One of the most frequent questions I get asked when someone is interested in Lease Options is "What contract do you use?". Coming up with 20% down is a difficult task for most investors and can be the biggest hurdle when attempting to break into investment real estate. This is a step by step walk through the Lease Option Agreement I have used to acquire my rental properties. At the completion of this course you will have an agreement you can take to your local real estate attorney and get into compliance with local and state laws. You will be one step closer to achieving your goal of controlling a rental property with no money down.
The numbers that will be referenced in the Lease Option Agreement.
Breakdown and application of all the numbers.
What are your obligations?
Can you make improvements to the property?
Who is responsible for insurance increases?
Who is responsible for the maintenance of the property?
Who is liable if something happen on the property?
What is your exit strategy on this property?
When can you exercise your option to buy the property?
Can the seller borrow more money against the property?
What happens if I default with the seller?
Who is responsible for attorney's fees?
Should you get the agreement notarized?
After serving four years in the Marine Corps, the next logical step seemed to be going to college. Graduated from UL Lafayette with a degree in Education, got a teaching job, got married and bought a house. After we had our first child and we decided that my wife would not go back to work. It didn`t take long to see that the budget wasn`t going to work on a teacher's salary.
After what seemed like an endless search for a job to support my family, including termite inspector, software support, and vacuum salesman, I ended up in the oilfield. It was obvious that this was a great income for my family, but at the cost of never being home. My job had a 12 days on and 2 days off schedule.
During breaks and lunch I started reading books about how self-made millionaires became wealthy. The book that started it all for me was Rich Dad Poor Dad by Robert Kiyosaki. I began to study real estate and all of its advantages. Since I was a bit of a spreadsheet wizard and had a knack for analysis, I had a friend that knew how to invest teach me how to help him find good deals.
In January 2014, I quit my oilfield job and started working on my wholesaling business. Looking back, I have no idea how I made it. There were a few times in the beginning where I would go a few months without a deal, which meant no income. Over time I built my base of referrals and contacts that were looking for investment properties and my business began to grow.
Today, I am as excited as ever to help investors build their wealth to be able to retire comfortably and allow their family to inherit a legacy.