seller. We received $1,295 a month from our tenants with no rent credit and none going toward reducing their principal. We got $395 per month positive cash flow for one years that added up to $4,740 plus $25,800 after one year when our tenants exercised their option.

After making $30,540 on our first lease option deal using the strategies you taught us at a half-day seminar, we signed up for your next Lease Option Boot Camp and ended up acquiring 19 more properties the following year; two of them were clients referred to us by our first buyers, who have now acquired two more properties from us. Our buyers still send Christmas cards and coolies and continue to thank us for helping them to buy a home when no one would loan them money because of a previous bankruptcy.

Thank you for sharing your lease option strategy and inspiring us to jump out of our comfort zones.

View this post at it's original source at http://www.wendypatton.com/blog/lease-options-a-case-example

Lease Options - Build Rapport with a Seller

Whether you are a lease option investor or a lease option buyer it can make all the difference in the world with a home seller if you build a little rapport with them. This is part of my lease option training to my students. Make that effort to build some rapport.

If you were trying to sell your house, who would you give a better deal to? The buyer who came in saying, "I don't like your carpet color. Are you going to replace it? The walls won't match my furniture. This kitchen is just not my style"? or the potential buyer who said, "I like the layout. I see there's a ding in the wall. You don't mind if I fix that do you? I just want to make this my home. I love it." You would choose the second person, of course, because they are reasonable and are trying to work with you. You would instinctively want to work with them.

Building rapport with the seller is key to making a deal, to getting them to consider selling you their home on a lease option. If the seller doesn't like you, the deal will probably never happen. Therefore, if meeting people and being reasonably conversational and interested in the seller's home isn't your strength, take someone with you who is warm and friendly and can bridge that gap for you.

See this post at it's original source at http://www.wendypatton.com/blog/lease-options-build-rapport-with-a-seller-2

Lease Options - Landlords as motivated sellers

When you are doing lease option investing, it's important to find the right kind of motivated sellers.

Landlords can be great motivated sellers, especially if they are burned out. If the economy is slow, the might have higher vacancies than in a fast or hot market. In my experience, as a lease option investor, I have found there are two basics types of burned out landlords. The first type has watched a lot of late-night TV and decided to make millions in real estate. Unfortunately, many people buy real estate with no knowledge or experience, thinking they know it all after hearing a high-powered, adrenaline-rush sales pitch. This type of landlord will fall for the professional tenants and their stories and experience, and often end up getting burned.

The second type of landlord is more tired than burned. These landlords are retiring and ready to move on with their life. They don't need the money from the sale of a home, and in many cases they don't want to receive it yet. They usually have huge capital gains to contend with and may not want to pay those gains yet.

When I purchase a home from a landlord as a lease option, one of the benefits to him or her is that I usually completely assume the maintenance on the home, or ask them to assume only the first $500. I also take responsibility for the advertising, vacancies, showings and so on. By taking away all of the landlord responsibilities I'm easing that burden that burned them out in the first place.

To see this post at it's original source go to http://www.wendypatton.com/blog/lease-options-landlords-as-motivated-sellers

Win Free Tickets to Wendy Pattons Soft Market Investing Bootcamp

Wendy Patton's 4 day Soft Market Investing Bootcamp, November 19-22, is closing in on us quickly. We are very excited about this event. All of us here at Wendy's office know that great secrets will be revealed and there will be many success stories that will follow from the attendees of this event.

Wendy Patton has always been very driven as an individual. Wendy's passion for real estate also comes from seeing others become successful in the business. In simple terms Wendy loves to share her knowledge and experience in order to create success stories for her students. What better type of instructor or coach could you ask for? Someone that truly wants to see YOU succeed!

The reason I am writing you today is Wendy Patton and I were thinking how we could create an opportunity for Three lucky individuals and their partners or spouses to attend her upcoming bootcamp for free.

We are looking to hear back from some of the many students that have used Wendy Patton's techniques and her program with success, whether they be lease options, rent to own or subject tos. Or even skills you learned from Wendy that you were able to apply to other parts of real estate investing.

Here is how this contest will work:

The winner of each of these categories will win 2 free admission tickets to Wendy's bootcamp in November (one ticket for you and one for your partner or spouse). All you need to do is to send us your experience of one of the following three categories. A winner will be picked from each of the following success stories.

1. Share with us a success story on how you have used Wendy's course over the years, and how it has helped you achieve one or more successful real estate transactions.

2. Share one transaction that you have completed using Wendy Patton's system that achieved a large profit on the transaction.

3. Share with us your motivational story relating to your success using Wendy's system. The winner of this category will be the person with the most inspirational story on how they used Wendy's system to accomplish success in their life.

You can enter this contest by either writing it down, recording a video or by sending a wave sound file to our office no later than 5 PM EST on 8/21/09.

Wendy and I will review your success stories personally. There will be one winner chosen from each category. The winner of each category listed above will WIN 2 tickets to Wendy's bootcamp in November.

Make sure you send validation to support your succes.

I can't wait to hear from you.

Please send all submissions to michael@wendypatton.com.

Best of luck to you!

Michael Gott
See this post at it's original source at http://www.wendypatton.com/blog/win-free-tickets-to-wendy-pattons-soft-market-investing-bootcamp

Lease Options and Income Tax

If you do a simultaneous closing between the rent to own buyer and the rent to own seller, with you in the middle as the lease option investor. This is considered a short term capital gain, no matter how long the option period. Short term capital gains tax at the highest rate.

One great option for reducing your tax, or paying no tax at all when you sell that lease option investment is a 1031 tax deferred exchange. This is a more advanced concept in your lease option training.

A 1031 exchange is an excellent way to defer your taxes and capital gains by taking the profit of your sale and rolling it into a property of higher value, or two or more properties whose combined value is higher than your sale. A 1031 tax deferred exchange is a great tax strategy, but this takes a bit of planning and foresight because there are time limits to make this happen. In other words, at the time of sale you should have a property lined up already into which you can roll the money.

As the lease option investor, you won't actually handle the money yourself. A company that does 1031 exchanges will play what is called the intermediary between the current sale and the new property and will move the money from one closing to the next for you. It has to be done very carefully and with a good company or the IRS might not allow the exchange. You can't touch the money. You also can't live in the new, higher-valued property or in any of the combined properties that are in total a higher value. You need to rent the properties or hold them as an investment since a 1031 is for investment exchanges and not personal residences.

This strategy can be used when you need to defer your capital gains. When you are first starting out in the lease option investing business, you might not need this, but down the road it can come in handy.

See this post at it's original source at http://www.wendypatton.com/blog/lease-options-and-income-tax

Lease Options - Who is responsible for repairs?

This is a fairly common concern people have when it comes to lease options. After all, repair costs can really add up if the home is older and needs maintenance or the option period is for a long time.

The answer to this really depends on what type of real estate market you do your lease option deal in and also it depends entirely on what you put into your contract.

In a seller's market I usually have the rent to own buyer be responsible for all repairs. This is very convenient for a lease option investor. My lease option contract will say that the lease option buyer is responsible for all maintenance, major and minor. However, if I end up having to do any repairs, I'm going to add the cost to the purchase price at closing. Let the rent to own buyer think through their own possibilities first, but if they still don't know what to do, then send your own maintenance people and recoup the cost at closing.

For example, if the lease option buyer's heat goes out in the middle of a Michigan winter, it's crucial to get that fixed, both for the lease option buyer and to protect the lease option seller. On the other hand, if the air conditioning goes out in the summer, it's unpleasant but livable. Do NOT make your lease option buyer unduly fix too much, because if you treat the tenant like an owner then the court may treat you like you provided seller financing instead of a lease option. The tenant can claim that they've put so many dollars into the property and the court may make you go through a forfeiture or a foreclosure versus an eviction should the rent to own buyer stop paying their rent. In most states this would be much more expensive and much more difficult.

In a buyer's market you can put more of the responsibility for maintenance onto the seller. In a seller's market, I don't want my seller to do anything but be free and clear of that issue. However, I have to preapprove in writing any improvements my lease option buyers do.

Keep a copy of any letter regarding maintenance in the lease option buyer's record folder. When a rent to own buyer calls, I record what was said for their records also. The same goes for maintenance. I track everything. If the roof leaks, and someone slips and falls, accurate files will suddenly become very important!

View this post at it's original source at http://www.wendypatton.com/blog/lease-options-who-is-responsible-for-repairs

Did you miss cracking the code of multifamily riches?

Tuesday's webinar with Apartment King, Dave Lindahl, was fantastic. The response was excellent.

In fact, it was so good that it looks like not everyone was able to get on the call.

Dave Lindahl, who owns more than 7,000 apartment units shared his secrets for what he is currently doing in today's market to buy multifamily units with no money out of your pocket and without ever having to talk to tenants. He wasn't sharing tips about what he did 10 years ago. This is stuff for today's market. In fact, Dave told me he is in the process of closing on another couple hundred unit complex.

More importantly than what Dave is doing he shared lots and lots of examples of his students doing the same thing! He even had one 14 year old student close on a 20 unit apartment building!

This call was packed with lots of don't miss info. Fortunately we recorded the call and now have a replay available. But it's for a limited time.

You can view the replay at http://www.wendypatton.com/davereplay/

But click on that link and watch it today because it will be gone soon.

See this post at it's original source at http://www.wendypatton.com/blog/did-you-miss-cracking-the-code-of-multifamily-riches

Lease Option Investing - 2 Ethics rules to live by

When it comes to lease option investing there are 2 rules that every investor should always follow.

#1 If the deal isn't a win-win-win for the seller, the investor and the tenant-buyer (and the real estate agent too), then walk away from the deal. There are plenty of deals out there where everyone can win.

#2 Don't do lease options with potential buyers who have no way of ever being able to get a mortgage. That's just being greedy and taking advantage of someone. It is not fair to the buyer. If the buyer messes up, shame on them. But if you mess them up, shame on you!

There are just too many deals out there for you to sell yourself out in the ethics department just to make a few bucks. At the end of the day, no matter what you did you have to live with yourself and your integrity. Not only that but if you do shady deals you give all lease option investors a bad name and that makes it harder for everyone to do deals. Stick to these rules, you'll be a lot happier if you do.

Lease options are really a great way to invest because they help everyone in the deal as long as you are doing them properly and ethically. You are meeting the seller's needs, the buyer's needs, the real estate agent's needs and your own needs.

See this post at it's original source at http://www.wendypatton.com/blog/lease-option-investing-2-ethics-rules-to-live-by

Unlock the secrets to cash flow and multifamily investing

Tonight at 8pm EST is known here in America as Must-See primetime television time. What we have put together for this Tuesday night is a Must-See Webinar with the Apartment King Dave Lindahl. This is the Must-See Webinar that will forever alter your mind on Multi-family investing. For years you may have thought that multi-family investing was too hard, or too impossible.

To Register for this Free Must See Webinar, click here:
https://www2.gotomeeting.com/register/234175611

In this special webinar Dave will show you how you can take my simple system and plug it in, so that you can start on the road to financial freedom. Dave has created a system that will guide you through the mine fields. Dave has created a system that can be easily duplicated. Whether you decide to Now to get involved, is up to you.

To Register for this Free Must See Webinar:
https://www2.gotomeeting.com/register/234175611

It is now time to Hear the Possibilities that Multi-Family investing can provide for you and your family.

We look forward to seeing you on the call.

To Register for this Free Must See Webinar:
https://www2.gotomeeting.com/register/234175611

Sincerely

Wendy Patton

www.wendypatton.com

Wendy Patton presents - Crack the Code on Multifamily Investing

Is the competition among real estate investors getting intense in your city? Do you wish there was a way to reduce the competition and increase the profits per deal?

There is a way. I've found America's foremost expert on multifamily real estate investing, without dealing with tenants. His name is David Lindahl.

Up until now, the problem has been that everyone wanted the profits that multifamily units and apartments could create, but nobody wanted to deal with tenants.

Dave Lindahl has "cracked the code" on getting apartment-sized profits, without the tenant headaches. David currently owns over 7,020 units around the United States and he hasn't spoken to a tenant in over 6 years!

Dave is going to be my special guest for a special teleseminar on Tuesday, August 11th at 8 PM EST. He has agreed to share with us the secrets that have made him wealth, starting from scratch. Secrets like:

• How to buy multifamily units and apartments with no money down
• How to afford property managers, even for small properties
• How to profit in the current "Mortgage Meltdown Era"
• What's the truth about tough neighborhoods, and dealing with tenants that do drugs or belong to gangs
• The 4 Market cycles: Learn how to easily know what stage of the market cycle you're in at any time, in any area and for any type of real estate

In every city in America there are multifamily units and apartment buildings. That wouldn't be the case if all those owners were losing their shirts. While failed landlords like to whine in public, the rich apartment investors quietly count their cash. Dave Lindahl is going to reveal the other side of real estate investing... the hands-offs, system-based, high cash flow side that has made him one of the wealthiest real estate investors I know.

Reserve your spot on this teleseminar while a few phone lines are still left! Space is limited. The webinar is Tuesday, August 11th at 8 PM EST.

Reserve your space now at:

https://www2.gotomeeting.com/register/234175611

See this post at it's original source at http://www.wendypatton.com/blog/wendy-patton-presents-crack-the-code-on-multifamily-investing

Real Estate Agents and the Dreaded 4 Letter word

Real estate agents know of a dirty 4 letter word in real estate. They cringe whenever they hear it because it means all of their hard word, all of their advertising, all of their time will have been for nothing. They hear this horrid 4 letter word when a seller has a home that's been sitting on the market too long.

The seller grows impatient. They want their home sold and they are running out of time. That's when they call their listing agent up and say "Realtor, if you don't sell my home soon I'm going to have to RENT it!"

Rent is that dirty 4 letter word.

If you are a real estate agent you need to learn not to fear this. You can still get your full commission from this seller because now they are a prime candidate for a lease option sale. One of the biggest hurdles sellers often have to overcome with considering a lease option is the idea of having tenants in their home. But they've just told you that they are now considering just that.

Selling on a lease option is obviously not the first choice, but it sure beats losing the listing or just renting the home and not getting paid squat!

Real estate investors who are trying to find real estate agents to work with need to keep in mind that real estate's dirty 4 letter word is your key to networking with agents. Most agents don't know what to do when they hear the word "rent." You can show them how you can help both the home seller and the agent. Plus if you let the agent double dip when you find the tenant-buyer the agent is really going to appreciate you. You did all of the work finding the buyer, they come out looking like a hero, and everyone gets what they want.

Real Estate Agents - How to get Paid in Lease Options

I did a post yesterday on lease options and finding the seller's sticking point. In response to that post I received a comment from a real estate agent who said that their sticking point was how do they get paid in a lease option sale. This is a very legitmate concern for real estate agents, after all everyone wants to get paid for their work.

The unfortunate reality is that conventional sales are difficult right now. It isn't enough to just get listings and put them on the market, because most of them aren't selling. This means that it's a lot harder to earn commissions than it was during the boom years. If you want to keep succeeding in this business you MUST ADAPT.

Let's look at one of your listings that has been sitting on the market for a while. Odds are the seller is starting to get frustrated with the lack of results. At this point, if you only stick to conventional sales, one of three things will happen:

• 1. You get the seller to agree to a price reduction
• 2. The seller switches agents
• 3. The seller decides to rent their home

This means you have a 1 in 3 chance of getting paid your full commission. I'm not too wild about those numbers.

With a rent to own, you still get your full commission (and maybe more) plus the seller gets a better price for their home instead of having to do a price drop. This means more for your seller and more for you.

There is a string attached, which is that you'll only get part of your commission up front (paid out of the option fee) and the remainder when the tenant-buyer closes on the home. This partial up front commission is going to be more than you would make if the seller just rents the home. And certainly more than if you lose the listing.

Is this ideal? Of course not. Obviously we don't want this, we'd much rather just have a conventional sale. But that isn't always working right now. This gives you and your sellers an alternative. We all know this isn't our first choice, but it is a good option for homes that aren't selling conventionally.

If you want to learn more about how to earn your whole commission doing a lease option (and maybe even more than the full commission) see my book, Rent to Sell. It's a hands on guide for home sellers and real estate agents on selling with rent to own. There is an entire section dedicated to real estate agents (including a whole chapter on how to get paid).

Lease Options - Find the Seller's Sticking Point

As part of my lease option training I teach my students that when you are negotiating with a seller on a lease option deal you'll find that all sellers have a sticking point. Lease option sellers will have something that means more to them than anything else. Find out what this is so that you can structure a deal that makes them happy while simultaneously meeting your requirements for profitability.

For instance, the price of the home may be more important to some lease option sellers than when they receive it - this can allow you to structure a longer term lease option deal.

Other lease option sellers might want a very specific monthly payment to cover their mortgage nut, but their overall price is negotiable.

Work with each seller to understand what makes them tick, so that you can tailor your lease option offer to suit them best.

GO Zone Investing with Positive Cash Flow

Real Estate Investors and Real Estate Professionals,

If you want to learn about combining GO Zone and positive cash flow, you do not want to miss this event.

click here to reserve your spot.

Today’s market requires creative approaches to buying real estate. As we have all been taught, Buy Low and Sell High! The current real estate market is presenting us with an outstanding opportunity to Buy, however, this opportunity will not last long!

Join us for an exciting opportunity to learn about the most exciting Tax Benefit for real estate investors in the last 100 years! The tax benefit that we are speaking about is called the “Gulf Opportunity Zone Act” or GO Zone for short. This benefit is available in the Mississippi Gulf Coast area. The benefits for you and your clients are matched by none. The GO Zone allows any qualified purchaser to depreciate up to 50% of the purchase price of the subject property in the first year the property is placed into service; this is done to offset other gains.

Another benefit to you the investor is you are investing in one of the HOTTEST and most stable real estate markets in the United States. Biloxi, MS was ranked #1 hottest market in the US by Realtor.org in 2008 and was recently featured in CNN Money Magazine.

To register now and learn more about this opportunity, click the link below:

https://www2.gotomeeting.com/register/583079115

Hanover Companies has been in the business of real estate investing for 40 years as advisers, fund managers, developers and consultants and has designed an investment program for the challenging market conditions that we are facing today in the United States Economy. All of Hanover’s Real Estate Investment Properties come with the option of their “Total Leasing Program” - giving you a full rental income for up to 30 months and leaving you CASH FLOW POSITIVE on a monthly basis, covering:

• 100% of your mortgage payment
• 100% of your property taxes
• 100% of your homeowner association fees and dues
• 100% of your management fees
• 100% of your maintenance costs
• 100% of your utilities

If you would like to learn more about the GO Zone benefit and the Total Leasing Program that Hanover can offer to you, the please join us August 4, 2009 for a complete overview of this outstanding opportunity for the real estate investor.

There may never be another opportunity such as this in our lifetime.

August 4, 2009 8 PM CENTRAL TIME

https://www2.gotomeeting.com/register/583079115