Master Lease: Create Cash Flow Without Capital

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Topics: Options

Never have I seen a better time to master lease houses. Owners can't sell and buyers can't buy; landlords rule. Now is the time you can become a landlord without taking on a debt or investing a lot of money. Owners who have moved and needed to sell must now lease their mortgaged homes if they hope to avoid foreclosure.

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Options Make More Expensive Properties Feasible

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Topics: Options


All around the country, there are larger luxury homes for sale that aren't feasible as rentals, but which could generate huge profits using Option techniques. Because of the down-sizing of corporate America and Government institutions, many formerly high-paid executives are in a cash squeeze with high house payments which no longer fit into their shrinking budgets. The market for these houses is extremely thin in many areas and sales are slow. Cash invested now can buy a disproportionate share of the eventual sale proceeds. Here's a way that these Options can be structured:

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Limit Risks From the Start with Feasible Option Terms

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Topics: Options


This small office building story illustrates how critically important Option terms can be to the ultimate profitability of a deal. My Option gave me 24 months to raise the money for the down payment and for rehabilitation of the building. I didn't wait until the last minute to start setting aside money from my earnings. The certain knowledge that I'd need money to close my Option gave me the incentive to work a lot harder to earn and save more. I also started seeking out tenants who would do their own improvements in return for lower rents. I closed the Option with the building fully rented. My annual net operating cash flow was $7000 more than the loan payments.

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Let Your Sub Tenant Help You Buy An Option

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Topics: Options


Last time we talked about starting small by signing a long term lease on the property you're rent in exchange for an Option to purchase the property. If you've also negotiated an Option to buy with a credit for rents against the purchase price and down payment, you'll be building equity in the property with each payment that you or the person to whom you sub-lease or to whom assign your lease pays.

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Creative Options

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Topics: Options


Sometimes the profit motive brings out the best, and worst, of us. There were a couple of friendly rivals among Exchangors a few years back named Cliff and Art. Art was far and away the most successful financially, but Cliff was the more artful – as in artful dodger – of the two. No matter how hard Art tried to best Cliff in a deal, he never quite pulled it off.

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Making Money With Nothing Down and Nothing a Month

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Topics: Options

 
At one time I owned 166 single family houses that I had bought with a minimum down payment by taking title subject to the existing financing. From the first house I bought, I used only seller financing and avoided negative cash flow problems primarily because I couldn’t afford to take anything out of my meager earnings to support it. That means that I had to find ways to buy highly leveraged houses that could support themselves with a little left over for me.  

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Learning New Ways To Do Business Creates More Opportunity

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Topics: Options


I like to think of learning as a way to see things that were there all along, but which I couldn’t perceive without the new insights I’d gain through learning. It’s kind of line the jeweler who has glasses with increasing magnification. With each additional lens, he sees things that weren’t visible before.

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Creative Uses of Options to Control Profits

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Topics: Options


A real estate Option is the most useful of all real estate tools when it comes to making money. Not only can it control future profits, but also current profits when used for that purpose. We are all familiar with the benefits of Optioning land at a given price, then getting it rezone for a higher use, or finding a builder/developer who will joint venture to increase its value, or putting a mobile home on it to increase its value before exercising it.

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