Various Aspects Of The Lease Purchase Business – Real Estate
Various Aspects Of The Lease Purchase Business
Sue and Chuck DeFiore
In a previous article, we wrote why we believe that Lease Purchasing is the perfect home-based business, here we want to briefly touch on some of the actual aspects of operating such a business, the pluses and minuses and why Lease Purchasing represents a win-win situation for the seller, the tenant/buyer and just as importantly, you, as the business owner.
One of your goals in operating a Lease Purchase business is to contract for property that you then move to the tenant/buyer. There are a number of unique strategies that can be employed to reach this end.
You can lease purchase the property and then sub-lease to a tenant/buyer. In this strategy, you are taking on the responsibility for all payments to the seller. However, it also 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. This is also known as a sandwich lease purchase.
Another unique strategy is called the co-operative assignment. Here, you contract for a property and assign or sell that contract to a tenant/buyer, with the approval of the seller. In other words, the owner/seller has final approval over who goes into the home.
Another way of doing business is the straight assignment. Here, you contract for a property and assign or sell that contract to a tenant/buyer. This method does not require a sellers approval.
You can also take a pure option on a property which allows you to purchase the home at a future date with set terms. This option can then be sold to another investor.
As you can see, there are a number of unique strategies that can be employed in this business. We have touched on just some of them to give you an idea of the type of income Lease Purchasing can generate for you.
After youve gained experience in the business, you can start consulting with sellers and tenant/buyers. There are many reasons you may want to consult with a seller rather than get directly involved in the deal. The property may be to distant to work conveniently, there may not be enough money in it for you to receive what you need, or the seller may prefer to do it him or herself.
When you consult with a seller, you are providing the proper contract, a marketing plan and supporting material. We also provide a period of time for follow-up questions.
You can also consult with tenant/buyers. You may want to do this with those individuals who have limited funds available to get into a rent to own home. There are also occasions where people just prefer to do their own house hunting.
Weve really just touched on the various ways to generate income with a Lease Purchase business. Lease Purchasing allows you to develop multiple income streams. By utilizing all of the income generating strategies available to you, you can build a very solid financial base for yourself.
Weve covered many of the pluses of Lease Purchasing as a business, but wed be less than honest not to point out some of the minuses.
If youre the type of individual who has poor attention to detail, this may not be for you. You need to be able to keep good records of whom you spoke to and do business with.
Also, if youre an impatient type and dont like to do "hand holding", again this may not be for you. There are many deals where you will need to be able to walk the participants through and provide constant reinforcement to them.
Although the risk level in this business is minimal, there are some risks involved. You may contract for a property and not move it for example. If youre adverse to any risk, re-think Lease Purchasing as a business for you.
In our opinion, Lease Purchasing provides a truly win-win scenario for all parties. You get to help a seller who has a problem, you provide a nice home in a nice area for the tenant/buyer that they can get into today and buy tomorrow and finally, you are generating a wonderful income for yourself. This is a business that can be operated anywhere there are free property rights.
Believe us when we say that Lease Purchasing is the best business we will ever own. Its that good!
Copyright 2002, DeFiore Enterprises.
About The Author
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 FREE "how to" Home Business Solutions Digest, its like having your own personal coach: mailto:subscribeHBS@homebusinesssolutions.com
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Should a HDMI DVD Player Be Your Next Home Theater Purchase – Home
Should a HDMI DVD Player Be Your Next Home Theater Purchase
Kenny Hemphill
Thinking about getting an HDMI DVD player Whether youve heard t he buzz surrounding the latest generation of DVD players or have an HDTV and want a player to connect it to, the information on this page will help.
HDMI stands for High Definition Multimedia Interface. Its the standard connector for high definition TV and video kit and is a lossless, all-digital audio/ video interface which as well as supporting HD content also carries standard definition SD and enhanced definition ED video.
Deciding which HDMI DVD player to get is becoming more difficult as more and more devices arrive on the market. Prices range from a very reasonable $200 or so for the Toshiba SD-5970 to a couple of thousand dollars for devices at the high-end.
The Toshiba HDMI DVD player, like the other high definition players, up-converts the DVD-Video content on regular DVD discs to either 720p or 1080i high definition resolution. As well as do everything you would expect of a DVD player, the Toshiba SD-5970 has a couple of tricks up its sleeve. Its progressive scan output, when connected to an HDTV using the HDMI connector, provides twice the number of scan lines present on a normal DVD picture. This means higher resolution, sharper and flicker free images which have none of the motion artifacts, such as stepping, often seen on less expensive DVD players.
Also, the SD-5970 performs, whats known as 3:2 pulldown reversal. This basically means that it corrects the distorion which is caused by translating 24 frames per second film to 30 frames per second video.
The Toshibe SD-5970 is relatively inexpensive for an HDMI DVD player, yet it marks a huge leap in terms of improvement in image quality. More expensive players are better still and best of all, becasue this is a relatively new market prices are sure to fall making even a very good HDMI DVD player within the reach fo any DVD enthusiast.
About The Author
Kenny Hemphill is the editor and publisher of The HDTV Tuner http://www.the-hdtv-tuner.com.
Student Home Purchase Plan – Mortgage
Student Home Purchase Plan
John Carle & Sharon Gregresh
Tuition costs are climbing, housing costs are climbing, it seems like all the costs for students are climbing these days. Students can afford cost increases less than any other demographic in Canada. Because of this, parents and students alike are looking for new ways to offset the costs of education.
Student loans can be used to defer these costs to some extent, but they need to be repaid after graduation. Its difficult to climb the corporate ladder or get ahead in life when you have $30,000 worth of debt before your first job is even found!
Bursaries, grants, and scholarships are another great source of funding for a student. However, the amount of money available is thinning, and the competition is growing stiffer for this money each year.
The average student, over a 4 year degree, pays over $16,000 in tuition and books. Housing costs approximately $38,000 for a 4 year degree. This is based on rent of $800 per month for 48 months.
This means the total cost of education for a student is over $54,000 before paying for any clothes, food, or recreational expenses. Given that the average student doesnt qualify for more than about $9000/year in student loans, this means an average student needs to find over $18,000 during their 4 year education career to be able to go to school. Not to mention the cost of food and clothes.
So how does a student get ahead in life, avoid massive student loans, and still get an education
Many parents have been turning to Real Estate as a solution for a solution. Let me explain what theyre doing