Need money but don’t know where to get it?

Well as long as it is up to $25,000 and even if you credit is less than perfect and you are not sensitive to paying high interest rates…

Meaning that you are a real estate investor or want to be….

Check out www.Prosper.com. It is a pretty nifty concept. They describe themselves as the People to People Lending Network and basically this is how it works:

1. You want to get some money to do whatever – start a business, pay your credit cards off, fix your house, buy a new lawn mower; fix a house; go current on a Short Sale transaction, buy a sink from Home Depot, pay closing costs, put up an EMD – you get the idea…

2. You need up to $25,000.

3. Your credit is good or may be it is not.

4. You go to www.Prosper.com and set up a free account and post your needs. I have seen 2 real estate investors put their projects with pics of the foreclosure that they are trying to fix and hence they need money.

5. Prosper runs a credit check and grades your credit. You have indicated already on how much interest you are willing to pay. Typically loans are amortized over 3 years. They have a loan calculator on their site so you can see how much is your payment going to be.

6. So lets say you need $1000 – bunch of people come and put up whatever they feel like it loaning you – I have seen $50 to $500 – but instead of borrowing money from one person – a group of people lends money out.
7. Prosper collects the money, takes care of all documentation, and sends you the money.

8. Prsoper also invoices you every month for the loan payment. Cool thing is that they report all these payments to credit bureaus. So if you don’t pay up, you can get a credit late; but if you do it actually helps you build credit.

9. When the transaction is done, you are reviewed and your payment history with Prosper starts to build up. Kind of EBay Star system. Next time may be you can offer to pay less interest rate because you have proved your credit worthiness.

10. Prosper charges for Borrowers: - 1% closing fee: If you are a borrower and your loan is funded, you will be charged 1% of the amount borrowed or $25, whichever is greater. For example, if you take a loan for $5,000 to help pay for your wedding, you will be charged $50. The 1% is taken from your loan immediately, so in this example your loan is for $5,000 and you'd receive $4,950 in cash deposited into your bank account.

11. Prosper charges for Lenders: 0.5% annual loan servicing fee - The annual servicing fee is accrued daily, and is based on the current outstanding loan principal. This fee is accrued the same way that regular interest is accrued on the loan.

For example, on a $5,000 loan at 10% interest, the servicing fee would be $40.40 over its full 3-year length. Because the servicing fee is based on the daily principal balance (which is an amortized value), it will change on a monthly basis, and the servicing fee for a loan will vary based on the interest rate and the length of the loan.

They actually have a pretty decent Help page that you should read if getting some money interests you. It is all unsecured, without collateral and you never interact with the people who are tossing money at you. Prosper is the entity in the middle.

Very interesting and any of you do get some out of them; post a comment on this entry.

Posted by Mark Ijlal at 06:19 PM | Permalink | Comments (0)

I saw the above company running an ad in Detroit News last Sunday. Interesting concept and if it works that would a whole lot of contractor headaches for Michigan real estate investors. Basically think Amazon reviews by Michigan residents but instead of books think contractors - electricans, plumbers, landscapers,

Homeowners post reviews of the contractors that they have used and now the next homeowner has a better idea of what they are about to get when they get that contractor. There have been opinion sites like Epinions.com, Amazon and Ebay do a kick butt job of asking and getting feedback on their sellers / buyers and products.

We the user pay a $5.95 per month fee to access the database. Sincce they just opened the Detroit chapter on April 25, 2006, they are offering a free one year trial. I am going to create an account and play with it. Although I dont know, being so new, on the quantity and quality of reviews. If anybody has previous experience with them, drop me a line by posting a comment to this post, so we would all know how good or not good this service is.

But apart from that - a whole lot of contractors of issues could be avoided by asking for 3 references (nobody does that) and getting a contract with an outlined of what, where, when and how (well nobody wants to do that either too).

Do the above two and you just cut your contractor issues by 95%.

Posted by Mark Ijlal at 05:48 PM | Permalink | Comments (1)

We had a pretty crazy coaching session last week - couple of my members are hitting some major homeruns doing Short Sales. Part of the reason is that they know what the heck they are doing. Part of the reason is banks are SWAMPED with foreclosures and willing to take bigger discounts that ever before.

The amusing thing is these guys are very "Unqualified" to do Short Sales - they are getting major discounts on their rookie deals.

There are reasons for this….

3 years ago, it took some serious set of skills and a really banged up house to get a $50,000 discount on a Short Sale in Michigan.

Now it is so common that it is not even a big gulp to fax it in to a bank.

How things change in a matter of months.

"I have been in real estate for over 15 years. I have been involved in more short sales the past 8 months then the previous 14 years all together. Now it isn't uncommon for a seller to bring money to closing." - Chris Dowell, Realtor

Chris is a realtor in a Kansas City and he posted the above comment to my blog recently. He is not exaggerating.

I can tell you on a personal note that I never thought that I would see banks discount 40% to 50% on first mortgages. That is just incredible.

I think that the thing that impresses me most about Rodeny is he is done what most real estate investors never bother doing:

1. Implement what he learned from me.

2. Did not wait to become "perfect".

3. Launched his Short Sale business with a complete understanding that he does not know everything but he will get better with every deal.

4. Doing some great “word of mouth” advertising. I mean you would think that with around 10,000 houses in foreclosure in Michigan – some of these people would have relatives, co-workers, friends etc. It helps to let people know what you do and could do.

5. I liked his style of actually overdoing it. He did not had to put that fence up in his first deal. His buyer was not that particular about it. But he did it anyway. And that has paid very handsomely for him. You wont know why
on this call but suffice to say that $3,000 fence turned into a very profitable goodwill for him.

I predict that the the “amount” of discounts in Michigan will only get higher. As banks pile up more inventory it will be tougher for them to justify sitting on these houses for months (11-13 months in Michigan for redemption even before they get the keys) and do nothing.

I don’t know about your property taxes but majority of suburbs in Michigan have high property taxes – going higher every year. Banks don’t pay Homstead rates but rather non-homestead at a mucho higher rate.

The number of foreclosures rises which means more “inventory” for the Loss Mitigation Departments to liquidate. The more agitated they become to sell these houses as quickly as possible.

One of the interesting thing that we keep hearing over and over again is the banks calling my members and asking what they could do to make the deal happen?

Huh!

Banks playing nice..

What is this world coming to?

Nora is doing couple of commerical Short Sale right now. She has this whole side business going on consulting on Short Sale Deals. More on that some other day. Talk about a perfect stay At Home Mother business. :-)

And the Attorney who is foreclosing for the bank called her and said – Hey we want whatever your buyer could pay. Come one and lets play ball. Call us we want to talk.

Lawyers calling investors.

This is the dawn of a new age. :- )

It is pretty exciting time to be in Michigan real estate. Kind makes me wish I was starting out in 2006 rather than 2000. Writing all those hand written letters to homeowners in foreclosure nearly broke my wrist back then.

Posted by Mark Ijlal at 09:43 PM | Permalink | Comments (0)

Disclaimer: This post is about (gulp!) the Internet. If even the idea of putting up a real estate website for lease options leads makes you sleepless then wait for the next post on Hotlines etc that don’t require you to even have a computer. :-)

How to use the Internet to attract buyers for your Lease Options:

There is a pretty big section in most newspapers, week after week, called Rent To Own in the Real Estate Section. Some newspapers call the section Lease Option also.

You will also see ads targeting to prospects with bad credit saying something to the effect that if you have been turned down by the mortgage companies – call us to get the home of your dream.

As a side note I am not a big fan of Land Contracts in Michigan. The foreclosure process that is required to kick out a non-paying Land Contract buyer who bought your home and then defaulted is long and governed by the same laws in Michigan that govern a bank foreclosures.

Although in certain circumstances (property being vacant) you can accelerate the eviction and some astute investors who play in the Land Contract world have told me that they add a eviction clause in their custom made Land Contracts – I have yet to see one contract in reality.

So some of the companies in Michigan who advertise and focus especially on bad credit / home ownership themes might be selling a 12 / 18 month Land Contract deal which gets the seller cashed out at a later date via a refinance. So keep that in mind when you are reading these ads.

Rent To Own Ads are pretty much 100% Lease Option ads and it is a good idea to check them out in your local newspaper before you do anything so to get a feel of the marketing.

Very very few real estate investors use the Internet to market their lease options which if you choose to do so does gives you a pretty good advantage over your competition in your local city. This is how it works:

1. Run advertisements consistently (more on classified ads later) in your local newspaper. I said “local” and “consistently” – two very important and precious words to keep in mind. Also you want to run these ads EVEN when you have NO house at the moment to Lease Option (more on that strategy later also).

2. Direct your prospects to your website.

3. Your website has pictures (lots of them), virtual tour if you want to really blow them away, description of the house with the list of all the upgrades you have done, any promotion you are running (free appliances, gift gas card etc), lease details such as monthly payments, Option number and finally the most important thing of all….

4. An invitation to join your Lease Option Buyer List. So lets say 10 people come to your website as a result of an ad that you ran in your local newspaper.

Well technically you can only sell your 1 home to one out of 10 but the other 9 are still in the market to buy something. May be they don’t like “that” house but who is to say that will not like the second house that you put up next month.

Entice them and ask them to join your Hot Lease Option Upcoming Houses Notification List so they get priority notification even before the house hits the classified section.

Sort of a Pocket Listing Invitation if you want to use the REO slang.

Understand that this strategy is advanced and mostly not used by anybody. Everybody wants to wait till they have a house or worse when the house is done.

The term you need to remember in real estate is Build To Suit – if you doing this, week in, week out your market will tell you what kind of houses you should be looking for.

This is the beauty of having a website and use it for more to tell you what the market wants in your local Michigan city instead of thinking about your website as something to sell that ONE house that you have right now.

I know it might sound hard to believe at first try but really most investors get so tied up in “doing” that deal that they have burning a hole in their head that they forget to build a business.

Nothing personal – just a fact of life. All entrepreneurs go through it. I did too in the beginning.

5. These are some of the things that you should be asking at your site from your site visitors – name, email, number of bedrooms in the house they want to get, basement preference, brick or frame, garage preference, city preference, if you are operating in a city which is comparatively big – it would help to ask a more specific question for example if you see Detroit ads they will mention something like East Side or West Side preference.

Where can you advertise on the Internet to get leads?

1. Detroit Craig’s List; at http://detroit.craigslist.org Free

2. Google Base: http://base.google.com Free

3. Google / Yahoo will be a pain the rear to do and get some leads because you are competing against everybody and their mother selling a $20 book on how to do lease options. Very hard to do Pay Per Click ads and get some leads out of there – not to mention expensive.

4. The thing that I am watching closely is the evolution of Google Local ads that will let you target and run really local ads on Google, which will be really effective for our kind of business.

5. For Sale By Owner sites: cheap prices for the most basic packages. Owners.com is a good example. The whole idea is to get people come to your Lease Option website.

6. EBay – will cost money to run - $150 at least. Plus my feelings about EBay are that it is more suited toward building an Investor List than attracting local homebuyers.

Where can you advertise offline to get Lease Option leads?

I am very old fashioned when it comes to real estate leads. May be the reasons that the damm $26 ads have made me so much money. Real estate is a Local game.

Seriously doubt that a guy in L.A. is thinking about buying a 3 bedroom in Redford. But there are renters in Redford with kids in Redford schools and mom & dad working in Dearborn and Sterling Heights.

They are reading the Sunday’s Free Press and Redford Observer – may be a small percentage looks on the net – may be it is a big percentage; there is a no hard data available anywhere that can pinpoint where most of the people are looking for Lease Option deals.

But I would suggest to you that do both – with 1-2 Knockout punch:

Punch #1: Use the free resources – Google Base; Detroit Craig’s List initially till you close on some deals, put some new money in your business checking account and then think about spending some money on the Internet. Since both of the above are free (at least for the time of writing this)

Punch #2: Spend you money where it will get you the biggest Return on your Advertising Dollars – your local newspapers. In the above example – run small ads driving people to your website in BOTH newspapers – Detroit News and Redford Observer – I repeat run ads in not one but both newspapers.

Sometime I get emailed about the cost of running these ads – well I worry about what comes back to my bank account and not too much on what I have to spend.

As long as coming in number is bigger than going out number – all is good. You can charge the advertising on your business credit card and pay it once the house is Lease Optioned off.

Or you can close one deal and take $500 off right from the top to spend it on advertising on your next deal. The real big mind shift that most entrepreneurs never make is not to think of advertising / marketing as an expense but as investment to build their business.

There are 2 big things in my business I spend money like it is going out of style – my education and my advertising. As long as I feed these two dragons, all is good in Planet Ijlal.

Website Domain Name Tips:

Spend some time thinking of a good and short domain name for your website. Rule of thumb is that keep it within 21 characters with the dot COM thing so it fit in one line.

Newspapers classified sections have a notorious tendency to break down the name in 2 lines if it is long and put a hyphen in the middle. I don’t have to tell you that that becomes a different name.

I had this experience personally one time when my ForeclosureTour.com ad became Foreclosure-Tour.com in two lines. Suffice to say that I did not get any leads that week.

So keep it within 20-21 characters and you will be in the limit. Also you don’t have to use www moniker anymore. I don’t use it anymore. www.MarkIjlal.com or MarkIjlal.com work the same way.

Also I hate long winded domain names – abcpropertyinvestmentsgroup.com is a great tribute to your LLC’s name but come on…. One of my coaching group member Lou Provanzano got a cool name recently for his Detroit deal – www.DetroitOnTheMove.com which gets full marks for originality and sounding good when you say it, print it and leave it on your voice mail.

And yes I am guilty of having long names in the past too – some of them are so crappy that I am actually embarrassed to share them here.

But the point is you want to have a good name; should spend some time on it, make a list of 10-20 names; ask your significant other, if you are in my coaching group, email me the names before you blow the insignificant amount of money needed to reserve them via Godaddy.com. Get a second opinion. This is how the world will see and your business. It is worth spending some time on.

How to get your Lease Option Website Designed:

This is the part where most will hesitate because they are still thinking big dollars when it comes to websites. In 2006, websites are so cheap that there is no excuse left for not to have one.

Where can you get a decent site made?

1. Do you have kids? Do you have neighbors who have kids? Do you have nieces, nephews, and little cousins? Know anybody who goes to a high school??? Every High School in America has a clique of geeks who can design a better-looking site than most web design firms out there.

I have personally hired 16 year olds – one time even flew one from Denver, CO to Michigan to work for two weeks on a business that I used to have. I had one 18 year old actually move to metro Detroit from U.P. to work on a project.

These kids were smarter, harder working and had a better work ethic than most grown ups I have worked with in the last 10 years. They get it. And they love doing this stuff and putting it for the world to see it.

I met an 18-year-old two years ago who was designing websites for Detroit Hip Hop acts – his sites could go heads up with a $50,000 site – he was doing this for $10 per hour.

Ask anybody who is going to high school and is between 14-18 in your life. They know a geek who can whip up a world class website for you in 7 days for probably pennies.

2. You can always go the outsourcing route and use a website a www.elance.com or www.rentacoder.com which will let you post up for free what you are looking for; bunch of companies (most of them in India / China and Eastern Europe) will put up competitive bids. They all have reviews on the previous work they have done; read them and give one the site to do.

If you are totally lazy and don’t want to do anything at all – then spend couple of hours trolling Google and Yahoo and find a website on lease options that you like and then tell whomever is doing your site to make your site look like them.

And for crying out aloud don’t copy blatantly but use it for inspiration and ideas. Most people like me use a copyright protection service that trolls the web looking for lift offs.

When we find somebody cutting and pasting our stuff – we get him or her shut down. I did that to bunch of bogs already that were just copying and pasting my content on their sites.

Next Part 5: How to figure out your Cashflow Payments, Exit Strategies that nobody wants to hear about but they sure do work, the absentee owner thing.

Posted by Mark Ijlal at 07:50 PM | Permalink | Comments (1)

How to get the Maximum dollars for your Option payment

This is somewhere I got very lucky when I started. I was doing a Lease Option in Bloomfield Hills – Short Sale deal turned into a potential Lease Option by a family who were making extremely good money somewhere in the tunes of $200,000 per year and had lousy credit due to some crazy credit card spending.

Anyway the purchase price of the house was around $250,000. I had no idea how to price an Option Fee – the potential buyer is sitting across the table and the wife goes “well how much do you need to put down for the upfront non-refundable Option?”

And I just blurted out “10% of the purchase price would be fine.”

And they shrugged and said, “That sounds O.K.”

FYI that was $25,000.

It taught me a valuable lesson in pricing the non-refundable Options – first I have no right to assume anything. I would have thought that $10,000 sounds pretty good at that time.

But I was wrong and you should not make the mistake either to use some magic formula to calculate the maximum Option. Yeah! I know that we all want a certain answer but ask anybody who owns a business in the real world on how many formulas they use in their business and they will look at you like you have lost your mind.

First of all lets understand that you should try to get the maximum option fee possible. As much as the market would bear and you could find out very easily by saying certain things.

Second the more Option you can get upfront more committed the tenant-buyer becomes in buying your house. Hey they already have a trunk full of money “invested” in “your house”. Do you think that may force them to be more committed to completing the deal at the end of the lease???

And last – and I really don’t have any scientific data to back up that assertion just from the trenches war stories from myself and fellow Michigan real estate investors – we have seen the more Option the tenant-buyer have invested in the property via a big fat Option payment – the better is the care and love they heap on “your property”.

Why is that? I don’t know but I think that in their minds that they already bought the house because they put a big “down payment” via the non-refundable option so they call you less, the grass gets cut, the landscaping get additions, the gutters stay cleaned and the kitchen looks spotless.

So how do you get big option payments?

Step 1: Understand the basic fundamental rule that governs all negotiations – you can always come down on your price but never go up. Most real estate investors chicken out too early. A good rule of thumb is to try and get 5% to 10% of the purchase price as the upfront Option fee.

Why this number? Because a large number of people buying Lease to Option deals have bruised credit. If they were to go and get approved from traditional lending sources and somehow they did get an approval, the lenders would ask for at least 5% to 10% down payment as a way of reducing their risk. I have seen lenders ask for 15% to 25% down payment for risky clients.

So if they have tried around getting a mortgage – they have heard the 10% number. Also if you decide to knock some price off to make the deal happen – it would also create a good feeling of win-win on both ends where your tenant-buyer would be happy that they are getting a good deal also.

I have asked for and gotten $10,000 as upfront non-refundable Option fee. Started at $12,000 – ended at $10,000. Buyer was pretty happy at his negotiating powers. I was pretty happy that he thought so.

Step 2: Don’t just give up after the first 5 calls. Start running your Lease to Option ad even when your house is being renovated. That would give you sufficiently bigger piece of time to get a feel of the market and how much people are willing to pay on the upfront Option fee. My suggestion is to treat the first 2 weeks in your local Michigan City as R&D.

Step 3: As them why they are looking for Lease Option deal? The reasons will tell you a whole lot about what can they afford. The serious ones who have driven by your house will talk to you more than the casual caller.

Step 4: Use an automated system to your full advantage if you don’t want to be bothered by too many calls or negotiate with everybody except the most serious callers. You can get an AVS – Automatic Voice Mail System for $10 per month. Website is even better because you can put the pics of the houses on it – inside if it is done; exterior and your Lease Option terms. I intend to give you some sample websites that you can take a look at when we get to the later part of this report.

Next: how to set up good marketing systems to attract buyers.

Posted by Mark Ijlal at 10:56 PM | Permalink | Comments (0)

Two more reason that there is a market for people who will gladly and cheerfully pay you an big, fat non-refundable Option fee and lease option your house in Michigan:

1. They are not sure if themselves or their family will like the house or the school district or even like living in the house. So why are they not getting an apartment?

Well it is just hard to get an apartment with 2 kids, 1 dog and “stuff”. Most apartments are not build for families but rather couples with minimum belongings.

Believe me I lived in apartments for 6 years when I came to America. There is not too much space to put things out. They do have the option of renting a house but may be they want to live in a particular area and they can’t find a house they like.

2. Michigan area being the hub of automotive industry – lots and lots of people move in and out of Michigan every year. They get transferred for a projects, get hired by a consulting firm that might ship you to a different Michigan city for a year or three and so on.

Lots of these people don’t want to take a risk of buying a house in a city that they are not going to stay in forever. But if they have families and pets and stuff – they do have a housing requirement that most likely will not be fulfilled by an apartment.

3. Couples who are together but not sure if they want to buy a house together.

Why do you need to know the reasons on why people would do lease-options? Because that will help you understand where can you go and find them and more importantly where can you run advertisements to attract them.

How big is the lease-option market?

You just have to pick up your metro area newspaper in Michigan and check out the Rent to Own section to realize lots of lots of houses get sold that way.

If you have access to MLS then you can also run a Quick Search and see how many houses pull up on the first page where the owners are open to the idea of a lease option. .

And then off course you have the entire I Buy Houses For Cash crowd from several real estate gurus who teach “sandwich leases”. More on that later.

There are big name companies in the city of Detroit for an example who have built multi million dollar junker to lease option businesses by buying 2-3 bedroom junkers, fixing them, and lease optioning them to prospective homeowners for 12 / 18 months, get a payment history on record and then flipping the house over. They sell anywhere from 75 – 100 houses like this every year.

One of the big things everybody needs to really get about lease-options is that the differece between renting your house and selling it to a tenant-buyer.

It is the mindset.

Tenants have no stake in the house they are living in, apart from the measly security deposits they gave up front. Cabinets squeaking – they call the landlord. A tree has long branches scrapping the windows – they call the landlord. Kid threw a roll of toilet paper in the toilet and jammed it – they call the landlord.

And off course you will never see a tenant do home improvements in the house they live in. And why should they? They are just renting it!

The lease option buyer is a much more attractive alternative. Off course you want to sell your properties as fast as you can but sometime the capital gain is hefty and you want to wait at least 12 months to sell so you can save on the capital gains tax. Sometime you are having a hard time selling a house and you do want to cash out the hard money or private money lender out of your life.

Things happen and if the push comes to it and you have to make a decision between choosing a renter vs. a tenant-buyer; I am definitely prejudiced toward the later.

I have noticed a different mindset in the lease option buyers that I have done in the recent years. One they have a significant investment in the property in the shape of upfront Option payment – the lowest one I have seen is $3,500; the highest one I have seen is $11,500. That is by the way – non-refundable; meaning whether they choose to live there or not – at the end of the lease; that money is yours to keep.

And that changes a lot in the minds of the new tenant-buyer – they don’t call you when the grass is long and the branches of a tree scrap the windows at night – they cut the grass and chop off the branch. If the toilet clogs, they will go the Meijer and buy Liquid Plumber and pour it in before they call you. If the cabinets in the kitchen are squeaking – they will go buy a bottle of oil and pour it in to stop it.

It is the mindset that is very different that makes the lease-option mucho more attractive. Other than the money off course.

Next: How to get the maximum option payment and monthly lease.

Posted by Mark Ijlal at 01:06 PM | Permalink | Comments (0)

This is part 1 of a series of posts on Lease Options for the first week of May 2006. Got bunch of email questions about them from various readers, this series would serve as an all-inclusive answer to most of these questions.

What is a Lease-Option?

Lease-Option, lease with option to purchase, tenant-buyer, rent to own – are all different names for the name animal. Basically it is an exit strategy for somebody to sell a house. But instead of selling to somebody who will go and get a mortgage and cash you out 100% - this is where you actually “lease” the home out to your buyer for 12 / 18 / 24 months or whatever term you decide to do this and then at the end of the term the buyer who has been leasing the house from you has an option to “buy” the house from you at a “pre-determined” price that you agreed upon when you did the contract 12 / 18 / 24 months ago.

The thing that makes this arrangement so different is two fold:

1. The buyer of your property has no obligation to buy the property from you at the end of the lease. They may or they may not.

2. The buyer of your property will typically gives you an upfront Option fee to lock the price of the property at the beginning of all this. That Option fee is non-refundable.

Why would somebody want to do a lease-option?

Well bunch of reasons and on top of the list imagine a person or a family who makes good money, just came out of a situation that has ruined their credit (business or personal bankruptcy / divorce / disease) and now they are back on their feet and making a decent living.

Actually they are making enough money to afford a monthly payment – the only problem is that their personal credit history especially the current parts of it makes it impossible to get a mortgage.

Now I know we all hear a lot about mortgage companies being aggressive and pretty much qualifying anybody who is breathing. Which to an extent is true – but there is bruised credit and there is bad credit and if you are in the business of buying, fixing and selling homes then obviously you want to make maximum profit on your deals.

If your buyers has less than perfect credit than their lender or bank will give them not the maximum amount via a mortgage. So lets say you are selling a house for $100,000 – your buyer has bad credit and their lender says that sure we can give you a mortgage – but for only $75,000 because of your credit and the rest – the $25,000 your buyers has to put down.

Now if they have $25,000 to put down then by all means, dance on the ceilings and once in a while you will get somebody like that but truth of the matter is that families or people who actually put money down when buying a house are RARE! We live in a culture of No Money Down Mortgages and nobody, repeat nobody is saving to put money down.

You may not like it but it is reality.

So coming back – you buyer cannot afford to put $25,000 down and you definitely want to leave $25,000 on the table because that is probably your profit to begin with.

What can you do?

Lease Option would be an alternative strategy here.

Part 2: More Reasons why people do lease options

Posted by Mark Ijlal at 08:53 PM | Permalink | Comments (1)