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Joe: Hey, it's Joe. I've got another question. Deena: "Hi, Joe. Your "Push Button Method"
is phenomenal. I've already started implementing some of your ideas and last week, I closed
my first deal and made $6,000 on one and $2,000 on the other." Congratulations. "I don't think
I had more than three or four hours total into these deals." Thank you. "But I have
a question. Can you explain your For Rent Method and how it works?"
Joe: This is from Deena in New York. Deena, the "For Rent Method" is the system that I
teach everyone who is just coming into my mentor program. What it is it's where we go
to the newspaper, we find all of the ads that are listed as homes for rent, and we start
calling through it. We have some ways to do this, like automating it with voice blasts
and autoresponders and things like that; just a very basic things...
Joe: This is what I do at my Two Day Buying Event, by the way. I take people through this
process. I teach them the whole thing. I teach them how to talk to the sellers and how to
do this whole process. I'm actually in the conference room. We do it right here in Indianapolis
usually at the Two Day Buying Event. Joe: I get them in the room and I teach them
for a couple of hours and then we actually do some role playing, then we get on the phone
and we actually make offers right there in the conference room. It seems like last time
we did it we had about 47 people in the room and within that first three hours in class
there, they had bought 98 properties. Joe: This is a phenomenal way to get started
fast, to start flipping properties quickly and start making money right away. Let me
explain how it works. Joe: We've got the for rent ads that we're
getting from the paper. Basically, we just call down every one of those ads and we ask
them, 'Hey, would you consider selling your home rent to buy rather than just renting
it?' We find that one in three say yes. This is such an easy thing to do. When they say
yes, what we'll do is we'll send them over what I've got is a one page lease option agreement
memo, and what that does is it makes us a principle in the transaction.
Joe: The reason we do this this way is because most of my students are not agents. Most of
them are just regular people out there who don't have a license. So we have to be the
principle in the transaction before they go out and sell the property.
Joe: As an agent, you can do it a different way if you like but using this lease option
memo is very easy because it makes them possible for them to get out of it. I made the lease
option memo specifically to protect the seller, so it'd be much easier to get signed. It's
just a one page lease option agreement between you and the seller and it allows you to assign
your interest in that lease option agreement to another buyer.
Joe: So now you've got this lease option agreement, you're the principle in the transaction and
you go out and you're going to sell this property and you're going to go to your list of buyers.
Joe: We've got lots of great ways to find lease option buyers. These are the easiest
leads out there to find right now because it's so difficult to get mortgages. And I
know that you're all dealing with this problem right now, so if you find properties for lease
option buyers, it's going to be a lot easier for you to put deals together and you can
usually get a commission that is as much or more than you would get if you were working
as a real estate agent and getting a co-op fee. So these are great source of leads.
Joe: It's much nicer to get 30 or 40 calls from buyers a week than getting one or two
calls from buyers a week from classified ads trying to sell a property that you've got
listed. This just changes your business dramatically when you have that kind of business coming
in. Then, if you start using the building a list and using the autoresponders and using
the other automation techniques that I've been teaching on these other videos, this
works phenomenally. Joe: So then you go out and you get the lease
option buyer. The lease option buyer is now going to pay a lease option fee and the first
month's rent. The lease option fee goes to you, the investor, as the assignment fee.
So you're going to get that. It's a nonrefundable fee. If they don't buy the property, they'll
lose it because it's gone to you. If they do buy the property, it applies to the purchase
price. Joe: The seller's going to tell you how much
they want for the property. Let's say they want $200,000 for the property and you were
able to get a $5,000 lease option fee. You get $5,000 from the new buyer. They're buying
the property for $205,000. Now, they still owe 200,000$ to \the seller. The seller gets
full price for their property. They don't have to pay a realtor commission.
Joe: It's really a beautiful thing for the seller. It's a beautiful thing for you, and
it's great for the buyer as well because they get into a property that they couldn't have
gotten into otherwise because they don't qualify for a conventional mortgage.
Joe: You're going to be looking for people that have jobs and income. You're not going
to want to put deadbeats in there. But that's what these people are looking for anyway;
they're looking for good tenants for their property. So if you can come to them and say,
'I've got 23 people on my list right now that are looking for properties in your area. Would
you be interested in selling it rent to buy?' it's a very, very powerful approach and a
very, very powerful offer. Joe: We've got it down to a science. We've
expanded it and made all sorts of great ways to talk to these people and automate it and
all of that as well, and that's the stuff that I teach in my "Six Month Mentor Program".
So, hopefully that helps. Good luck with it.