Today you’re going to learn about my latest lease option deal that I just filled. This is similar to another deal I just did and I can’t remember if I wrote about that deal or not. I’m having deja vu but can’t remember. I don’t remember a lot which is why I always carry around a piece of paper and pen with me.
I’m old school so I hate fancy cell phones and don’t understand those nerds who sit around and type into them all day.
Guess what else? I’ve never sent a text message in my life. I’ve actually blocked text messages on my phone so people can’t send me them (I blocked them because too many people were text messaging me and wasting my time).
How I Keep Track Of My Thoughts
Anyway, my latest and greatest method of keeping track of my ideas and thoughts is by 3×5 index cards. I’ve got note cards all over my desk with property information, with sellers I need to call, etc. If you’re forgetful like me, head over to your office supply store and stack up on cards.
Now to the money making info on my latest deal: First, I filled the property in 22 days. It usually takes me between 45-60 days to find a quality candidate to fill a property so I was definitely happy about this (I found the tenant from craigslist.com). I ended up getting $3,500 up front in option money. In today’s current market we’re getting less money than three years ago. Also, the $3,500 is pure profit because the tenant also had to give me the first months rent on the property.
How I Added $100 a Month to My Cash Flow
Usually, I like to get $5,000 in option money (obviously) so how did I accomplish this on the property? Well, I added $100 a month on top of the current rent payment for the next 15 months which goes towards the option money–Now I’m getting an extra $100 per month added to my cash flow.
One of my favorite real estate books of all time is John Schaub’s “Making It Big On Little Deals”. This deal I just did is the perfect example. If you do just two lease options per month you’ll make $7,000. Also, remember $3,500 is the least you will take in option money and if you find someone with $5,000 or $10,000 even better.
The Best Type of Motivated Seller To Target
By the way, since I’m feeling scatterbrained today I almost forget to tell you how I ended up getting the deal. The deal came from a tired landlord who was sick of having vacancies (If you don’t market to tired landlords you’re nuts). Also, of course I put no money down on this deal. When doing lease options never, ever put money down on a property. If you ever have to put money down you want to do a subject-to deal (This means you want to own the house–be on the deed).
This is a dream lease option/sub-2 market so get out there, close deals and find creative ways to add more money to your bank account.