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Lease 2 Purchase Success Stories
Below you will find some recent success stories that people have sent in to me. I get a warm fuzzy feeling each time I read these wonderful testaments. They are here to both teach and inspire you and they serve as proof that the Lease 2 Purchase contract is a mighty force to be reckoned with.
Do you have a success story that you'd like to share with the world? Boy, would I love to hear it! Click here to send it to me and I'll post it right here for the whole world to see.
Just wanted to drop you a line and tell you that I will NOT be taking you up on your double the money back guarantee.
I got your book via Download and went right to work.
I used your ad...
I used your contract...
I used your techniques...
I used your Rental Application...
In ten days I had a buyer for my property at Full Market Price. A week before getting your material I would have sold my house for what I owed on it plus closing cost. I had given up hope of making any money on the deal.
Now I have a buyer who I will get qualified for a mortgage in less than 12 months and I will make $5000.00 up front, cash flow $100.00 monthly, and the best of all I will walk away with a $25,000.00 pay day in about 12 Months.
I don't think it can get better than this.
Thanks for providing real world information that can be used by real people, and at $147.00 it did not break the bank. It is worth however, so much more.
Jeff You're The Man!
Merry Christmas to Me!
Its R.H. from NYC. All the best to you and yours! God bless you Jeff. I structured a very nice Sandwich deal this past Friday. Pretty darn close to Christmas Eve! Your inside info made Christmas very special for a bunch of folks over here!
I really admire your style and presentation Jeff. It is so streamlined-svelte and PROFESSIONAL. I love it and every person who your/our knowledge touches is Very impressed and intrigued. I have found a vehicle which is the route to my financial dreams. Thanks a billion!
PS Where can I locate Victory Homefinders? You can use this letter but please use initials or an alias. Thank you.
Just wanted to send you some more good news. I ran into a couple that had started in the rental business 2 years ago. They didn't work it much after that and did not keep all the properties up real well. They started a coffee shop and decided to get out of the rental business. They were now financially strapped. I bought one of the homes on a lease option purchase and turned it in a matter of weeks for a $1500 deposit profit, a $100/month rental profit, and a sales profit of $12,000. The buyers credit was a little blemished, but they can buy FHA in 12 months.
I went back to this same couple and found out they had three more properties they want to sell. Two of them are in ok condition and the other is in pretty good condition. One of the properties is in a great location and I found out it is commercially zoned! I bought at a real low residential price, and am going to turn this in a few weeks for a high commercial value!
About $30,000 profit!
Since I bought your program a few months ago I have turned about 10 properties! Great way to go. Thanks for the great program.
According to Your Profit Calculator
Hi again Jeff,
It's been a while so let me update you on the deal I've got going. I found this cute little home in a nice neighborhood that was priced right ($60,000 - about $2,000 less than what I thought it was worth). Anyway, the seller wanted out of it so I made her a lease purchase offer exactly how you teach in the Handbook and she accepted! My terms were: $1,000 option deposit, $550/mo for 24 months, $200 rent credit. I couldn't believe that she accepted my offer - it was like I bought this nice little home for a total of $1,550 down. Wow!
Before I signed the paperwork with her to close my deal, I ran two ads looking for tenant/buyers. Much to my delight, my phone didn't stop ringing with interested people for three full days! I found a potential tenant/ buyer and showed them the home and they wanted it. I had a sales price of $69,900 in 24 months (should have no problem appraising at this), received $2,000 down for the option money, charged $650/MO and gave a $100 rent credit. Of course, I checked their credit and it wasn't perfect, but they shouldn't have any problems getting a mortgage if they pay off a couple of late pays.
According to your profit calculator, my front end net profit was $1,100 (which I'm going to use to invest in another home), my net profit from rent will be $2,300 and my back end net profit will be $11,300 for a grand total of $14,700!! Thank you, Jeff. Now I see why you started your web site.
Jamie Montgomery, St Louis
20K Net Profit in a Couple Months
I purchased your course a couple of months ago and the information is excellent. I have already completed my first L/P deal where I lease purchased a property from a seller, improved it and lease purchased to a T/B for over 20K Net Profit.
Chris asks a question...
Thanks in advance for your replies. Your information is outstanding. Have a great day!
To your continued success,
That's What Friends Are For
Just wanted to let you know that I bought your course to help a friend. She had purchased a house for her and her daughter to share and her daughter left which meant she couldn't afford the payment alone. She was already weeks late on her payment and needed to do something fast. She paid $85,000 for the house last July and her payment was $718.00 a month.
In only two weeks she was able to lease option it for $96,000.00 with $800.00 monthly payments. She virtually went from facing foreclosure and losing everything to generating a small monthly income and profiting $11,000.00.
Now I am going to try to lease purchase a home and then sub lease. Thanks much for the help!
Success Just Two Weeks After Starting
Two weeks after receiving your program, I was able to sell with a $3,000.00 option and a $120.00 positive cash flow. I am more than convinced. I look forward to future investments. Thanks!!
The Success I Had Using Your Material
I just wanted to tell you about the success I had using your material.
About two years ago a tornado wiped my business out and I discovered how under-insured I was. To make the story a short one, I was wiped out financially. I have gone to work for a corporation but a long period of unemployment and a present salary that is about 1/2 what I was making has made it very rough.
When I ordered your course about a month ago, we were living in an over-priced apartment plus paying a monthly storage bill because our belongings wouldn't fit our apartment.
After buying your course I found a beautiful house that had been empty for nine months. The owner had moved out of state and was paying on two houses. I have no idea why it didn't sell but I suspect he wasn't very flexible at first. However he was VERY flexible by the time I contacted him.
I used your methods and forms and was able to lease option the house for less per month than we were paying on the apartment. The option period is for two years with two renewal periods, and my total option payment was $1,000.
I estimate that we have the house locked in for about $30,000 under its present market value for six years. Over the last two years, my credit took a real beating, but this arrangement assures that I will have equity in the house when we decide to buy it. I don't think we will have any trouble getting a mortgage with $30,000 already in the house even if it doesn't appreciate in six years (note: this house is in North Atlanta, an area that has seen about 7% appreciation rates for years).
Jeff, thanks for everything. We now live in a beautiful 3400 sq ft house thanks to you.
P.S. Jeff, with this under my belt, I am actively looking for more lease/option deals to put together. I am finding that telling sellers I am looking for an investment property puts a very different spin on the conversations. They don't try to sell me on the house but we go right to talking about the numbers. It brings out whether they are motivated buyers a lot faster when they aren't trying to "sell" me on how beautiful the house is.
After the Realtor, Then Came Jeff
I listed my property with a Realtor for $159,900.00 and contracted for 7% commission for six months. Well that went about nowhere fast, except for six showings - two of which were unrepresented. Then we had an offer, then counter-offer, then agreement which never materialized. I was going crazy!
After all this anxiety, I started to realize I was paying $12,000.00 in commission, going to sell for 15% less than my asking price, and 25% less than market value.
Then along came LEASE TO PURCHASE. YO JEFF!!!! I bought the course - studied the course - dreamt the course, then applied the course.
Here's how it went down...
Listed the property for $159,900.00 with lease/option consideration $8,000.00 and monthly payments of $1,000.00 for 12 month term and rent credit of $200.00. After 1 month of continuous showing, we found a qualifying family, with fair credit, excellent income, and with hard work should be able to qualify for a mortgage, at the least a non-conforming loan in 24 months.
Terms: $159,900.00 purchase price. Lease Agreement: $1,000.00 month for 24 months, no rent credit. If they default on the lease, one day over agreement then they're history, and I start the process all over again. I JUST LOVE IT!
My end; taxes, mortgage and insurance $800.00. Also one 33 cent postage stamp and letter to my neighbors saying "see ya!" In 2 years, when I've closed this deal, I will be sure to post the results.
Thanks for the course Jeff!
What Am I Doing Spending Another $100?
I wanted to briefly share my success with you and your readers. I bought your program about three weeks ago. At first, I thought, what am I doing, spending another $100 for a program to make money. But, after I read through the book, I thought this should be pretty easy - again, another question popped into my head, are people really this eager to lease purchase. Well, I tested the waters by placing an ad - my message machine had 72 messages the first day!
I have been contemplating leasing my house or selling it because I am building a new house in another area. So, to see if I could lease it quick enough, I started screening the prospects that called. To make a long story short, I have leased my house, received $5k deposit and I don't have to move out for 60 days! Not only did I secure a tenant for my house (which by the way would not have sold this quickly), but I bought the time I needed to move into my new house, guaranteeing I won't be faced with 2 mortgages. Today, I have negotiated another property in the same area to lease from the seller, and the ad for this house has already pulled in 30 calls and I just placed the ad yesterday. Thank you for this WEALTH of information, at this rate, I see myself turning at least 5 properties this year!
I Cut a Deal
I have a rental unit that I've been trying to sell with L/O's to buy. I was showing it to a potential client. When we got down to the Option money they didn't have it. I told them I had another place that renters move out and left me with a mess. If they were interested in doing the work to improve the place, we could use their labor for option money. Here's how the deal came out.
Lease for $695.00 month to month for 12 months $100.00 credit a month to be applied to purchase price.
Option to be all labor and material to repair the place (around $2k). Work to be completed in two months. And the purchase price is to be determine after all repair and improvement are done and appraisal taken. Any repairs and improvement are to become Landlord / Sellers if default or option isn't exercised, with no cost to the Landlord / Seller. I figure that I got two birds with one stone. I got the place fixed and can get my asking price. And also got the rent row back on track. If they don't meet the agreement they're gone.
That it, if you see anything I can tweak, let me know.
A Hearty Thanks
A hearty thanks for putting together this terrific website and L/O training materials. I just put together a double deal: the first one is to purchase my residence, and the second one to L/O a home for the lady who's house I'm looking to purchase. In my case:
Purchase price: $160,000
Option deposit: $7,000
Rent credit toward purchase: 50% ($750)
Appraised value of house: $180,000
Term: one year
As you can see, the strength of this deal is the purchase price well below the appraised value, and the whopping 50% rent credit. The house needs $10,000 in fix ups, but when it comes time to exercise, the net purchase price will have been reduced to $151,000 from the rent credits, while the net rental cost to me to control the property for one year is only $750/mo. I should be in a good position to re-assign the L/O or structure a nice new one down the road when I want to sell.
I managed to get the same terms for a home for the lady whose house I'm looking to purchase, although the sale price of that home is more on par with it's appraised value. All three parties met tonight to review written offers I put together as the resident L/O "expert", and all parties are happy, especially me!
As this was my first deal, your website has been a very welcome source of support and useful information.
Thanks again for a great site!!! :-D
Four Mistakes, Then Success!
I bought your Lease 2 Purchase handbook back in 1999 and followed your methods and added a few of my own. I placed an ad in the Penny Saver that services my area and sat back and waited for sellers to call me. I received a lot of calls from sellers that weren't motivated, a few calls from other investors, but fortunately for me, I did receive a call from a supremely motivated seller.
She said was tired of renting to her deadbeat, lazy and unappreciative tenant, the tenant happened to be her son! He thought he was a real handyman and tried to remodel a few things. Ultimately, he broke everything he touched.
In early April 2000 the seller and I negotiated a 1-year lease purchase with 2 (1) year extensions. I gave her $100 of option consideration and the contract began in May 2000. I agreed to pay her mortgage payment of $875 per month and I agreed to pay her mortgage balance at the beginning of each year. I received a copy of her loan statement and the right to notify her mortgage company that I should be contacted if there were any late payments.
(Mistake #1) I didn't do any repairs, or any clean up. I just placed a "handyman special" ad in the paper and received over 50 calls! Of the 50+ calls, only about 3 would take the property as is. I settled on my buyer/tenant because she was a handy person, had lots of tools and was in the construction business. The tenant/buyer and I agreed that she'd pay me $1,050 in rent and I'd give her 50% rent credit toward the purchase price. I was excited, and in a hurry, and sheepishly asked for only $1,500 in Option money.
(Mistake #2) Boy, did I make the wrong decision! I checked her credit and it sure was stinky. But, I thought, she's gonna fix-up the place. Why not give her a break?
(Mistake #3) Next, she couldn't come up with the initial rent and option consideration without relying on a contractor that she had worked for. This method of paying me proved to be prevalent throughout the several months that followed.
(Mistake #4) Well, I was Mr. forgiving and understanding, and thought she'd get back on her feet real soon.
Of the 8 months she was in the property, she paid for 4 months rent and I paid the rest. Never once, was I late to the seller. The seller received my rent payment on or before the 5th of every month, even though the deadbeat tenant I carried on my back was always late and always had a sob story.
So November 2000's rent is late again and as usual I'm sweating and stressing, but I'd had enough. I took the advice of a "I take no bull sh%t from tenants" fellow investor and started the eviction process. I hired a company that handled the entire process for me and, surprisingly, it went well.
She was out by the 8th of December. The property looked almost exactly like it did before I rented to her, except now there was more crap in the yard. Man, was I downhearted!
I went back to the property to start to remove the stuff she left behind. As I was working, and anxious, stressing, and tense, I bumped into the neighbor and asked if he knew anybody that might want to rent this place. He didn't speak English well and thought I was trying to sell the place. I gave him my number and continued on with my cleaning. I get home after taking prized time away from my family for which I received a bunch of finger wagging "I Told You So's" from my wife.
I had also listed the property with a few rental agencies and started to get some bites. Well, when I checked to see if any prospective buyer/tenants had called, I heard a message from the cousin of the neighbor I had spoken to that day. He didn't want to rent the place. He wanted to buy it and he wanted to know my price! I called him back, told him my price. I thought he'd want to rent it for a few months and start getting a few months of generous rent credit. Boy was I wrong and glad to be wrong. He said that he wanted me to stop all work and repairs, he had cash and wanted to buy the property right now! Hmmm where have I heard that before?
Even as dense and stressed as I was, I notice a tone of urgency. So, I told him my price, which was $120,000. He agreed! He had an agent, but she was supportive. I found out from the agent that the next door neighbor and the buyer are best friends. They've been trying to live next to each other for years.
He took the property as-is with 1 contingency. I had to pay for a termite report. Well, that cost me $880 and it came out of escrow. Oh, the agent's fee came out of escrow, too.
The buyer was true to his word and we sailed through escrow without a hitch. We closed last week and I received my check for $16,000 on Saturday. I actually thought the amount would be less.
But that's not all. As we were signing documents, the seller said that I could have any money above the loan payoff amount. The loan payoff turned out to be $96,180. So, the seller agreed to give me an additional $880!
A few more things... During this 8-month period, I was laid off from my job, I've had to work at demeaning temp assignments, look for a good job and my wife gave birth! Through it all, I've always been optimistic. I know now that I'm going to simultaneously use more methods of finding motivated sellers. After mentioning my experience to a few others, nay sayers and believers alike, they all want some of the action and they're willing to kick in some cash. So, I feel pretty good and look forward to spending my full time and attention Lease Purchase investing.
My First Lease 2 Purchase Deal
After learning everything I could about lease purchasing (the web site and the course), I didn't have any excuses NOT to get started. I am so excited with my first deal I just had to send you an email.
After just about giving up on calling the classified ads, I finally found one seller who was more than a little motivated and quickly set an appointment to meet with him. I explained to him, just how you teach, the features and benefits of lease purchasing his home. It worked like a charm! After several cups of coffee and a few firm handshakes, he decided that I could solve his real estate problems. The numbers looked like this:
My Purchase Price: $105,000
Option Deposit: $750
Monthly Rent: $795
Rent Credit: $100
Term: 1 year with 3 options to renew
I pulled some comps and talked to some realtors so I know his home is worth around $112,000 - I can only speculate where property values are going to go, but I have a pretty good idea. The beauty of the whole thing was that I already had a tenant/buyer lined up for this home - just like you said. Here is what their numbers looked like:
Their Purchase Price: $119,900
Option Deposit: $3,000
Monthly Rent: $875
Rent Credit: $100
Term: 1 year with 0 options to renew
Their credit was a little below par, but they were only minor problems. I knew they'd be able to get a mortgage in a year - no problem.
When everything falls into place I will profit over $2,000 up front, $960 in 12 monthly payments, and my back end should be at least $10,000. As I sit here and think about this deal, I'm sure I can do at least one of these each month. And if only 50% of them closed, I'd still be making over $50,000 per year.
Jeff, it was so exhilarating to be able to sit there and close this deal that I just had to say thanks. You've given me a new "lease" on life. :)
Drew D. Pavarentia
The Price of Your Book was Worth $147 x 100
Thanks so much Jeff,
Just wanted to let you know that I have another success story...
My wife and I have been trying to sell our home for exactly one year now. Our best offer was for $110K...we wanted at the minimum $119K...we advertised $121K. Well, I ordered your Lease 2 Purchase Handbook and within 3 weeks I closed on this deal:
Purchase Price: $126K
Option Deposit: $4K
Monthly rent: $1200 (my after tax credit monthly payments are $760.00)
Monthly Credit: $200
Option Term: 24 months
Ordering your Lease 2 Purchase Handbook has simply been the best investment that I have ever made to date.
I asked Tim to expand on the details of his deal...
Well some other details are that the tenant/buyers are very excited and happy about the deal. Because of some mistakes in the past, they could not have purchased a home conventionally - through a bank. But now they have another chance to own, build equity and repair credit, instead of just throwing money out the window with rent.
The reason that I received a top-dollar purchase price is that I linked the option deposit to the purchase price: inversely proportional.
Purchase Price: $122K to $132K
For every dollar of option deposit put toward the purchase price I dropped the purchase price, then added the option deposit to that price.
So, $4K of option deposit brought the purchase price from $132K to $128K, (then I took $2K off because they decided to pay $200/month over what my monthly mortgage payment is). So, they got a purchase price of $126K then the $4K option deposit is applied to that so when they sign the deal they only owe $122K. Then the tenants will pay that down another $4.8K over 24 months (that $4.8K is also additional profit for me since my mortgage payment is only $972 before my tax benefits are applied.)
The truth is that I will reap another $9K above the $126K purchase price, over 24 months. So I really "sold" at a price equivalent to $135K.
All I ever expected was about $120K.
I guess that the purchase price of your Lease 2 Purchase Handbook was worth the $147.00 purchase price x 100 in this example.
How's this for Return on Investment?
Thanks very much for the quick response.
I originally bought your program about 2 years ago -- at the time it just didn't work in Northern California -- it's been such a sellers market for so long.
I have just moved to Utah and there are tons of FSBO's here in the bread and butter price of $120,000 to $160,000 -- it is also a buyers market here.
I need to generate $5,000 in passive income within the next 3-5 years. I know I can do it here.
Example -- I have under contract a 4 BR home -- very nice -- Priced at $135,000.
$5,000 down and seller carries a contract for 5 years at 7.5% interest with PITI of $1,009 per month.
I am negotiating a lease option with $3,000 in option money and lease payment of $1,250 and $200 per month towards option. Option price is $159,000 -- this is for 1 year.
Result -- cash flow of $240 per month -- Annual Inc $2,888.
If option is exercised at $159,000 my profit will be $24,000 less the $2,400 purchase credit.
If they can't exercise the option I will extend another year.
Original Investment ---- $5,000
Option Money ---- $3,000
Total invested ---- $2,000
Annual cash return ---- $2,888.
How is that for ROI.
Jeff -- it took me less than 30 days to find this deal.
I think I can do 12 per year!
Thanks for your Lease2Purchase program -- It is a winner.
He Added Over $45,000 to His Net Worth
A client of mine who wanted to become a full-time real estate investor put the Lease 2 Purchase technique to use about 4 months ago and was amazed by the results. After reading this you will be stunned at the funny and creative ways you can make money using real estate as your means to a glorious end.
He was interested in single family homes in his neighborhood priced between $80,000 and $120,000. He had $5,000 in the bank to work with. Because it was a"seller's market" (favoring the seller), we both knew that it would be difficult to find a motivated seller. I recommended that he place a few ads in the newspaper and then spend an hour or two pounding the pavement.
He ran three classified ads in his local newspaper. The first one, placed in the Real Estate Wanted section read, "I will buy your home for FULL PRICE if you are flexible on the terms. Guaranteed written offer - even within 48 hours." The second and third ads were placed in the Homes for Sale and Homes for Rent section and read, "Rent-To-Own. No Qualifying! Only $4,000 down and $950 per month."
An exciting thing happened...
His phone began to ring off the hook. He had over sixty phone calls from people interested in renting-to-own. It seems that a lot of people could afford $4,000 down and $950 a month, but for one reason or another they wouldn't qualify for a mortgage. After a short while, he had ten potential tenant/buyer's qualified to Lease 2 Purchase a home from him. He decided to narrow his list down even more and work with the top two qualified tenant/buyer's.
That was the hard part.
Two weeks passed and he was getting frustrated that he could not find a motivated seller with which to work out a deal. I recommended that he stop searching for motivated sellers and change his tactics a little. You see, he has good credit and sometimes finding the right seller can be like finding a needle in a haystack.
I told him to hire a realtor to do all the work and concurrently get pre-qualified for two 5% down mortgages at two different mortgage companies. Shortly after getting pre-qualified, his Realtor found him two perfect houses that had been on the market for a long time. Now all he had to do was put the deal together.
The sellers gladly accepted his two offers which looked like this:
- $85,000 sales price and $5,000 back at close for "improvements" (which will actually be used to help offset the purchase price of the home).
- $76,000 sales price and $5,000 back at close for "improvements" (same as above)
Before closing on the purchase of these two homes, he closed with his qualified tenant/buyers. The numbers looked like this:
- $4,000 down, $900 per month, $100 monthly rent credit and a sales price of $109,900 in one year.
- $4,000 down, $850 per month, $100 monthly rent credit, and a sales price of $99,900 in one year.
(Just a note: people will pay this kind of markup if they believe they are getting value in return... i.e. buying a home for so little down with an incredible amount of equity accumulation.)
So now he's got $13,000 in the bank ($4,000 + $4,000 + $5,000) and he has to close on the purchase of two homes.
Here is how the closing numbers look:
- 5% down of $85,000 = $4,250 plus closing costs of $2,950. He gets $5,000 back at close from the seller so that's a total down payment of $2,200 ($4,250 + $2,950 - $5,000).
- 5% down of $76,000 = $3,800 plus closing costs of $2,800. He gets $5,000 back at close from the seller so that's a total down payment of $1,600 ($3,800 + $2,800 - $5,000).
So let's see here... He now has $9,200 in the bank ($13,000 - $2,200 - $1,600), owns two homes that he owes $80,750 and $72,200 respectively and has sales agreements with two tenant/buyer's to buy these homes for $109,900 and $99,900 in one year.
Subtracting the option deposit and monthly rent credits, he added over $45,000 to his net worth for less than two months work!
And if either (or both) his tenant/buyers decide not to buy the homes they are Lease 2 Purchasing from him, he gets to keep their down payment, they forfeit their equity and he can solicit another large down payment from a different tenant/buyer.
It doesn't get any safer than that!
Believe me, he is repeating this simple and easy process as you read this and is well on his towards becoming a full-time real estate investor, just as he dreamed.
I know of no other investment that generates such safe and comfortable profits such as this. This is an uncommon example, but it just goes to show you how powerful the Lease 2 Purchase contract can be if you know how to use it.
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