This next level of real estate investing means being able to effectively and concisely explain and back up your business interests to those who might judge you for it. These types of people are not going to be your everyday clientele, as in sellers or buyers of property. What I’m talking about here are the bankers, city officials, other investors, and would be private lenders who can collectively represent your pathway to a highly lucrative tomorrow. These people aren’t going to be swayed by the basic sales presentation that works with many of your day to day clients because they are both more experienced and, from the perspective they are coming from, need to see that your business resembles a business to be impressed with you.

It is for the benefit of these types of clients that the need for a solid credibility kit becomes important. Are you going to be ready to rise to the occasion and be prepared for the higher expectations that these ‘next level’ clients will carry or are you going to be like most investors, who scramble around at the last minute throwing something together? I’d like to think you’d opt for Door Number 1, the door that offers the more prepared approach to professional investing, and it is for this choice that this guide has been created. Let’s start this discussion with a brief review of the essentials for any credibility kit.

Essential #1: The Importance of Being Thorough

One of the more common pitfalls in presenting oneself credibly as a real estate investor concerns the content of one’s credibility kit. One could argue (and argue effectively) that an investor’s credibility starts with real simple things, say a handshake or even a business card. True as these things may be, if you’re going to swim in the proverbial ‘deep end of the pool’, as many of you hopefully wish to do, you’re going to need more than that and that is where this guide will help you considerably.

That said, what constitutes too little for a credibility kit and conversely, what constitutes too much? There may be varying opinions out there on this but I’ll offer my take on this issue and hopefully this will resonate with you as you work to develop your own business. I like to work from the standpoint of the protective mother analogy.  You’ll soon see what I mean here. When we were children, the tendency when it was cold was to bundle up and sometimes more so than we felt necessary. Can you imagine a mother telling her child to put on that extra scarf or layer of clothing, just in case? Of course you can and maybe you have your own personal memories to back this up.

Mothers have, for years, reasoned that It’s easier to have more layers of clothing on and take them off as needed than to not have them in the first place and be cold. Despite what a child may think at the time, mothers have a lot of wisdom and this same reasoning applies to your credibility kit. The long and short of it is that it is far easier to have more information prepared for your kit and not use it all than to not have enough and be left scrambling around trying to prepare something at the last minute. See what I’m getting at here?

When you prepare a credibility kit in sections and follow the guidelines that I’ll be suggesting, you can pick and choose which elements you want to use, based on the needs of the intended recipient. The kit can be real basic, just hitting the highlights, or it can be extremely detailed for a reader who wants to see more. Either way, it all starts with having the core complement of information assembled and ready to go; after that, you simply package the kit to match the situation at hand. Sounds pretty logical, doesn’t it?

I bring this up because I’ve seen many investors who work hard to assemble a customized kit for a particular recipient and end up creating a lot more work for themselves than is necessary. Simply preparing the different sections and then picking which to use for a particular client can dramatically reduce the time and effort that goes into kit preparation and, despite what you might think, the recipient will still appreciate the presentation for what it is.

Essential #2: The Importance of Professionalism

Without a doubt, the biggest benefit of a credibility kit is the importance of professionalism and integrity.  Sure, we’ve all started with business cards, marketing pieces, or even brochures to describe our services. These things, as effective as they may be, represent the so-called “shallow end of the pool” when it comes to real estate investing and the credibility kit is the next step.

Think about it for a moment. Have you ever been asked if you have a business plan and not yet had one? Have you ever had a private lending prospect ask you for a business summary, leaving you scrambling to put something together that looks better than what you already have? Many of us have and I’m no different. A formal credibility kit is a balance of brevity and unmatched professionalism, not so much because it could compete in the world of corporate America where such proposals exchange hands on a daily basis, but more so because it speaks volumes about you as a small business owner.

You will be elevating your status to what would be expected of a larger company when you have a credibility kit to present to your clients. This is both impressive and also will most certainly set you apart from many of your investor peers, the great majority of whom have no such kits to back up and summarize what they do.

Some features of your kit that will help with its professional impact include:

• Inclusion of a cover or title page that gives the kit a professional touch
• Having the kit bound in some fashion to increase its professional impact
• Segmenting the kit into sections to give it more flow
• Offering a table of contents to appeal to the more selective reader

Collectively, these little things can add up to give your kit a look and feel that may well mean the difference between securing a deal or loan and not doing so. Take the time, make the effort, and give the kit the look it deserves to professionally represent who you are as a business owner. Results come from such things.

My next posts will detail all the different tools needed in your credibility kit.  If you have a heightened sense of getting the “must know” information to be successful in real estate, click:  http://www.freemakemoneygift.com/Invitation.html

to check out  pure powerful money making, business life altering real estate investing resources.  This is a $1,620.94 value, absolutely FREE!

Go now! http://www.freemakemoneygift.com/Invitation.html

_{Well, the one thing you must do first so that you can go to the bank later is to consider how you will sell a property before you buy it!}

^{Proven types of Exit Strategies We Consider}

The exit strategies we consider are determined at the beginning of a deal process.  We make our money when we buy the home, such as when we negotiate a sellers debt in a short sale process, however we don’t realize our money until we exercise one of the below exit strategies.

• Wholesale – The business of locating houses, usually needing repairs, at bargain prices and quickly passing them off to bargain hunters well below retail value.

• Retailing – The business of locating houses at bargain prices, usually rehabbing them and selling to the end user for all cash with new financing. This exit can offer the greatest return however, requires the most resources.

• Quick Turn – The business of acquiring a home, needing little repairs, well below market value, perhaps through a short sale, and immediately putting the home on the market to find a 100% financed homeowner.

• Getting Ownership – The business of getting ownership to pretty houses in lovely areas by taking over existing debt. Creating seller carry back financing, and finding a new homeowner.

• Lease Options and Options – Taking control of a property by leasing it from the seller or obtaining ownership from the seller with the intent to quickly find a new quick turn buyer or lease option buyer for the home.

• Auctioning – The business of taking a home that we acquired well below market value and holding an auction for the home to create instant buyers and quick sales. This exit strategy is targeted for executive style homes.

Why is it so important to know how you will sell?  You need to know your options.  Let me explain.  If you don’t know all your options to sell than you taking a huge risk of losing a deal when new complications arise that I refer to in one of my courses, The 77 Biggest Mistake Real Estate Investors Make.

Biggest Mistake #44 that a lot of real estate investors make is they do not have more than one exit strategy to their deal. Now, the reason why this is important for you to know is because the more exit strategies that you have in your business with your properties and your deals, the easier it’s going to be for you to get in and get out and get paid and move on to the next deal.

Whereas if your only exit strategy is to sell a property for all cash to an end-user buyer, then you’re very limited on the people that can buy that property from you, and you’re really cutting yourself short to a lot of different exit strategy avenues. Quite frankly, most of what you’re going to be able to do with your exit strategy is going to depend on how you purchased the property.

So, just keep in mind that whenever you plan to make an acquisition, whenever you plan to purchase a property, you always want to have an idea on what your exit strategy will be when you purchase that home. For example, if you can buy a property and have the seller owner-finance it to you, then you have a lot more flexibility on what you can do with it in the back end.

If you want to sell it for all cash to an end-user buyer and the numbers make sense, you can do that. If you want to sell the property as a lease to own and put a tenant in it and collect a down payment, you can do that. If you want to sell the property with owner financing and do a wraparound mortgage to your end-user buyer, you could have the option to do that.

Whereas if you buy a property and get a mortgage on it in your own name and do a small rehab job to it and it’s a one or two year ARM where the rate is going to go up soon and you’re going to be very limited after the rate adjusts, your only goal and your only intention is, “Man, I’ve got to sell this thing for cash so I can get out of it and pay off that loan!”

Well, you’re very limited to what your exit strategy is with an approach like that. And unfortunately, this is where a lot of real estate investors fail, because they do not have flexibility with their exit strategies. They only have one exit strategy that they can do in their business.

So, just keep this in mind as you begin or continue and grow your business: Always think about what your exit will be before you buy. Keep your exit in mind and be as flexible as you possibly can to the end-user buyer so that way you can get in, get out, and get paid quickly.

Want to learn more?  I have great news, my new book; How To Make Money In Your Local Real Estate Market is now available!  Here’s the link to buy directly from amazon:

http://www.amazon.com/s/ref=nb_sb_noss?url=search-alias%3Daps&field-keywords=Brian+Evans+Make+Money&x=0&y=0&ih=10_6_3_0_0_1_1_1_0_1.89_54&fsc=-1

You will be amazed at how much information is in this book – the EXACT same investing strategies I used to get where I am today and continuing using on a daily basis.  Don’t miss the forward by Ron LeGrand, multi-millionaire investor and mentor.

]]> http://www.ultimaterealestateinvestors.com/strategic-buying/831/feed/ 0 http://www.ultimaterealestateinvestors.com/have-you-done-a-real-estate-deal-yet/830/ http://www.ultimaterealestateinvestors.com/have-you-done-a-real-estate-deal-yet/830/#comments Wed, 25 Aug 2010 19:40:56 +0000 Brian http://www.ultimaterealestateinvestors.com/have-you-done-a-real-estate-deal-yet/830/ Perhaps you have never done a real estate deal in your life. Perhaps you don’t even own your own home.  Perhaps you just started this business recently.  Perhaps you are a seasoned real estate investor but are overleveraged and doing everything you can to avoid a financial crash.  Perhaps you are equity rich and cash poor.  Perhaps your credit is extended to the max.

Whatever your particular situation, did you know that there are some tricks of the trade that will help you move faster along that proverbial learning curve to reach greater levels of success. If you could learn to do a better job of tapping into your own potential, and stop making decisions based on conventional wisdom, how many cool doors of opportunity do you think may begin to swing open in your business and in your life?

What I’ve found, time and time again, is that the doors for success are always there and always waiting to be opened no matter where you live, what your life history is made up of, or what you have (or don’t have) in your bank account.  If you’re like me, you weren’t born into money and wealth.  And whether you choose to believe me or not, this is a good thing.  At least it was for me, because I decided to take my life into my own hands and accept responsibility for my own actions indefinitely.

This type of mind set is not common in today’s society, and this is the exact reason why the majority of society is broke.  Think about it, virtually everyone we’ve encountered throughout our entire lives is broke or slightly above broke.  When we were born we were handed to a broke nurse, who handed us to our broke parents.  We went to school and were taught by broke teachers.  We got jobs and were hired by broke managers, and now perhaps you are a broke manager.

Don’t you think it is about time to break this cycle? I personally don’t want to see you dismayed by what is keeping you from a more fulfilling and more successful life.  Whether you think you are ready for a change or not, now is the time to take your life into your own hands.  The good news is, you don’t have to be born with this mindset, it can be taught.  When the student is ready, the teacher will appear.  Are you ready for change?

If you’re reading this report today, you are probably someone who is hoping that doors will open for you in your life, your work, or your real estate investing business. You may feel like your life is pretty good but it could stand some room for improvement. You recognize that opportunities are out there, but the doors between you and opportunity won’t open. Why is that?  Do you feel like you’re missing something, that maybe something is slipping through the cracks and keeping you from reaching your full potential? Chances are, this missing element may be more income and more time.

Life should be fun and challenging at the same time.  If it isn’t yet, it can be.  If you are looking for a new direction then perhaps real estate is the answer.

Here’s an invitation from me to explore that answer.

Go here:  http://www.freemakemoneygift.com/Invitation.html

to check out  pure powerful money making, business life altering real estate investing resources.  This is a $1,620.94 value, absolutely FREE!

Go now! http://www.freemakemoneygift.com/Invitation.html

For a lot of seasoned investors and rehabbers out there, this one probably doesn’t apply to you. But to everyone else, it’s very important to know how to quickly and accurately estimate the repairs on a property.

And obviously, in the beginning days this is not going to be as easy, but really, it’s not as difficult as you would think. And I’m not a rehabber. I don’t rehab properties. I don’t do construction personally. So, if I’m able to understand and accurately and quickly estimate repairs, then you can too.

I believe the best way for you to start to really get a good understanding in the early days is hire a couple, or request a couple construction bids on some properties that you’re considering buying. And definitely hire more than one. The more you can get the better.

And the more you do that on different properties, you’ll start to see a pattern and you’ll start to understand where certain things fall into play and what they cost. And as far as the little items go, you can always go to Home Depot or Lowes and price some things out.

But the majority of the repairs that you need to always keep in mind when doing rehab job properties are incorporating the labor costs. You’ve always got to keep this cost in mind, especially if you hire this out, which you should hire this out – remember, I don’t recommend doing repairs by yourself.  And the majority of your cost when you write that check after it’s all done is going to consist of manual labor.

Now, what you’ll come to find, and the way we estimate repairs now, we try to do it very simply, but it’s going to come down to really one of a few things. It’s going to cost $5,000, $10,000, $15,000, or $20,000 plus. And if you’re in for a $20,000 plus rehab in your early days, then it’s probably an investment that you want to avoid because $20,000 plus rehabs, you never know what could happen.

If you’re doing a rehab that is going to cost that much, then be careful. In fact, I would avoid it until you’ve got a little bit more experience under your belt. But typical rehabs fall within $5 – $15K.  This usually includes kitchen replacements (cabinets, counters) and bath upgrades (fixtures, possibly tile) and the customary carpet and paint expense, sometimes a new roof.

Once you get a good basic understanding of the algebra, the details of it, (especially if you know what the average costs for the typical repairs/upgrades run) then you can start to quickly say, “Okay, this is probably going to cost between $7500 and $10,000. So, somewhere between $5,000 and $10,000.” And that’s how we do it.

There’s no exact science to it, but if you want to be in this business, then you’ve got to act quickly. You’ve got to be able to make decisions quickly and accurately and you’re never going to be able to estimate it to the T anyway. So, why bother.

So, start to quickly understand and accurately understand how to estimate repairs on these properties so that way you can grow your business, especially if your niche is more along the lines of doing rehabs.

Here’s to a great weekend and plenty of showings on properties.  You can learn more details about estimating your purchasing power by going to:

www.freemakemoneygift.com/invitation.html

As always, I am here to help you with your real estate investing, feel free to reach out to my staff or I at www.BrianEvansSupport.com

I’m also happy to announce that my new book has been published and is being sold as I write this.  Plus, we have closed another real estate deal and will close two more tomorrow.  Wow, what an incredibly busy, but blessed life!

Now, on to sharing some real estate investing insight that really is related to my own personal experiences this past week.  That is this, there are way too many real estate investors that experience some difficulty in their investment endeavors and they give up way too early.  Believe me, this week could have been one of those times when I could have questioned the hard work and determination it takes to keep investing, but it also afforded me the opportunity to be with my family as I needed and still have a successful business that didn’t slow down.

Giving up is detrimental, especially if you put money into your education. This is not an easy business, but this is an awesome business. This is an extremely lucrative business, an extremely profitable business, a business that can give you financial freedom, income, wealth, everything. But if you give up too early, you’re not going to be able to experience that.

So, if you’re a new real estate investor or if you’ve been doing this for a year or two, a little bit, and you’re struggling and you’re dealing with market conditions, then focus on trying to restructure your business to get back on track.

Whatever you do, do not give up. Don’t give up on your dreams. You know it works. It works for other people. It works for me. It will work for you.

But everybody’s different. Everybody has a different attitude. Everybody who works has a different work ethic. The question for you is what is your work ethic? Do you want it bad enough? Are you going to give up right now?

Are you going to read this and then tell me that 30 days, 60 days, a couple months, a year from now, you’ve tried and it just doesn’t work and you’re going to give up?  And you’re just going to agree with everybody else who doesn’t do this business, who doesn’t know how to do this business, and who says it doesn’t work? You’re going to agree with the media who says that real estate doesn’t work, that real estate is a bad investment?

You’re listening to the wrong people. This business works. It can make you a lot of money. It can make you a lot of wealth. It can support your family. It can give you financial freedom.

If you’re struggling, you’ll get through it. Have confidence, have faith and do not give up too early. Keep working at it. Keep jumping over those hurdles. Keep climbing that mountain.

And here’s the thing, if it were easy, everybody would do it, seriously. It’s a poor cliché, but it’s the absolute truth. And if it were easy, then I would tell you that you’re not going fast enough. You need to work harder. You need to stretch your boundaries further if it were easy for you because it needs to be hard.

It’s supposed to be hard. It’s supposed to challenge you, this business is. If everyday it felt like you were just coasting down the mountain, then you’re not going fast enough. You need to be going uphill all the time.

Because here’s the thing, when it’s all said and done, there’s no station at the end of the ride. There’s no “Oh man, I have to do this. I need to do this. I have to accomplish this. I have to make this. So that way, I can reach the end of the station and I can finally say, I did it.” There is no station at the end of your ride, at the end of your journey.

There is only the ride. There is only the journey itself. You need to embrace this and understand this about life, about business.

So, stay focused, have faith, have confidence in you, keep learning, keep reaching for the stars and go make a bunch of money. Don’t give up too early.  Staying focused and confident is the same lesson I will share with my son and I hope you will strive to as well.

Go here to learn more and start investing in your family and yourself:

www.freemakemoneygift.com/Invitation.html

This is really important. If you get greedy in your business, then you’re going to struggle with your business. If you have a house that you think is worth $150,000 and you’re asking $150,000 and somebody comes along and offers you $143,000 and there’s room for you to make money, you should seriously consider that offer.

If I were you, I would take the $143,000 because if you were to wait to try to get the $150,000, you may not get it for another 3, 4, 5, 6, 7 months. And by the time you wait that much, that long, then most likely you will have paid that and whatever your holding cost is, as well as maintenance, taxes and utilities, insurance.

So, don’t get greedy. It’s very, very easy to get greedy and so many people are guilty of this. Make your money. Your goal should be to get in, get out and get paid. That’s it. And move on to the next deal.

So, if you think and if you’re guilty of being a greedy person and wanting to squeeze every single penny out of each single property, then you’re going to really struggle. Your goal should be quantity. Deal after deal after deal after deal. That is your cash flow.

It may be a difficult habit to break if you’re already in investing and you find that very rarely do you accept more than your full asking price.  It’s very easy to get greedy. Especially if you’ve got a reason to be greedy and everybody’s chomping at the bit wanting your house that you’ve got looking beautiful. Well that’s another story if you’re doing some kind of auction type situation, and if you really feel the house is worth that and if you’ve got time to wait for a higher price.

I’m not telling you not to milk the house for all you can get. You’ve got to get paid, that’s how we live. But don’t get greedy either. It’s better to have one bird in the hand versus two in the bush, as they say.

I know I have shared how important it is to know how you will sell a property or your exit strategy before you actually buy a property.  Another way to avoid being greedy is to account to the best of your ability all the numbers and make a smart choice on the minimum price you can accept on a property.  This way, when a buyer low-balls you on their offer (and they will time and time again) instead of being super annoyed, you will be able to counter offer accordingly.  So, be smart, be wise, but don’t be greedy.

I will gladly share all my exit strategies with you through this incredible offer.  Click on this link and be ready to learn!  www.freemakemoneygift.com/invitation.html

I firmly believe that you have to have a business plan if you want to be in this business of real estate investing for a long time. If you want to be in this business for a few months, a year, two years, make some quick money, get in get out, get on with your life, then don’t write a business plan.

But if you want to have a long successful and prosperous business, then I firmly believe that you have to have a business plan. It may sound like common sense, but you’ve got to have it. It’s essential to your business.

You need to understand your business and that’s what a business plan will do if you write one. It will help you to understand where you are in your business, what your goals are for your business. It will help you understand the marketing, the levels in your business, where the money will come from.

It will help you see your business from a big picture, from a macro point of view, from an outsider’s point of view. And it will allow you to start to make alterations, make improvements, and make changes to your business. That way you can grow effectively and efficiently each and every month, each and every year and so forth.

Another reason why it would be smart of you to write a business plan is if you do go and try to get private money at some point, then how great would it be for your credibility if you show your business plan or business summary to a private mortgage lender and say, “Hey listen, I’ve got my act together. I’m not in this thing for the short term. I’m in this thing for the long run and here’s a business plan that I wrote to help prove that.”

Having a business plan adds great, great credibility for you, including trust and responsibility. As a business owner or manager, you’ve got to understand your business. And there is no better way to understand the intricacies of your business than actually sitting down and analyzing it and writing it out so that way it makes sense, you understand it and so will potential business partners.

Every year I go back to my business plan and I update it. I make revisions to it. I make changes to it. And I add to it.

So, a business plan is not something that you have to write in a weekend. It’s something that’s an ongoing thing, but you’ve got to get it started. You’ve got to get the outline and the details and the meat of your business plan started and refer back to it.

And by analyzing your business and critiquing yourself, that’s the only way you’re going to be able to really get successful and grow and have longevity and sustain yourself as a real estate investor.

I will be glad to share strategies and examples of starting and maintain a thriving, real life real estate investing business.  Check out all the real tools you need here:

www.freemakemoneygift.com/invitation.html

]]> http://www.ultimaterealestateinvestors.com/the-importance-of-business-plans-for-real-estate-investors/791/feed/ 0 http://www.ultimaterealestateinvestors.com/goal-setting-as-a-real-estate-investor/790/ http://www.ultimaterealestateinvestors.com/goal-setting-as-a-real-estate-investor/790/#comments Mon, 02 Aug 2010 18:21:37 +0000 Brian http://www.ultimaterealestateinvestors.com/goal-setting-as-a-real-estate-investor/790/ As an investor and an entrepreneur you have to set goals, but what a lot of investors don’t do is to set high enough goals for themselves.  Then continue to do so consistently.

It sounds pretty straightforward, but believe it or not, there really is a lot of truth to this mistake. I strongly believe that if you’re not growing in your business, then you’re not growing, and you’re dying. And it might be a cliché, but I believe it to be 100% true.

And this kind of goes back to one of the earlier mistakes that we talked about, about continuing to get an education and constantly learning about your business. So, it’s a little bit of one and the same here, but you have to set high goals. You have to set high expectations of yourself.

Unless you want to be a mediocre, average Joe investor, that’s fine. If that’s what you want to do, then I’m happy for you. But me personally, I’m always wanting to get to the next level, no matter what level I’m currently experiencing.

And I firmly believe you have to set goals for yourself, you have to have a goal mindset. But not only do you have to have a goal mindset, I believe that even more important than that, you have to have what I call a growth mindset.

Setting goals is one thing. And the problem with setting goals is what happens to a lot of people is once they reach those goals they kind of flatten out, they kind of get stuck.  Because if your goal oriented then you’ll probably reach your goals once they are set and you work hard enough. Once people reach their goals, however, they kind of go into a rut.  Yes, achieving some goals is tough work and sometimes after you’ve done the tough work, you aren’t ready to tackle higher goals and work hard again, or even harder to get to the next level.  This is where some investors plateau.

And goals are good and having targets and setting objectives to reach for. Those are great things to have. But the problem with goals, like I just said, is you start to flatten out once you get there.

So, what’s next? Well, obviously, you need to set more goals. So, above having a goal mindset and setting high goals, you also have to have a growth mindset. You have to want to constantly be growing yourself, constantly be learning, constantly be trying new things, constantly be expanding your business, your mind, your bank account, everything.

So, set your goals, but even more important than that, have a growth mindset. Don’t get me wrong, sometimes keeping the machine going is rough and it’s ok to maintain for a little bit, but if you stay stuck in that mindset then you’re dooming yourself.  You must make new goals and be committed to go after them.  Make sure you set your goals high and make sure you always continue to grow your business and you will reach tremendous levels of success so that you can pass on a legacy for generations to come.

Private lenders are a huge asset to your investing business for multiple reasons which I’ll bullet point right here:

• Private lenders allow you to purchase quickly.
• They allow you to purchase without having to use your own money.
• They allow you to purchase many times without a personal guarantee, so you don’t have to utilize your credit.
• Your credibility is increased when making an investment a win for the private lender as well as yourself.
• A happy private lender may lead to others wanting to do business with you, too.

Most of the time, savvy private investors, they might ask you for a personal guarantee. And it’s probably not unwise to do a personal guarantee, even though I spoke earlier about not doing any personal guarantees. When you’re working with private lenders, it may be something for you to consider, but be wary.

Your private lender ultimately should be investing in their trust in you, as well as their equity in the property. So, when using a private lender, if you default, then the private lender’s recourse is to take the property back.  If you have bought the property wisely and did the correct due diligence with your numbers, then there should be more than enough equity in a property.  So if you default, your lender can get paid and make actually more money than they would make if you were paying them on a regular basis.

And whether you believe this or not, there are more private lenders out there than you could possibly imagine. Despite the fact that we are currently in a recession there are more people with money. All you need to do is flap your lips and start asking around.

By developing a program for private lenders in your business, you begin to leverage your skills. You begin to leverage your business, so that way you can grow your business without the hindrances of what the market conditions are doing, what the banks are doing, how the banks are lending, what the interest rates are, and so forth.

You do not have to have hard money lenders. I’m talking about private lenders, people that have money looking for a safe collateralized return on their investment and that’s something that you can provide for them.

So, expand this part of your business. If you are not already doing this, you’re missing out on a huge leveraging income producing, business-growing part of your real estate investing career and it will definitely help catapult you to the next level.

Just sharing this blog gets me all fired up to attract more private lenders.  Doesn’t you as well?  I can teach you how!  Check this out and make a decision this weekend to expand your knowledge and commit to making big money in real estate investing.  Go here and accept my FREE gift to you, you won’t regret it!

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Now, what this down payment assistance program is, it’s simple. The people that are trying to lease option your property; they’re going to be giving you a non-refundable option fee. Usually that’s anywhere from 3% to 5%, it’s a couple thousand and upwards to maybe ten thousand, sometimes a lot more than that.

So, people are going to be giving you a non-refundable option fee, as well as determining their lease payment with you. But if you ask a simple question, which is this, “Mr. and Mrs. Tenant Buyer, if I could provide you with a program to help you build up your down payment so that way when you do go to the bank and get a loan, it shows that you’ve put in upwards of 10% to15%, rather than 3%, would you want to participate in that program? And it doesn’t cost you any interest or anything. It doesn’t cost you a dime to participate.” Of course, they’re going to say yes.

“Okay, great. Well, here’s what that program is. We have a down payment assistance program.  We’ve already determined what your lease payment is going to be. Is there any way you can contribute money over and above your lease payment each month to apply 100% towards your down payment?”

And they’ll say, “Well, what do you mean?” “Well, here’s what I mean. What’s the most you think you could pay over and above your lease payment each month to apply 100% towards your down payment? This is money that you can pay in installments versus having to come up with a large down payment chunk at one time when you go to the lender.”

“So, whereas a lot of people have problems building up their 20% down payment, you can pay it in over time and you can hopefully get to the point where you want to get to in order to achieve your down payment level when you do go to try to qualify for a new loan.”

It’s nothing more for you, as a real estate investor, than trying to generate some additional cash flow. So, if somebody says, in fact, in my situation I’ve had people pay in close to $400 over their lease payment each and every month to apply towards their down payment.

The only thing that you need to do is you have to write it up in the lease option agreement and you’re going to collect two checks from them each month. One check will be the lease check and the second check will be the down payment assistance program check that you’re providing for them.

And this down payment assistance program check is also non-refundable. So, if they default, then they do not get that money back. If they do not exercise their option to buy, then they do not get that money back. It is non-refundable, just like the non-refundable option fee.

And believe me, I’ve had people that have paid in upwards of $400 a month in addition to the lease payment for over a year and then they’ve walked away for one reason or another.

So, here’s a way for you to establish additional income streams for your real estate portfolios that is simply free money if you ask for it. It’s a great program for the tenant buyer if they utilize it. If they don’t utilize it, it’s no real loss to them, but it’s a way that they could potentially be paying in more money, you could be getting additional cash flow and it’s a win/win all the way around. And it’s a great cash flow boost generator for your business as well.

So, try to incorporate a down payment assistance program into your lease option business if you feel that is appropriate for you.

There are numerous ways to make win-win situations for lease option buyers and yourself as the investor.  Let me share with you all the potential programs you can offer.

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