Sunday, May 3, 2009

Investment Property

1. Lease Option
A lease option on a property offers the leasee the opportunity to buy the property at the end of the lease term. Lease options essentially offer a try before you buy trial period. If you are interested in a building, you can lease the building for a relatively short amount of time. This will give you an opportunity to determine if the building is going to fit your investment needs. If the building suits your needs then you can execute your lease option and buy the property. Since a lease option offers additional value, normally the leasee must pay small fee for the option to buy the property.
2. Rent to Own
In certain scenarios you may find yourself interested in owning a rental home for a short period of time, and planning to sell the investment property after that time period. In such a scenario you should consider employing the rent to own approach. When you offer a house that is rent to own, you collect rent from the tenant for the specified time period and the tenant possesses an option to buy the house at a later date. The rent to own approach provides you with rental income for the life of the lease, and also affords you the ease of selling the house to the tenant, avoiding the hassle of putting the house on the market and finding a real estate agent to sell the house for you. Renting to own essentially offers the same functionality as a lease option to the tenant.

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Discover Guts Sales Training!!
The first new Sales method for the 21st Century! We are looking for Sales Mentee's in this area to teach Claude Diamond's unique system of "Guts Sales Training". Are you looking for a new carreer? Do you want to strengthen your sales abilities? Free Training Session when you become a Mentee! Contact me for your FREE E-book! A $100 value!

You will be Mentored and learn wealth creation 1 on 1 from Myself and Claud Diamond, the author of Lease Purchase Success© . The Guts Sales Method, The Lease Purchase Bible © and Lease Purchasing for the 21st Century© to name a few. Mentoring works because there is accountability !

Discover Lease Purchasing!!
We are looking for Mentee's in this area to teach Claude Diamond's unique system of "Lease Purchase Control Without Ownership real estate".
If you have been following the news concerning real estate there are tons of motivated sellers and homes available for nothing down-Lease Option deals.

You will be Mentored and learn wealth creation 1 on 1 from Claude"The Mentor" Diamond, the author Lease Purchase Success© . The Lease Purchase Bible © and Lease Purchasing for the 21st Century© to name a few.
Mentoring works because there is accountability !
http://gkprenttoown.blogspot.com/



George Pragovich
931-378-7850: Home
206-202-0944: Fax
gkprenttoowm@gmail.com
http://gkprenttoown.blogspot.com/
Skype: georgefitnesstrainer
http://cancerrecoveryandfitnessspecialist.blogspot.com/
http://cancerrecoveryandfitnessspecialist.wufoo.com/forms/please-contact-me/
http://georgefitnesstrainer.wordpress.com/
http://freedomtheconstitutionandpatriotism.blogspot.com/

Monday, March 9, 2009

ANOTHER WAY TO BUY: Lease options

This is a great article about Lease Purchasing, another name for Lease Option. I found the article in the Oregonian Newspaper web site and the article is written by John Kirkland of ReMax Realtors. He references some of the homes selling in his area. I don't know if these homes are still available and I didn't want to remove them from the article.

Sunday, February 15, 2009
By JOHN KIRKLAND
The Oregonian
Many people who, two years ago, would have had no problem qualifying for a 30-year mortgage are now finding themselves shut out of the market -- at least until they can improve their credit rating.
Would-be buyers are having a tougher time qualifying, and sellers are having a tougher time selling because of the shortage of buyers.
As a result, lease-option contracts are becoming more popular for both buyers and sellers, according to Realtor David Van Nus, a broker with RE/MAX Equity Group who specializes in lease options.
How lease options work
A lease option is a legal agreement in which a seller leases his for-sale property to another party, giving that party the option of buying it within a certain time period. The option typically stays open for two years, although you can find option periods anywhere from one to three years. In most cases, part of the monthly payment goes toward a down payment on the property. So while the buyer is renting, he is also, in effect, saving toward home ownership.
A lease option can be attractive to sellers because it gives them a monthly income to make the mortgage payment until the property sells. It can also appeal to buyers who get to live in a house they'd like to buy while allowing them time to become more financially able to do so.
Lease options can also be attractive to investors. Some lease options have a sublet clause, which allows the person leasing the property to sublet it. For example, one could lease a property for $1,500 per month, sublet it for $2,000, and pocket the difference.
Lease-option properties are cropping up all over the Portland metro area, taking in the full spectrum of real estate: new, old, big, small, single family detached and condominiums.
Economy fuels popularity
Van Nus began specializing in lease options in 2006. He said the number of lease-option properties in the Portland area jumped from about 100 a year ago to 650 today because of the sluggish economy.
"Lease options have been around forever, but they're rampant now because mortgage companies are not offering financing for certain kinds of buyers," he said.
One of the 133 listings on Van Nus' Web site (see Resources, page HX) is a three-year-old studio in the John Ross building at 3601 S.W. River Parkway on the South Waterfront. Listed at $247,900, the contemporary condo is 638 square feet with one full bathroom, oak floors, stainless steel appliances, Corian countertops and brushed chrome door levers. It's located on the fifth floor, with a wall of windows overlooking the Willamette River and other South Waterfront condo towers.
The unit sits on the same floor as the building's outdoor terrace, which is landscaped and furnished with tables and seating.
Van Nus said the condo has been on the market for nearly one year. During that time, the owner has reduced the price by $12,000 and rented it out as an executive suite. "It would make a great investment property for this purpose," he said.
Buyer gets in house quicker
At the other end of the size range is a 4,380-square-foot Forest Heights home listed with Peggy Hoag, principal broker with Prudential NW Properties. The house at 9312 N.W. Murdock St. was built and owned by a local builder who had it on the market for close to a year before deciding to do a lease option.
"Making it a lease option allows the buyer to get into a house quicker and easier than seeking financing and buying it outright. It's especially good for people moving in from out of state who might be having trouble selling their home," she said.
The house, listed at $849,500, is full of decorative features, including barley-twist woodwork around two of its four fireplaces, wainscoting, chair rails, crown moldings, and Brazilian cherry floors with walnut inlays.
It has four bedrooms, 3.5 bathrooms, two full-length decks -- one off the main level and another off the master suite -- and a lower-level theater, rec room and bar. The bar is made of cherry with black granite tile, and has a small refrigerator, dishwasher and built-in wine rack.
Hoag has another lease-option listing across town at 4945 S.E. Rex Drive. Built in 2008, the three-bedroom, 2.5-bath house is perched on the side of a steep hill with commanding views from several rooms of the house -- particularly the master suite, which has its own deck. The home is listed at $349,900.
The house has 2,337 square feet, hardwood floors, and ample windows. A second slider door and deck are located off an upper-floor landing. Two upper-floor bedrooms are separated by a shared full bath. The master bath features a free-standing Asian-style cherry vanity with twin vessel sinks.
Hoag said buyers in lease-option contracts typically pay 5 percent of the home's list price as a down payment. Their monthly lease payments are based on the mortgage principal, interest, taxes and insurance that the seller must continue to pay until the home actually sells. Anything the buyer pays above that amount is usually applied toward the purchase of the home, she said.
So the monthly cost of a lease option is pretty close to what it would be if the buyer purchased the house outright. In the case of Hoag's Murdock home, the monthly outlay would be $4,400. For the house on Southeast Rex, it would be about $2,500, she said.
"Good Plan B"
For sellers in this market, Hoag calls lease options "a good Plan B," and something potential buyers can't afford to ignore.
"The sellers are highly motivated," she said. "They want to get out from their overhead."
Portland writer John Kirkland can be reached at kirklandjohnr@msn.com.
©2009 Oregonian


Discover Lease Purchasing!!
We are looking for 3 Mentee's in this area to teach Claude Diamond's unique system of "Lease Purchase Control Without Ownership real estate".
If you have been following the news concerning real estate there are tons of motivated sellers and homes available for nothing down-Lease Option deals.

You will be Mentored and learn wealth creation 1 on 1 from Claude"The Mentor" Diamond, the author Lease Purchase Success© . The Lease Purchase Bible © and Lease Purchasing for the 21st Century© to name a few.
Mentoring works because there is accountability !
http://gkprenttoown.blogspot.com/

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Receive a free training or consultative session for every individual you send to me that becomes my client!

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gkp@charter.net
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Friday, February 27, 2009

Rent to Own Property Equals Easy Homeownership

I found this article at another blog named ifeelwild.com. It explains renting to own very clearly. Even though this is from a competitor, it deserves to be placed in my blog since it has been written this well. Nice job!


Discover Guts Sales Training!!
The first new Sales method for the 21st Century! We are looking for Sales Mentee's in this area to teach Claude Diamond's unique system of "Guts Sales Training". Are you looking for a new carreer? Do you want to strengthen your sales abilities? Free Training Session when you become a Mentee! Contact me for your FREE E-book! A $100 value!

You will be Mentored and learn wealth creation 1 on 1 from Myself and Claud Diamond, the author of Lease Purchase Success© . The Guts Sales Method, The Lease Purchase Bible © and Lease Purchasing for the 21st Century© to name a few. Mentoring works because there is accountability !

Discover Lease Purchasing!!
We are looking for 3 Mentee's in this area to teach Claude Diamond's unique system of "Lease Purchase Control Without Ownership real estate".
If you have been following the news concerning real estate there are tons of motivated sellers and homes available for nothing down-Lease Option deals.

You will be Mentored and learn wealth creation 1 on 1 from Claude"The Mentor" Diamond, the author Lease Purchase Success© . The Lease Purchase Bible © and Lease Purchasing for the 21st Century© to name a few.
Mentoring works because there is accountability !
http://gkprenttoown.blogspot.com/

If you ask most families if they would prefer to rent or own their home will know what most would choose. Why is it then that thousands of families around the world face the same issue day in day out, being trapped in the rental cycle? This article is going to discuss the benefits of renting to own your own home and the basics of how it works.
Renting to own your own home is really not that different to renting to own a fridge or television set. You get the enjoyment and the use of the asset with the option to buy that asset at the end of the agreed term. The only key difference between rent to own with property and rent to own with household appliances is the price tag and the term of the rent to own contract. The benefits to both the buyer and the seller are enormous. The downsides are minimal.
Having lousy credit as a new home buyer can really make it difficult when you are getting started and you generally face rejection with banks and other lending institution. It’s a sad fact that if you don’t fit into the lending criteria of these mortgage lenders that you will generally be rejected for financing by these institutions, simply because your credit is not what they class as safe.
So what can you do if the mortgage lenders will not support you to buy a home? Find someone who already has finance in place, and needs to sell a property that they no longer want or need. This is by far the most overlooked market around the world. There are thousands of properties around the world every year that are simply not selling. It may be that the sellers want the top price and won’t budge on their price. It could be that they have very little equity available. Whatever the reason is, you can become a dream come true to these owners.
One of the biggest problems that sellers have when they get stuck with a house that they don’t need or want, is that they have ongoing monthly payments they must be maintained, or their bank will foreclose. No property owner wants this to happen, and when they are stuck between sitting on a home that has debt to be maintained, and needing to move, it can become very distressing for them. The rent to own solution fixes these problems for the vendor, because the new home buyer has the income to support the monthly payments and is happy to purchase over a period of time. This helps improve the purchasers credit score over time, and helps the seller to move on without any worries about how the monthly payments will be met. Rent to own homes generally have a lease agreement between the seller and the tenant/buyer and they have another legal document called a Call Option. The Call Option gives the new buyer the right, but not the obligation to purchase the home after an agreed period of time. During this time, the new buyer pay’s an agree amount of money to the owner of the home, so that the monthly outgoings can be maintained. The new buyer normally makes cosmetic changes to the home and maintains the home so that they can build up value over the term of the contract.
At the end of the Call Option period, the tenant/buyer can choose to either purchase the property or simply walk away if they change their mind. If the tenant/buyers move forward and purchase the home, they have achieved what they would not have been able to do while having poor credit and the owner has the stress of paying for an unwanted home removed. Of course, if the new buyers choose to walk away at the end, the existing vendor can either resell the house which has probably gone up in value, or they could even set up another rent to own home deal. The choice are endless and work really well for both the vendor and new buyer.

George Pragovich
Cancer Recovery and Fitness Specialist
Trainer of Personal Trainers
931-378-7850: Home
206-202-0944: Fax
gkp@charter.net
http://gkprenttoown.blogspot.com/
Skype: georgefitnesstrainer
http://cancerrecoveryandfitnessspecialist.blogspot.com/
http://cancerrecoveryandfitnessspecialist.wufoo.com/forms/please-contact-me/
http://georgefitnesstrainer.wordpress.com/
http://freedomtheconstitutionandpatriotism.blogspot.com/

Monday, December 22, 2008

Discover Guts Sales Training and Lease Purchasing!!

The first new Sales method for the 21st Century! We are looking for Sales Mentee's in this area to teach Claude Diamond's unique system of "Guts Sales Training". Are you looking for a new carreer? Do you want to strengthen your sales abilities? Free Training Session when you become a Mentee! Contact me for your FREE E-book! A $100 value!

You will be Mentored and learn wealth creation 1 on 1 from Myself and Claud Diamond, the author of Lease Purchase Success© . The Guts Sales Method, The Lease Purchase Bible © and Lease Purchasing for the 21st Century© to name a few. Mentoring works because there is accountability !

Discover Lease Purchasing!!
We are looking for 3 Mentee's in this area to teach Claude Diamond's unique system of "Lease Purchase Control Without Ownership real estate".
If you have been following the news concerning real estate there are tons of motivated sellers and homes available for nothing down-Lease Option deals.

You will be Mentored and learn wealth creation 1 on 1 from Claude"The Mentor" Diamond, the author Lease Purchase Success© . The Lease Purchase Bible © and Lease Purchasing for the 21st Century© to name a few.
Mentoring works because there is accountability !


George Pragovich
135 Westfield Ct. #1505
Clarksville, TN. 37040
931-378-7850: Home
206-202-0944: Fax
gkp@charter.net
http://gkprenttoown.blogspot.com/

Thursday, October 30, 2008

Success, One Person at a Time!

Dear Future Mentee,
I discovered a long time ago the only way to achieve financial success was through One-On-One Mentoring. I tried it all, I played by the rules. I had enough knowledge to be dangerous, never successful. Then one day I found my Mentor and the rest is history.
These are the only TRUE Mentoring Programs available anywhere that are designed for your Success! I work with my clients One-On-One ONLY in order to enable them to have the same positive, rewarding and profitable experience through Mentoring that I enjoy.
In all my programs listed below you can expect the following:
A. You will only work with me.B. You can Phone, Fax, E-mail or Visit anytime.C. Mutual Accountability.D. An Intensity about your Success.
My Mentor used to say Everyone wants Success, but few are willing to pay the price. Mentoring is not for everyone, but for those who are willing to change, work smart and learn a duplicatable System of Success, the rewards are infinite.
Success in all your Endeavors, George
Creative Real Estate/Lease Purchasing:
This is the original wealth building home business that I learned from my Mentor Max. There are many Creative Real Estate programs out there, as well as weekend seminars, workshops, boot camps and book and tape programs. None of them, however, offer true Mentoring and Coaching from a real live INVESTOR who has made it.
This is the only accountable training program where you learn One-On-One from Claude "The Mentor" Diamond in a true Mentoring relationship!
Materials: You will receive all our custom made Lease Purchase materials including contracts, my 365 page PDF Lease Purchasing for the 21st Century Manual, video and audio tapes, software and much more.
Overview: Learn how to control, without ownership, good homes in good neighborhoods and develop multiple streams of income without tenants & toilets with this wonderful unique concept. We will develop a specific business plan that meets your goals. You will discover that real estate is about making money up front, during and at the conclusion of each deal. You want to create multiple streams of income from your deals, notes and consulting. This program incorporates the best of the "GUTS" sales and marketing system.
Sales Training & Coaching:
I have always said that "Sales is the Million Dollar Skill" and with my "GUTS" Sales Training Success System I can show anyone, from the starter to the seasoned sales person how to make sales, fun, satisfying, extremely profitable in the next 30 days and go to the bank. Sales is not about giving presentations, using tricky closing techniques or gimmicks. It is about working smart, satisfying the needs of your prospects and making money.
Materials: This program includes my new book The Mentor Teaches the GUTS Sales System, audio training tapes and supplemental materials.
Overview: We work together roll playing in a variety of sales situations. You learn how to qualify your prospect in the first 3 minutes, eliminate time wasters and utilize the WORK SMART attitude. No more cold calling because you will have all the prospects you will ever need. No more winging it or taking crap! Itˇs a true system taught in our own unique Mentoring style that gets you results in the first 30 days.
Mentor Coaching - Coach Training:
(Become a Coach and Mentor.) Imagine for a moment the perfect business. You work from home (no more commuting or suit and ties :-)! You have a business designed to enable your clients to achieve, prosper and get more out of life. Learn how to become a Coach, Consultant and/or Mentor by developing your own specialty niche business. You help others to keep the focus. We have the business and marketing plans and the Work Smart Coaching System. This is the most satisfying and profitable home business I've seen.
Materials: Includes specialty designed Coaching contracts, The Mentoring to Millions PDF Manual, audio and video tapes and management software.
Overview: Focus is on getting your business up and running using a duplicatable system of success and getting you to the bank ASAP. This is a coaching program designed with a practical business approach. Poor coaches never help anyone including themselves! Most coaching programs do not have long term mentoring support, a business plan and a Mentor who is one of the innovators of the coaching movement. You will roll play with Claude, learn the Work Smart Coaching System and have the business you always desired.
Business/Life/ Career/ Success Mentoring and Coaching:
"You can only become a millionaire if you work with one." - Claude
WARNING! If you are looking for the same old Psycho-Babble, Tofu chanting positive affirmations while walking on hot coals, then this program is not for you!
Overview: Work One-On-One with someone who has made it and loves to teach. We work together in an unlimited capacity. We set appointments, but you can call, e-mail, fax or visit me anytime. The Focus is on getting "your" business, life and career up to "your" standards using a duplicatable system of Success that worked for me. Let's get an accountable relationship going with emphasis on Your Success as you Define it. Work with Americaˇs foremost Success Mentor.
The Licensee Mentoring Program:
This is the program for the real entrepreneur. It includes full licensee rights to purchase at cost and sell our exclusive product line. Use our trade mark and proprietary business concepts & materials in operating your own Unique Mentoring, Coaching and Training business.
For prices or more information just "give me a call, I answer my own phone."

George Pragovich
931-378-7850
gkp@charter.net

Tuesday, October 28, 2008

The GUTS™ Sales System

Why Do Creative Real Estate Investors Fail?Sales Skills are the Missing Link for Success in Creative Real EstateBy: Claude W. Diamond J.D.Why Do Creative Real Estate Investors Fail? What is the missing link for success in the best business in the world? There are more book and tape packages, gurus, boot camps, seminars, conventions, speakers, internet news groups than ever before and yet something is REALLY WRONG.I remember when I discovered Lease Purchasing, I was on pure adrenaline. I finally had a strategy for making money in real estate without all the traditional hassles like banks, repairs, large down payments and tenant management (yuck). Things were going great compared to the way they used to be (I was making money without the usual investor problems), but I was still not getting to the higher income levels that I set as a goal for myself. I was making tons of cold phone calls everyday and contacting all kinds of owners and landlords with the great idea of Renting to Own that I learned from my investor genius Mentor, Max.Some folks would hang up, some would ask me questions for hours and literally get a free consultation, some lied to me in order to get my contract for free, others were out and out rude. It was a tiring process of phone calls, going to properties where the owner said one thing on the phone and then another when I arrived. I was hearing stuff like I have to think about it, or I’ll get back to you, send me a brochure, leave me your contract or the famous I have to speak with my spouse.I was working VERY HARD and yes, things were better than they had ever been in my investor career, but I wanted more! I wanted to work smarter, have more fun and Control in the selling process, skip all the prospect rejection and make a much higher income. I knew that I needed to learn how to be a better communicator, yes a better salesperson. Up until that time the only sales training I had was from K-Mart! (I learned how to turn on the blue light gizmo that you often see wheeled around the store and give the corny speech they teach you!) Later in Corporate America I was given some brochures and an order book and told to just go see existing clients and some prospects. In other words, I had no training whatsoever. If I was going to succeed I needed something more.I began a process very similar to the mistaken education process I went through in my creative real estate journey. I bought all the popular sales books, tapes and attended several weekend seminars. The information was usually more motivational than hands on practical. My Creative Real Estate Business improved slightly from all the motivational stuff, but I needed something more. I needed an organized system of sales that was unlike the tired old systems that everyone else was using. The little light bulb went on over my head with an idea that would finally catapult my Lease Purchase /Creative Real Estate Business to a six and eventual seven figure income. I would find a Mentor in Sales who would teach me the same way Max taught me Real Estate Investing. I began my search. I asked everyone I knew who was successful in sales the following question, who is the best salesman you ever met? I kept asking until I heard the same name repeated over and over.So I sought him out and sure enough everyone was right, he was the best salesman I ever met! He was a self made millionaire who reinvented sales because he found that he was encountering the exact same problems that all sales people had to endure. Time wasters, lack of respect, no control over the sales process, frustrating cold calls, indecisive prospects, free consultations and what he considered to be the greatest sin of all, Not going to the BANK often enough.He decided that most of the sales techniques being taught were the same old tired stuff that all the prospects knew almost as well as the salesman. It was time for something new. A new way of selling that would qualify the prospect in the first couple of minutes, right up front. It would allow the salesman to make a contract and close the prospect before any sales presentation would be made, it would allow the sales professional to have tons of fun and feel totally empowered and in control. Best of all it would give you the skills to make as much money as you wanted!I was really excited because now I had the missing pieces of knowledge that I needed to reach my income goals in Creative Real Estate with Lease Purchasing. Let me share with you some revolutionary ideas that will change your life, empower you and raise your confidence level to heights you never knew could be possible, put you in control in the sales process and make you enough money to choke a horse.A. Sales is about you going to the (fill in your name here) BANK. (Sorry if I just offended the touchy feelies).B. Sales is the most important skill you can have to make your business grow and to be prosperous; Sales is a Million Dollar Skill (Hmmm, this would make a great title for a sales tape set). If you are in sales, it is about you making a difference and solving peoples’ problems with your products and services. It is not about being a free consulting service. You need a way to constantly learn, keep focused and reinforce your techniques.C. The Three Minute Qualifying Rule. You must be able to qualify your prospect on the phone in three minutes or less. You must learn the art of asking questions and reversing questions from your prospect in order to find out whether you have a live one or a time waster. Do they have a problem you can solve? Can they afford to fix it? Are they the decision maker? These are the questions that absolutely must be asked and answered otherwise you are giving a free consultation and just wasting a great deal of time. Why spend time with the 80% who will never buy when you can qualify and work with the HOT 20% that will?D. You must create a contract and close up front. No sense in not getting to the point, set the ground rules in the beginning or you will have to argue them later and possibly lose the sale you worked so hard for. Learn how to get the prospect to say ‘yes’ or ‘no’ and none of that I have to think about it stuff or I will get back to you later.E.Stop asking for the order ! Everyone want to buy but few want to be sold. Let the prospect come to their own natural conclusion and give you the sale.F. Never make cold calls! I don’t know about you, but I hate cold calling folks out the blue and being treated like a long lost cousin who is asking for money. Now there is a system where you make only warm calls (the prospect has given you permission to call).G. Make the Prospect Uncomfortable. If your prospect is feeling uncomfortable then you’re doing something RIGHT! That’s right, the pressure should always be on the Prospect not on you. If you’re feeling uncomfortable then you’re doing something wrong. You should be in control and having funwhile making money.H. Never carry a a brochure, business card, pen, attache, nada, nothing. Believe it or not, this one idea will help you to close more deals and you won’t have a sore arm or back from lugging too much unnecessary stuff!I. Get a GUTS sales system now whether you have a product or service to sell or just want to become a better communicator. Trying to sell something without a simple system is like going to a Chucky Cheese pizza palace on a rainy Saturday WITHOUT ASPIRIN. If you aren’t having fun and making buckos then you are doing something wrong. There are no bad prospects only bad salespeople. If some of these ideas that I have described have your interest and you are ready to learn something new and a heck of a lot more, then call me. I answer my own phone.
George Pragovich
931-378-7850
gkp@charter.net

Thursday, October 9, 2008

$7500 in 24hours!

Thom called me up and said the magic words:"Claude I have a problem, can you help me?"My Tenants are moving out !!!!! I live 3000 miles away and I can’t fly back and forth across the United States a dozen times. I can’t afford to have this property empty for too long and on top of it all the property values are dropping! My wife can’t sleep at night worrying about our old home. I don’t know where to begin; is there any way you can help me out of my dilemma?I felt sorry for Thom and his predicament, but I do love problems and challenges in residential properties. I call these O.P.P.s (other people’s problems or properties). These situations usually lend themselves to great upfront profits and residual income. I know from past experience that adversity is nothing more than profitable opportunities in disguise.A good problem can be worth more money to you, the creative investor, if you have an inventory of practical Win/Win solutions like the Lease Purchase (AKA: Lease with an option to buy).Little did I know that Thom’s problem would result in a $7,500.00 upfront gross profit in 24 hours!I explained to Thom that I would like to structure a Lease Purchase on his property (what else?) and that I would begin to look for a suitable Tenant/Buyer. Thom and I decided that I would put together an Assignment Lease Purchase. This is essentially when I get all the terms of the deal in advance, lock it up with a contract for $1.00 token consideration and then I will assign my contract with Thom to a third party, the Tenant/Buyer. We agreed in advance that I would keep the Option money and the positive cash flow from the Assignee (new Tenant/Buyer). The best part was that I had no payments to make and no liability on the property. I just had to find a qualified Tenant/Buyer.The numbers on Thom’s home were as follows:First Mortgage: $168,000.00Mortgage Payment: $1,100.00 per MonthThom wanted a Sales Price of $220,000.00 (wishful thinking) on a 1 year Lease Purchase contract and he would give 50% rent credit for a one year term.I first checked my database for available Tenant/Buyers who were looking for a property of this type; a three bedroom/two bath, 2000 sq.ft. upscale ranch style home. I then called one of my favorite real estate agents (Bob) to see if he had any clients who wanted to move into a home today, one they could buy tomorrow and have half of the rent credited to the purchase of the home.I wanted a minimum of $5000.00 with $1400.00 per month rent.Bob called later in the day and told me he had someone who was willing to put $7500.00 down as non refundable option consideration. I instructed Agent Bob to have his client drive by the property first and if interested I would arrange for him and his wife to see the inside.Special Tip: Always have the potential Tenant/Buyer drive past the home first. It saves a great deal of our most valuable asset, TIME. If they like the home on the outside, then they will call back and you can arrange for the inside to be shown.Our potential Tenant/Buyer saw the inside, loved the property and wanted to do the deal. (for $210,000.00) We did a credit check and everything checked out OK. I utilized my own Lease with Option to Purchase Agreement inorder to protect all of the principle parties. The is a very specific Lease which is designed to put the property on a management Auto Pilot.We received a check for the $7500.00 and another check for the first month rent of $1400.00 plus the credit check charge of $30.00. I paid Bob (my bird-dog) a $2500.00 finder’s fee*.Let’s look at my profit picture on this deal:Option Consideration: ($7500.00 less the $2500.00 I paid Bob) $5000.00Positive Cash Flow: ( $300.00 X 12 months) $3600.00Total Net Profit for Claude: $8600.00I called Thom the day after his original urgent phone call and gave him the good news. He was thrilled with what I had to tell him! The property was rented with an option to buy and his problems were over for now. Thom has a new Tenant/Buyer who will cover his PITI (principle, interest, taxes, insurance). The Tenant/Buyer must pay his rent on time inorder to receive his rent credit and take care of the maintenance and minor repairs of the home. Thom still keeps his tax benefits on the property and if the property sells he will not have to pay a real estate commission or closing costs.This is a Win/Win deal for all the principle parties concerned and a great way to make money as a private investor on a consistent basis.Now the only question that remains is whether I should take the rest of the week off or go and do another Lease Purchase assignment ? Who knows what fortune the next 24 hours will bring!By the way, Thom’s wife is sleeping much better now.* Hey, I’m generous to a fault. Seriously, I always pay well for quality referrals. Bob will find me some more Tenant/Buyers or Properties to structure Lease Purchases with in the future.Money is a very good motivator !

George Pragovich
931-378-7850
gkp@charter.net