Wholesalers if I can show you a way to take all those leads that you’re currently throwing in the trash and turn them into cash would that interest you? Let’s face it you work hard and spend a bunch of cash pulling in leads and the problem is that you have to trash a whole lot of them because they don’t have enough equity in them to make it work or the seller won’t take your low ball offer. What a waste of time and money!
What if I could show you a way to add thousands of dollars to your bottom line using those leads to generate deals instead of disposing of them. You already have the leads but lack the skill to make use of them so why don’t we bring a little bit of transaction engineering into your life. Being a one trick pony is costing you tens of thousands of dollars every year and the solution to that problem is easily cured.
It’s getting tougher by the day to be a successful wholesaler because of competition from other wholesalers and the entrance of the major Wall Street funds that are buying everything they can find and paying top dollar at that. It’s to the point where I’m seeing bidding wars on properties that you couldn’t give away a year or so ago.
It’s a good time for you to put on your transaction engineer hat and add a niche to your current program that will allow you to take advantage of all the hard work you put into your search for leads and make the most of every lead you can find.
I want to show you how to explode your cash flow whether you’re a seasoned pro or just getting started in wholesaling.
If you stick with me for just a little while I want to show you a list of things that will sky rocket your business model in a heartbeat. I want to show you:
How to increase your income by adding one of the hottest niches in real estate to your current program.
How to wholesale properties with little or no equity.
How to wholesale pretty houses in nice areas that need no repairs.
How to wholesale properties nationwide right from your desk.
How to wholesale properties close to retail price.
How to fast track all of the above by being mentored.
So how can you incorporate all of the things I’ve mentioned above into one neat package that will change your business forever? It’s simple really, all you need to do is add an amazing real estate niche to your current program and fast track your way to success by adding a revolutionary mentoring program to propel you onto the next level.
Let’s start with the methodology that you need to learn in order to expand your horizons and bank account.
Wholesale Lease Options:
Wholesale lease options is the vehicle you’ll use to turn all that trash into cash. I’m not going to give you a formal class on lease options here but I am going to get you acquainted with them so you’ll have a good idea of how they work.
What Are Lease Options:
It’s a contract to lease a property for a specified time frame with the option to purchase it by a specific date at a predetermined price.
You’ve probably heard it called rent to own or lease purchase but all three are the same thing just different names. Wholesaling lease options works very similar to the traditional wholesaling you’re used to doing but instead of flipping the property to a cash buyer you’ll work with an end user. You’ll assign the contract for an assignment fee and you’re out of the deal. It’s what you’re already doing but now with a lease option.
When dealing with wholesale lease options there are some pretty neat perks:
No Cash Or Credit Needed:
You control the properties with a $10 to $100 earnest money deposit so you’ll control it without owning it.
No House Fixing:
Like I mentioned a bit earlier you’ll be dealing in pretty houses that need no repairs so there’s no sweat equity or contractors to deal with.
No Debt:
Personally I have this thing about going into debt, I don’t do it. Why should I buy a house when I can control it and make the owner the bank. I don’t like personally guaranteeing loans and I don’t like dealing with hard money or private money lenders. Why should I beg for money when I don’t need to. Like I said all I have to do is make the owner the bank.
Before I go any further is there a market out there?
Millions of properties with little, no or negative equity.
Tons of sellers that won’t take low ball offers.
How wholesale lease options work:
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Find seller
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Put property under lease option contract
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Find buyer
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Seller to approve buyer
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Prepare Contract for buyer
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Take upfront money as the Option Consideration
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Assign buyer contract back to seller, get releases
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Cash check
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Repeat
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I would imagine you wholesalers recognize the above as it’s pretty close to what you’re already doing. As you can see adding wholesale lease options to your tool kit can be done very quickly with the right training and I’ll address that a bit later.
I want to address something I mentioned earlier regarding the fact that you can do wholesale lease options virtually. It’s impossible for you to run out of leads in your life time because you can do these deals anywhere in the country. I would however mention that the state of Texas has some laws that make it difficult to do lease options so I stay out of Texas but what the hell, I’ve got 49 other states to work.
Let me give you an example of one of my deals.
I received an email one day from a postcard that I had sent to an expired listing on the MLS on a property about 2 hours away from my office. It turns out that that postcard actually got forwarded to the owner who had moved overseas because of a job transfer. For whatever reason the Realtor couldn’t get the house sold and I don’t really understand why because it was a really nice 4 bedroom 2.5 bath house in a beautiful area. The owner had bought a new home and only had two months of cash left to carry the mortgage on the old home and after that it was going into foreclosure.
The seller wanted $230,000 for the property and it comped out at around $250,000. The seller and I negotiated everything by email and signed the contracts using and internet service. I put $10,000 on the asking price and had her neighbor show the house and even put up a “rent to own” sign on the property. Believe it or not five weeks later I sold the contract to, of all things, another real estate investor. I assigned the contract, took my $10,000 and was out of the deal.
Here’s the part you’re going to like. I never saw the house except for pictures I used in the ads, never met the owner and I never met the buyer because we negotiated the deal over the phone and did all the paperwork over the internet. The buyer sent me a certified check in the mail and the neighbor gave him the key to the house. I never left my office on this deal!
Here’s the thing. It doesn’t matter if the house is two hours away like this deal or 20 hours away like other deals I’ve done. The deal works the same way so distance doesn’t matter. So, like I said you can work the whole country and that makes it impossible for you to run out of leads in your life time.
Use Sandwich Lease Options To Build Residual Income:
I want to take a minute here to let you know that as fantastic as Wholesale Lease Options are I would be remiss if I didn’t turn you on to Sandwich Lease Options. Once again, I’m not going to give you a complete seminar on sandwich lease options but I do want to give you an overview so you can see what an amazing opportunity you have here.
Most investors that want to build residual income go to the bank or money lender and go into a lot of debt and purchase the house. They then fix it up and rent it out. Nothing wrong with that if you like to be in debt, fix up houses and deal with tenants.
With a sandwich lease option things work a bit differently but produce a better result. In this scenario you get the house under a lease option contract, make the owner the bank (no debt), don’t fix anything (the house is ready to go) and put a tenant/buyer in the house (way better than a tenant and he takes care of regular maintenance). In addition, you get to keep the upfront option consideration as opposed to taking a security deposit and putting it in an interest bearing bank account and giving it back to the tenant in the future. You also get the rent spread every month being the difference between what you collect from the tenant/buyer and what you owe the seller. You also get the back end money when the tenant/buyer exercises his option and purchases the house. So, as you can see there are three pay days to a sandwich lease option and you can build a large residual monthly income.
As far as I’m concerned it’s a no brainer!
So, you have a choice of using a wholesale lease option or a sandwich lease option depending on your objectives and the numbers.
Now let’s take a look at the how you’re going to get the leads to make lease options work for you.
Surprise, surprise…..you already have the leads in place but just don’t know it!
In my experience when I was doing a lot of wholesaling I found that it took about 25 leads to get one deal. You may have a different experience, some more and some less but I think this is a good number for the sake of this example. The point is that you have to go through a lot of leads to get one deal.
The two top reasons that wholesalers trash a lot of deals are:
1. The seller won’t take the low ball offer.
2. The property has little or no equity.
There may be other reasons but it’s for sure that these are the top two on the hit parade. So, if the seller won’t take the offer or there is not enough equity in the property the lead goes in the trash after all that hard work to find it in the first place. What a complete waste of both time and money!
The problem here is that most wholesalers are one trick ponies and if the property won’t work out in this strict criteria they simply throw it away.
What’s Going In The Trash:
Let’s have a conservative look at what you are throwing away on a daily basis. I’m going to stay real conservative here as I know wholesalers that do 20 deals per month but let’s just say you’re only doing 1 deal per month and it takes 25 leads to get one deal. That would look something like this:
You do only 1 traditional wholesale deal per month
20:1 = 25 leads to get 1 deal
24 leads trashed
If only 1 of those 24 leads work out as a wholesale lease option
$10,000 assignment fee per deal.
That’s $10,000 additional income per month $120,000 additional income per year!
I want to make sure you understand what just happened here. You’re looking at $120,000 in additional income working with the leads that you’re currently throwing in the trash. Let’s say that I’m wrong about getting 1 deal out of this example and you only get one deal every other month. That’s an additional $60,000 from leads that you’re trashing. Any way you cut it every time you look at your trash can you should see dollar signs.
The fact of the matter is that you wholesalers already had the lead machine in place but just didn’t know it!
So, as you can see by becoming a transaction engineer, I was able to add a substantial amount of cash to my bottom line without making any changes to my existing business model.
All I did was add one incredibly profitable niche to my business and take a little time to learn how to work with lease options.
If common sense prevails that’s what you should be doing too. Why would you want to continue to throw all that cash into the trash now that you know better.
The only problem left to solve is that you don’t know much about Lease Options and I have the cure for that as well.
The above example is just the tip of the iceberg. What if you had 6 different creative real estate niches that you could turn to work just about any lead that came across your desk. Now that’s what I call a Transaction Engineer.
It just so happens that my partner Wallace Zhou ( who is a self made creative real estate multi-millionaire) and myself have put together a revolutionary mentoring program called the Transaction Engineer Mentoring Program.
Our combined 60 plus years of real estate experience allows us to teach you 6 different highly profitable creative real estate niches and we’ll even walk you through the deals from start to finish if you’d like.
This is one-on-one mentoring from two highly skilled real estate investors with millions and millions of dollars in done deals over the past 50 years.
Our programs are designed for serious investors that understand that continuing to be a one trick pony will never get you to the top of the mountain.
We’re looking for highly motivated investors that would like to become Transaction Engineers and be able to tackle any lead that comes across their desk and add thousands of dollars to their bottom line.
To get you on the road to becoming a Transaction Engineer you need to go to
https://www.executivementoring1.com/programs.
At the bottom of that page you’ll see a button that says Application For Mentoring so click on that button and fill out the form and my partner Wallace will contact you to set up an interview to see if we would make a good fit and formulate a program unique to your needs. The interview is free with no obligation of any sort and it never hurts to have a conversation.
If you’re watching this video on Youtube you’ll find the link in the discussion section right below this video. If you are watching this video on Youtube be sure to subscribe to our channel and turn on the notifications so you don’t miss out on upcoming videos and we’d really appreciate it if you’d like this video and our channel. Also don’t be shy because we’d love to get your feedback so feel free to leave a comment.
So, if you’re the serious investor we’re looking for get on this now you’ll be glad that you did.
I can promise you one thing for sure. The interview with Wallace won’t hurt a bit so be sure to get your interview booked and always remember that It Never Hurts To Explore the Possibilities!
Wallace and I look forward to assisting you to becoming a Real Estate Transaction Engineer.
Thanks again for your kind attention and we hope to be working with you soon.
Best,
Joe