video 3.2 how to finance your lease option property

VIDEO 3.2-

How To Finance Your Lease Option-

VIDEO 3.2-

How To Finance Your Lease Option-

In todays video I am going to show you

How To Finance your Lease Option

Property …

For the purposes of this presentation, I will look

at 3 Financing Strategies

# 1Bank Financing

Bank Financing is where you go and apply for a loan and you get approved for a

mortgage …

Bank Financing is probably the easiest and

most common way to finance your

Lease Option …

The challenge with Bank Financing is that you are

limited to how many properties you can acquire

…

And that’s because you need good credit and low debt to income

ratios ...

Bank Financing is also the cheapest way

to finance your Lease Option property

# 2Joint Venture

Partners

Using Joint Venture Partners is when you bring a 3rd party in to purchase your Lease Option property …

Joint Venture Partnersare not that easy to find … especially if you are not an

industry expert.

The way I setup my JV Partnerships is …

Partner provides all the MoneyI provide all the work

Having a JV Partner is expensive.I split the profits 50/50

with my JV partner.

You can acquire an unlimited # of Lease Option properties with

many JV partners.

# 3Seller Financing

There are many variations to Seller Financing

Seller Financing is when I get the seller to stay on

title and to continue to hold the mortgage for the Lease

Option property

Seller Financing is setup the same way that JV

Partnerships are implemented …

The only difference is that a JV Partner becomes a Seller after they acquire a Lease

Option property …

One advantage of Seller Financing is that there are no upfront closing costs …

like with a JV Partner.

The biggest disadvantage with Seller Financing is that you have to find a tenant buyer for that specific

property

Comparison *Investment Strategy Approach Approval Scaleable Cost Profit Split

Bank Financing Tenant First Bank No $$$$ 100%

JV Partner Tenant First Bank Yes $$$$$ 50%

Seller Finance Property First No Yes $ 50%

Stay tuned for Video #3 where I show you why people want

to do a Lease Option transaction