Introduction to Lease OptionsAug 20, 2009 : Introduction to Lease OptionsAug 20, 2009 www.RiseBootCamp.com
Agenda : Agenda AIMS
The Definition
The Types
The Parties
The Contracts
The Motivation
The Deal
The Comparison www.RiseBootCamp.com
Slide 3 : AIMS Realty Investment Method © Investment Strategies Financing Strategies Marketing Strategies Sales Strategies Business Plan Opportunities Vision, Goals
Power Team, Financials Version 1.3 - Mar, 2009 Educate
Type Skills seminars
courses
books
clubs
mentors Investment Strategies Rentals (Buy & Hold)
Lease Options
Fix & Flip
Assignments
Referrals
Notes & Mortgages Financing Strategies Banks
Mortgage Brokers
Vendors
Personal Equity
Friends
Investors Financial Personal Attitude
Persistence
Discipline
Patience
Creativity
Delegation Credit Repair
Organization
Financial Fitness Marketing Strategies Newspaper
Internet
Signs
Direct Mail
Networking Sales Strategies Renters
Buyers
Sellers
Investors Property Types Single Family Home
Multi Family Homes
Apartment Buildings
Vacation Properties
Condominiums
Mobile Homes
Commercial
Raw Land Profit
Loss Real Estate Investing
Accounting
Selling
Marketing
Negotiation
Time Management
Strategic Planning Preparation Phase Execution Phase Properties
Notes & Mortgages Assignments & Referrals Control Properties
Notes & Mortgages
Contracts Property Types www.risebootcamp.com
The Definition : The Definition What is a Lease Option?
A Real Estate Investment Strategy where someone is leasing a property with an option to purchase it at a later date.
More commonly known as …
Rent to Own www.RiseBootCamp.com
The Types : The Types Purchase Lease Option
You Purchase the property and then Lease Option it to a buyer.
Sandwich Lease Options
You Lease Option a property and then Lease Option it to a buyer. Lease Option Purchase Seller Buyer You Lease Option Lease Option Seller Buyer You www.RiseBootCamp.com
The Parties : The Parties Landlord Seller
The person or company who has control of the property and is acting as a Landlord in the Lease agreement and as the Seller in the Option to Purchase Agreement.
Tenant Buyer
The person or company who is leasing the property and is acting as a Tenant in the Lease agreement and as the Buyer in the Option to Purchase Agreement. www.RiseBootCamp.com
The Contracts : The Contracts Purchase and Sale Agreement
Standard Purchase and Sale Agreement
Lease Agreement
Standard Lease Agreement used for Rentals
Certain clauses may be needed
Option to Purchase Agreement
Agreement to purchase the property for a specified amount by a certain date.
Describes any credits at the time the option is exercised www.RiseBootCamp.com
The Motivation : The Motivation Seller – Wants to sell
Owner - Divorce, death, job loss, moving, no equity
Landlord – sick of tenants
Investor – make money
Buyer - Can’t get a mortgage
Bad credit – divorce, job loss
Job type - seasonal, contract
New Imigrant www.RiseBootCamp.com
The Deal (Sandwich Lease Option) : The Deal (Sandwich Lease Option) www.RiseBootCamp.com 1 2 3
A Real Example : A Real Example www.RiseBootCamp.com 444 Avente Garde
New Programs : New Programs Preferred Buyers Program
For the Buyers
Preliminary Market Assessment
For the Sellers www.RiseBootCamp.com
The Comparison : The Comparison www.RiseBootCamp.com
RISE Sites : RISE Sites www.RISEBootCamp.com
www.RISEAdvisor.com www.RiseBootCamp.com
Slide 14 : Thank You! www.RiseBootCamp.com