What is a lease option? Friend, I'm glad you're watching this video because today,
out of all the strategies that I have used to build wealth from the world of
real estate, I'm going to be sharing with you my absolute number one, absolute
favorite. It's called the lease option.
So, I want to share with you how I discovered this because years ago, I was
a brand-new investor. I hadn't made the millions of dollars, I hadn't you know,
created the amazing lifestyle that I have today. And I was just starting out. I
was nervous but I was hungry. And right now, if you're watching this I want to
ask. Are you hungry? Les Brown, famous motivational speaker and that big rich
deep black voice what do I say, "Are you hungry?'
And this hunger is this idea of what's motivating you. If you're watching this
video, I'm going to impart all that I can to show you how to build wealth today in
your life. And literally, lease option just gets me tickled pink because I'm going to
show you exactly how I stumbled on it and then how I mastered it. So, my buddies
were also investing at the time and they had already bought several homes. And I
had just bought my first house. And they basically said, "Kris, you need to do a
lease option." I'm like, "Well, what is that?' And they described this handmade sign.
They said, "We want you to go to the, you know, the the supply store like officemax
or wherever you get that bright fluorescent poster board." You know what
I'm talking about? And they said, "This is what we want you
to write. Rent... (In bad handwriting by the way. Don't print this out. Not a
professional sign.) Rent to own.' It didn't go off the edge like that. But it said
Rent To Own. No bank qualifying. And then it had my phone number. That this is not
really my phone number. I don't know how you guys still managed to get my phone
number. But I swear, it's out there somehow and I'm constantly getting text
from you guys. And you're awesome and I love watching you rock it in real estate.
There's a phone number and you put this sign basically out there. And bright
colored hideous and you put it on just like a stand and you plunk that in the
yard. They said, "You'll start getting calls like crazy." So on my very first
house, I'm doing this for the very first time. And I put that sign out in the yard
on that on that first investment property I had. And sure enough I started
getting calls. "Tell me about the house." And they had instructed me, "Don't answer
questions on the phone. Go bring people to the house and then do
an open house." So that next weekend, I had an open house. I had a few families walk
on through. And they said, "well, what is this?" and I was just following what was
given to me and then I'm the rest. And basically, I said, "Well, rent
to own means instead of renting and stop wasting your money. You can buy it." I own
this house. I'll be the bank and I'll help you buy it in a few years. And that
definitely had an attraction to a lot of people. So, they would walk through the
house. They have fall in love with that. They get excited and then they basically
said, "Okay, so how does this work?" I want to show you the flyer.
I'd put this flyer together and this is what I had learned. Now my mortgagee, what
I want you to understand this. I got a sweet, sweet, deal on this house. When you
do a house, you should always have a sweet deal. You should always be like
freaking excited about the numbers on the deal. So, I got this house and I
purchased it for a hundred and fifty thousand dollars. But on this exact house,
it actually had a value around $230,000. So, I
was excited because the difference between 150 grand and 230,
that's an $80,000 spread. Like, I felt like I hit the jackpot. Like, that
was way, way, way, way, way, more money than I made in a single year at the time. So,
I'd found a good deal. When I actually bought it, my mortgage payment was just
under a thousand dollars a month. Now, young, dumb, college kid trying to figure
out what he wants to do with this life. No real career path. Starting on this
real estate journey. I had an extra thousand dollar a month payment overhead
in my life. And that was kind of nerve-wracking for me. But I was
optimistic. So, this is the flyer that I put together. It said no. But you know,
rent to own, no bank qualifying and this is the exciting part. It basically said,
you could all you could pay $3,000 as a downpayment and you could have a payment
of $1,600 a month. Or you could put $5,000 down and you could have a payment
of 1,500 a month. Or you could put $7,000 down and you could have a payment of
1350 a month. Now, check it out dude. Zoom in on this. I want you to see this. $7000.
My payment was a thousand. So if someone gave me seven grand up front, I was still
going to have a $350 month cash flow. 1350 minus the
thousand. So, I'll put my cash flow here. This is going to be three hundred and fifty
dollars a month. Now, to a young, dumb, college
kid, $350 a month was enough to pay for like a car payment or to actually pay
down debt or to buy school books. On this one, if they gave me five grand, I was
going to make $500 a month. And I'm like, "Freak yeah!" Or if they give me $3,000, I'm
going to make $600 a month. Now, check it out. The family that actually got this house,
they gave me $3,000, they started paying $1600 a month. I was making $600 a month
cash flow. But let me ask you. Do you really care if they put more or less
down and if they give you that kind of cash flow? I'm just telling you right now,
you don't care, it doesn't matter. It all amortizes out and works out to the same
in over 24 months. One of them will be slightly bigger than the other
but the real big deal here is that you're getting paid a big chunk upfront
non-refundable. They're committing to entirely take care of the house because
that's what a lease option is. Plus you get a really juicy cash flow. This family
didn't buy this house but the next family did. And on that house, I made over
$100,000. In fact, my sold that made $130,000. And
I've made a lot of good money in real estate. This strategy is like
seriously it's the number one, it's what works for me, it's what I love about it.
Now, I want to share with you one last thing that you need to know about what a
lease option is. In real estate, when you have a home, you're going to rent it, you'll
have a rental contract. What we're doing is we're adding a special second
contract called option to purchase agreement. And what they're going to do is
this is the standard rental and this is the biggest air people will make in real
estate. In that same document, they'll add the language for the lease option. In
most states, that will actually qualify as tenure of ownership in the home. And
if they actually can't buy the house, they would actually have grounds to sue
you or make a legal argument to get their money back. What you need is a
separate document and this document is the option to purchase agreement. With
the option to purchase agreement, what you're going to do is that's where you're
going to say, "You're going to give me this amount down and this is the terms of
that agreement here's how long you have." You need the two agreements.
I've pioneered it, most people don't have it. It has kept me and my clients legally
safe. So you need to understand, the lease option is awesome but there are wrong
ways to do it and there are right ways to do it.
Payment calculators, what you should charge and rent. How to find the deals,
how to even buy real estate on lease option without
needing to put any money down. I share all of that with people when I actually
mentor with them. And I would tell you as a final bonus here that if you're going to
get in the game of real estate, you need a mentor. You need someone that will come
into your life that will actually show you the ropes and I'm all set up to do
that for you. So, if you'd actually like to join my real estate community of
thousands of investors. If you want to learn how to and buy the best real
estate in the country and you want to learn a strategy. That is 250%
more profitable than regular rentals. Today's information will hopefully get
started. But if you're looking to take a more aggressive step and work with me
and my team then what you do is you click the link in the description below
and reach out to have a private consultation. Someone that I've
hand-picked and trained on my team will evaluate where you're at in your life
and your circumstances and show you exactly what it would take for us to
work together. Here's what I can tell you, it's cheap. It will cost you something
because I want you to have some skin in the game. But it is so inexpensive
because I want too poor, dumb, college kids like me to be able to get all the
mentoring they needed to make their first million dollars in real estate. So,
check it out. And also, if you're not a subscriber, do that. I got valuable
content coming out every single day where I'm going to be teaching you new
things about how to make the most money you can in real estate because at the
end of the day, my friends, you want to be free. That freedom, you can't put a price
on it. And these jobs keep us landlocked working 40, 50, 60 hours a week versus
being free. And so real estate, it is the best pathway to freedom. And I invite you
to take me up on learning more about exactly what that looks like. Get that
free consultation and see how me and my team can help you create that wealth now.