WHAT HAPPENS WHEN THE LEASE/OPTION IS EXERCISED?

THE DAY HAS ARRIVED! YOU RECEIVE WRITTEN NOTICE FROM YOUR LEASE/OPTIONEE THAT THEY ARE READY TO EXERCISE THEIR OPTION AND BUY YOUR PROPERTY. AFTER JUMPING IN THE AIR WITH GLEE, YOU SEND THEM TO YOUR MORTGAGE COMPANY TO BE QUALIFIED (YOU WANT TO HAVE AS MANY FRIENDS IN THIS TRANSACTION AND CONTROL AS MANY OF THE COSTS AS POSSIBLE) AND THEN YOU DO THE MATH. HOW MUCH OF THEIR MONTHLY PAYMENT TO YOU WILL BE CREDITED TO THEM FOR CLOSING COSTS OR DOWNPAYMENT? REMEMBER EACH MONTH THEY WERE PAYING YOU AN AMOUNT FOR THE OPTION WHICH WILL NOW GO TOWARD THEIR CREDIT TO BUY THE HOUSE. IT IS THEIR MONEY AS LONG AS THEY BUY THE HOUSE.

THEY GO TO CLOSING AND TAKE TITLE TO THE PROPERTY AND YOU ARE NO LONGER INVOLVED IN THE OWNERSHIP OF THE PROPERTY. YOU HAVE MADE A SMALL PROFIT. AND YOU DIDN'T HAVE TO DO ANY LANDLORDING WHILE THEY WERE IN THE PROPERTY. HOW WONDERFUL......

OR........

THEY SEND YOU WRITTEN NOTICE THAT THEY ARE READY TO EXERCISE THEIR OPTION AND YOU HOLD THE NOTE/FINANCING FOR THEM. YOU BECOME THE BANK. THEY ARE ALREADY QUALIFIED. THEY HAVE MADE PAYMENTS TO YOU FOR AT LEAST A YEAR AND THEY HAVE MAINTAINED THE PROPERTY AS IF IT WERE THEIR OWN. GO BACK AND READ THE NEWSLETTER "YOU BECOME THE BANK" FOR DETAILS ON HOW THIS WORKS.

FROM A FINANCIAL PERSPECTIVE THIS IS HOW IT PLAYS OUT

PRICE OF HOUSE $250,000

THIER OPTION PAYMENT $10,000

MONTHLY OPTION PAYMENTS TOTAL PER YEAR $6000

TOTAL DUE $234,000 AT 8% THEY PAY YOU FOR 30 YEARS AMORTIZED

YOU OWE $150K AT 6% FOR 15 YEARS

ALL THESE #'S ARE MADE UP TO SHOW YOU HOW IT WORKS--YOU PLUG IN YOUR OWN #'S TO GET THE RIGHT RETURNS

THE BOTTOM LINE IS YOU ARE COLLECTING 8% ON THE DIFFERENCE PLUS 8% ON THE CREATED EQUITY!!!

WHY WOULD YOU EVER SELL THIS PROPERTY OUTRIGHT WITH NEW FINANCING AND WALK AWAY!!! ADDRESS QUESTIONS TO [email protected]