Now is the Time to start Cooperative Lease Options(How to Begin)

There are countless ways to find very good real estate deals. Just as one example, real estate investment clubs are full of burned-out landlords and property owners in a position where they need to liquidate a property to raise some cash or generate some income. Real estate clubs are also where you find willing investors who understand cooperative lease options and sandwich lease options. But first, what you need to know is…

Cooperative Lease Options are Very Low Risk

Cooperative lease options are a form of flipping lease options. Flipping a lease option means, you don’t have skin in the property. That makes it an outstanding way to begin a full or part-time career in real estate. These deals also go over very well at real estate investment clubs. Not only is your risk super low but the required action that you need to take is also very little. You might need to perform some due diligence but not nearly as much as you would if you were about to become the property owner. You don’t need to pass inspections, nor pass a credit check, nor qualify for a loan, nor pass a loan appraisal.

Cooperative Lease Options Have Almost NO Barriers to Getting Started.

All you need is a reasonable expectation that the property is worth more than you are putting it under contract for. The bigger the difference between the retail value and your contract value, the more you’ll put into your bank account by flipping cooperative lease options. After doing it once, you’ll want to do it again and again. But just as important, a cooperative lease option is the confidence builder that you need to take a bigger and more profitable position in sandwich lease options. This is where you make money on the front end, the rent spread in the middle, and again on the back end.

Cooperative Lease Options and Sandwich Options Take Very Little Time

Starting with cooperative lease options makes a natural progression to sandwich lease options and other investing strategies if you decide another strategy is what you want to explore. Cooperative and sandwich lease options can provide the funding you need to move into other things like rehab flipping, owning and holding as a landlord, investing through foreclosures, closing short sales, etc. Don’t misunderstand; lease options are great all by themselves but these also open your world to many other possibilities. One reason lease options make great transition paths is because so little of your time is required to stay active with lease options while you explore other possibilities.

This is all happening at a time when real estate investing opportunities are blooming as a work from home option during COVID-19.

Lease options are NOT about licenses, down payments, credit scores, or borrowing money. Lease options are about TAKING ACTION. Even if you need to start by going over the course materials, you can have your first cooperative lease or sandwich lease payday in your bank in 29 days or less. It works as a full-time job, a part-time job, a retirement hobby, and can lead to early retirement at age 35, 40, or sooner.

It All Begins with Motivated Sellers

Motivated sellers are people who NEED to sell, not people who want to sell. You will quickly learn how to screen between the two so that you don’t waste your time trying to twist together a low-profit deal. You will come across people who want to sell but don’t need to sell. You will learn how to quickly identify these people so that you mentally say “next” and move onto a deal that works both for you and for the seller.

But you won’t have wasted your time because many of the people that want to sell will call you back up when they need to sell. You will have already explained to them the basics of the sandwich lease option. So do keep a phone list and don’t burn bridges. You may decide to call these people back in 45 or 60 days when their circumstances change. Motivating circumstances include job loss, new job location, property taxes, foreclosure, bankruptcy, new marriage, divorce, retirement, death, need a smaller house, need a larger house, and the list goes on and on.

The more motivated the seller, the better the deal.

It begins by being able to ask people what they are motivated by. The first skill you need to learn is how to distinguish between motivated and unmotivated sellers. You’re only going to TAKE ACTION with motivated sellers, not with unmotivated sellers. The numbers have to work or no deal.

It’s best, but not required when the motivated seller takes the first step to contact you. Your marketing does this by highlighting solutions to their problems. They need you. They will be happy talking to you. They see your solution as a WIN-WIN to their problem!

By Wendy Patton