One of the most common ways to buy a property is by creating an agreement with the seller whereby you rent the property to them, similar to how you would a car, with the option to buy the property from them at a price. agreed and by an agreed date in the future.

In this scenario, the owner maintains ownership (that is, deed) to the property, but you have an equitable interest (control) and the right to sublet the property to a potential buyer and give him the option to buy from him. In fact, through the option of leasing a property.

Here are our six different buying strategies: get the “Subject to” deed; Land contract; All in cash; Split bottom; Direct option and lease option.

Remember that the All Cash and Split-Fund strategies are only for ugly and dilapidated houses.

When we consider offering a lease option to a seller, we will only make such an offer to high-end homeowners, people whose homes are in good condition; people with a vested interest in leasing and / or selling the home to someone who will properly maintain it. In short, we are now focusing on the nice home side of the business.

Most sellers who rent to own their home seek debt relief. They may have had a job transfer, or maybe there was a divorce and neither party can keep the house on their own. Or maybe they are living elsewhere, renting, and just couldn’t sell the house in time before moving in. However, there are some sellers who do not want to sell the property and lose total control over it, they buy by surrendering the title deed, losing the benefits of being a landlord-type depreciation for their taxes and receiving monthly payments when selling or renting. But they may consider leasing the property to you with an option to buy.

Now, since we are on the pretty home side of the business, a homeowner’s selling price will be considerably more than what we would buy an ugly home. Even if they really want to sell that house, we may not be able to buy it at a price that makes sense for us to pay them all in cash. However, the benefit of offering the lease option strategy is that it gives us the opportunity to offer a higher price to the seller, up to 70-80% of the value of the house (instead of just 50-60% to through the cash purchase strategy).

We could also offer 70-80% through the Land Contract purchase strategy. In fact, if you did it your way, you would want to try to see if they would accept a land contract first for the simple reason that you would get the property, have control over the property, and have more strategies you can employ to sell the house. But sometimes the seller simply does not want to deliver the deed or the property through a Land Contract if we are not buying the house directly.

So we’ll immediately switch to our lease option offer and say something like this:

“I can certainly understand that you want to keep a little more control. I have a lease option program where you will be able to keep ownership of the property, and you and I will have an agreed price to buy the house from you at some point in the future. In the meantime, I will make monthly lease payments to you, until, if and when, I exercise my option to buy it. “

The first thing to do is agree on a purchase price and the amount of the monthly lease payment. You will keep the house in good condition until you exercise your option to buy it. Then, agree on a date when you will buy the property from the owner. On top of that, you have the right to sublet the property to your own tenant / buyer. At that time, the house will be paid in full.

Question of confidence

The most important component of buying homes through lease options is the report you do with the landlord. If someone has the intention of selling your home and contacts you, they are offering you a different kind of creative strategy for you to sell. When it comes to buying and selling houses, most of the outside world only knows that “I find a buyer, and he comes and pays me when closing in full.” That is the conventional wisdom.

So if we are offering something out of the norm, like a lease with the option to buy, it really comes down to trust. Either you build a relationship to the point where they trust you know what you’re doing and feel confident that it can produce, or you won’t get the deal. If someone is unsure of you or your ability to do what you say you are going to do, they are most likely not just saying, “I don’t trust you.” Instead, they will file objections. When the human mind feels insecure about something, it will create reasons why this shouldn’t work, why it shouldn’t act, or why it shouldn’t trust this person.

The objections are perfectly natural. When someone objects to you, what they are really saying is, “I think I get it, but I’m still missing a piece. I can’t say yes with complete confidence. Keep talking to me to fill in the information that I’m missing.” that you have fully covered your objections openly and honestly, they will feel comfortable working with you.

It is the way you handle your objections that will determine the report and the trust you will build with them. You want to cover the material with a natural tone of voice. If the person realizes that you are reading a script, you will lose all their confidence. Building and maintaining trust are the most critical parts of being successful in this business.

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