Wendy Patton's Lease Option or Rent-to-Own Training Blog

What’s the difference between Cooperative Lease Option and Sandwich Lease Option?

noreply@blogger.com (Wendy Patton) — Mon, 21 Dec 2009 20:22:00 +0000

Sandwich Lease Option
A Sandwich Lease Option is a technique that has been used for many years but the technique has been overlooked by many. To me it is the hidden gem of the real estate investing world. When executed properly, you the investor will make money with the option fee, the back end and a monthly cash flow. This means you get paid THREE ways. Essentially, you lease a property with an option to buy it, and in turn you rent it out to someone else, also granting them an option to buy it. You are in the middle, hence the reason we call it a “Sandwich Lease Option”.
Here is a picture of a sandwich lease option. Note: On a lease option only the seller is obligated to sell. The buyer has the “option” or privilege to buy, but not the obligation.

And where is the meat in a sandwich? In the Middle. The meat is the best part of the sandwich lease option. This is where we want to focus. How can we make the sandwich more profitable (by getting more meat in the middle)?
Here are some of the terms to negotiate when buying (with the seller) and selling (with your buyer):

Monthly Fee (Rent)
Length of time (Years)
Price
How much of the monthly fees (your rental payment) goes towards the purchase price

When you negotiate good terms with your seller you are making your sandwich lease option better; like adding a piece of cheese (this is more profit to you).

Cooperative Lease Options

Cooperative Lease Options are a technique that I recently began teaching my students. A Cooperative Lease Option A.K.A Wholesale Lease Option is similar to a Sandwich Lease Option except the middle (meat) is removed up-front. Think of it as a sandwich where the meat has been removed. I know, many of you are thinking what is a sandwich without the meat? In other words how will you benefit from the deal?
Basically, you still find the seller and after you have the contract and the option to buy, you ‘take the meat’ and assign your option to purchase to a buyer. In this scenario, you only get paid in one way (the assignment of your option) but you get paid today. You don’t make as much on the deal, but you are done with it. It is quicker and easier money then a sandwich lease option.

It is important to remember when doing a Cooperative Lease Option NOT to find the buyer for the seller. It might sound like you are doing that and in essence you really are, but you can’t describe it that way or explain it that way to your buyers and sellers. You are the buyer and you are “assigning” your contract to a buyer for a fee from them to buy your contract. For example, I usually take the buyers option fee as my assignment fee for a wholesale lease option. This can be anywhere from $2500-$10,000 in my area of the country. Can you use an extra $5000 this month? To find more information on becoming a Realtor you can check out my article on getting your license HERE.

View this post from it's original source:

http://www.wendypatton.com/blog/what-is-the-difference-between-a-cooperative-lease-option-a-wholesale-lease-option-and-a-sandwich-lease-option

Build Rapport and Make a Deal!

noreply@blogger.com (Wendy Patton) — Thu, 17 Dec 2009 17:16:00 +0000

Rapport building is very important and key because you’re asking someone to give you control of their house with little to no money down in both lease options and subject tos. Getting the seller to feel comfortable with you is the most important technique to learn for these techniques. This is equally true with Realtors. If the Realtor likes you, they will translate their like and trust of you to the seller for the lease options.
Here's a tip: When you’re in the seller’s house, tell them what you like about their house, not what you don’t like. For example, perhaps you’ll see something unusual, like older wood work or a nice fireplace. Ask the seller about it. If you see that the seller likes golf, talk golf whether you like golf or not. Always focus on the positives, the interesting things. People like to know that you like their house, and that builds immediate rapport. Sellers will give you a better deal and be more likely to negotiate if they like you.
Check out Chapter 06 of my book Investing in Real Estate with Lease Options and Subject-to Deals: Powerful Strategies for Getting More when You Sell, and Paying Less when You Buy to learn more about negotiating the deal and other steps to buying on Lease Options and Subject Tos.

View this post from its original source here: http://www.wendypatton.com/blog/build-rapport-and-make-a-deal

Negotiation Tip: Name your Location

noreply@blogger.com (Wendy Patton) — Mon, 14 Dec 2009 23:42:00 +0000

Here's another negotiation tip from Rent-to-Buy:

Whenever possible, you want to be the one selecting the location for your negotiations. Buying a home is almost always an emotion-based process. Once you find a home you like, you become emotionally attached to it. Emotional attachment can cause you to make unwise decisions when making an offer, handling negotiations, and so forth. Once you’ve fallen in love with a house and visualized it being your home, you’ll start to do WHATEVER it takes to make sure it becomes your home.

For instance, if you are making an offer to the sellers and are staring out the window at that swimming pool you fell in love with, how strong do you think you’ll negotiate? The answer is: not very. You’ll do whatever it takes to get the home because your emotions are controlling your negotiations.

You might be better off meeting with the seller on neutral ground to make your offer. This will help you keep your mind focused on buying the rent-to-own home without being so emotionally attached to it.

If you are working with a real estate agent, you won’t be meeting with the seller in person to make your offer. Your offer will be submitted through the agent. This way you don’t have to worry about the location of negotiation.

View this post in its original source at:
http://www.wendypatton.com/blog/negotiation-tip-name-your-location

Some Advantages of Buying on Subject-To

noreply@blogger.com (Wendy Patton) — Thu, 26 Nov 2009 04:45:00 +0000

A Subject To is getting the deed to a property without getting a new mortgage. Instead, the seller signs over the deed to his home ‘subject to’ the existing mortgage. The buyer makes the mortgage payments on the seller’s existing loan, but does not take out a new mortgage to acquire the home.

Knowing when to use one is very important. Many times, investors try to fit one technique into every situation. That can be a very dangerous approach. You must know which technique – Lease Option or Subject To – to use with each seller, to protect not only yourself, but your tenant/buyer as well. Knowing which technique to use for your seller and their situation can save you tens of thousands of dollars in profit. There are many advantages of Subject Tos (some are the same as an option)

1. Minimum or zero down. Usually you only need to pay the seller a small amount to sign the deed over to you. If they owe more than you are willing to pay, then there are times that they will pay you to take the deed from them.

2. No financing required. When you do a subject to you don’t need to get a mortgage because you are taking over the seller’s mortgage payments. Technically, you are not assuming the seller’s mortgage. You are just making the payments on their existing mortgage.

3. Ownership. The day the seller deeds the property to you it is yours. You are the true owner of the home.

No income or credit checks. Not once has a seller ever asked to look at my income or check my credit. They are more worried about their situation and how to get help from you.
The Seller will love you! You will be making a positive difference in someone’s life.

You'll also want to read my article, Subject Tos-The Risks and How to Avoid Them. To learn more about Subject Tos and the advantages you can read my Investing in Real Estate with Lease Options and Subject-to Deals book.

View this post in its original source here: Some Advantages of Buying on Subject To

Rent to Buy now available

noreply@blogger.com (Wendy Patton) — Fri, 06 Nov 2009 13:54:00 +0000

Is this you?

You’ve seen tons of homes for sale on the market. You know it’s a buyer’s market. You either owned a home previously or you are a first time buyer. If you owned a home previously you might have lost it to foreclosure, either due to a job loss, divorce or your mortgage rate adjusting upwards.

Now is the time to buy! After all, you keep hearing in the news about how BAD things are for sellers, and prices are the lowest they’ve been in years. This is true and it is to your advantage. For most of us, home ownership is our single, biggest source of wealth. It not only puts a roof over our heads that we can call our own, but it also builds security for our futures by paying down the mortgage and building up equity. For most people, their home is their single greatest asset.

Probably the first thing you did was to start looking on the Internet or checking the local newspaper for homes for sale. After that, you called a Realtor® and he told you that he would love to help you, but you needed to get approved for a mortgage first. Ugh…you know you don’t have the best of credit and you are not sure if you should even call a mortgage lender.

You decide to make the call to a mortgage lender. You know what the outcome will most likely be in advance, because of your financial situation, but you do it anyway. After gathering tons of information from you all the way down to how many times a week you floss, he finally tells you that based on your current credit, income, down payment, inadequate amount of time spent brushing after meals, etc. you aren’t currently qualified to get a mortgage. Well, duh! You could have told him that in the first place. Do not despair.

Rent to Buy is now available. Rent to Buy is your hands-on, step by step, guide to buying your next home as a rent to own. You can get your next home NOW without having to qualify for a mortgage until later. This is the solution you need until you can qualify for a mortgage. This is the solution home sellers need because they can't find mortgage qualified buyers. Rent to Buy is a great option in our current real estate market. Check it out!

View this post at it's original source at http://www.wendypatton.com/blog/rent-to-buy-now-available

Realtors - Finding buyers in today's market

noreply@blogger.com (Wendy Patton) — Thu, 05 Nov 2009 13:02:00 +0000

In today's real estate market mortgage-qualified buyers can be a real challenge to find which makes it difficult for us real estate agents to make a living. In reality there are lots of would-be buyers out there right now if you are a little more creative. You see, the real hang up comes with the mortgage-qualified part. Lots of would-be buyers out there (in fact, I would say the majority) can't qualify for mortgages right now.

Most real estate agents turn these people away saying, "I'm sorry, I can't help you."

But the truth is, if you are a little bit creative, like I teach in my book Rent-to-Buy, you can turn all of those buyers into full commissions by finding them a lease option home. Not only that but you can collect buyer leads from other agents who turn away those not-mortgage-qualified buyers too!

How do I do that? I have this letter that I send out to other agents called my garbage or $500 letter. It goes something like this:

Dear Agent Name,

Have you ever had a potential buyer come into your office and not be qualified to get a mortgage? Don’t throw away their information. Refer them to us, and if we end up renting to them, we will send you $500!

So, is it a piece of garbage, or $500?

Please call us at (phone number) to get more information, but don’t throw away your potential buyers that we might be able to work with. This offer is valid until (date).

Sincerely,

Your name

Very simple and straightforward, but very powerful. Most real estate agents turn away non-mortgage qualified buyers. Get them to give them to you instead and they'll see a payout instead of a lead that is garbage.

The buyers are the gold in today's real estate market. If you are creative and help non-mortgage-qualified buyers find lease option homes you can earn a TON of money in commissions right now. For more on how to do lease options as a real estate agent and how to help buyers find homes check out my new book, Rent-to-Buy.

View this post at it's original source at http://www.wendypatton.com/blog/realtors-finding-buyers-in-todays-market

When to do lease option?

noreply@blogger.com (Wendy Patton) — Wed, 04 Nov 2009 13:03:00 +0000

Let me give you an example situation where you as a real estate investor, or if you are a Realtor, when you can suggest a lease option to the home seller. As a real estate agent our responsibility to our home seller is to get their home sold, and sometimes conventional methods just don't work. That's when we can offer the home seller the alternative of a lease option as a means to get their home sold. Remember, any time a seller suggests that they might have to rent their home if they can't sell it you know they are prime candidates for lease options.

So let's look at an example situation where a home seller might be a good lease option candidate:

A doctor has built a new home for himself. His old home is worth $200,000 and he owes $125,000. He has $75,000 of equity. He is not behind on payments, and he did not need the $75,000 in cash to build the new home. His old home is now sitting vacant and it hasn't sold yet. He qualified for both house payments at the bank and he can technically afford both, but who wants to make an extra house payment for a home that's sitting empty?

Although he is motivated to sell because he's paying out of pocket every month to own a vacant property, this type of seller isn't going to just walk away from the home. No way is he going to give up all of his $75,000 in equity and no way are you going to pay that much cash out of pocket.

When you lease option this house, he gets most of his equity back - although it won't happen until the lease option buyer you find closes on the property. The deal might work like this: You, as the real estate investor, option the property for $190,000 and make payments to the seller that equal his total mortgage payments with 100% of that amount applying towards option credits (let's say $1,200 per month). You then sell the property to a lease option buyer on an 18 month lease option for $200,000 with a monthly rent of $1,350 (which is the going rate in rent for that area). You, as the investor would make about $34,000 on the deal.

The doctor will get the remainder (less real estate commissions) of his equity back plus he doesn't have to worry about property management or a home sitting vacant. Anyone who has had a home sit vacant knows how stressful it can be a what a relief it can be to not have to worry about that.

View this post at it's original source at http://www.wendypatton.com/blog/when-to-do-lease-option

Private Money Webinar Tonight

noreply@blogger.com (Wendy Patton) — Tue, 03 Nov 2009 13:16:00 +0000

This is a very hot topic! After all what real estate investors couldn't use some private money to fund their deals?

I'd like to call this one, "How a 15 Year Old got $6 Million in Private Money to Close 127 Deals." Lol, it's kind of funny, but our speaker tonight looks like he's only 15! But you certainly can't argue with his success. If the private money is rolling in like that, funding so many deals for him.

This webinar is tonight, November 3rd :

8 PM Eastern
7 PM Central
5 PM Pacific
3 PM Hawaii

You can register at https://www2.gotomeeting.com/register/770886891

Our private money speaker tonight will have a special gift for everyone who attends tonight's webinar. A free PowerPoint Presentation (the same one he uses) to get private money deals. plus you'll get the exact speaking scripts that he created and still uses too. Is that incredible? Just for attending tonight's webinar.

Private money is one of the best and easiest ways to fund deals in today's market. Banks are almost impossible... hard money is too expensive.

And you'll never have your credit pulled when you use private money... and don't have to pay points or high interest rates.

A lot of people think it's tough to get private money. It's not... when you say the right things, use the right templates and forms, and target the right people as you'll learn how to do in tonight's workshop with an everyday investor just like you and me... who figured out how to get private money easily. Just think, if a guy who looks like he's 15 can inspire the credibility to get over $6 million in private money you shouldn't have any problem either. Especially when he is going to give you his PowerPoint Presentation and script for free. But you must attend the webinar to get those so make sure you don't miss out tonight.

Register now at https://www2.gotomeeting.com/register/770886891

View this post at it's original source at http://www.wendypatton.com/blog/private-money-webinar-tonight

Rent to Own Negotiating Tip

noreply@blogger.com (Wendy Patton) — Mon, 02 Nov 2009 13:04:00 +0000

Here is a tip on negotiating from my book Rent to Buy, which will be released on November 10th. Rent to Buy is a hands on guide to buying a home on lease option from the home buyer's perspective as well as the real estate agents who serve them.

One of the great things about buying a home as a rent to own is that you have a broad range of terms to negotiate when putting together the deal on your rent to own home. This means that you can get creative and put together a deal that is good for you as the home buyer, or the real estate agent who is assisting their buyer, as well as still be good for the seller too. If it's a win-win situation you'll have a much better chance of getting the home.

So here is one of the negotiating tips I talk about in Chapter 12 of Rent to Buy:

Don't Give Away Anything without Asking for Something in Return

This tit-for-tat technique helps ensure that even if you are giving your sellers a key aspect that they want; you are getting something in return. A good way to handle this is with a question, "If I agree to your asking price, how much per month in option credits do you think is a fair exchange?"

Or, you can ask for exactly what you want, "If I agree to your asking price, would you agree to give me $1,000 per month in option credits?"

By asking a question, you give the seller a chance to voice what they think is a fair exchange for what they are asking for. It may turn out to be MORE than what you would have asked for. If it isn't enough, you can always negotiate up from their proposal.

By stating what you want, you are more limited. The seller may even try to negotiate you down from this position. However, if there are a few key things that you really want out of the negotiation, this is a good time to go after them.

View this post at it's original source at http://www.wendypatton.com/blog/rent-to-own-negotiating-tip

Wow - Last night's webinar was amazing!

noreply@blogger.com (Wendy Patton) — Fri, 30 Oct 2009 14:56:00 +0000

If you missed my webinar with Kris Kirschner last night you missed out on some super powerful information about what to expect from the real estate market from now until 2013. Kris shared information from top economists and I was blown away.

What was clear from last night is that the way we invest in real estate needs to change for the next few years. The old strategies of buy and hold won't work. As a real estate investor you need to be focused, for the short term, on strategies that minimize your risk and minimize using your own cash and credit. Lease options and subject to investing, like I teach, are 2 great ways to do just this.

The fact of the matter is that expert economists are predicting that real estate is still several years away from recovering and many areas will still decline. You can't just buy and hold real estate because you're going to be upside down. Kris talked about 3 great strategies for real estate investing, from the short term to the long term for retirement.

If you missed last night don't worry! Kris Kirschner and I will be doing a 2 day training event November 7th and 8th in Livonia Michigan. We'll be training you in how to invest in today's real estate market. These strategies we'll be teaching you apply to our current real estate market as well as our coming real estate market.

If you want to keep investing in real estate you need to know the right strategies. And with a price of only $59 for both days of training you can't afford to miss this. I don't know if Kris and I will be repeating this event so you definitely want to attend this one.

To learn more or to register for this 2 day training on November 7th and 8th go to http://www.wendypatton.com/schedule/nov2009event.php

You must pre-register for this training to get the $59 price and space is running out so don't delay!

View this post at it's original source at http://www.wendypatton.com/blog/wow-last-nights-webinar-was-amazing

How to invest in down markets

noreply@blogger.com (Wendy Patton) — Thu, 29 Oct 2009 17:27:00 +0000

For the last couple of days I've been posting about my upcoming webinar tonight with Kris Kirschner about our current real estate recession.

We are going to cover a lot of good information tonight and you don't want to miss it. But that's really just the tip of the iceberg. If you want to get in on proven techniques that work in down real estate markets Kris and I will be holding a 2 day training event November 7th and 8th here in Michigan. http://www.wendypatton.com/schedule/nov2009event.php

Two days packed with information from myself and Kris on how to do techniques that work in flat and declining markets. What would you expect to pay for this kind of training? 2 days, jam packed with education and proven knowledge for today's real estate market? Probably hundreds of dollars.

Not this time! Kris Kirschner and I are offering this special 2 day training event for only $59 if you pre-register now. $59! That's like 1 dinner out with your family. With information that will change how you invest in real estate. This training event may never be repeated so you don't want to miss this opportunity.

When you've been investing in real estate as long as I have you want to see other investors succeed. I've been teaching this long because I want others to experience the same kind of success I have. But in today's real estate market we are facing unique challenges. You must adapt to succeed. Make sure you attend our 2 day training on November 7th and 8th to learn how to invest in flat and declining markets. It can truly change your life. To learn more or to register go to http://www.wendypatton.com/schedule/nov2009event.php

-Wendy Patton

Space is limited so please don't wait.

View this post at it's original source at http://www.wendypatton.com/blog/how-to-invest-in-down-markets

Are you Really Going to Miss This?

noreply@blogger.com (Wendy Patton) — Thu, 29 Oct 2009 13:17:00 +0000

You are probably thinking, "Why the heck do I keep bringing up this recession and how it can impact you succeeding in real estate?" Well it does, and I'm not sure when the market will recover; but what I am sure about is that if you're ready to make more money and you want to do it fast, you need to understand how to profit in a flat or declining market.

My good friend, Kris Kirschner, will be on a webinar with me tonight to discuss the current real estate recession we are in now and exactly what you can do to make money, part-time - even if you live in a declining market, have no experience and very little money or credit.

This is a one-time only webinar with critical information that you will not want to miss. You already know that if you work for a living or own your own business it doesn't get easier, it gets harder. The real question you need to ask yourself is, "What will I do if unemployment hits 15% and more and more businesses continue to go under?"

Listen, I am not trying to scare you but there is so much you should be aware of to protect yourself and your family during this economic recession. Join the webinar tonight and listen very closely for 55 minutes because Kris will be teaching you 3 strategies and exactly how to profit for the next 36 months!

The webinar is free - you will not want to miss it. To register go to https://www2.gotomeeting.com/register/582785938

The webinar is tonight, October 29th, starting at 8 PM EST

View this post at it's original source at http://www.wendypatton.com/blog/are-you-really-going-to-miss-this

The Great Real Estate Recession Still Coming

noreply@blogger.com (Wendy Patton) — Wed, 28 Oct 2009 12:58:00 +0000

This is Kris Kirschner, doing a special post in Wendy's blog. I am not writing this to ask you to part with any of your money. I asked Wendy if I could forewarn you about an urgent matter that a lot of investors are talking about that if you don’t understand it, it’ll affect you, your family, your friends and your future.

There’s a lot of serious talk about another real estate bubble from a lot of economists and in Harry S. Dent’s book “The Great Depression Ahead.” Although the information can be frightening, I want to hit it head on and tell you what no one else has or wants to talk about. It’ll seem crazy, but let me assure you that there is a sure-fire way to use this recession to your advantage. Everybody agrees that the greatest wealth is created during down times; so here’s what I mean.

As a result of the current economic depression and expected continued increase in foreclosures we may see a 2nd real estate bubble or real estate recession. Because of that, I have permanently changed the way I invest in real estate and you should too. In fact, Wendy and I are doing this “teaching only webinar” with you to share the solution to what many investors wrongfully believe is a no-win situation. That couldn’t be further from the truth.

I do have to tell you that I am making some major adjustments as a result of what I have learned from the economists and my intention is not to frighten you. Here are just two of the changes I am making for a 36 month period. I am selling my personal residence in Georgia that I did not intend to retire in as soon as possible as well as my land on the Gulf of Mexico before 2010.

If you're wondering why I would do that and what I'm talking about, here it is in a nutshell. This email from me is to forewarn you that a few very reputable economists (like Harry Dent) are predicting a longer recession and real estate bubble starting 6 months from today and lasting close to 3 years!

It will initially look like everything in the economy including the stock market is getting better but I have looked at all the facts and statistics and I have to agree with them that after an initial positive outlook, the market and real estate will make one last CORRECTION, especially in certain markets and certain aspects of real estate investing! You need to know what these are!

During the Great Depression of 1929 there were 7 spikes where everyone thought all was well and on the way back but there continued to be crashes from 1929-1933. The good news is that a whole lot of millionaires were made during that time because they knew exactly what to do and how to profit! We’re in a similar situation now because we have real estate, commodities and the stock market (yes, just watch) all about to deflate simultaneously so you need to make some real adjustments RIGHT NOW!

Don't get me wrong, there WILL be ways to prosper in real estate but not if you don't know what they are and what to do. As a result, I have decided to permanently change how I invest in and teach real estate and I asked Wendy if I could share with you exactly what the economists’ say is going to happen and what you should do right now to profit. Wendy and I will be doing a special webinar on the Great Real Estate Recession Ahead exclusively for her guests on Thursday October 29th at 8:00 p m EST. This will be 100% content webinar and you’ll want to sit and listen very closely for 55 minutes. Keep reading for a quick recap of what I’m talking about.

Those real estate investors that work for a living or own their own business are praying the economists are wrong and that the market doesn't continue to fail because if they lose their jobs or their businesses in the continued recession ahead they won't have a way to support themselves or their families.

Worse yet, they may have made a few bucks when the real estate market was good, but they never learned how to prosper in a declining market. That's not good because if the economy doesn't recover and unemployment hits 15% they won't be able to fall back on real estate for fast cash either.

Tens of millions of people are reducing their spending habits (you probably are too) employers are reducing their payrolls, and the demographics and age of the baby boomers makes our economy ripe for another real estate recession. I know you might be thinking that it's a little late for this warning but that can't be further from the truth.

We have just witnessed the greatest housing bubble in more than a century, and possibly ever, in the United States and major cities around the world. Some, including me believe this upcoming real estate bubble may continue to deflate until most single family houses get back to their original values that they started increasing at in 1996 just like what happened in Japan not too long ago.

That means there will be an incredible impact not only on the banking system as projections call for thousands of banks to go under, but also many other specific parts of your real estate investment business that you should know about now; even if you work for a living or own your own business and are not a full-time investor.

I don’t want you to miss what I’ll tell you on this one-time only webinar Thursday at 8:00 pm EST that you have to do immediately because I believe it is 100% true! Worst case scenario, the economists and I are right and you were well prepared and know exactly what to do and how you can still profit while foreclosures continue to skyrocket and the market values drop as predicted; best case scenario, it the market stays flat and you become an expert at how to make money in a flat or declining real estate market.

Wendy and I will be doing this special 55 minute call one-time only this Thursday October 29th at 8:00 pm EST so I can explain it all to you. On this call you'll see exactly what will be impacted by the continued recession ahead, what you need to do right away and where the silver linings and greatest opportunities are for you to succeed as you invest in real estate.

Be there on Thursday,

Kris Kirschner

P.S. – This is a 100% content call only.

Click here to register now for the FREE webinar

https://www2.gotomeeting.com/register/582785938

Thursday, October 29
8:00pm - 9:30pm - Eastern
7:00pm - 8:30pm - Central
5:00pm - 6:30pm - Pacific

View this post at it's original source at http://www.wendypatton.com/blog/the-great-real-estate-recession-still-coming

The Great Real Estate Depression - Now What?

noreply@blogger.com (Wendy Patton) — Tue, 27 Oct 2009 12:05:00 +0000

What can you do in today's real estate depression? How can you still make money as a real estate investor? What works?

I know a lot of you are probably wondering about the answers to these questions. The nature of real estate investing is very different than it was just a few short years ago.

If you want to find some answers and learn how to do profitable deals in this market you should check out this webinar this Thursday night at 8 PM EST. I will be talking with Kris Kirschner about the current real estate market.

We'll be looking at what techniques actually work RIGHT NOW and what you can do in this market.

There will be no sales on this webinar - it's all about info.

This is a very special webinar and one you don't want to miss. Kris Kirschner is a genius in real estate who knows what is working right now in the market and how to invest even if you have no experience at all.

Space is limited for this webinar, so you'll want to register now. The webinar is free so if you are interested in real estate investing in today's market you don't want to miss this. It's this Thursday, October 29th at 8 PM EST. To register go to https://www2.gotomeeting.com/register/582785938

See you there! - Wendy

View this post at it's original source at http://www.wendypatton.com/blog/the-great-real-estate-depression-now-what

2 day Lease option and subject to training event - only $59!

noreply@blogger.com (Wendy Patton) — Mon, 26 Oct 2009 12:04:00 +0000

If you could pick up a $300,000 home for 10 bucks, would you do it?

November 7th and 8th I'm holding a two day live training event on lease options and subject to investing.

Here are some of the things we'll be covering:

How to scoop up motivated sellers - signage, scripts and offers... and where to find them
The secret to evaluating true profitability on any property
How to whip up a strong lease option agreement that puts cash in your pocket - and keeps everybody involved happy
What you must know about working with Realtors
Each and every step you'll take to buying and selling on lease options - from the start until you cash your final check

As an added bonus I've asked Kris Kirschner to join us. If you don't know who Kris is I can tell you that he may very well be a real estate genius. He went from zero to becoming a millionaire in just 23 months - and he did it buying and selling houses with no credit and none of his own money. He'll reveal his secrets that are a breeze to put to work for you. In Kris' training session you can listen as he calls live sellers and actually proves you don't need experience and that you can do this even if you:

Have no credit
Have no financial backing
Have no idea where to begin

These combined trainings from Wendy Patton and Kris Kirschner are worth hundreds of dollars but you can sign up right now for only $59 for both days! You can get Wendy's lease option and subject to investing training and Kris Kirschner's training for only $59. Space is limited and filling up fast for this two day training event on November7th and 8th. To learn more or register just follow the links in this post. We're in one of the best real estate markets ever for real estate investing so don't miss this.

View this post at it's original source at http://www.wendypatton.com/blog/2-day-lease-option-and-subject-to-training-event-only-59

Why Realtors should consider Lease Options

noreply@blogger.com (Wendy Patton) — Thu, 22 Oct 2009 12:26:00 +0000

I've trained real estate agents across the country in lease options, teaching them how to help their clients. But I still run into agents who don't want to do them. That's okay, but sometimes agents just need to learn a little more about lease options to open their minds.

Lease options can be great both for home buyers and home sellers. They aren't the perfect solution for every situation, but there are many cases, especially in our current real estate market where an agent could significantly increase their commissions by putting together lease option transactions and help their clients. Let me give you some example situations where a lease option could be good for a Realtor and increase their commissions:

Have you ever had a potential buyer come to you who has not tried to qualify for a mortgage yet so you refer them to a mortgage broker and then never hear back from them? Let's face it, a lot of would-be buyers out there can't qualify for mortgages right now, but they still want to buy a home. These are perfect lease option buyers. Just because they can't qualify right now doesn't mean they won't be able to qualify later. Why not tap into this pool of buyers and get paid instead of turning them away and watching another commission check walk out the door. And it's only going to get worse. The new rules for credit scoring are being implemented that is making it harder for some people to qualify right now. Plus the credit card industry is tightening things up. I know of one buyer who could have qualified for a mortgage two months ago that can't now because the credit card companies have changed so much. He had one account closed on him and two others where they reduced his available credit to just above his current balance. That had enough impact on his credit score that he could no longer qualify for a mortgage. And he never even so much as had a late payment with any of those credit cards! So instead of having to be stuck renting, this would make a great lease option buyer.
What about the sell side? Do you have any listings where your client has told you that if they can't get their home sold soon they are going to have to rent it? This makes for a perfect lease option seller. You already know that they are considering renting their home plus you know that they really want to get their home sold. How much of a commission do you make if all you do is find a renter for someone? Squat! With lease options you can still get your full commission!

This is just 2 examples of why Realtors should consider lease options and two ways that any agent can increase their commissions right now. If you want to learn more about lease options take a look at my books Rent to Sell and Rent to Buy. They are a great resource for any real estate agent.

View this post at it's original source at http://www.wendypatton.com/blog/why-realtors-should-consider-lease-options

Lease Option Contracts

noreply@blogger.com (Wendy Patton) — Wed, 21 Oct 2009 12:53:00 +0000

In real estate we want to control our risks, either for ourselves, or if you are a real estate agent you want to control the risks for your buyers and sellers. The best way to control risks is by having contracts and clauses that offer protection for you and your buyers and sellers. Most contracts are pretty generic. If you are doing lease option deals, it's a very smart idea to have contracts or clauses that relate to lease options, in other words lease option contracts. I offer contracts (and relevant clauses) for both real estate agents and lease option investors.

We always hope that nothing will go wrong in a transaction but in the event something does, that's where you want the proper lease option contracts to cover your rear and protect either your home buyer or home seller. In many states now there is a required sales contract that real estate agents must use. If this is the case you can always add addendums to that contract to include the clauses that offer your home seller or home buyer protection in a lease option transaction.

Let me give you an example of a clause that you would want to have in a lease option contract or add as an addendum to a generic contract that would give a home seller additional protection in a lease option transaction:

Default

"In the event of default by Purchaser, Seller may, at his option, declare a forfeiture thereunder and retain the deposit. In the event of default by Seller, Purchaser may, at his option, demand, and be entitle to, an immediate refund of his entire option deposit in full termination of this Agreement."

View this post at it's original source at http://www.wendypatton.com/blog/lease-option-contracts

Why would a home seller do lease options

noreply@blogger.com (Wendy Patton) — Tue, 20 Oct 2009 12:12:00 +0000

Yesterday I rolled things back to the very beginning and explained what lease options are and what they are comprised of. If you aren't that knowledgeable about lease options that post is a good place to start. I also promised that I would talk about why a home seller would consider lease options and what the benefits to the seller are.

Higher Purchase Price - Rent-to-own sales typically command a price premium over traditional sales. The buyer is paying extra for the flexibility he receives by not having to do an outright purchase immediately. I will be going into how to price your house as a rent-to-own in more detail later.

Higher Rent - You may be able to charge more for monthly rent in a rent-to-own than you would for just a straight rental. I will cover this in more detail later.

Cash Flow - If your monthly payments are less than the monthly rent, the difference goes into your pocket.

Option Fee - This upfront fee paid to you by your buyer is what secures the purchase price down the road. If the buyer closes on the home, it would be applied towards the purchase price. If the buyer elects to not purchase the home, the option fee is forfeited and still remains yours. Either way you win. If you were to just rent the home, the tenant would put down a security deposit. The option fee is different than a security deposit. A security deposit is owned by the tenant and can’t be used by the owner, except for repairing damages, unpaid rent and other provisions as mandated under state laws.

Eliminates the Burden of the Mortgage Payment - If you have already moved on to your next home and your old house is sitting empty while you try to sell it, then you are saddled with TWO mortgage payments. Hopefully you aren’t in this position, but if you are I feel your pain. Ouch! If the house has been taking a while to sell, you know how fast the money coming out of your pocket adds up. It gobbles up any equity you have at a frightening rate. Placing a rent-to-own buyer that pays that extra mortgage can take away your pain.

Getting Your Home Sold Faster - In slow selling markets, offering your home as a rent-to-own can help you get a buyer into the house much faster. This option will open up your pool of buyers significantly.

Getting Your Home Sold at All - If your home is just flat out not selling for whatever reason, offering it as a rent-to-own may be the only way to get it sold.

Those are some of the key benefits to home sellers for selling their home on a lease option. Look, I'm not saying that lease options are the perfect situation for every transaction and every home seller. But the reality is that some home sellers NEED lease options to get their homes sold. And there are some great benefits for them in doing so. As a lease option investor or as the seller's real estate agent we can do them a great service by offering them this option. If you want to learn more about lease options and get training in doing lease options, either as a real estate investor or as a real estate agent take a look at my website for lease option training.

View this post at it's original source at http://www.wendypatton.com/blog/why-would-a-home-seller-do-lease-options

What is a lease option?

noreply@blogger.com (Wendy Patton) — Mon, 19 Oct 2009 12:12:00 +0000

For some of you who are new to real estate investing, or if you are a real estate agent, new to selling homes creatively, you might not know what a lease option is.

A lease option is a strategy that gives a real estate investor or home buyer the right to lease a seller's home and also the right to purchase the home during or before the end of the lease period. An option is a contract that gives its purchaser the right to exercise a privilege. In this case, it gives the lease option investor or the lease option buyer the right to purchase the seller's home during a contracted period of time.

A lease option in real estate is comprised of 3 parts. The lease, the option and the sales agreement (and also sometimes the memorandum of option).

These three agreements are best kept separate from one another. The lease of course, is the agreement between the owner and the tenant-buyer that specifies the terms of the rental period, how much the tenant will pay in rent, how long the lease is valid and the other details of living in a rental property.

The option, as I talked about above, is what guarantees the right to the investor or home buyer to purchase the seller's home. As long as the option is valid the seller cannot sell the home to anyone else.

The sales agreement defines the terms of the purchase. What the purchase price will be, whether the buyer will have an inspection and all of that other good stuff that goes with buying a home.

Lease options really aren't all that complex and they have been around for a very long time. They may have lost some favor during the recent mortgage boom because anyone who could fog a mirror could obtain a mortgage, so people didn't need lease options as much. But lease options are coming back strong now as lending standards have gotten so tight. If you are interested in learning more about lease options or lease option investing visit my website.

Tomorrow I'm going to talk about why a home seller would consider a lease option and what advantages there are to the home seller for selling their home that way.

View this post at it's original source at http://www.wendypatton.com/blog/what-is-a-lease-option

Wendy Patton's lease option training boot camp is coming

noreply@blogger.com (Wendy Patton) — Fri, 16 Oct 2009 13:06:00 +0000

If you are interested in real estate investing this boot camp is a must attend event. Wendy Patton is the nation's leading teacher in lease option investing.

Here are 5 reasons you should attend Wendy's boot camp:

Reason #1: We do deals in the room, during the event.
You will hear me on speakerphone with real estate agents, brokers, mortgage lenders and property owners. This will not be theory, it will be hands-on and in turn, you will know exactly what to say to a Realtor or a Seller when you leave my Boot Camp. This is education on what is working right now in this market!
Reason #2: I'll even start your deals off for you, right at the event.
It doesn't get any better than that!
Before you come to the event, I want you to grab some newspapers and those real estate catalog/listings they have at the supermarket, and bring them, along with any other information you have on your market.
At the event, we'll analyze that information together. I'll tell you what techniques will work best in your specific market, for the deals being offered to you right now. In fact, I'll even call on some of the ads you bring, along with real estate agents, or sellers in your market. All of this will be done live right from the room! You'll see and hear EXACTLY how the deals are done.
Reason #3: When you leave my Boot Camp you will know what strategies work today - RIGHT NOW!
In today's market, many of the techniques and systems that have worked in the past are no longer practical. When you leave my Boot Camp, you will have a clear and concise understanding of what techniques are the most profitable and when to use them. The ideas and concepts that you will be shown at my Boot Camp, when applied, will pay for the cost of the Boot Camp many times over.
Reason #4: We will focus on the 4 Most Powerful Strategies in Today's Market.
You will learn first-hand how to invest using Lease Options, REO properties, Foreclosures, and Subject To's. I am gathering my team of experts that will be going over the in's and the out's of these particular strategies, how to use them, and when!
Reason #5:Cash Flow is King! Discover how to capture this elusive prize.
Simply put, cash flow is what creates financial freedom. Learn the best strategy in today's market, which will give you this sought after reward. Learn how to purchase opportunities that will keep the cash flowing into your pocket like water out of a garden hose.

To learn more about Wendy's lease option investing and soft market investing boot camp just follow the link.

Rose Marie attended Wendy's last boot camp and shares her experience in this video

View this post at it's original source at http://www.wendypatton.com/blog/wendy-pattons-lease-option-training-boot-camp-is-coming

Finding Lease Options thru Realtors

noreply@blogger.com (Wendy Patton) — Thu, 15 Oct 2009 12:36:00 +0000

My favorite way to find lease option sellers and put together lease option deals is thru real estate agents.

Why?

They know their sellers. Their sellers tell them everything! This means they know which sellers are motivated to sell their homes. They know which sellers are considering renting their homes out if they can't sell it. They know if their sellers have already moved on to their next home and don't need their cash out of this home right away to get on with their life.

See what I mean? They know the criteria that makes for a lease option seller. The only thing is they don't always know what lease options are.

That's where I come in. Or where my students come in. If a real estate investor is looking to do a lease option deal they need to explain to the real estate agent how lease options benefit their sellers and how lease options benefit the agent. In my lease option investing boot camp I train my students how to do this. In this video clip you can see 2 of my students practicing talking to a real estate agent, answering questions about lease options and the benefits to both the home seller and the Realtor.

View this post at it's original source at http://www.wendypatton.com/blog/finding-lease-options-thru-realtors

Using Craigslist to find lease option buyers

noreply@blogger.com (Wendy Patton) — Wed, 14 Oct 2009 12:17:00 +0000

Yesterday I did a post on finding lease option buyers. I offered several different methods for attracting lease option buyers, but without question Craigslist is my favorite. It's so easy to pop in a few ads on a regular basis and pull in buyer leads. The best part is, even if you don't have any listings as a real estate agent you can still pop in some ads (see the ones I use below) to generate buyer leads and then find them a home.

I know a lot of agents are having a harder time in this economy. Let's face it, we've got a double whammy against us, the foreclosure market is high and buyers are having a hard time getting mortgages. This can make it harder to earn a living. I have trained lots and lots of agents in lease options and I highly recommend them as a method to help bring your income level back up.

But, back to Craigslist and finding lease option buyers. Craigslist is free and gets lots of traffic. Any real estate agent should be taking advantage of it to either advertise their listing or generate lease option buyer leads.

Here are two sample ads I have used:

Ad 1:

$2195/4 BR – Great Home on Rent to Own (Wayne)

A great home in Wayne on a Lease Option/Rent to Own. Call today to find out more how I can help you. I help buyers find lease options or contract for deed homes. Working with buyers that have credit issues is my specialty. Own a home even if you need some time to improve your credit. STOP RENTING! There are no fees to you for my service. Wendy at Keller Williams Realty, you can email me at wendy@wendypatton.com – You will need a minimum of $10,000 to get into a home with this type of transaction. I look forward to working with you soon to buy your new home.

Ad 2:

$1695/3 BR – 3/2/2 in Great Area – Lease Option (Clifton)

Clifton great home with 3 bdrms, 2 baths, and a 2 car garage. Nice area. Lease to own with $7,500 down. Credit problems ok. My specialty is working with buyers who have less than perfect credit There is no fee to you. Email me today, Wendy at Keller Williams, wendy@wendypatton.com

Do you see how those ads can just be generic? They might be for a specific house or they might be representative of houses in a particular area. This way if you don't actually have a listing you can still find some buyers, then find them a lease option home and get paid.

View this post at it's original source at http://www.wendypatton.com/blog/using-craigslist-to-find-lease-option-buyers

Finding Lease Option Buyers

noreply@blogger.com (Wendy Patton) — Tue, 13 Oct 2009 12:23:00 +0000

Let's face it, the hard part of the housing equation right now is finding buyers. Yes, this summer showed some signs of improvement but most real estate economists are calling that a temporary bump now. Whether you are a real estate agent, a home seller or do lease option investing - you need to find buyers to get homes sold.

If you are a real estate agent have any of your listings said this to you, "Realtor, if you don't sell my home soon I'm going to have to rent it!"? If you are a home seller are you thinking about having to rent your home out because it isn't selling?

If so that home is a good candidate for a lease option. Trust me, while the pool of conventional buyers may be small right now there are a whole lot of potential lease option buyers.

So how do you find them?

Here are some of my favorite ways to find lease option buyers:

Craigslist - The ads are completely free and I get tons of responses from people who want to buy homes but can't afford to right now
Rider - put a "Rent to Own" or "Lease with Option to Buy" rider on top of the for sale sign in the front yard
Bulletin boards - put a flyer on community bulletin boards, or laundry room bulletin boards around large apartment complexes
Mortgage brokers - Talk with some loan officers you know and give them some flyers to hand out to everyone that applies but can't currently qualify for a mortgage right now

Those are just a few ideas, but if you take the little bit of effort to do them I can pretty much guarantee that you are going to start generating a lot of rent to own buyer leads.

View this post at it's original source at http://www.wendypatton.com/blog/finding-lease-option-buyers

The Gold is in the follow up

noreply@blogger.com (Wendy Patton) — Mon, 12 Oct 2009 12:12:00 +0000

In my last post I talked about 7 ways to find motivated lease option sellers. In this post I want to follow up on that. Many times your initial contact with a potential lease option seller is going to result in them saying that they aren't interested in selling their home as a rent to own right now. That's fine. Sure, sometimes sellers will be desperate right from the start and will gladly say yes at the very beginning. But a lot of times they need to percolate a bit.

Give them time after they say no and then follow up with them. Check back with them a month later and see where they are at then. Unless they've sold their home the odds are that they are going to be more motivated than they were the last time. But if they aren't ready to sell their home as a lease option home yet, then follow up with them again a month after that. I can't tell you how many deals I've done over the years with sellers that weren't motivated enough at the beginning but by following up with them I got them to say yes later.

The best way to remember to follow up is to keep a calendar. Mark on the calendar when you initially contacted that potential lease option seller (or their agent) and then mark a month ahead to follow up with them. If they say no again, then mark the calendar another month ahead.

View this post at it's original source at http://www.wendypatton.com/blog/the-gold-is-in-the-follow-up

7 Ways to Find Motivated Sellers

noreply@blogger.com (Wendy Patton) — Fri, 09 Oct 2009 12:14:00 +0000

Lease options, like any other type of real estate investing, requires finding motivated sellers. The home seller can't just be testing the market and not care whether they sell their home or not, they need to be motivated.

Certainly in our current real estate market through much of the country there are more motivated sellers out there right now who could be lease option sellers. Here are some ways to find them:

Advertisements in the classifieds, either the newspaper or Craigslist - I like looking in the "for rent" section more than the "for sale" section
Letters to real estate agents - real estate agents know whether their sellers are motivated and are the first to hear from their seller that they are considering renting their home if it doesn't sell
MLS Listings that have been sitting on the market - many sellers whose listings have sat for 90 or 120 days or longer could be lease option candidates
Out of state owners - long distance property maintenance on a home you are trying to sell is a real pain. Plus you know that they've already moved on to another home
Vacant homes - if no one is living in it, then they have clearly moved on to another home and don't need to sell this one to get into the next one
REIA groups - your local real estate investor group may have plenty of motivated investor sellers right now
Word of mouth - tell people you know that you are looking for a rent to own or lease option home. The power of verbal networking can go a long way

Want to learn more ways to find motivated sellers? Check out my book, Investing in Real Estate with Lease Options and Subject To Deals.

View this post at it's original source at http://www.wendypatton.com/blog/7-ways-to-find-motivated-sellers