Lease Option Or Subject To?

By Jason Hanson

Whenever I can, I prefer to do a subject-to deal. I only do a lease option deal as a last resort. I usually end up doing lease options with savvy landlords who don’t want to give up ownership of the property (they want to keep all of the tax deductions).

Here are a few of the reasons why I like subject-to’s better. First, I own the property. The deed is in my company name. Second, I get all of the tax deductions and benefits of owning the property. Third, I don’t have to deal with any third parties or sellers because I own the house.

Here’s why I want to do lease options last: Because you only control the property, you do not own it. This means you have to trust the owner and you will never do a lease option deal with someone who is in financial trouble. Of course, you don’t simply trust the seller. You have your ironclad paperwork. You go to the courthouse and record a memorandum of option to cloud the title on the property (so they can’t sell it behind your back). You ALWAYS make the mortgage payment directly to the company (because if you send the owner a check, and they don’t pay the mortgage then you’re screwed).

In some cases the monthly rent you’re paying will be larger than the mortgage payment. Here’s an actual deal of mine: I owe the owner $1,000 a month and his mortgage is $890. So, every month I pay the mortgage company $890 and then I send the owner a check for the difference of $110.

You will also want to run a credit check on the seller. Make sure he’s not in debt up to his ears. And use an authorization to release form to check the monthly payments and mortgage balance. All of these items are so important because remember you’re promising your tenant/buyer that they will have the option to own the home down the line. If your seller goes bankrupt, or puts liens against the property then you won’t be able to sell to the tenant/buyer and you’ll lose your backend payday of $30,000+.

Luckily, I have never had a problem with a lease option deal. All of the sellers I have worked with have been honest and very thankful for the help I gave them. In a way, this is just like screening a tenant……you screen the sellers up front that way you know your deals will close and you won’t have any problems down the line.

For Finding Motivated Sellers, Get The NEW REIM Complete Package HERE

Postcards and Letters… That’s Marketing!

I just read an article on a forum where a guy states his dismal results from mailing postcards out. Although people still use postcards to reach out to prospects, there is another way to be more effective. It doesn’t matter whether you use postcards or letters.

It works on the same principle as social media. Personalize. It’s the difference between the weather guy or girl who says, “Hey everybody, the weather looks pretty good in (city or area),” and the weather guy or girl that says, “Today, it looks like we’ll get a little rain on our way to the game.” See the difference? When I talk to “everybody,” I don’t seem to really care about you, do I? But when I make it with “you” inclusive, now you care about what I have to say.

I have a great little eBook that explains the benefits of these little “tricks and tips” of writing and mailing great direct mail campaigns and it’s FREE. Get it Now at: FREE eBook

Don’t Forget The Simple Things!

Every real estate investor knows that having a website is important. Having more than one website is much better. One for sellers, buyers, private money lenders and each niche of the business presents you as much more knowledgeable and professional.

The technology today makes it so much easier for real estate investors to build a website without having much html (programming code) knowledge at all.  In fact, more real estate investors are building their own websites than ever before.

I’m a real estate investor and marketer and I visit a lot of real estate investor websites to see how real estate investors use their own website as a lead generation gathering tool.  Of all the problems I see, one of the main problems would have to be, not bringing the viewer to a “definite conclusion.” This will always kill their conversions.

Not Having A “Call To Action” Is A Conversion Killer!

Too many things happening on a web page and poor design are also a conversion killer. Don’t make it confusing for the viewer. When someone arrives on your website, according to the research that’s been done, you’ve only got about three seconds to “capture” their attention and make them continue on. If they read the content there and decide that they’d like to get in touch with you, do you have a “clear call to action” for that visitor to take.

Make Your “Call To Action” VERY Clear…

Put up a big colored button on there that says “Click To Get Your FREE Report” or “Click Here To Sell Your House.”

People usually won’t read everything on the page. They scan. Attention spans are short, and you need to capture their attention within that first three seconds. Along with a big colored button, spell it out what you want them to do, with a strong call to action. This will increase your conversions greatly.

Only Make One Offer Per Page…

Be clear and don’t give them several choices. If someone has to make a choice, even if it’s something as simple as telling them to contact you by phone, email or sign up form, they’ll be less likely to take action. Why? Because they’ll have to make a choice between calling you, emailing you or filling out the form. People don’t want to have to choose when they’re tired and looking for something easy.

Use the standard form on your page that only asks them for their name and email address. Make sure you tell them that their info will be safe and that you’ll NEVER share or distribute their information with anyone. That way, they’ll take the action of contacting you and you can follow up with them.

The Details Matter…

There are so many “details” involved in a great real estate investor website that it’s easy to leave out any one of them. I do know some html code, (not a programmer by a long shot), but I still prefer avoiding the hassle and time it takes to really do it right.

There is one company that has been a little under the radar with such a top notch product, but I believe it will blow the others out of the water when it comes to “features and price.” You can see what I’m talking about here.

There are too many other things for a real estate investor to be thinking about, without having to put all his/her websites, landing pages, forms etc. together. Let the pro’s do that and you can focus on making money! Happy investing!

Great Website Offer HERE

Remember The “Lease Option?”

Apparently some smart investors do remember the Lease Option.

Tim Cabrera in Lithonia, Ga. saw the unwanted artwork gracing the interior walls of the house his company just bought: Long streaks and swirls of red and blue spray paint.

The graffiti was probably the work of neighborhood kids and stretched from the kitchen to the upstairs bathroom of the foreclosed home. Even the carpeted staircase had been tagged.

“Unbelievable,” said Cabrera, chief operating officer of Atlanta-based Pride of Ownership Partners. “They got into everything.”

In foreclosed and forlorn properties like this, Cabrera and his firm see opportunity, and not just for themselves. They’re fixing up the place and others like it and marketing them to people who want to buy but can’t get mortgages.

Enter the lease-purchase option, which is surging in other hard-hit states like California, Florida and Nevada. Why wouldn’t it be? It’s the only real common sense plan for trying to get people into a home that would otherwise be vandalized more and continue to drain income from it’s owner.

“At a time when we have both distressed sellers and distressed buyers, I think it makes total sense.”

Customers like Cecelia Robinson, 57, a writer who said she fled her home near Baltimore after a bad business move left her on the verge of foreclosure. Pride of Ownership partners is leasing Robinson a three-bedroom, 2 1/2-bathroom home that the company purchased from a bank and renovated.

For three years, Robinson can continue paying rent or opt to buy the house for the price an appraiser set at the time she moved in. If she chooses the latter, the company will give her a down payment credit totaling half the rent she’s paid over that three years, even if she decides to buy sooner.

“It’s a fresh start,” Robinson said.

To be sure, the arrangement is potentially a profitable one for Cabrera and his partner, real estate investor Jeffrey Britz, who say they started last July with $1.4 million in capital and have snapped up 50 foreclosed homes across the Atlanta area. The market is still shaky, and for now, they can’t sell the homes at a profit.

Part of the solution involves helping clients qualify for a mortgage. Cabrera, who worked as a mortgage broker during the real estate boom, knows just how difficult this has become. That’s why new clients are also required to go through a credit rehabilitation program to participate.

“It’s going to help them, give them stability, let them raise a family,” Cabrera said.

Right now his company is about breaking even; he won’t turn a profit until he can start selling the homes.

Pride of Ownership clients go through a rigorous screening process, Cabrera said, and by getting clients into fixed-rate mortgages and making it clear up front how much they’ll have to pay, he hopes to turn his renters into secure homeowners.

“There are smart people out there,” Cabrera said. “The premise of Pride of Ownership is to educate people so they know what they’re getting into.”

The Lease Option is another tool in an investors tool box that must be used in these tougher financial times. People are hurting and it’s time to pull out the old trusty “Lease Option” for getting those properties occupied and at least not draining the money from our pockets.

Have you got your copy of the “Insiders Guide To Internet Marketing for Real Estate Investors” Book Yet? Get It Free Here

What’s Your Problem??????

Do you know what the #1 problem is for anyone
struggling to make money online?

No, I’m not trying to sell you anything.  I’m
simply asking a question.

===============
What Is The Problem?
===============

Some people say it’s not having the right information,
and even more say it’s not knowing where to start…

And what’s odd is that their both right… BUT…

The real thing holding you back is:

*Lack Of Personal Attention*

Or maybe you could call it…

*Lack Of “Guru” Involvement*

Seriously.

Doesn’t it just feel like they publish these
dorky eBooks and then run off into
the night… never to be seen again?

=======================
Think About This For A Second:
=======================

How many times have you bought some random
”Guru” product and had a question about a process
or system that just didn’t seem to make sense?

Well, if you’re like just shy of 100% of struggling Internet
Marketers out there then you’ve run into this issue before.

You bought the thing in the first place because
the “sales letter” promised all sorts of great
wealth and power…

Now you’re eagerly reading page after page… hoping
to uncover the secrets of the universe…

And what ends up happening?

======================
The Product CAN’T Deliver…
======================

What do you do?  Most people do nothing.

But a small, select few will try to “clear up” the
issue by sending the “Guru” an email.

And that’s where the silence begins.

You never hear back.  It’s like nobody exists
at the end of that big, black cyber-hole called
email.

==============================
What If I Told You All That Had Changed?
==============================

No, this still isn’t a sales pitch, I’m just asking
some questions!

Just what if…

… you could actually find a program that was
not only really built for new and struggling
internet marketers… (rather than the millions of
products build for people who ALREADY have
successful businesses…)

…that had direct access to the person who
made the program?

And what if…

===========================
The Program Was Built Around YOU?
===========================

Freaky idea, huh?

What if there was a program developed by
a guy who was not only extremely focused
on getting you and your business either off the
ground or blown up to the level you dream of…

… Do you think that would be worth
checking out?

No?

I don’t blame you.  I wouldn’t have thought
so either.

Why?  Because it sounds like “Marketing
Hype” and yet another load of crap.

But then I heard…

=========================
… He Works Directly With YOU
=========================

And this is where it gets freaky.

The guy actually responds to his emails!

Not only that he works with you in the forums…

AND… not to get your hopes up or anything,
but he’s even doing Joint Ventures with some of
the people in his program!

Now THAT is worth taking a look.

========================
But That’s Not The Best Part…
========================

The best part is…

It won’t cost you a dime to try out the program…

…and see for yourself if all this stuff I’ve been
saying is true.

==================
No Cost To Try It Out
==================

Like I said, I’m not selling you anything.  I’m
just pointing a few small issues and letting
you know there’s a “different” sort of marketer
in town.

See for yourself.  Here’s the link.
http://www.goldbar.net/ua/link.php?affID=U3RldmVCZXJjaHRvbGRfYWQ=||

No kidding.  You can take a look at Zero Cost.

P.S. The other thing you should know about
this guy is that he has the most *entertaining*
online business development training you’ll
probably ever run into.

Take a look, on the 3rd or 4th page he
even has some video samples…
http://www.goldbar.net/ua/link.php?affID=U3RldmVCZXJjaHRvbGRfYWQ=||

Emotional Market or Not?

Remember back in September 2007, I wrote about the emotional aspect of what was happening in the real estate investing scene. (Well, of course you don’t, but I looked at past blog articles and found I’d written, “Too many invested right past the “line of safety.”) The “bungee” cord was “frayed” when they jumped off the bridge! It cost them dearly.”

Well now, very few are moving anywhere fast… not even cautious to slow… some are “fastened into their seat” like a 10 year old on a Disney ride. There’s a new emotion invading the real estate investing landscape… it’s fear. Like when you get thrown from a horse when you’re young and you think, “I’m not getting on that horse again!” Well, hold up a minute cowboy… you won’t learn how to be a real cowboy, unless you get on that horse and ride again… someday soon.

I’ve talked with many real estate investors and other people in real estate and they are saying, that there is activity and the pricing market value will not be finished bottoming out for about another 6 months, but most have already reached the bottom price now.

Keep in mind, this information is coming to you from the WORST place in America for foreclosures. (It’s the first time I’ve ever known of, where being #1 was nothing to be proud of.) I live in a house that appraised for $275, 000.00, just two short years ago. Today, if I could even find a buyer, I would be doing well to get $110,000! (I got that straight from one of the best Realtors I know.) And with the current assessments of the new city water, sewer and irrigation in place… I’M ACTUALLY UPSIDE DOWN!! That’s right, $23,700 is the new COST, in addition to my mortgage balance. I don’t know who’s crunching the numbers or what they’re smoking, but to me, the 45% loss of value most ascribe to homes in my area is about as “accurate as a Donald Trump bad hair day.” According to my calculator, that’s a whopping 150% loss of market value. There are stocks that have never lost that much!

Very sadly, my neighbor (who we love) just finished loading up his family, dogs, birds and household possessions and moved into a rental about 15 minutes from the house he’d paid on for over five years, because the loan AND assessments, just pushed him over the edge!

He has been a hard working man (deputy sheriff) and his wife a dedicated school teacher, who now have a foreclosure staring them down the throat and losing everything they worked for. The foreclosure rate is “staggering” and the greed of banks and people alike has come back to create “heartache no one could have imagined.”

OK, I’m not saying real estate is a bad or risky investing tool, I’m just looking at the depth to which we’ve sunk. When will it get better? I’ll tell you now.

The day we realize that we have to start putting some emotion back into the ‘business of real estate investing” and start caring about people enough to say, NO. “It wouldn’t be good for you to borrow $300,000.00 since you work at Mickey D’s and bring home $320.00 a week and your husband brings home $390.00 a week at his job.” “I can’t, with a clear conscience, loan you this money.” Let’s replace GREED, with an emotion I call, CARING!

And, real estate investors, let’s get going again, because there are still a lot of opportunities!

Where did all the “American Idol” Real Estate Investors Go?

Yes, I’m watching American Idol! And it reminded me of all the real estate investors in the” big competition,” to be the biggest and richest. Well, many didn’t make the final 12 after the final cut of the downturn. So many “investors” got too “comfy” with their success and went “greed dead.” That’s like “brain dead” almost. (No more, do the numbers makes sense?) I spoke to an investor a couple weeks ago and he told me, he just let “foreclosure” takes it’s course. What else can you do when you’re in the “deep end” and can’t swim?

Well, it’s been a long time since I posted anything on the blog and WOW, has the real estate landscape changed. (Was that an understatement or what?)

But, the world has not spun out of orbit yet and there are signs… not “landmarks,” but small and encouraging “signs,” that things are beginning to look up a little bit.

My sources here in the land of the “real estate investor corpses” tell me that two things are happening: First, prices for property seems to have stabilized somewhat and Second, there are sales and closings going on.

That’s right. Sales are happening for the real estate associates that didn’t find work in a mall or somewhere else when the bottom dropped out. The general public hasn’t heard about it yet because until the “snowball” has grown large enough, no one will really take notice. The media is not as “cutting edge” on news as you think. And besides, they aren’t going to be quick on the uptake when it finally does really start to snowball. If you wait till everyone else finds out, your real opportunities won’t be as huge as they could have been.

Yes, we have an election this year and the economy is fighting the effects of high gas prices and yada yada, but don’t wait till everyone has heard the better reports on the 6:00 news. Talk to the people in the know. Your local real estate folks really have their hand on the pulse of what’s going on. Check with them to get an idea of what things are looking like, if you don’t already.

Because just like American Idol, 4 contestants will be cut tomorrow night.