financing secrets of a millionaire real estate investor.pdf
financing secrets of a millionaire real estate investor.pdf
financing secrets of a millionaire real estate investor.pdf
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viii<br />
CONTENTS<br />
8. The Lease Option 99<br />
Financing Alternative 100<br />
Lease—The Right to Possession 100<br />
Sublease 100<br />
Assignment 100<br />
More on Options, the “Right” to Buy 101<br />
An Option Can Be Sold or Exercised 102<br />
Alternative to Selling Your Option 102<br />
The Lease Option 103<br />
The Lease Purchase 103<br />
Lease Option <strong>of</strong> Your Personal Residence 104<br />
The Sandwich Lease Option 106<br />
Cash Flow 107<br />
Equity Buildup 107<br />
Straight Option without the Lease 108<br />
Case Study: Sandwich Lease Option 109<br />
Sale-Leaseback 110<br />
Case Study: Sale-Leaseback 111<br />
Key Points 112<br />
9. Owner Financing 113<br />
Advantages <strong>of</strong> Owner Financing 115<br />
Easy Qualification 115<br />
Cheaper Costs 116<br />
Faster Closing 116<br />
Less Risk 116<br />
Future Discounting 117<br />
Assuming the Existing Loan 117<br />
Assumable Mortgages 117<br />
Assumable with Qualification 118<br />
Buying Subject to the Existing Loan 118<br />
Risk versus Reward 119<br />
Convincing the Seller 120<br />
A Workaround for Down-Payment Requirements 121<br />
Installment Land Contract 122<br />
Benefits <strong>of</strong> the Land Contract 124<br />
Problems with the Land Contract 125<br />
Using a Purcahse Money Note 125<br />
Variation: Create Two Notes, Sell One 126<br />
Another Variation: Sell the Income Stream 126
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