I’m only 16 and I’m about to explain all of this to my parents. If I actually got and wrote everything down right it’s going to help my family a lot. Thank you for sharing this strategy with us.
They are "legal" in the sense that, done properly, no laws are violated. However, many of these schemes involve ignoring the contract rights of the owner, and are therefore very risky. You will require the services of an attorney for the transactions to be done properly, and without exposing you to legal action. -J. Robert Thompson Attorney
Your videos really really inspire me and I am 20 year old guy and I already have 2 homes in the last 6 months making me $900 per month and I am not stopping.. Thank you so much..
Hello Kris, Lease option is the best way I have ever did with the real estate!!! Thank you soooo much!!! You with your videos and this knowledge gave me power!! I love Lease option and now I only concentrate on doing it!!!
The word retirement keeps popping up, but you’re still working, teaching people how to make money for you. Maybe you didn’t retire, but you found the career that makes you passionate.
What if they move in wreck it and leave? Do you protect the house, eg, require, insurance, repairs, cleaning maintenance checks, inspections, pay property taxes, etc
For people asking questions about renting the property while you have the rent contract with the original owner, it’s easier to try to save up for mortgage and down payment (since you’ve been trying to get yr credit score high enough to apply for a mortgage) so later on you won’t have any problems with the actual owner and you could easily sell the property to the family whose been renting it and on top of that, EASILY purchasing another house because you’re already approved for mortgage.
2 Q's -How is it legal to create a rent-to-own contract on a home that is legally owned by someone else? -How does your leasee with supposedly horrible credit going to magically come up with 180k 2 years down the line in order to buy the home?
You didn't explain how you can sign a legally binding contract to sell someone else's real property that you have no equitable interest. According to the US Bankruptcy Court, an unexercised Option Contract does *not* convey equitable interest in the asset.
From what i understand (not 100% sure) is that you can exercise your option to buy at any time, so if you have someone exercise their option to buy, you exercise yours and then everyone is legally bound to sell/buy the 3 go to make closing statements.
You are not legally bound to exercise your option. However, you can resolve the issue by granting to your tenant-buyer an "option to buy your option". Also, not fixing the terms and price (leaving it undetermined until a future appraisal) in your option with the tenant-buyer is not an option at all, but only a first right of refusal. It's fraudulent crap like that that compelled the Texas legislature to essentially outlaw lease-options.
Im just trying to understand a comment you made "It's fraudulent crap like that that compelled the Texas legislature to essentially outlaw lease-options." So is it ESSENTIALLY illegal, meaning its not actually illegal... Or it is illegal in TX? It is one or the other.
When doing a sandwich lease do you need to disclose to the first homeowner that you will be renting the property out too, or do you rent it as if you’ll be living it in it and then lease it out. I see how a lot of homeowners would not like someone else than the person they met living in the home
Better show people how to check to make sure that the person that you are dealing with is the real homeowner and that the taxes and easements are in order. You should also check the city to make sure that the land in not going into eminent domain.
Hey Kris. I have been eating your CZcams videos for so long now. I love all the learning golden nuggets. I would really like to get in contact with you man!! I'm moving to a different country that I can see huge opportunity for real estate and I would love to get you insight into how I should go about. Thanks man!! Your content is outstanding, wouldn't surprise me if you get the hundreds of thousands of subs in the next few years.
I must be missing something, but how can you legally offer someone a lease option on a home that you only have a lease on. Likewise, how can you sell a home that you don't yet own?
Heather Estes You have a lease option on it. Neither you NOR the prospective buyer is buying it YET-but you both have the OPTION to-at the time of your choosing. You are just leasing in the meantime, and your prospective buyer is just subleasing in the meantime. The option fee/downpayment (non-refundable is the price to have that option in the future (and is applied discount IF you/they go through with it). Only if/when the prospective buyer chooses to buy do you actually buy-at the price you contracted with original owner, and your buyer at the price they agreed to.
These guys are very bright and seem to have a nice system going where they live. It’s too much of a gamble with these California home prices. Can’t find a shed for less than half a million anymore lol.
Hey Kris just picked up my first deal after watching your videos. I’ll send pics later i am going to do some repairs to make it more appealing. Thank you
i love hearing about what deals you guys are currently involved in and ones that you have done in the past. Can you guys make more videos explaining those deals and your past deals?
Hey guys thank you so much for your knowledge. I'm an apprentice diesel fitter about to become a tradesman here in Perth Australia. I've been in the mechanical industry now for over 15 years. But for me personally I'm not happy doing this as a living. (As usual Like most young people I was told what to do with my life and as a job bc in reality, it is really good money). Not to be a negative nelly, but I just cannot stand doing it anymore. I'm currently renting a small 3 bedroom 1 bathroom unit or villa @ $260 a week. Which is extremely cheap for Perth or the area I am in. I am 30 at the moment with a young son. And I've ALWAYS been extremely interested and have a deep passion for real estate ever since I can remember, it just excites me like nothing else. It'd be great if you could reply to this comment and give me some more advice if you guys have any on Perth or even the Australian real estate market and if this could or would work here. I could even give you guys some advice about how the market here works and how it has been in the past. Thanks.
The principle is the same. There is abundant info on this and many other channels. I hope you have made some more progress! I would love to hear where you are at now.
What makes people think they can buy the house in 4-7 years if they don^+t qualify for a loan ? do you post the rent to buy agreement on the deed recorded ? otherwise why does buyer trust you will sell it to them and not some third party ?
Bro I just subbed, honestly took notes!, watched a lot of your videos and I’m in Im committed!!, imma try this out I understand, thank you!, I sent in my info
I dont understand one thing. Ok lets say I can find someone for rent 2 own the property on a two year deal while I have it rented for 7 yrs. But what happens if they decide to buy it after those 2 years dont I have to buy the property first myself to sell it ? but how do i get those 150k because i dont think those ppl that i have in rent 2 own will give me 150k without some kind of purchse contract signed, but how can i first sell it to them if i dont own it ??
I hope I got it right. In the video Kris is saying you secure a longer rent-2-own from a seller or owner, then you do shorter rent-2-Own to your renter/buyer.
Yea I was going ask the same thing. Is this legal? You would definitely have to have a lawyer draw up those papers. Chris I hope you answer this one because I very confused on this issue.
This is gold!!! Can you do this deals with houses in Canada/USA/Mexico? I the owner of a marketing agency in Mexico City and I’ve got to say this house stuff is awesome!! I will definitely watch all of your videos and follow every step.
Hey Kris, when you agree to buy the house at $150k from the buyer, with a lease period of lets say 5 years, at the end of which you buy it for $150k, won't the buyer consider the appreciation in the price and want more than $150 at the end of the tenure?
It depends. If they agreed to a set price in the contract then they can't change it. Most lease options don't have a set price. It's determined by an appraisal at the time you choose to buy
The question is: what happens with the end buyer wants to buy the house? You’re going to have to buy the house and then sale it the next day. You’ll pay capital gains tax. How the heck do you get around that?
The government here in New Zealand have stopped all investors claiming their interest payments against income, in effect we're paying tax on the full amount of income 🙄
This is great! I was wondering at 6:10 where you say "let the market determine the price but this is the minimum it can sell for". So do you write into the contract with your lessee/buyer that the sale price shall be determined by the appraised value, with a minimum sale price of ___"?
Okay, so WHAT IF the person you do your Lease-2-Own contract with, decides he doesn't feel comfortable letting you buy it anymore and you have already started your Lease-2-Own scheme? Basically you've then promised someone they can buy a house in 2 years that you can't even own. I'm sure that's happened to you once or twice right?
You take a portion of their monthly payment and “set it aside” to credit back to them when they buy. In reality you don’t need to set it aside because the increase in house price will cover all the credits you owe them.
So if they stop paying rent from financial crisis or whatever, what do I do next? Also, when I get a lease option home from someone, how can I lease it to someone else, can I do that? I have so MANY questions, Im 33 years old married man with two kids and I'm SO ready to get into real estate I'm tired of working the 9 to 5 and I need financial freedom. I just feel like its too late for me
If you are in debt read total money makeover by david ramsey. Really helps, and shows that you don't and shouldn't use a credit card, how to get out of debt, etc.
That's totally false and could be the very thing that keeps you bound to your 9-5. :-( I'm 47 and just started doing real estate investing a few months ago. Kay, you MUST change your mindset! It's more doable now than it's ever been because of forums like CZcams and the likes. All you need is the hunger and desire to learn and courage to do. My advice would be to read as many books as you can to buld your knowledge base and comfort about the industry in general. There are soooo many ways to invest in real estate. Listen to free podcasts and join other free forums. Become a student and then take action and WIN!! It's never too late!! Good luck!
If they quit paing rent you send the case to an eviction attorney and they will evict the people in 1-2 months and you keep the non refundable option fee(7$k) then re sell it because you have 7 years in your contract. You need to find an attorney and tell them you need a purchase agreement and an assignable lease option agreement.
Lol im gonna need to watch ALOT more of his videos in order to begin to understand what htey are talking about XD I cant wait till i understand it all lol
The thing that doesn’t make sense to me is how these people with bad credit etc. are going to qualify for the loan to buy your house at the end of their lease? If they don’t qualify to buy it do you just keep the non-refundable deposit? If they don’t qualify now chances are pretty good they won’t qualify later.
yourbeautybff This is where your networking has payed off and you've refered them to a person or company that can help build their credit (maybe you and this company or person even have some sort of agreement where you each refer leads to eachother). If they don't qualify for loans with the bank and don't have enough to exercise their buy option at the end of the contract 》1) yes, you keep the "non-refundable option fee" 2) why not renew their contract if they've been a model tenant? As long as you are acting owner of the property you can continue leasing it. If they are not model tenants u find someone else to replace them or, worst case scenario - u break your L/O with the original owner (at no expense to yourself) using an escape clause that you have written in your contract (i.e. if I don't pay, the L/O is broken). Let's say, over a length of time, you've made enough money in other ventures to exercise YOUR option to buy and now own the home outright. This is where you can become the BANK and offer full owner financing options to buyers, skipping the traditional bank altogether. Why not sit back and collect interest like traditional banks?
I'm kind of confused here and I read some comments to understand it a little better so basically your leasing (basically renting to own) and then your leasing it to someone else for higher price? Includes bigger down payment from them and waiting until they're ready to purchase the home and will determine from the market at the time how much your gain is?
In the case where the occupant buys the house, how do they buy the house without a bank? The verbiage on the signage indicates that a bank isn't needed but I would expect the occupant to need to take out a loan in most cases in order to actually buy the house. I don't get it.
First of all great video. Regarding the sandwich deal, 1. Once I buy a home from homeowner with LO, and THEN resell it again to another owner with another LO, wouldn't that make me sub leasing that homeowners house to another person? What if the homeowner regards me in that case as a broker and wouldnt be happy about it? Thanks!
I really like the video I just have one question. When the person wants to buy it after the 2 years and their credit is good. How is the bank going to give you the money if you don’t have the title to the house because technically you haven’t purchased it yet so how do you get the money to the guy you are buying it from when the bank won’t give you the money for it (from the person that is buying it from you) because you don’t have the title yet. Or do you have to purchase it and take out a loan on it and then when you get the title have them sign and give you the money
Kris, I love your videos and they are so inspiring. Thanks for doing all that you do! I can't find the answer to this questions anywhere and have been searching and searching, could you shed some light? You say PM companies don't deal with lease options so how do I get a tenant? Am I supposed to fly out each time I hold an open house? Or can I hire someone to do showings/do background checks/deal with evictions? I'm so stuck, any help I would be grateful for.
Hi kris. I'm doing my best to understand the content. I really like the idea. Just curious if you own the house if it works as good? Or if you're better off to stay away from that and do a lease option yourself? Thanks so much
Would you show us what the actual contracts look like? Or be able to let others use your contracts for the option to buy and the renting contract since you have found what the contracts should say
I wish I could attend your November unleashing of financial destiny but it’s kind a hard here in the Philippines to have approve visa going to US,I hope your team could also come here un the Philippines kris
so if the house is worth 150K and you’re paying 1,000 a month for 7 years plus a 1000 down payment, isn’t that only 85K? how do you pat off the remaining 65K of that house? please respond this confuses me
thanks for the great lessons, i wanna ask, how can we make the deal of the house price from the owner is it still the same price (150k) in the 7 years future, or we make the new deal of 7 years later price? thanks
I know how sandwich leasing works but what about all the paper work involved. You're renting to the house but when the people decide to buy it what about all the paperwork involved.
First off, great video!!!I have a question about lease with option to buy...... Let's say me and the owner agree to a $5k option down payment,and me and the tenant agreed to a $10K option down payment,I understand that my profit is $5k. But let's say the tenant exercise the option to buy,do I have to put that entire $10k towards the purchase of the property,even though my agreement with the owner is $5k?
Thank you so much for this series ! I have a very specific question, I don't know much about real estate and I was wondering if your program and this method can work in Belgium? That's where I live, but I don't know if there would be any legal constrictions (like renting a place your don't own yet for example) ? If anyone from Belgium could has any info it would be great !
Kris - Are you saying that you are actually leasing a house that you leased? I am not sure how that's possible. More details on that, contractually, would be nice.
When do you buy the house from the original owner? Also, do you have the right to sublet it with a lease option to own if you don't already own the house?
I’m only 16 and I’m about to explain all of this to my parents. If I actually got and wrote everything down right it’s going to help my family a lot. Thank you for sharing this strategy with us.
How's the journey been bro
how’d it go?
So, what happened since then?
have you started yet?
update?
They are "legal" in the sense that, done properly, no laws are violated. However, many of these schemes involve ignoring the contract rights of the owner, and are therefore very risky. You will require the services of an attorney for the transactions to be done properly, and without exposing you to legal action. -J. Robert Thompson Attorney
he mentioned that in the last video.
Mr. Thompson, where are you located? I may need your services.
@@markgardner3108 I don't know. You'd have to look the guy up.
There are multiple cites with name as an attorney, and and that's why is asked. Where did you get the quote?
Your videos really really inspire me and I am 20 year old guy and I already have 2 homes in the last 6 months making me $900 per month and I am not stopping.. Thank you so much..
Ishan Purnapatre how am I supposed to acquire a house to do this method with in the first place I’m confused I have no credit?
Hello Kris, Lease option is the best way I have ever did with the real estate!!! Thank you soooo much!!! You with your videos and this knowledge gave me power!! I love Lease option and now I only concentrate on doing it!!!
I took notes and hoping to have a career in in real estate 17 years young. Thank you for helping me understand the bigger picture 👍
Me tooooo😍
me too hopefully i’ll start within the next couple months !!
how's the journey?
The word retirement keeps popping up, but you’re still working, teaching people how to make money for you. Maybe you didn’t retire, but you found the career that makes you passionate.
I retired from trading time for money.
Retired means your done with the rat race
@@rileyspowersports6967 Yeah it's called RATired! 😁
I can tell you have passion for this ! Great job definitely motivated me 💪🏻👏🏼
Thank you for changing my views on life my wife and I are starting and you made it a dream we made it a reality!
So how’d it go it’s been 8 months
What if they move in wreck it and leave?
Do you protect the house, eg, require, insurance, repairs, cleaning maintenance checks, inspections, pay property taxes, etc
Your contract should cover that they would pay for any damages they cause 👍🏿😁
For people asking questions about renting the property while you have the rent contract with the original owner, it’s easier to try to save up for mortgage and down payment (since you’ve been trying to get yr credit score high enough to apply for a mortgage) so later on you won’t have any problems with the actual owner and you could easily sell the property to the family whose been renting it and on top of that, EASILY purchasing another house because you’re already approved for mortgage.
2 Q's
-How is it legal to create a rent-to-own contract on a home that is legally owned by someone else?
-How does your leasee with supposedly horrible credit going to magically come up with 180k 2 years down the line in order to buy the home?
They sometimes don't ans they leave and you get the house and redo the situation
@@zackpetersen779 that still doesn’t answer the first question
You didn't explain how you can sign a legally binding contract to sell someone else's real property that you have no equitable interest. According to the US Bankruptcy Court, an unexercised Option Contract does *not* convey equitable interest in the asset.
From what i understand (not 100% sure) is that you can exercise your option to buy at any time, so if you have someone exercise their option to buy, you exercise yours and then everyone is legally bound to sell/buy the 3 go to make closing statements.
You are not legally bound to exercise your option. However, you can resolve the issue by granting to your tenant-buyer an "option to buy your option".
Also, not fixing the terms and price (leaving it undetermined until a future appraisal) in your option with the tenant-buyer is not an option at all, but only a first right of refusal. It's fraudulent crap like that that compelled the Texas legislature to essentially outlaw lease-options.
Chris can you answer this? Because this seems like a huge point
Hmm interesting I’d love to hear their answer...been 5 months and I’ve seen this guy bring up two great point these two in the video never address.
Im just trying to understand a comment you made "It's fraudulent crap like that that compelled the Texas legislature to essentially outlaw lease-options." So is it ESSENTIALLY illegal, meaning its not actually illegal... Or it is illegal in TX? It is one or the other.
I really have to say your videos are very inspirational and motivational. Your a great teacher and hope to see more videos from you in the future.
When doing a sandwich lease do you need to disclose to the first homeowner that you will be renting the property out too, or do you rent it as if you’ll be living it in it and then lease it out. I see how a lot of homeowners would not like someone else than the person they met living in the home
What if you have to evict the person you lease to and you don’t own the home yet. How would that work?? Would you have to involve the original owner?
That is what I am questioning.
It should be part of the contract if I’m not mistaken
You aren’t the owner, but you would have an equitable interest in the property. Not sure if that would be sufficient in an eviction process.
Better show people how to check to make sure that the person that you are dealing with is the real homeowner and that the taxes and easements are in order. You should also check the city to make sure that the land in not going into eminent domain.
I'll be now of those to come back to both of you to say thank you. I am up for this!
All I have to say is, KRIS, thank you!!! I'm going to the top!!! Watch!!!
Thank you for explaining all this in an easy to understand way!
You're welcome!
Hey Kris. I have been eating your CZcams videos for so long now. I love all the learning golden nuggets. I would really like to get in contact with you man!! I'm moving to a different country that I can see huge opportunity for real estate and I would love to get you insight into how I should go about.
Thanks man!! Your content is outstanding, wouldn't surprise me if you get the hundreds of thousands of subs in the next few years.
Love the Idea, It happens to me before but in a different way. thanks for the knowledge.
You're welcome. Thanks for sharing.
I must be missing something, but how can you legally offer someone a lease option on a home that you only have a lease on. Likewise, how can you sell a home that you don't yet own?
Heather Estes You have a lease option on it. Neither you NOR the prospective buyer is buying it YET-but you both have the OPTION to-at the time of your choosing. You are just leasing in the meantime, and your prospective buyer is just subleasing in the meantime. The option fee/downpayment (non-refundable is the price to have that option in the future (and is applied discount IF you/they go through with it). Only if/when the prospective buyer chooses to buy do you actually buy-at the price you contracted with original owner, and your buyer at the price they agreed to.
These guys are very bright and seem to have a nice system going where they live. It’s too much of a gamble with these California home prices. Can’t find a shed for less than half a million anymore lol.
I’m gonna start this in Utah!
Hey Kris just picked up my first deal after watching your videos. I’ll send pics later i am going to do some repairs to make it more appealing. Thank you
I wonder lmao it’s been a year
i love hearing about what deals you guys are currently involved in and ones that you have done in the past. Can you guys make more videos explaining those deals and your past deals?
Hey guys thank you so much for your knowledge. I'm an apprentice diesel fitter about to become a tradesman here in Perth Australia. I've been in the mechanical industry now for over 15 years. But for me personally I'm not happy doing this as a living. (As usual Like most young people I was told what to do with my life and as a job bc in reality, it is really good money). Not to be a negative nelly, but I just cannot stand doing it anymore. I'm currently renting a small 3 bedroom 1 bathroom unit or villa @ $260 a week. Which is extremely cheap for Perth or the area I am in. I am 30 at the moment with a young son. And I've ALWAYS been extremely interested and have a deep passion for real estate ever since I can remember, it just excites me like nothing else. It'd be great if you could reply to this comment and give me some more advice if you guys have any on Perth or even the Australian real estate market and if this could or would work here. I could even give you guys some advice about how the market here works and how it has been in the past. Thanks.
The principle is the same. There is abundant info on this and many other channels. I hope you have made some more progress! I would love to hear where you are at now.
Thank you Kris and Steve that was awesome. I hope to learn and come to Utah to meet you two person next year.
We look forward to meeting you too!
Love the enthusiasm and information.
bravo fellas!!! Ive been wholesaling houses for a little while and cant wait to fly with this!!
What makes people think they can buy the house in 4-7 years if they don^+t qualify for a loan ? do you post the rent to buy agreement on the deed recorded ? otherwise why does buyer trust you will sell it to them and not some third party ?
Bro I just subbed, honestly took notes!, watched a lot of your videos and I’m in Im committed!!, imma try this out I understand, thank you!, I sent in my info
I dont understand one thing. Ok lets say I can find someone for rent 2 own the property on a two year deal while I have it rented for 7 yrs. But what happens if they decide to buy it after those 2 years dont I have to buy the property first myself to sell it ? but how do i get those 150k because i dont think those ppl that i have in rent 2 own will give me 150k without some kind of purchse contract signed, but how can i first sell it to them if i dont own it ??
That’s a great point !
Not sure, but I believe you would have a double closing, or you would simply assign your option to the tenant at the closing.
What kind of monster puts cool whip on a sandwich
I hope he meant Miracle Whip
I’m still kinda lost
Watch this series. I go into a lot more detail. czcams.com/play/PLWWMFdKhGQUOl_P9Q9Z6soewajAPdpw9m.html
how i can i put a house on rent 2 own when i don't actually own it . i am totally confused kris
Same here
I hope I got it right. In the video Kris is saying you secure a longer rent-2-own from a seller or owner, then you do shorter rent-2-Own to your renter/buyer.
Yea I was going ask the same thing. Is this legal? You would definitely have to have a lawyer draw up those papers. Chris I hope you answer this one because I very confused on this issue.
It is 100% legal, there are laws that allow you to do that because you are the temporary owner
What laws? And you aren't the temporary owner. You're still renting it
Mind blowing !!! Seriously thank you!
What about tax? Or the ira? Is this all just okay without ever claiming anything?
Great video great motivation 🙏🏼🤙🏼
This is gold!!! Can you do this deals with houses in Canada/USA/Mexico? I the owner of a marketing agency in Mexico City and I’ve got to say this house stuff is awesome!! I will definitely watch all of your videos and follow every step.
Hey Kris, when you agree to buy the house at $150k from the buyer, with a lease period of lets say 5 years, at the end of which you buy it for $150k, won't the buyer consider the appreciation in the price and want more than $150 at the end of the tenure?
It depends. If they agreed to a set price in the contract then they can't change it. Most lease options don't have a set price. It's determined by an appraisal at the time you choose to buy
The question is: what happens with the end buyer wants to buy the house? You’re going to have to buy the house and then sale it the next day. You’ll pay capital gains tax. How the heck do you get around that?
1031 exchange
cool. i think this was really str8 forward. i’m gonna do some research in my area.
The government here in New Zealand have stopped all investors claiming their interest payments against income, in effect we're paying tax on the full amount of income 🙄
Do you have a video explaining the benefits of lease options for tenet/ buyers
10/10 video . i will be signing up for this hands on help program right after i graduate college !
We'll be waiting!
Toshi Taniguche How’s it going so far. Did you sign up after all?
Please can you explain more on how the partnership deal is set up and what it contains? How the split of money goes? Please!
Can you do a Sandwich Lease Option on a Commercial property?
You do a master lease with an option.
You guys are so amazing! Thanks for putting it into perspective! Ive know about this but haven't ventured there
Thank you glad it helped!
Numbers always looks good on paper, reality is different!!!! But still very confusing
Excellent
Thank you guys!
Wonder if this will still work on 2023 with the current rental market
This is great! I was wondering at 6:10 where you say "let the market determine the price but this is the minimum it can sell for". So do you write into the contract with your lessee/buyer that the sale price shall be determined by the appraised value, with a minimum sale price of ___"?
wondering what a contract is
pls explain
Better mention that some banks do not allow sandwich contracts.
great video... how is it possible to sell a house that your leaseing your self you dont own it yet... plz replay ...
Thank you this information is golden!
Okay, so WHAT IF the person you do your Lease-2-Own contract with, decides he doesn't feel comfortable letting you buy it anymore and you have already started your Lease-2-Own scheme?
Basically you've then promised someone they can buy a house in 2 years that you can't even own. I'm sure that's happened to you once or twice right?
make sure you have terms in your rental agreement that states that you can buy the property whenever for the already agreed on price
So after 2 years your tenants want to buy the house. How would you do that? Do they just pay one more month rent? I'm confused
I think they pay the remaining balance... Unless the contract says it must be over 7 years or whatever
Question: where doe the 100/200/25 dollars equity they get with every monthly payment? Still a bit confused up to how it works.
You take a portion of their monthly payment and “set it aside” to credit back to them when they buy. In reality you don’t need to set it aside because the increase in house price will cover all the credits you owe them.
I feel like I'm watching two coaches break down plays
So if they stop paying rent from financial crisis or whatever, what do I do next? Also, when I get a lease option home from someone, how can I lease it to someone else, can I do that? I have so MANY questions, Im 33 years old married man with two kids and I'm SO ready to get into real estate I'm tired of working the 9 to 5 and I need financial freedom. I just feel like its too late for me
you kinda have to start at 25-26 max but you can still start at 33 if you saved some money
what are you talking about. there's no limit on age. quit trolling.
If you are in debt read total money makeover by david ramsey.
Really helps, and shows that you don't and shouldn't use a credit card,
how to get out of debt, etc.
That's totally false and could be the very thing that keeps you bound to your 9-5. :-( I'm 47 and just started doing real estate investing a few months ago. Kay, you MUST change your mindset! It's more doable now than it's ever been because of forums like CZcams and the likes. All you need is the hunger and desire to learn and courage to do. My advice would be to read as many books as you can to buld your knowledge base and comfort about the industry in general. There are soooo many ways to invest in real estate. Listen to free podcasts and join other free forums. Become a student and then take action and WIN!! It's never too late!! Good luck!
If they quit paing rent you send the case to an eviction attorney and they will evict the people in 1-2 months and you keep the non refundable option fee(7$k) then re sell it because you have 7 years in your contract.
You need to find an attorney and tell them you need a purchase agreement and an assignable lease option agreement.
That’s great Kris
I will do this
what owner that wants to rent property would let you rent through another tenent you found. i dont get it.
Great videos Kris!
Lol im gonna need to watch ALOT more of his videos in order to begin to understand what htey are talking about XD I cant wait till i understand it all lol
How do you make the money off the sale of the house if it's not even actually yours if your leasing yourself
The thing that doesn’t make sense to me is how these people with bad credit etc. are going to qualify for the loan to buy your house at the end of their lease? If they don’t qualify to buy it do you just keep the non-refundable deposit? If they don’t qualify now chances are pretty good they won’t qualify later.
I would also like to hear an answer to that
yourbeautybff This is where your networking has payed off and you've refered them to a person or company that can help build their credit (maybe you and this company or person even have some sort of agreement where you each refer leads to eachother).
If they don't qualify for loans with the bank and don't have enough to exercise their buy option at the end of the contract 》1) yes, you keep the "non-refundable option fee" 2) why not renew their contract if they've been a model tenant? As long as you are acting owner of the property you can continue leasing it. If they are not model tenants u find someone else to replace them or, worst case scenario - u break your L/O with the original owner (at no expense to yourself) using an escape clause that you have written in your contract (i.e. if I don't pay, the L/O is broken).
Let's say, over a length of time, you've made enough money in other ventures to exercise YOUR option to buy and now own the home outright. This is where you can become the BANK and offer full owner financing options to buyers, skipping the traditional bank altogether.
Why not sit back and collect interest like traditional banks?
We made a video about that. Here you go: czcams.com/video/9F5_2RX93GM/video.html
Thats the whole point. You keep their deposit and the house doesnt sell. Worst case scenario they actually buy the house
Kris Krohn - Limitless TV f
I'm kind of confused here and I read some comments to understand it a little better so basically your leasing (basically renting to own) and then your leasing it to someone else for higher price? Includes bigger down payment from them and waiting until they're ready to purchase the home and will determine from the market at the time how much your gain is?
In the case where the occupant buys the house, how do they buy the house without a bank? The verbiage on the signage indicates that a bank isn't needed but I would expect the occupant to need to take out a loan in most cases in order to actually buy the house. I don't get it.
Kriss please put a subtitles on your video's. So that we can clearly understand everything. It'll be more easier to get.
Just turn on the captions in settings.
Thanks so much
What about insurance on the house. You can’t Insure a house if it’s not deed in your name.
please do a video that you explain all the vocabulary words used in real estate
First of all great video.
Regarding the sandwich deal,
1. Once I buy a home from homeowner with LO, and THEN resell it again to another owner with another LO, wouldn't that make me sub leasing that homeowners house to another person? What if the homeowner regards me in that case as a broker and wouldnt be happy about it?
Thanks!
a lease option is assignable.
@@KRISTAMUSIC yes , this is the answer.
Lease option IS in fact Assignable.
Wrap around mortgages work the same way. Can you post a video of both wrap vs sandwich, (sounds like lunch choises) pros and cons, one vs the other
I really like the video I just have one question. When the person wants to buy it after the 2 years and their credit is good. How is the bank going to give you the money if you don’t have the title to the house because technically you haven’t purchased it yet so how do you get the money to the guy you are buying it from when the bank won’t give you the money for it (from the person that is buying it from you) because you don’t have the title yet. Or do you have to purchase it and take out a loan on it and then when you get the title have them sign and give you the money
Does it become a wholesale play where you are just the middle man and you get the difference?
Essentially it is what Matthew said. It isn’t wholesale though, but you are a sort of middle man.
Kris, I love your videos and they are so inspiring. Thanks for doing all that you do!
I can't find the answer to this questions anywhere and have been searching and searching, could you shed some light?
You say PM companies don't deal with lease options so how do I get a tenant? Am I supposed to fly out each time I hold an open house? Or can I hire someone to do showings/do background checks/deal with evictions? I'm so stuck, any help I would be grateful for.
Hi kris. I'm doing my best to understand the content. I really like the idea. Just curious if you own the house if it works as good? Or if you're better off to stay away from that and do a lease option yourself? Thanks so much
Great question. I just filmed a video that answers this question. Stay tuned for the video with a title something like, "should I pay off my house."
Yes...absolutely!
Is this "strategy" or I would rather say channel still up to date? That link doesn´t work, so does he have new webpage or something?
Did you really need a calculator to calculate 50/2?
Thanks 🙏
Why does the seller need a stranger to make offers when the owner can do the lease deal
Kris, now that the house market is extremely high, would it still be a good move to do real estate as a beginner?
Would you show us what the actual contracts look like? Or be able to let others use your contracts for the option to buy and the renting contract since you have found what the contracts should say
wow thank you
I wish I could attend your November unleashing of financial destiny but it’s kind a hard here in the Philippines to have approve visa going to US,I hope your team could also come here un the Philippines kris
so if the house is worth 150K and you’re paying 1,000 a month for 7 years plus a 1000 down payment, isn’t that only 85K? how do you pat off the remaining 65K of that house? please respond this confuses me
So worth my sub 😍😍
Yeah Right 😃
my only question is how you get to the point to offer a rent to own on a house that i have a 7 year contract
Dagwood!
Glad you enjoyed the video.
thanks for the great lessons, i wanna ask, how can we make the deal of the house price from the owner is it still the same price (150k) in the 7 years future, or we make the new deal of 7 years later price? thanks
when the tenant buys the home how do I collect the 50k when I never owned the home?
I know how sandwich leasing works but what about all the paper work involved. You're renting to the house but when the people decide to buy it what about all the paperwork involved.
First off, great video!!!I have a question about lease with option to buy...... Let's say me and the owner agree to a $5k option down payment,and me and the tenant agreed to a $10K option down payment,I understand that my profit is $5k. But let's say the tenant exercise the option to buy,do I have to put that entire $10k towards the purchase of the property,even though my agreement with the owner is $5k?
I have a question… how do u get the person to finally buy the house ?
Thank you so much for this series ! I have a very specific question, I don't know much about real estate and I was wondering if your program and this method can work in Belgium? That's where I live, but I don't know if there would be any legal constrictions (like renting a place your don't own yet for example) ? If anyone from Belgium could has any info it would be great !
Kris - Are you saying that you are actually leasing a house that you leased? I am not sure how that's possible. More details on that, contractually, would be nice.
When do you buy the house from the original owner? Also, do you have the right to sublet it with a lease option to own if you don't already own the house?
When you get your buyer