As I shared last week, I love shortcuts because they seriously improve your productivity to create fast paydays. Today, I’m carrying this over to cooperative lease options, where shortcuts double your pleasure to the fastest and lowest risk paydays. Speed and low-risk come about because you are connecting the seller with the tenant-buyer and then exiting the transaction shortly after collecting your option fee.
Assignment of the Sales Contract and Lease Option
Inside the cooperative lease course are all the cut-and-paste templates you will need to earn your first option fee in 30 days or less. One of the most important templates is the “Assignment of Sales Contract and Option Agreement.” This is the contract with the main details connecting the seller with the tenant-buyer while also clearly documenting the nonrefundable purchase option fee that you earn for your role in the cooperative lease option.
Everything in this document is very important with one of the highlights being that the purchase of the home will be “AS-IS.” And of course, the specific amount for the purchase option fee – the very reasonable example amount shown is $6,000. That’s an example of the fast and low-risk payday you can expect with cooperative lease options.
Cooperative Lease Options are a ‘Quick Turn’ for a ‘High Profit’ Strategy!
Covering All of the Bases for Cooperative Lease Options
The cut-and-paste templates you need for successful cooperative lease options will be at your fingertips. These include critical documents like “Main Affidavit of Owner Lien Rights,” “Main Rental Agreement” and “Main Mortgage Authority.” For instance, the Main Mortgage Authority allows you (in your role as the cooperative lease option entrepreneur) and the tenant-buyer to be able to confirm the seller’s mortgage is kept current.
The “Cooperative Lease Agreement” between you and the seller defines your role in the deal with important concepts such as you not being a real estate agent. However, if you are a real estate agent, you can still arrange cooperative lease options, but you mainly need to disclose that you are a real estate agent. This important document also contains more information that you want to be sure you get right from the beginning. It states your responsibilities in the deal as well as the responsibilities of the seller. The “Cooperative Lease Agreement” is also the agreement between you and the seller entitling you to collect the option fee received on the transaction from the tenant-buyer as your compensation. At this point, you don’t even need to have identified a tenant-buyer as the end buyer, but it does make it clear that you will not be the tenant living at the property.
Like all my transactions, everything is above board and transparent.
You Do Have Responsibilities to Earn Your Generous Payday
Cooperative lease options do give you fast and low-risk paydays. And these are very generous paydays, but you do have responsibilities. You must do the marketing to find the tenant-buyer. You must do background checks and other typical tasks like verifying the tenant-buyers’ employment. And of course, you are responsible to draw up the paperwork related to the lease option. Fortunately, between the checklists, documents, and templates, fulfilling your responsibilities can’t get much easier.
This is a business arrangement – the seller also agrees to certain responsibilities. One is allowing you access to the home to show it to prospective tenants and another is showing proof that they have clear title to the house other than the outstanding mortgage. Of course, you want a clause requiring them to keep the property out of foreclosure and bankruptcy. Specifically important to a cooperative lease agreement is the seller agreeing that the tenant-buyer will be assuming the option agreement and sales contract and that you will not remain in the deal under most circumstances.
An important part of lowering your risk in the deal is that the risk for the agreement becomes the responsibility of the seller once the tenant-buyer moves in.
Covering the Bases that a New Cooperative Lease Entrepreneur Might Overlook
When things are moving quickly, there’s nothing better than having everything laid out for you by an experienced professional who has not only done many of their own cooperative lease options but has also been teaching it to students for many years. My cooperative lease option course was first created in 2009 and has been updated based on real-life deals put together by students and myself.
One place that I encourage new entrepreneurs to begin is with the documents and scripts for telephone conversations and advertisements to find sellers and buyers. If you don’t know where to look for sellers and buyers, your fast cooperative lease option payday is almost certain to take much longer getting started than it needs to. There are also powerful nuances to the most successful purchase lease options such as knowing how to make a pet agreement work in your favor. Of course, having a proven script for screening tenant-buyers saves you valuable time finding a tenant-buyer acceptable to the seller. And you need a rental agreement that is separate from the sales option contract. Another document that you need to have in a lease to purchase agreement is the ‘Seller’s Disclosure Form.’ As a cooperative lease option entrepreneur, you will also need a ‘wholesale’ contract for your purchase from the seller.
The cooperative lease option can deliver a payday in as little as a few hours under the right circumstance. But as full disclosure, it will probably take a day or two or maybe even a week. This is cutting edge, but my students and I have proven many times how well it works. Because it is cutting edge, you won’t find this in any traditional real estate textbooks. It will get there eventually but that’s after more and more investors will have already jumped into this niche.
It’s always about a Win-Win-Win for everyone. Cooperative Lease Options are all about finding creative solutions that work for you, the seller, and the tenant-Buyer!
GET STARTED TODAY by clicking the Instant Access Links Below!
- Cooperative Lease Options.
- Investing In Real Estate with Lease Options.
- Advanced strategies for Buying and Selling with Lease Options.
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- Expand to Get the Deed “Subject To.”
- Round it all out by Working with Realtors.
By Wendy Patton
For more than 30 years, I’ve used the Sandwich Lease Option System to earn myself and my students millions of dollars. From my experience, I know there is plenty of room and opportunity in the real estate investment market for everyone wanting to participate to find profitable deals. It’s because of that fact and my personal success that I share the Sandwich Lease Option System with others.
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