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How Lease Options Saved Me from Bankruptcy

by Tom E. Bazley, Jr.   

In December, 1994 I was literally on the brink of bankruptcy. I had $25,000 in credit card debt, plus I was working a job that I hated. I was able to scrape together the money to take Claude Diamond's one-on-one lease purchase mentoring program.

But just three days after completing the training, I was fired from my job and lost my only source of income.

With Claude's training still fresh and his follow up support available, I was able to put together my first lease option deal within three weeks of the training. I made $3,000 on that first deal--more money than I used to make in a month at my old job.

In the 2 1/2 years since that time, I have lease optioned or bought thirty-six houses. I have a monthly cash flow of $2,400 and have profited over $150,000. Needless to say, bankruptcy is no longer a consideration.

Like all smart investors, I am always looking for new methods and techniques that will increase my profitability. So, when I saw Joe Kaiser's course on Targeting the Tired Landlord, I figured that was something I would be able to use.

I went through the course in one evening. Then I went out and bought a reverse directory CD ROM that Joe mentioned in the course and started sending letters to people who had houses advertised for rent. I started getting calls and, within three weeks of reading the course, I had put together two deals with "tired landlords."

The first one was with a lady who had to advertise the same property three times in less than eighteen months because her tenants kept moving. I structured a three-year lease option under these terms:

  • $100 option money

  • $550/month rent

  • $62,500 purchase price

It's currently rented to a young couple under the following terms:

  • $3,000 option consideration

  • $725/month rent with 50% rent credit

  • $75,900 purchase price

Claude taught me to always be generous with the rent credit. That's why my houses never sit vacant very long. This house will produce a profit of over $11,000--more than enough to offset the price of Joe's course--don't you think?

The second deal was with an older gentleman who had problems with his tenants moving as well. He was very happy that I was willing to sign a five-year lease with an option to purchase. Our deal is as follows:

  • $500 option money

  • $750/month rent

  • $83,000 purchase price

It's rented to an assistant coach of our NFL team under these terms:

  • $5000 option consideration

  • $935/month with 50% credit

  • $97,900 purchase price

This house will make me over $11,000. That's a long way to come in 2 1/2 years, and I owe it all to Claude Diamond and Joe Kaiser.

 
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