How I'm Closing My Latest Lease Option Deal

If you’re a new investor, you’re probably not going to believe what I’m about to tell you.

But, once you become experienced in this business, closing deals is easy… just like shootin’ fish in a barrel. It’s pretty much like every skill you learn in life. The first few times you tried to ride a bike it was obviously difficult, but now you can hop on a bike any time with no problem.

The most important thing you can do is to never give up. Just make it through the first few struggling months in this business and then you could be set for life.

I’m bringing this all up because of how easy my latest deal is going. I’m going to break it down for you step-by-step so you can see how to do this yourself.

Why I handled this call myself

First, I got a call from a woman on my cell phone who said he had a house she wanted to sell. I was surprised to get a call like that because almost nobody has my cell phone number. Most of my seller calls go to my assistant, who screens out the motivated sellers from the unmotivated sellers.

However, instead of passing this call along to my assistant, I decided I would call the seller back myself. I want to make sure I’m always “practicing” talking to sellers and never getting rusty on my scripts and other “business” skills.

It turned out the woman got my number from another seller whose house I had bought in Stafford, VA. I love referrals because you have instant credibility and these are the easiest deals you will ever do. I took down all of the property information and it’s a rental property in La Plata, MD that is currently vacant. I told this woman I would get her a written offer in 24 hours.

Why this had to be a lease option deal

Once I did my research I knew I couldn’t pay cash. Because if I’m paying cash these days I’m paying at the most 60 cents on the dollar and she didn’t have enough equity. So instead I pitched a lease option.

The woman loved the lease option deal because I emphasized the guaranteed rent she would get (almost all landlords with vacant properties love the lease option.) Anyway, it looks like I’m going to do a 5-year lease option and will get $200 a month in cash flow, while of course putting no money down.

So here’s what you need to know: First, I knew my scripts and was easily to able to explain how my company buys houses (so always practice and study your scripts.) Second, I gave this woman a written offer within 24 hours (you should always get back to people within 24 hours and your written offer should look professional.) Third, I followed up on my offer to make sure she understood it and to secure the deal.

And those my friends are the simple steps to take, and will become even simpler once you’re an experienced real estate investor.

Can it be that easy?

Note By BiggerPockets: These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.