| |
| |
|
|
Real Estate |
|
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. The Strategies 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 our "how to" Home Business Solutions Digest, it's like having your own personal coach: mailto:subscribeHBS@homebusinesssolutions.com
MORE RESOURCES:
Real-Estate - Google News |
|
|
|
RELATED ARTICLES
Investing in the Baltic Tiger: What Has Estonia Got to Offer? Estonia's reputation is growing within the property investment market. Rising far above her new European neighbours in terms of infrastructure and growth, Estonia is fast becoming the Baltic's very own 'Tiger' economy with a healthy growth rate of 5. If You Cant Afford to Retire...Move According to Warren Bland, PhD, an award-winning author and geographer at Cal State, people have a great option. It's called "equity-take" that is, the difference in cost of comparable housing between your present community and the more affordable one to which you could move. Talk to a Lender Before You Sell Your Home If you're looking to sell your home quickly, and for top dollar, the best thing you can do is to be able to offer your buyers some sound financing options. That's why developing a relationship with a lender can be the key to a quick sale, and to more money at closing. Selling by Owner = Saving by Owner? According to the National Association of Realtors, For Sale By Owner (FSBO) home sellers comprised nearly 14% of all home sales in the United States in 2003. The Boston Globe reported that nearly 25% of homes sold in that area during that same time period were FSBOs. Flat Fee MLS Listings - Is This The Future Of Real Estate Realtors are all a buzz about this new form of listing houses on the MLS (multiple listing service). Some feel it creates more work for the buyers agent, while others see this as a way to tap into the For Sale By Owner market. Inspecting Your New Home - 17 Areas You Must Inspect Before Taking Possession Congratulations! You've made your decision; you've chosen your new home and your builder. So what needs to happen next? Once you have a firm contract and you have selected the features that will go into your new home, it is time for the builder to turn your dream into reality. Avoiding A Bad Investment Is Easier Than You Might Think Human nature being what it is, none of us can get serious about the idea of buying a house without experiencing at least a few small twinges of worry. What we fear, of course, is making a mistake. The Devine Secrets Of The Ya Ya Lease Purchase Hood The biggest secret of conducting a successful lease purchase business is to have a plan. I know don't grown. Negative Gearing - It's Not to Your Benefit! The concept of negative gearing has been originally developed to encourage real estate investment in Australia by allowing any income losses from property investment to be deductible from other income as a tax benefit. This means that the taxable income of the owner will be reduced after the deduction and therefore the total tax payable is also reduced. Theres More To Making Money Than A Tertiary Education An education of some sort is a prerequisite these days if you want to start a secure career in whatever field you choose. However, have you thought about where this will get you exactly? Will it help you achieve all your dreams in life, both financial, physical, emotional etc?This article is focusing on the financial and lifestyle dreams that you may have. 10 Tips for Investing in Distressed or Foreclosed Properties 1. Search on the world wide web for distressed or foreclosed properties as a starting point. Reinventing Real Estate, Part 1: Online and Empowered Consumers Are Taking Charge and Paying Less For decades, the real estate world turned in a predictable manner. The roles of buyers, sellers and real estate professionals were fairly well defined and transactions followed a predictable path of yard signs, newspaper ads, open houses and miles of paperwork. How to Find the Sweet Spot in Real Estate Investing Psssssssssst, Want to know a great way to make FAST money in real estate? Listen closely now because this tip is definitely cashable.. Real Estate Investing In Bulgaria As Bulgaria readies for joining the European Economic Community in 2007, many investors are looking to see if there are real estate bargains to be had there.Other countries have had a big run up before and shortly after joining the European Economic Community. Homebuyer Heaven Can't Possibly Last With interest rates at record lows over the past year, there's really only one way for them to go, the only question is when. Most experts agree that rates will remain fairly stable in the short term, at least until the end of the year, and some believe they will even decrease slightly. Invest In Real Estate - But Where? Where should you invest in real estate? If you know an area well, and have enough experience investing in real estate, you can make money almost anywhere. However, there are always places that are better or worse for real estate investments - places that have a better demand/supply ratio. Basic Tips for First Time Home Buyers Choosing a first home can be a daunting task, but following a few key steps makes it a lot less confusing.An essential part of the process for every home buyer is to simply do the math. Making it affordable: Nine tips for first time home buyers It seems that everyone loves a good real estate story. The media is filled with reports about soaring property values and home owners of modest means becoming instant millionaires when they sell. Top Tips for Buying and Selling a Home BuyersLooking for a home-Use Internet for overview of properties, communities, and schools. -Visit potential neighborhoods at different times of day. Florida Real Estate Exploding For 15+ More Years? YEEHAW!!!!!! The south will rise again!! Can't you just imagine the Dukes of Hazard boys sitting on the hood of their car (the General Lee) grinning in front of a For Sale sign in their yard? Well, they should be smiling with the prices in the south, and especially in Florida. But will this Florida real estate trend continue? That is the $100,000 question.
|
||||||||||||||