Lease Options Are a Wholesaler’s Dream Machine
If you thought that Lease Options were just for controlling properties you are sadly mistaken. In case you didn’t know it you can wholesale pretty houses with lease options and expand your market tenfold. As wholesalers we have to deal with ugly houses that have an ARV large enough so that enough equity can be in them to make the magic formula we all use work out. If it’s not there then we get to throw the deal out and look for another one.
Using lease options allows you to work with pretty houses that you don’t have to fool around with houses that have equity or little, no or negative equity. That’s right I said negative equity. The last two houses I wholesaled were upside down lease options and after putting them under contract with the owners I assigned the contracts within 35 days.
Now here’s the part you’re really gonna like. I never saw the houses, never met the owners face to face, never personally showed the houses, never met the tenant/buyers face to face and never touched the houses. Everything was done through email and by phone with the exception of the tenant/buyers sending the checks by snail mail. It’s like that orange juice commercial with Donald Sutherlands voice “Simply Un-Fooled Around With.”
To sweeten the pie as long as you have a computer and a phone you can do these nationwide so if your local market isn’t doing it for you all you have to do is pick a city, any city and you’re back in business. How’s that for an unlimited market? If you add the millions of motivated sellers with properties with little, no or negative equity to the equation you have the perfect storm.
I assure you that this technique works in the Pittsburgh real estate market
(September 2014 Newsletter)