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All investors have heard horror stories from single and multi-family investing: bad tenants, rehabs gone wrong. Often these stories result in investors paying much more in out-of-pocket capital than was accounted for. This remains a major contributing factor preventing would-be investors from making the leap. Though there are successful strategies one can adopt to deal with bad tenants or to facilitate successful rehabs, many investors are still wary of residential asset classes.
However, there are ways to earn cashflow without having traditional tenants or making unneeded rehabs to the property.
Larry Goins is one investor that does not rely on having traditional tenants or doing property rehabs.
Listeners may remember Larry from Episode 106 where he discussed finding creative ways to make money in rising markets. Larry is a 30 year investor and investment mentor. He is an author, speaker and educator sharing his wealth of investment experience with beginner investors. This episode, Larry discusses his strategy of offering lease options instead of traditional tenant leasing.
Earning Cashflow through Lease Options
- Homeowners in Training
- Prospective tenants are given lease with option to own
- Tenants have stated intent to purchase property
- Tenants put up non-refundable down-payment stating consideration to purcahse
- Lease Agreements
- For Dodd-Frank compliance, tenant’s down-payment only goes to closing costs; no rent credits can be given during lease agreement
- Make sure tenant is responsible for minor repairs and maintenance for “x” amount per occurance
- For more on Dodd-Frank compliance, check out Ep. 49 with Kevin Jurinski
For more information about lease options and earning cashflow without tenants or rehabs, contact Larry directly through his website.
For webinars, trainings, reports and other information, visit www.larrygoins.com
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