List Categories | List All Articles | List Articles By Title
How Do You Profit From O.P.P.?
In a previous article we introduced you to the concept of O.P.P., or Other People's Property, and the many ways in which you can profit.
In that article we asked you what you would do if you found a business that:
Remember, what we are talking about is a wonderful business that allows you to generate immediate cash flow and also build your long term net worth.
That business revolved around the Creative Real Estate niche of Lease Purchasing.
This article, the third in the O.P.P. series will briefly touch on some of the strategies that are available to the Lease Purchase consultant.
First, is the co-operative strategy. It is the easiest for the beginner to start with. The co-operative is used when the seller may not want to give over total control of his/her property. The seller wants some say as to who goes into the property. When we assign the contract to a tenant/buyer, we receive the assignment fee. It typically takes us about two weeks to move a property, and we usually look for a $5,000 assignment fee.
The co-operative strategy, along with all the other strategies available to you, can be utilized for all types of property: single family, mobile homes, townhouses, condos. It works well with sellers who are motivated; with investors who have rental property and for those sellers who are not in a rush to move their property.
This is a favorite strategy of ours.
Some of the other strategies available to you in lease purchasing are:
The sandwich deal. This is when you lease purchase the property and then sub-lease to a tenant/buyer. It affords you great profit potential. You can collect money up front as option consideration, you receive the positive cash flow and you can make additional money at the end if the option is exercised. For those of you not familiar with the term positive cash flow, this is the difference between what the tenant/buyer pays you and what you pay to the original seller.
With the next strategy, the straight assignment, you contract for the property and assign or sell that contract to a tenant/buyer. This does not require the seller's approval. In the straight assignment you make your money in assigning the contract to a tenant/buyer. Remember too, you can sell a straight assignment to an investor.
The pure option. The pure option on a property allows you to purchase the home at a future date. The terms also are set. You can take the pure option and sell it to another investor. Again you want to negotiate good terms for yourself, so you can make money when you flip this to an investor. This is a very fast way to generate cash flow.
There are other strategies available to the Lease Purchase consultant, such as the cash or cash equivalent strategy, note creation and of course, our favorite, consulting. We'll cover these in a future article.
The niche of Lease Purchasing grants you the ability to reach your financial freedom, with O.P.P., Other Peoples Property. All it takes is the desire to succeed, some time investment on your part and some specialized knowledge.
What are the benefits to the business owner?
* Little start-up capital needed.
As you can see, Lease Purchasing comes very close to being the Perfect Home-Based Business. A realistic first year income is $50,000 to $75,000 for someone working full time. You can add $20,000 to $30,000 to your present income on a part time basis.
Don't you think you owe it to yourself to explore the potential of O.P.P.?
What are you waiting for?
Copyright DeFiore Enterprises 2000
Interested in having your own successful, home based creative real estate investing business? Chuck and Sue have been helping folks start successful home based businesses for over 19 years, and we can help you too! To see how, visit http://www.homebusinesssolutions.com for the latest FREE tips and tricks, educational products and coaching in creative real estate investing and home based businesses. No time to visit the site? Subscribe to ourá "how to" Home Business Solutions Digest, it's like having your own personal coach: mailto:subscribeHBS@homebusinesssolutions.com
Real Estate Investing - Finding Cheap Houses
Real estate investing expertise can certainly accommodate the luxury home market. In some ways, the upper end of the housing marketplace produces easier success than the lower end.
Quality of Life in Sussex County Delaware. Facts, Statistics, Observations and even opinions!
We Sussex Countians are fortunate in many ways as we have a wonderful quality of life here.Climate: Our climate for one thing is the best in the region.
Dubai or not to Buy? A Short Assessment of the Dubai Property Market
Never has there been such an ambitious and creative drive to establish a property market as has been witnessed in Dubai over the past three years. Running short on oil reserves, Dubai's crown prince, Sheikh Mohammed Al Marktoum, set out to turn Dubai into the financial, commercial and tourism capital of the Middle East and in the space of three years he has more than succeeded.
Hey Landlord! Is Your Lease Legal?
The longer you are a landlord the more you strive to create the perfect lease/rental agreement. Landlords learn in the school of hard-knocks that some tenants are certified trouble makers and we try our best to protect ourselves with a carefully structured restrictive lease.
Condo Hotels Offer Luxury and Great Investment Potential
Not Your Typical Vacation HomeWhat could be more perfect that owning a luxury vacation home at a landmark resort and receiving rent revenue whenever you're not using it? Condo hotels are the newest trend in vacation home ownership. Live in it when you're there; rent it when you're not.
Making Money In Real Estate - 10 Ways
Making money in real estate is an endless topic that includes all the various types of real estate investments. There is land, apartment buildings, homes, commercial buildings and more.
Should You Allow Buyer To Rent During Closing?
It's not uncommon for an investor to sell a house and have the buyer request the right to rent and occupy the property while the closing is being completed.You're a bad guy if you refuse and often in hot water of you agree.
Probate & Obituary Marketing
I start my marketing with obituaries followed with probate filings and find it just another effective way to acquire property.Short of courthouse research you can go to your local library and go to the reference department and research using what is called a Polk City directory that will list if the deceased party owns real estate.
Various Aspects Of The Lease Purchase Business
In a previous article, we wrote why we believe that Lease Purchasing is the perfect home-based business, here we want to briefly touch on some of the actual aspects of operating such a business, the pluses and minuses and why Lease Purchasing represents a win-win situation for the seller, the tenant/buyer and just as importantly, you, as the business owner. One of your goals in operating a Lease Purchase business is to contract for property that you then move to the tenant/buyer.
Fraud in Real Estate, Are You Being Victimized? - Part II
The phone range and Peter was on the other end of the line. "Willard, I have a friend of mine that has a real estate problem.
How to Build A Rental Property Money Machine
If you are looking for a steady, income-producing investment that isn't dependent on the ups and downs of the stock market, rental property is just the investment you're looking for!As lucrative as owning rental property can be, the wrong property can be a bottomless money pit. You need to know how to go about locating property, finding tenants, managing the rental, and how to make your investment profitable.
Should I Invest in Real Estate While Running an Internet Business?
Of course you should. I practice this for quite a while and I never looked back.
Choosing Your REALTOR «
With so many realtors competing for your business, how do you know which one to choose? Here are a few things to consider when choosing a realtor.The most important decision you will make in the sale of your home is the Realtor you choose.
Miami Property Booming for Foreign Investors
Miami tourism is growing and so is the Miami property market. Dubbed the New Manhattan by the US property media.
Equity is the value of your home minus what you owe on your mortgage. For example, If Joe's home is worth $200,000 and Joe still owes $170,000, then Joe's Equity is $30,000.
Understanding Real Estate Terminology
Purchasing a home can be a complicated and confusing process, especially for first-time buyers. Throughout the process, first-time home buyers will encounter a variety of unfamiliar real state terms.
How To Buy Real Estate - Yes, YOU CAN!
If you want to buy a house but don't think you can for any of the following reasons, this article is intended to give you correct information so that you can make smarter choices and open yourself up to a world of wealth, possibilities and realistic expectations.The truth is you are being unrealistic when you believe the following reasons to be true:I can't buy property now because? I don't have 20% for a down payment, let alone 5%, let alone even 1%.
Buying Foreclosures - Knowing Why Helps You Buy
One big potential deal-killer in buying foreclosures is the homeowner. If the homeowner does not trust you, buying their home (even at a foreclosure auction) can become a greater challenge.
I Believe God Wants Me To Tell All In Real Estate
After years of experience in the real estate industry I felt that God wanted me to write about everything in real estate. There were young people that were not being protected by anyone, including buyer's agents.
Building A Home? Want To Ask A Builder The Right Questions - Not The Dumb Ones!
These are real builder questions that I got from readers of my e-book, "Residential Development Made Easy" with answers from a major USA Master Builder operating in 48 States.Question 1.
home | site map
All articles are copyright to their owners.
Note: this website lists articles, We do not Write Articles !