How Lease Options Saved Me from Bankruptcy

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 monthlycash 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.

By CREOnline Contributor

A content contributor to the original CREOnline.com.