In addition to addressing their top questions, you’ll have to mention the financial benefits to a lease option arrangement. In some cases, you’ll have to convince someone to consider rent-to-own instead of just renting, they will not have to worry about the following fees:
a. Vacancy fees – 1 month out of 12 the house will be vacant – 8%
b. Management fee – Some effort to collect rent, pay the mortgage, handle questions, repairs, etc. – $100/unit typical management fee – 5-10%
c. Maintenance fee – Utilities, appliances, landscaping, etc. With a rent to own, you don’t pay for any of these expenses, the buyer-tenant does – 5-10%
To learn more about the benefits of lease options and how they are a smart choice for today’s savvy real estate investor, visit http://bit.ly/TipForEarningMoney
Tips to Becoming a Millionaire
The truth is that all of us can become as wealthy as we decide to be. None of us is excluded from the wealth. If you have the desire to receive money, whatever how much the amount is, you have all of the rights to do so. There’s no limit to how much you can earn for yourself.
Here are some tips to becoming a millionaire :
1. Change your thinking
You’ll have to go through plenty of self-discovery before you earning your first million. Knowing the truth about yourself isn’t always the easiest task. Sometimes, you’ll find that you’re your biggest enemy and best friend, even in the same day. Nonetheless, changing your thinking is a requirement for wealth.
2. Save Relentlessly
This will address the queries that I’ve recently received. For many individuals, there’s too much month at the end of the money. However, you’ll have to make your best effort to save your money as much as you can, even if it’s a ridiculously low number.
3. Indulge in Wealth
To become wealthy, the first you must learn about wealth. This means that you’ll have to put yourself in a situations that you’ve never been before. For instance, you can test to drive a new car, get a realtor to show you an expensive home, or get a brownie from the finest bakery in town. Most of this will not break your bank. In fact, some of it is free. If you want to make your financial dreams happen, you’ll have to go where 97 percent of people aren’t willing to go.
4. Believe It’s Possible
If you believe that it’s possible to become a millionaire, then you can make it happen. However, if you’ve excluded yourself from this possibility and think that it’s for other people, you’ll never have the money that you want. Also, be sure to bless rich people when you can. Haters of money aren’t likely to receiving any of it either.
The best way to do this is to learn relentlessly about yourself and money. You can do this by reading books that have been written by millionaires themselves. By gaining a well-rounded education and staying inspired, you’ll be able to get the wealth that you’ve been looking for.
5. Seize ALL Opportunities
In every neighborhood, no matter where you are, there are always opportunities to do good. Your community desperately needs your help. If you would only open your mind and heart to these opportunities, you’ll find out that they will be ready to reward you in due time.
Finally, money is the harvest of your production. Everything that you have is in direct proportion to your actions. If you’ve done everything that you can do and have a purpose leading your life, you can expect to become wealthy. You must desire wealth and eventually the money will come when you are ready for it.
The most important word and are very useful is “The more seeds (service) you plant, the more plants (money) you’ll have”.
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8 Most Important Aspects of Lease Options
A a lot of creative strategy is for an investor to do a lease option contract with the seller of the property and re-lease option it to a perspective buyer at higher terms than he’s paying. This can be cited as a “butterfly lease option” and can be very profitable if all goes as planned since the investor will have very little or no money or risk in the deal.
With all that said, what is so dangerous about lease options?
1. If you are giving a tenant a lease option, it is critical to sign two separate documents, a lease and an option agreement. The reason is that if you have to evict the tenant, the eviction process stands on its own contract and is not clouded by the option contract part.
2. The option consideration is non-refundable and must not be construed as a refundable lease deposit. Unfortunately, courts have had this confusion problem when there is one document (lease-option) versus two documents, lease plus separate option contract).
3. If you are considering a butterfly lease option, make certain the seller uses a single agreement contract, while you must give your tenant two separate contracts. This is protects you on both sides of the transaction if something goes wrong.
4. Make certain that the tenant understands and signs to the effect that all repairs less than some amount ($3,000) are his since he will be becoming the owner and no longer a renter. If you don’t make this threshold high enough, he will be a typical tenant calling you in the middle of the night with his latest plumbing problem.
5. Do not make the terms of the cure period unreasonable for the tenant. For example, if the tenant is one day late, his option contract is zero and void and his option consideration is forfeited. States have passed laws just to control this type of malicious behavior by the landlord.
6. A common problem is that investors charge too low a rent and when the tenant is ready to finance his purchase he realizes that his new rent will be double what he is paying. His pride of ownership becomes a lack of interest and he does not buy the property. Some investors like this because they can re-lease option the property over and over again constantly collecting non-refundable option considerations. The tenant’s rent should be equivalent to what his mortgage payment including principal, interest, taxes and insurance will be when he buys the property.
7. To support a higher lease payment to get the tenant ready to exercise, give him a monthly credit that will be deducted from the principal purchase price or as a seller credit at the closing. If he is evicted or does not exercise his option, his credit is forfeited.
8. The renewal terms of the option contract may not be the same as the tenant’s lease. The renewal of a lease doesn’t cost the tenant another lease deposit, while the tenant should have to pay a non-refundable renewal fee of $1,000 to $2,000 which will be a credit at the closing, if there is a closing. The other possibility is to have the strike price of the option raised each year. Investors should give their tenant a maximum of two years and 3 months to exercise, while they should ask the seller for a minimum of five years and 6 months.
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The Powerful Habits That Will Make You Become a Millionaire
These habits led to a succession of positive results. Professionally, I became more competent. Personally, I became more confident. This realization that ability breeds confidence was the important point that changed my life. It enabled me to achieve the acme of success I currently encounter, allowing me to create wealth and inspiration for millions of people.
Moreover, it came at a great sacrifice. These habits that I created were the anchors that made me who I am today. Therefore, here are the powerful habits that will make you a millionaire:
1. Simplify Your Words
Millionaires know how to share their message in simplest terms. They use their words with precision and possess deep meaning in what they say. Personally, I peruse the dictionary every day, but I would never attempt to use every word I know. By speaking pompously, many people exterminate their opportunities. In short, never drown people in the sea of verbosity.
2. Abandon the Old
Before you are able to face the new, you must abandon the old. If you want a new car or house, then bless the old one and search for the new. When you want to achieve a positive mindset, you must get rid of the negative one first. To abandon your negative habits, you must replace them with positive ones.
3. Daily Goal-Setting
Every day, I set my goals on paper. This is an inspiring habit that I promise to keep for the rest of my life. Whether you’re writing your financial projections, planning your weekly tasks, or scheming new ways to build your empire, you’ll want to procure a daily goal-setting habit that will give you momentum on a daily basis.
The more decisions you make, the more successful you will be. While one person could make a dozen decisions in a day, another one can make hundreds in a day. The person who makes the most decisions will win, even if their decisions lead to failure. Just imagine, if you were going the opposite way on a one-way street, you’d learn to quickly make adjustments.
However, most people are afraid to make crucial decisions because they are conquered by fears, which leaves them paralyzed. Being paralyzed prevents them from making decisions, thereby forcing them to forfeit opportunities. Always make a decision, even if you don’t know where it will lead. Soon enough, you’ll find the answers you need.
Finally, good habits are as addictive as bad habits. Once you’ve adopted a good habit, keep gaining new ones. An average person develops 6-10 new habits per year, which also means that they are dropping 6-10 old habits! Regardless, think about your daily habits and how they affect you. And remember, you make your habits in the beginning, then your habits make you.
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The Laws that Every Millionaire Must Follow
If you want to be a millionaire, you must follow the laws properly. Many people from all over the world ask the general advice on how to become a millionaire. They come from all backgrounds, ages, religions, and skin colors. In general, they see money as the resource to help them reach their highest aspirations.
Following these laws of wealth will help you to navigate through the oceans of success and make you a millionaire:
1. Don’t Work For Money
If you are only work for money, then the money won’t work for you. Instead, you should be working on building your skills. Earning money is a byproduct of building your skills. The more skilled you learn in your profession, the further you can climb up the economic ladder.
Those who work for money will become slaves to money. Those who work to build their skills will master money, especially since handling money is also a skill. If you focus on developing the skills, you will be able to pay the bills. Conversely, if you’re focused on paying the bills, you won’t have the time to acquire the skills. Thus, skills over bills. That’s the priority. Millionaires are highly skilled.
2. Fix Your Intentions
Those who with the right intentions will become a millionaire. As mentioned earlier, fixing your intentions on “making money” for the sake of making money will prohibit your success. In fact, this mindset will often blind people to other opportunities. If your intentions are wrong, it will stop you from the success that you want.
When networking, you must share your intentions and ensure the “give and take” relationship is mutual. Furthermore, sharing your intentions clarifies your message, leaving no room for confusion, which allows others to lend you a helping hand.
3. Make it Easy for Others
To become a millionaire, you must make it very easy for others. Instead of complicating your message, you must break it down in ways that people understand. Oftentimes, if a person is confused by your convoluted message, they will back out and avoid to doing business with you. Remember, the confused mind always says, “No.”
4. Step Into Your Comfort Zone
Failure is highly uncomfortable for all the people, but so many people still tolerate it. They settle for the house they don’t want to live in, the cars they don’t want to drive, and the salary that they can’t enjoy. Instead, seek success: It’s easy, fun, and extremely comfortable. Overcome all your fears and go for your dreams. What you want wants you even more!
Everything that I do is comfortable, however it all started when I began inspiring souls free. The only way you can step into your comfort zone and do what you love is by doing it free. Stop working for money, start building your skills, and do what you love, even if no one pays you to do it. Soon enough, you’ll find a way to get paid for what you do. That’s how you enjoy your life.
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The Core that Beliefs of Millionaires
There are millionaires in every property, from computer software to even shoe shiners. Millionaires come from all walks of life. Now, i am going to share the essential core that beliefs of millionaires that i know.
1. Millionaires Know They Can’t Make it on Their Own
Millionaires leverage the power of the mastermind group. Millionaires surround themselves with other like-minded people to help them to achieve far more than they could have done on their own or thought possible. Mastermind groups help brainstorm new ideas to generate wealth and also help with networking through potentially thousands of influential people and companies.
2. Millionaires Believe They Have No limitations
Millionaires don’t believe that the sky is the limit, that would be silly to believe such a thing. Millionaires believe there are no limits. The only limitations that we have are the ones we put on ourselves. Millionaires also understand that all roadblocks to success are mental roadblocks. All problems and solutions rest within our own minds.
3. Millionaires Believe They are the Makers of Their Own Destiny
Millionaires choose to live and run their own lives. They do this by not letting setbacks and unwelcomed circumstances to hold them back. Millionaires have a winner’s way of thinking, that is they go forward with the attitude that “Failure is not an option”.
4. Millionaires Believe in Giving
Millionaires believe in the law of abundance. Millionaires know that there will always be plenty to go around. They also know that as they give, the universe will give back to them in greater wealth. Millionaires believe that the more they give of their time, talents, knowledge, and wealth, then the universe will give back exponentially to what is given.
5. Millionaires Believe That at the Root of Every Problem is a Seed of Opportunity
Millionaires believe they can turn any negative situation to a positive situation. Whether it’s personal, family, or financial, they see problems as an opportunity of improvement.
6. Millionaires Believe in Education
Millionaires don’t just believe in having college education, they also believe in self-education. The average that the person reads less than one book per year, the average that the millionaire reads two books per week. I’m not talking about books such as Harry Potter either, rather, books such as Think and Grow Rich and 7 Habits of Highly Successful People. Millionaires become successful through their reading habits.
Finally, there is a new millionaire made every 60 seconds in Malaysia, and by diligently applying these principles, you could very soon be one of them.
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The 3 Untold Secrets to Become A Millionaire
Perhaps one of the most interesting aspects in your journey to discovering well the way to become a rich person in a year or less is this. there’s too much information out there trying to feed you rudimentary steps on the way to become a millionaire. I have found out that there are really 3 “Untold Secrets” that the average millionaire has :
Secret 1: The Secrets Of The Millionaire Mind
The point is, you should read books authored by people who have made actual life accounts on how to become a millionaire or interviews made with actual millionaires. Then, try not to think too much about the millionaire lifestyle but think about how they think. Get understand or inside to the millionaire mind.
Secret #2: Think Like A Millionaire, Act Like One
It is really easy for you to think like a millionaire before you read the book about how to become a millionaire. Yes, you may not have that much cash to reserves in your bank account but the state of the millionaire beginnings is in your mind. Here are few exercises that you can learn and do :
A) You can imagine that you are living in the life of your dreams. What kind of car, house or material things that you want? Then, write them down or cut up your local newspaper pieces to paste on your fridge door, etc.
B) You can make the most time for your family. Ensure that whatever you do at the work or in your business, you must also put your family in the top priority. Good emotional support begins from home and that is your foundation on how to become a millionaire in a short time.
C) You can act like a millionaire. One day you walk into a store and see your favourite jacket. Please don’t say “It is expensive”. Instead practice by saying “how can I earn some extra cash to afford it?”. This is the beginning of your creative thoughts on learning how to become a millionaire.
Secret #3: How To Become A Millionaire Fast
Apart from telling you what to do to be a millionaire, the first you must understand the principal behind the millionaires that already exists today. They don’t sleep in a better bed or have a happier family than you.
While poverty isn’t good for the soul as well you should pay attention at here. The world has an abundance of wealth to be made over the Internet. This can be achieved by generating lots of business by the minutes even while you sleep. Books written on how to become a millionaire usually will not tell you in detail but it’s true.
Actually, the authors who tell you how to become a millionaire will always say it is a state of mind. Your mission is to sift through the junk information and gather a journal of useful points to start your journey on how to become a millionaire.
Finally, I believe that you have a great potential to become a millionaire. The only thing you need to do is to take the secrets above that shows you the first step in how to become a millionaire and apply it. Develop a millionaire mind for your financial future.
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Basics of Lease Option Investing
Lease Option is the abbreviated form of the appropriate term “Lease with the Option to Purchase. In a Lease Option, a buyer make and sign an agreement with a seller as a tenant and the owner in this case would be the lessor.
The tenant can take an option to purchase the property at a later date while leasing the property during the current time. When the option term is up, the tenant is NOT obligated or NOT allow to purchase the property , but the lessor cannot sell or rent the property to other people else other than the tenant because it is under the lease option agreement.
In order to to have a valid option, the buyer must provide some value things in order to make the option valid. Then in the option agreement, the 2 parties must agree on the price and the terms of the option when the option needs to be performed. So what that means is the buyer and seller should either come up with a purchase price before signing the agreement.
Some basic steps that how a lease option works :
- A active seller calls you when he is willing to do a lease option on his or her property.
- You provide an option and agree on the terms for a purchase price.
- You take out an option for 24 months.
- The seller’s mortgage amount is $500/mo and he is willing to lease the property for $700.
- The properties in the area are renting for $900, so you decide that you would want to take benefits from the lease option because you can make extra monthly income.
- You also purchase the option below market value so you have a winning deal.
Finally, those are the first steps in doing a lease option deal and you can see that it is very simple for you to do it. If you can wholesale these deals, you will be able to extract properties with little or nothing out of pocket and with no risk what so ever. After that, you will make the cash as much as you can if you do it with the right way.
Tips of Beneficial Lease Option
Lease option tips benefit the seller and the buyer in an fair manner. They help in creating a finance required for the transaction of a home deal. The lease option allows the tenant to buy the concerned property within a time period of 12 to 24 months.
For the first timers of buying a home who have not qualified for the finance options, the lease options are a good source for first timers to purchasing homes. They give the buyer’s time for getting their finances in shape for purchasing the property. The lease options are also great marketing tools for the sellers of properties to find the good buyers.
Benefits of the Lease Options :
There are many benefits provided for the buyers as well as the sellers of the lease options. The lease option tips for the buyers are listed below.
- The tenants get the facility of paying a small amount upfront for the house. This amount is smaller than the normal first payments.
- The possibility of a monthly credit rent helps in generating the first payment, resulting in a savings account for the buyers.
- The buyers can enjoy the benefits of living in the house that they dream, of now instead of renting an apartment and waiting to repair their credit.
But this convenience is not available without costs. An option fee needs to be paid by the buyers, in addition to any potential rent credits and the monthly rent. The seller can keep this money if the buyer is not able to work out the option.
The lease option tips for the sellers are :
- This option increases the monthly flow of cash for the sellers.
- Before the selling date, this option also helps in solidifying the cost of the property. This rate of solidifying is good in the real estate market.
- The lease option point the tenants to taking care of the property, as they have the intention of buying it in the future.
- The sellers can receive money upfront and can keep it if the tenant fails to perform the option.
Finally, the contracts of the lease options are sometimes very complex in nature. The tips of lease options suggest that the language of the contract has to focus on the contract terms, rather than the price. The finding of buyers for the lease option, demands a considerable amount of time investment on a part of the sellers.
Lease Option Techniques
For the investor or home owner, the lease option is a popular method for investor or home owner to sell property and receive profits. These lease option techniques are provided to help both the buyer, the seller, and for the investor, such techniques as the sandwich lease and flipping lease options. There are several lease option techniques, all customizable to your specific situation.
For the Seller, here are some lease option techniques to consider :
- Consider owner financing as a lease option technique especially if the tenant is motivated, but simply may have trouble in getting conventional funding.
- You can require an option fee from the tenant. Requiring even few hundred or a few thousand gleans out those buyers who are less motivated to perform the option.
- Consider contract terms such as maintenance and repairs. Then the subletting, the one of the popular flipping lease options, and extending the option deadline.
- The lease option can be a complex document and combines the situation of both the conventional sales and lease contract. Consider a real estate attorney to help you or he can also suggests some advice for you.
As a Buyer, here are some lease option techniques :
- Build an escrow account to protect your funds if the owner not honor your option. Most owners are honest, but why take the chance.
- Start early to secure financing, especially if you need to clean up your credit. If you can start early, the more time that you have is better for yourself. Remember, in most cases you won’t get your money back if you don’t perform your option.
- You must make sure that you agree with contract language to maximize your lease option techniques.
- Include a clause to assign the lease to a third party, if indeed you cannot find financing, you can assign it to someone who has.
- Have the document notarized and record it in public real estate records to encourage the owner to honor the option.
- The right to extend the option deadline gives you a cushion should the final closing day approach before you’re ready with financing.
- Consider sharing costs of maintenance with the seller, since you both have interest in keeping the property in pristine condition.