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Further
Reading ...
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A Feasibility Study and You: A Dynamic Duo - June Campbell
You have a great new business idea. You've asked your friends and family for feedback and they gave you thumbs up approval. You've asked your existing customers if they'd have use for such a product or service and they've indicated they would....
Perfection vs. Excellence (Business, Career, Life Coaching Series) - Ruth Zanes
"(Howard) Hughes never learned how to convert his knowledge to practical application. Instead he sought a perfection that assured failure." - From Empire: The Life, Legend and Madness of Howard Hughes by Donald L. Bartlett & James B. Steel How...
How to Tackle the Three Major Stresses Associated with Every Home-Based Business - Vishal P Rao
Owning your own home-based business is by and large a very rewarding, exciting endeavor. You can set your own schedule, and be where you want, when you want. You can oftentimes forego the commute to a "regular job" and save money on gas and other...
Honest Evaluation A Key To Success - je Dunn
While there are many opportunities available on the Internet the Cold Hard Facts are that the majority of online marketers are NOT MAKING ANY MONEY AT ALL!!! What is it that makes it so difficult for most people to make money on-line? There are...
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How Do You Profit From O.P.P.?
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Written By:
Sue and Chuck DeFiore
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In a previous article we introduced you to the concept of O.P.P., or Other People's Property, and the many ways in which you can profit.
In that article we asked you what you would do if you found a business that:
- could generate multiple streams of income
- would work in any area of the country
- could be worked both locally and nationally
- could be worked both on and off the web
- would allow you to build your long term net worth
- and, can be started either in your spare time or part time
Remember, what we are talking about is a wonderful business that allows you to generate immediate cash flow and also build your long term net worth.
That business revolved around the Creative Real Estate niche of Lease Purchasing.
This article, the third in the O.P.P. series will briefly touch on some of the strategies that are available to the Lease Purchase consultant.
The Strategies
First, is the co-operative strategy. It is the easiest for the beginner to start with. The co-operative is used when the seller may not want to give over total control of his/her property. The seller wants some say as to who goes into the property. When we assign the contract to a tenant/buyer, we receive the assignment fee. It typically takes us about two weeks to move a property, and we usually look for a $5,000 assignment fee.
The co-operative strategy, along with all the other strategies available to you, can be utilized for all types of property: single family, mobile homes, townhouses, condos. It works well with sellers who are motivated; with investors who have rental property and for those sellers who are not in a rush to move their property.
This is a favorite strategy of ours.
Some of the other strategies available to you in lease purchasing are:
The sandwich deal. This is when you lease purchase the property and then sub-lease to a tenant/buyer. It 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.
With the next strategy, the straight assignment, you contract for the property and assign or sell that contract to a tenant/buyer. This does not require the seller's approval. In the straight assignment you make your money in assigning the contract to a - continued below ...
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continued ...
tenant/buyer. Remember too, you can sell a straight assignment to an investor.
The pure option. The pure option on a property allows you to purchase the home at a future date. The terms also are set. You can take the pure option and sell it to another investor. Again you want to negotiate good terms for yourself, so you can make money when you flip this to an investor. This is a very fast way to generate cash flow.
There are other strategies available to the Lease Purchase consultant, such as the cash or cash equivalent strategy, note creation and of course, our favorite, consulting. We'll cover these in a future article.
The niche of Lease Purchasing grants you the ability to reach your financial freedom, with O.P.P., Other Peoples Property. All it takes is the desire to succeed, some time investment on your part and some specialized knowledge.
What are the benefits to the business owner?
- Little start-up capital needed.
- Little or no credit needed.
- Wonderful cash flow can be generated immediately.
- Excellent and realistic first year income can be achieved.
- Business can be started simply, no major equipment to buy.
- Business can be operated full time, part time or in your spare time.
- Best of all, the business can be operated from your own home office
As you can see, Lease Purchasing comes very close to being the Perfect Home-Based Business. A realistic first year income is $50,000 to $75,000 for someone working full time. You can add $20,000 to $30,000 to your present income on a part time basis.
Don't you think you owe it to yourself to explore the potential of O.P.P.?
What are you waiting for?
Copyright DeFiore Enterprises 2000
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 "how to" Home Business Solutions Digest, it's like having your own personal coach: mailto:subscribeHBS@homebusinesssolutions.com
coaches@homebusinesssolutions.com
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| _Additional Resources ... |
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Internal Customer Service – The Key To Productivity & Growth - Carole Nicolaides
by Carole Nicolaides © 2002 http://www.progressiveleadership.com Customer service is the foundation on which businesses are created. Unless you understand your customers and treat them with respect, you will go out of business. That is a well-known...
Tips and Tricks To Getting Top Money for your Domain Names - Dayne Herren
Would you like to be that lucky person who sells their domain for thousands or even a million dollars? It IS possible to find quality domains and resell them for huge amounts of money. The time is ripe for acquiring top domains and selling them....
The market for home loans has never been this hot - Tony
Where before, about a decade ago, owning your dream house seemed like a daunting task, today, however, it's as easy as pie. More and more people are now getting home loans in order to buy houses. However, along with this rise in home...
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