financing secrets of a millionaire real estate investor.pdf

100 FINANCING SECRETS OF A MILLIONAIRE REAL ESTATE INVESTOR
Financing Alternative
The two primary objectives of the real estate investor are cash
flow and appreciation. You don’t need to own a property to create
cash flow or benefit from appreciation. Because a lease entitles you to
possession, it allows you to create cash flow. An option gives you the
right to buy at a set price, allowing you to benefit from future appreciation.
Lease—The Right to Possession
Under a lease agreement, the lessor (landlord) gives the lessee
(tenant) the right to possess and enjoy the property, one of the most
important benefits of real estate ownership. The lessee is usually not
responsible for property taxes and major repairs. Once you have the
right to obtain possession of property, you can profit by subletting or
assigning your right to possession.
Sublease
A sublease is a lease by a tenant to another person, a subtenant,
of a part of the premises held by the tenant under a lease. The sublease
can be for part of the premises or part of the time period. For example,
if the tenant has a three-year lease agreement with the landlord,
the tenant can sublease the rental unit for two years, or sublease part
of the unit for three years.
Assignment
An assignment is a transfer to another of the whole of any property
or any estate or right therein. As with a sublease, the master tenant