|
Other Consulting Articles
Leaning Toward Lean: Clear Thinking For Better Health(Care)
Mindfulness is all about paying attention. It's amazing what can be accomplished when mindfulness is applied to systems that need all the attention they can get. If there's an industry that needs
Which Works Better: Subliminal Advertising or Hypnotic Writing?
James Vicary, an advertising expert, went into a 1950smovie theater to test his devious new tool for persuadingothers.During the movie he allegedly flashed the commands"EAT POPCORN" and "DRINK
Five Strategies To Strengthen Your Company’s Financial Management
<br />Too many businesses wait until a crisis occurs before they start to focus on improving their financial management. Often, by that time, it can be too late. By setting aside an hour now
Save Time and Boost Profits with Free Content
Public domain gives you a head start creating ebooks, ecourses, newsletters, teleconferences, website content and email registration incentives you need to keep in constant touch with clients and prospects.<br
“So You Want To Build A Home Gym”
I walked into the commercial gym yesterday after a long day of work excited to begin my workout. After warming up I proceeded to the squat rack to start my resistance training workout. I unfortunately
|
|
Recent Consulting News
WCI Consulting Launches Instant Access to Provide Instant BI Mentorship for End-Users
WCI Consulting, a leading business intelligence consulting firm, today launched Instant Access, a new service that offers instant BI knowledge and instruction for end-users of
Association of Management Consulting Firms Announces 2012 Awards Finalists
The Association of Management Consulting Firms is pleased to announce the finalists for the 2012 Awards which celebrate excellence in consulting projects. These outstanding client
Houston Texas Consulting Teams up with the Ronald McDonald House
Houston Texas Consulting Teams up with the Ronald McDonald House Houston's Ronald McDonald House offers loving, home-like environments, where families can find support and share experiences with others while on their journey to overcome a critical childhood illness. When a critical illness strikes a child, the nearest treatment can be far from home in an unfamiliar medical center. The only ...
|
|
Instantly you know if we have the home based business consulting you need. If we do, then you stay here and check it out. If not, then you keep on surfing and searching. BUT let me tell you what you are missing! I did a lot of research on this and have tons of personal experience. So, there is a good chance you will find what you need here.
Various Aspects Of The Lease Purchase Business
In a previous article, we wrote why we believe that Lease Purchasing is the perfect home-based business, here we want to briefly touch on some of the actual aspects of operating such a business, the pluses and minuses and why Lease Purchasing represents a win-win situation for the seller, the tenant/buyer and just as importantly, you, as the business owner.
One of your goals in operating a Lease Purchase business is to contract for property that you then move to the tenant/buyer. There are a number of unique strategies that can be employed to reach this end.
You can lease purchase the property and then sub-lease to a tenant/buyer. In this strategy, you are taking on the responsibility for all payments to the seller. However, it also affords you great profit potential. You can collect money up front as option consideration, you receive the positive cash flow and you can make additional money at the end if the option is exercised. For those of you not familiar with the term positive cash flow, this is the difference between what the tenant/buyer pays you and what you pay to the original seller. This is also known as a sandwich lease purchase.
Another unique strategy is called the co-operative assignment. Here, you contract for a property and assign or sell that contract to a tenant/buyer, with the approval of the seller. In other words, the owner/seller has final approval over who goes into the home.
Another way of doing business is the straight assignment. Here, you contract for a property and assign or sell that contract to a tenant/buyer. This method does not require a seller's approval.
You can also take a pure option on a property which allows you to purchase the home at a future date with set terms. This option can then be sold to another investor.
As you can see, there are a number of unique strategies that can be employed in this business. We have touched on just some of them to give you an idea of the type of income Lease Purchasing can generate for you.
After you've gained experience in the business, you can start consulting with sellers and tenant/buyers. There are many reasons you may want to consult with a seller rather than get directly involved in the deal. The property may be to distant to work conveniently, there may not be enough money in it for you to receive what you need, or the seller may prefer to do it him or herself.
When you consult with a seller, you are providing the proper contract, a marketing plan and supporting material. We also provide a period of time for follow-up questions.
You can also consult with tenant/buyers. You may want to do this with those individuals who have limited funds available to get into a rent to own home. There are also occasions where people just prefer to do their own house hunting.
We've really just touched on the various ways to generate income with a Lease Purchase business. Lease Purchasing allows you to develop multiple income streams. By utilizing all of the income generating strategies available to you, you can build a very solid financial base for yourself.
We've covered many of the pluses of Lease Purchasing as a business, but we'd be less than honest not to point out some of the minuses.
If you're the type of individual who has poor attention to detail, this may not be for you. You need to be able to keep good records of whom you spoke to and do business with.
Also, if you're an impatient type and don't like to do "hand holding", again this may not be for you. There are many deals where you will need to be able to walk the participants through and provide constant reinforcement to them.
Although the risk level in this business is minimal, there are some risks involved. You may contract for a property and not move it for example. If you're adverse to any risk, re-think Lease Purchasing as a business for you.
In our opinion, Lease Purchasing provides a truly win-win scenario for all parties. You get to help a seller who has a problem, you provide a nice home in a nice area for the tenant/buyer that they can get into today and buy tomorrow and finally, you are generating a wonderful income for yourself. This is a business that can be operated anywhere there are free property rights.
Believe us when we say that Lease Purchasing is the best business we will ever own. It's that good!
Copyright 2002, DeFiore Enterprises.
Interested in having your own successful, home based creative real estate investing business? Chuck and Sue have been helping folks start successful home based businesses for over 19 years, and we can help you too! To see how, visit http://www.homebusinesssolutions.com for the latest FREE tips and tricks, educational products and coaching in creative real estate investing and home based businesses. No time to visit the site? Subscribe to our FREE "how to" Home Business Solutions Digest, it's like having your own personal coach: mailto:subscribeHBS@homebusinesssolutions.com
coaches@homebusinesssolutions.com
Ride the tide and ride it well with the stuff you find at this site. Need more on health consulting OR consulting general? We’ve got it here. Still looking for more information? Try our various articles on home based business consulting to see if it meets your needs.
Add a Comment
|