video 3.2 how to finance your lease option property
TRANSCRIPT
VIDEO 3.2-
How To Finance Your Lease Option-
VIDEO 3.2-
How To Finance Your Lease Option-
In todays video I am going to show you
How To Finance your Lease Option
Property …
For the purposes of this presentation, I will look
at 3 Financing Strategies
# 1Bank Financing
Bank Financing is where you go and apply for a loan and you get approved for a
mortgage …
Bank Financing is probably the easiest and
most common way to finance your
Lease Option …
The challenge with Bank Financing is that you are
limited to how many properties you can acquire
…
And that’s because you need good credit and low debt to income
ratios ...
Bank Financing is also the cheapest way
to finance your Lease Option property
# 2Joint Venture
Partners
Using Joint Venture Partners is when you bring a 3rd party in to purchase your Lease Option property …
Joint Venture Partnersare not that easy to find … especially if you are not an
industry expert.
The way I setup my JV Partnerships is …
Partner provides all the MoneyI provide all the work
Having a JV Partner is expensive.I split the profits 50/50
with my JV partner.
You can acquire an unlimited # of Lease Option properties with
many JV partners.
# 3Seller Financing
There are many variations to Seller Financing
Seller Financing is when I get the seller to stay on
title and to continue to hold the mortgage for the Lease
Option property
Seller Financing is setup the same way that JV
Partnerships are implemented …
The only difference is that a JV Partner becomes a Seller after they acquire a Lease
Option property …
One advantage of Seller Financing is that there are no upfront closing costs …
like with a JV Partner.
The biggest disadvantage with Seller Financing is that you have to find a tenant buyer for that specific
property
Comparison *Investment Strategy Approach Approval Scaleable Cost Profit Split
Bank Financing Tenant First Bank No $$$$ 100%
JV Partner Tenant First Bank Yes $$$$$ 50%
Seller Finance Property First No Yes $ 50%
Stay tuned for Video #3 where I show you why people want
to do a Lease Option transaction