These are my 3 best strategies to start making money fast. No matter what the situation, you can use one of these techniques to find a way to profit quickly.





It is my hope that by the time you are finished with course, you will be able to determine sellers motivation quickly, and be very proficient (expert level) in putting deals together to make money fast. I don’t waste a lot of space with fluff (known as “filler” among the seminar promoter insiders). I get right to the point, cut to the chase, and dive right in to the good stuff. If you want information on setting goals, positive thinking, or self-motivation, get a book on those topics. This Course is about the nuts-and-bolts of a real estate lease purchase / option transaction only!

All you need is the information in this Course (and the appropriate Contracts) to make more money than you’ve ever dreamed possible! Using my techniques, no one is likely to ever ask you where you work, or even if you have a job. If they do, you simply would say that real estate is your job. Your credit rating is of no consequence in this business. It’s doubtful anyone will even ask. So, are you ready to change your life? Let’s get started!

However you have chosen to market to sellers, you should ask every Seller the magical question:

“Why are you selling?” You are looking for Sellers who have strict time constraints (they must sell quickly), who need debt relief (are having trouble making that payment every month–perhaps because they bought a second home), or both. People in PreForeclosure are also potential clients IF the property is in good shape and in a good area and not too many months behind. How the Seller answers your magical question will let you know if a subject-to is a viable option.


The easiest way to make money in real estate is “wholesaling.” I don’t do this the same way other real estate gurus recommend. First, let me tell you what wholesaling is, and then I’ll tell you all the things wrong with it and how my method is just about perfect.

Basically, here is how it’s supposed to work: You find a great deal in real estate and put it under Contract, find a Buyer, and “flip” the deal to another person. You are simply a middleman. You tie up the property with an Agreement to purchase it, and then you find a Buyer who gives YOU a Contract to purchase. Keep in mind that a Contract to buy a piece of property also gives you a right to sell that property. Then you all go to the Closing together, and the two Contracts are put together by the Closing Attorney. You have to get really good deals from motivated Sellers for this to work.

For example, let’s say you find a fixer-upper that needs a lot of repairs that you put under Contract for $25,000. It’s worth about $65,000 AFTER repairs (about $10,000 worth of repairs are needed). You find a Buyer willing to pay $30,000 for the property. Your Buyer pays Closing Costs, and you just made $5,000 on a property that you sold that you didn’t even own! Sounds great, huh? Not so fast–there are a lot of problems. First of all, you had to put down some money as a deposit (earnest money). Negotiating about earnest money has always been very awkward for me. Secondly, your Buyer may back out and not buy at all, which will cause you to forfeit on your Contract. But most important of all is the fact that you may have committed fraud in some states, because you led the Seller to believe that YOU were going to buy the property, and you also led your Buyer to believe that you were the Owner of the property.

Personally, I don’t like lying to anyone or misleading them in the slightest way. Fortunately, I have the ultimate solution to all these problems.

Read the above information again to make sure that you understand the concept of wholesaling before proceeding to the next section. Take your time–I’m not going anywhere.

Part 2 – The Key To Doing More Deals Faster!

Here is the key word to solving all of the problems in wholesaling: NonExclusively. I don’t tie up the properties by putting them under Contract at all. I use an Open Option or — as it is also known by–a Nonexclusive Option. This merely states that I have an Option to buy the property for a negotiated price, but that I don’t take the property off the market.

The Seller can continue to market the property or even list it with a real estate agent, but I still have a right to buy the property at a certain price.

Since I didn’t tie up the property, how much money do you suppose I am going to give the Seller as a deposit? Not a red cent! And they won’t expect any money, either! You can put an Option on just about anything, but the best thing to wholesale is a property needing major repairs. Since it isn’t costing you any money, you should Option everything you can get your hands on. Some will sell and some won’t, but you have absolutely nothing at risk. Once you do your first one, you need to build a Buyer list. Placing an ad on Craigslist and on any free online advertising site can create such a list rather quickly. Keep the ad simple. Something like:

Cheap! CASH! 3/2

I recommend setting up a free simple voice message to pick up most of your calls (, put ” LV MSG.” at the end of your ad after your phone number. If you don’t, you will get a lot of hang-ups. You have to find a really good deal for a rehabber to be interested in it.

When you return the calls:

  • Give them all the necessary information and have them ride by to look at the property
  • Tell them that you are a wholesaler and that you find really great deals from time to time
  • Ask them what they are looking for–what area of town, minor cosmetic repairs, and major structural damage, how many bedrooms and bathrooms, and what price range
  • Write down this information in a notebook or Excel spreadsheet. Make sure you have both their names and addresses, and you have your Buyer list

TIP – Its super fast today to both email and VOICE BLAST your buyers from your list whenever you find a great deal!

Be sure to tell your potential Buyers that you have the property “under Contract.” When your Seller signs your Option, get the following information:

  • The amount of any mortgage(s)
  • Number of bedrooms and bathrooms
  • The square footage
  • Cost of taxes and insurance
  • Type of heating and air
  • As much other information as you can gather for your Buyers

If the property is a rental, you MUST get copies of the Lease or Rental Agreements. When selling rental property, your Buyer may have to get financing, and it’s likely that the bank or mortgage company will want to see those Agreements. If the Seller can’t find them, don’t waste your time on this deal! With rental property, you will need to know the following:

  • Any vacancies
  • Who is responsible for the lawn and pest control
  • What the rent payments are
  • When the Leases expire
  • What utilities are involved?
  • If Tenants pay all utilities
  • Whether or not water is separately metered for each unit
  • What appliances the landlord is responsible for
  • The amount of the deposits
  • All of the previously mentioned information as well

You have to be prepared when you interacting with people. Don’t worry; if you missed something, you can always go back to the Seller to get the information. When negotiating, you and the Seller have an adversarial relationship, but after signing your Option Agreement, you and the Seller are actually working together. He/she knows that you are not going to buy the property yourself but that you are selling it for him/her (at your own expense).

What do you do once you find a serious Buyer? You get your Buyer to sign a Purchase and Sale Agreement (preferably your own), and then you collect a substantial deposit to show that the Buyer is serious. Don’t tell the Buyer that you have a Nonexclusive Option on the property. Always say that you have the property “under Contract.”

If you accept the Buyer’s Purchase Agreement (and don’t use your own), you will have to mark through any “weasel” clauses–such as “subject to” or “contingent upon” inspection, approval by, or anything else. It’s better to simply make your Buyer use your Purchase and Sale Agreement. My Agreement has no weasel clauses and clearly states that the earnest money deposit is nonrefundable. (The same goes for you whenever you make an Offer on a piece of property that you want to buy for yourself; so-called real estate gurus tell you to put contingencies in your Offer, but without any such clauses you stand a much better chance of having your Offer accepted, and all you can lose is your deposit anyway, which should be as little as possible.)

So now you have a signed Agreement and $500 or $1,000 earnest money. What now? Well, first of all, make sure that the deposit is in certified funds (cash, money order, or cashier’s check) only. Until now, the property wasn’t tied up, but at this time you need to do so. Contact the Seller immediately and tell the Seller that you have found a Buyer. You should have already told the Seller what you intend to do, so both of you should have worked out the least amount of earnest money the Seller would accept.

You now have to tie up the property for 30 days. You received a nonrefundable deposit of $1,000 or more from your Buyer. You write a check for half that amount to your Seller along with a Purchase and Sale Agreement. Of course, you take your Buyer’s deposit and put it in your bank account to cover the check that you gave your Seller. Now you have actually tied up the property and even made $500 on a property you don’t even own. If the person you found actually buys, you get the difference between what you paid and what you sold the property for.

Keep in mind that your Buyers are looking for good deals. They are the ones taking the risks, and they are the ones spending the money to rehab the properties; therefore, you must let them have most of the profit. They don’t mind you making 1, 2, or even 5 grand, but you must give them the most profit. I would never accept less than $1,000 on any deal. YOU decide what to sell the property for.

The money is made in buying it, though. You have to negotiate a low price from someone needing to sell. The best deals come from landlords who are just tired of landlording and want out of the business. Other good deals come from out-of-state Owners and/or people who have inherited rundown property from a deceased family member. These deals don’t fall from trees, but if you shake enough trees, a few will fall!

To further protect yourself, get your Buyer to sign a “Disclosure” which says that they understand that the Seller (you) are not the Owner of the property. My Disclosure form also gives me 3 days to cancel the deal. This is very important, because what if you approach your Seller and, for some unlikely reason, your Seller has already found a Buyer? Remember, your Option didn’t take the property off the market, so there is a chance that your Seller could sell it. In such a case, you would simply refund the deposit to your Buyer, tear up the Purchase and Sale Agreement, and cancel the deal. You still have lost nothing! Then you move on to the next deal. I’ve only had a Seller sell before I could a couple of times, so it could happen. You need extremely good Agreements to protect you in case of any situation. My Contracts are the best in the business, and you can get all of them for an unbelievably low fee (which also includes personal Mentoring). Full details will be given at the end of this Course. For the wholesaling business, you will need:

  • An Option Agreement
  • A Purchase and Sale Agreement
  • A Disclosure Form

Now, what about Option Consideration? Doesn’t every Contract need “consideration” to be legal? Yes, but consideration doesn’t have to be money!

My Contracts are all ingeniously written so that you don’t have to put up ANY money, not even a dollar bill! Now, that’s what I truly call making money in real estate even if you’re FLAT BROKE! Granted, in some states you have to put up a minimum amount for an Option to be legally “enforceable,” but the Option is still a legal Contract regardless. And you are using a Nonexclusive Option, so this point is moot.

Once you find the Buyer, you are going to put it under Contract anyway, which, by the way, requires no earnest money; the only reason you give the Seller half your deposit is to keep the Seller happy in case your Buyer defaults, and the Seller would be compensated for taking the property off the market for a time. The most I’ve ever paid was $10 to Option 6 properties from a Seller, but that was before I figured out that it’s always better to put down zero dollars! And I haven’t paid a penny since! In some states the minimum is $10 to make an Option enforceable, and in Florida it’s $100, but I would still put down zero. It also deserves mentioning that in at least 2 states (Colorado and Kentucky) it is illegal to “deal” in Options without a license (which is difficult and expensive to get). This, in my opinion, refers to a person who buys and sells Options, which you will not be doing. If you assigned your Option to another person, you could be breaking the law in these states. My interpretation of the law (check with a local attorney) seems to clearly exempt what you will be doing with my System from what the law defines as a “dealer” of Options.


Now, let’s look at another profit center with this magical Option Agreement.

My favorite properties to Option are not fixer-uppers but nice, luxurious, prestigious homes in nice neighborhoods. Keep in mind, you are a wholesaler with the fixer-uppers. You are merely passing on a good deal to a rehabber. With these expensive homes, however, you cannot use your Buyer list. You will be selling to owner-occupants primarily. What you are looking to Option now are nice homes in nice neighborhoods that need no work at all. Ask the Seller what the lowest is that he/she would accept for an ALL CASH sale. Then give the Seller an Option. You will have to find a cash Buyer for the property, and you keep the difference on the spread. For example, let’s say the house is worth $500,000, but you can get it for $400,000 cash. You can sell it for $450,000, and your Buyer will still save $50,000!

Where do you find these Buyers? Shhhh . . . keep it quiet, because this is a secret . . . all you have to do is create a flyer listing all the many amenities and extras involved, call doctors and get their FAX numbers from their secretaries, and FAX the doctors the flyer. Be sure to ask for permission, as unsolicited FAXes are illegal. After January 1, 2005 their permission must be signed and in writing, so this technique will no longer work after then (and you can’t FAX asking for permission). The headlines should include key words like: PRESTIGIOUS, ELITE, or LUXURIOUS. If you know someone who works in a hospital, you can have that person place the flyer on a bulletin board. Ads don’t usually work for high-dollar homes, but this is to your advantage.

You can find a Buyer when your Seller can’t. The only rule to follow is that the properties MUST be nonowner-occupied; in other words, they must be VACANT. Here is the reason why. Let’s say you find a Buyer, and the Buyer goes to look at the property. If the Owner is like most people, he/she will casually ask, “So, what price were you given?” Remember, you have an Option with the Seller for $400,000, but you are asking $450,000. When your Buyer says, “$450,000,” the Seller might say, “Oh no! I’m the Owner, and you can buy it from me for only $425,000!” The Seller just made an extra $25,000, the Buyer saved an extra $25,000, and you just got cut out of the deal!

If the home is vacant, you can show it just like a real estate agent, and if the Buyer is interested, you collect a substantial deposit (at least $10,000), and then get a signed Purchase and Sale Agreement. Then split that with the Seller, and quickly put the home under Contract. Obviously, you need the keys to show the house to your Buyers. Tell the Seller that you don’t just go traipsing people through a house until you’re sure that they are ready to buy. If they demand a deposit, say “How much of a deposit would you get from a real estate agency?” The answer is NONE! You are sort of acting like a real estate agent, but you don’t need a license, because the Option Agreement makes you a “party in the transaction.” You can even let the Seller list the house with a real estate agency, providing that the Seller excludes you and your assigns from the Listing Agreement.

You will show the house, sell it, market it at your expense, you can even cut the lawn and keep the windows clean, and you will not charge the Seller a commission (you cannot lawfully charge a commission without a real estate license). And you just made $50,000 on a house you don’t even own. Not only that, but you didn’t pay a single cent to control that property with the original Option! Isn’t this business great?!? By the way, I usually make my Seller pay for title insurance, and I usually make my Buyer pay all remaining Closing Costs. Sometimes, you can split these between Buyer and Seller. If your Seller pays half and your Buyer pays half, which half do you pay!?!

Now, what if your Buyer can’t qualify or doesn’t buy for some other reason? Your Seller doesn’t much mind, because (as mentioned earlier) the Seller was compensated for taking the home off the market (you give the Seller half your earnest money for just that purpose). As you can see, the Contracts are the heart and soul of this business, and my Contracts are the best in the entire business BAR NONE! Every Contract I use is either a 1-sided or 2-sided 1 page Agreement, because such Contracts do not frighten or intimidate Sellers or Buyers. My Contracts are very non-threatening, but they contain all the clauses and provisions which protect you in almost every possible circumstance. They come camera-ready (simply photocopy them)! Now, let me ask you one simple question. Did I keep my word–did I actually show you how to make money in real estate with no money, credit, or job, even if you are flat broke and/or bankrupt? Not only that, but I gave you this valuable information for almost nothing! Keep reading; you haven’t seen anything yet!


The absolute best way to make a lot of money in real estate is with Lease Options. There are several courses on the market and just as many different ways to use Lease Options, but none (so far) uses my method of nonexclusivity.

When you use the Non-Exclusive Option Method, you will control a piece of property with absolutely no money whatsoever, and most of the time you won’t even be asked to put up a single cent; the issue just won’t come up.

My method focuses on what is called “sandwich” leasing, but it’s not like anything you will find anywhere else.

I also have the best Lease Option Agreement in the entire industry–bar none! And, as with all of my Contracts, they are specifically designed to be used with my unique system and tailor-made to provide you with the most profit and the least amount of risk.

Before I explain my system, let me tell you who you are looking for as Sellers. Your primary candidate for a good Lease Option should be someone who needs DEBT RELIEF, which you (with your specialized knowledge) can easily provide. The ideal situation is someone making mortgage payments on 2 separate homes. Perhaps they impulsively bought (or built) another house thinking that the current home would quickly sell but, for whatever reason, it didn’t. More often than not, this is due to a person falling in love and the new couple wanting to start fresh in a new home. Many times, the house may have been listed with a real estate agency and didn’t sell after 6 months or longer. Let me tell you, no matter how much income a person makes, it still hurts to come out of pocket each month for that extra mortgage payment. It’s just human nature to think about all the other things you could’ve bought with that extra cash!

Another source of Sellers are landlords who are just tired of the hassles, headaches, and horrors of the rental business. They just want out. You just have to be careful that you deal only with the nicer homes in the rental market and not the junkers. With the first half of this business, you were dealing with the less attractive properties, but with Lease Options, you only want nice properties in nice neighborhoods needing no repairs. And doing it MY way, you need no money, either!

Yet another good source of Sellers for you are people who have a job transfer. Obviously, they can’t rent the property out from another state, and property management companies leave a lot to be desired; they merely collect the rent, and if something needs to be fixed, they send their own repairmen, and then they’ll mail you the bill. In fact, if a Seller ever brings up the idea of a professional management company, your response should be, “Is a property manager going to clean the windows, mow the lawn, or do their own repairs at their own cost? I will! I am responsible for all the maintenance and repairs myself. You’ll never get a bill from me! And I guarantee the rent check from me will be on time every single month, whether the property is vacant or not!” This will make more sense later on when you learn more about the details of this business. By the way, you should read this over again at least twice to make sure you understand the concepts.

Truth is, most Sellers would never consider renting out their home, because everyone has heard horror stories about bad Tenants. Most Sellers don’t know the law as it relates to rental property, and people are frightened of what they are not familiar with. You can alleviate those fears and answer all of their objections. There are several ways to find such Sellers. You can:

  • Voice Mail Blast your “solution” in the Homes for Sale section of your newspaper
  • Voice Mail Blast Houses for Rent (stick with 3 bed/2 bath homes)
  • Place an ad yourself in Free Online Classifieds – Housing wanted, real estate services,etc
  • Flyers distributed by “Postal Carrier walk Route” or in good neighborhoods (It is illegal to put flyers in mail boxes yourself, so don’t do it!)
  • Voice Mail Blast For Sale by Owner signs and For Rent signs that you find in yards

Each area is different, so you should try them all to see what works best in your area and what feels most comfortable with you. You simply ask each Seller if he/she would consider a rent-to-own. You might call it a Lease Purchase, because people are more familiar with that concept than Lease Option, but my Contracts are specifically the Lease Option variety. A Lease Purchase says that you will definitely buy, but if you include a contingency (weasel) clause that lets you back down, it becomes a Lease Option.

As you know, I don’t like contingency clauses, so just use a Lease Option Agreement at all times. A Lease Option is a Unilateral Agreement; basically, it gives you the right to purchase at a later date for a specified amount, but you don’t have to do so. You don’t have to buy, but the Seller is required to sell to you if you do decide to exercise the Option. But you can call it a Lease Purchase at first so the Seller understands what you mean. It’s a numbers game, so you have to approach a lot of Sellers to get a good nibble on your line. Most people want or need all cash now and full value for their home, so you can’t help these people.

To turn that nibble into a bite, you have to explain further. Tell the Seller that you will make that mortgage payment for him/her each and every month, and that all the maintenance and repairs are covered.

OR :

If the Seller has equity, you can arrange to pay the Seller directly, and then you’ll have the Seller pay the bank. If the Seller has little or even no equity, the tenant buyer will pay the bank directly, because the Seller has little at stake. You want to ensure that the bank or mortgage company gets paid!

Speaking of no equity, how many people do you think are out there who have got a large second mortgage and who haven’t got enough equity to even list the home with a real estate agency? Lots! You can help these people! More on this concept later.

After telling the Seller that the tenant buyer will do the maintenance and repairs, explain that you have Buyers who have had credit problems in the past that you will put in the Seller’s house and get qualified to buy and cash the Seller out in 12 months. You need at least 24 months on your Lease/Option, because something might go wrong with the first person you put in the house. It will take exactly 12 months to get someone with bad credit qualified to buy the home. You must NEVER sign a Lease/Option for less than 24 months, and you should get as long as you possibly can. If you can get 3 years, that would be terrific, but 5 years is ideal. If a Seller balks at you for getting the appreciation (where the house goes up in value) simply say, “That’s my profit for taking all the risk and for relieving you of any risk whatsoever on your part. You don’t have a problem with me getting paid, do you?” So now you have a potential Seller. What now? You have to meet the Seller with your Contract in hand.

This is where my Course differs from anything on the market. You will put up no money, because you will not be taking the house off the market! There is no risk on your part! You have 30 days to cancel the Contract (in case you can’t find a Tenant/Buyer), and the Seller can continue to market (or try to rent) the property in the meantime. Using my System, you should have a suitable Tenant/Buyer in a matter of days, but you have a full month if you need it. My Lease Option Agreement is only 1 page back and front, so it isn’t intimidating at all to the Seller. You merely agree on the monthly rent and the sale price, and fill it out. Have both spouses sign the Agreement if the Seller is married.

Also, always get an Authorization to Release Financial Information signed by the Seller(s), so you can check at the bank to make sure the payments are being made on time. Tell the Seller that you will need some time to find a suitable Buyer, because you don’t want to put just anyone in their home. Try to get 2 full months, but no less than 45 days. That gives you a couple of weeks to find your Tenant/Buyer and then allows you to pay 30 days in advance. As soon as you find a Tenant/Buyer, the Contract then becomes binding, and the Seller can no longer back out for any reason!

Let me give you an example. Let’s say that you find your Seller on January 10. You sign a 12-month Lease/Option renewable for 2 additional periods, but you make your first payment due on March 1. So, if you make a payment on February 1, you are paid 30 days ahead, because the payment isn’t officially due until March 1, according to the Contract both you and the Seller have signed. This paying ahead for 30 days will make the Seller feel more comfortable and will give you some leeway if something does go wrong. You also only agree to pay off any existing loan balances out of the Closing, plus whatever is left between those loan balances and the sale price.

That’s a very confusing statement, so let me illustrate with an example.

The house is sold for $100,000. The Seller owes $80,000 today. So you fill out the Contract specifying that you will give the Seller $20,000 out of the Closing and pay off any existing mortgages or liens. Let’s say you cash the Seller out in 5 years. During this time, the loan balance is going down, but you still only have to pay the Seller the agreed-upon $20,000. The difference is more profit for you to put in Hip Pocket National Bank! Most Sellers will not be clever enough to pick up on this. To the ones that do, you simply explain that you are entitled to this additional profit since you are taking all the risks involved with this arrangement. All of this will become more clear once you get a copy of my Contracts. It’s not as difficult as it sounds; in fact, it’s remarkably simple. No math skills are required! You may give your Tenant/Buyer some rental credit (allowing a portion of the rent to apply towards the purchase price), but I never even bring it up with my Seller. I don’t want or need rental credit, but I have a place on my Contract to allow for it if your Seller mentions it.

Take it if you can get it, because that’s even more profit for you! And to any “old-schoolers” out there who still think that you have to put up at least a dollar for a Contract to be legal, pick up a legal dictionary, and look up the word “consideration.” As usual, I’m right again!

So now you have in your hands a signed Lease Option. The house is very nice and in a nice neighborhood. You may have had to agree to pay the Seller a small deposit (always call it “Option Consideration,” because a security deposit doesn’t come off the price of the house), but that overall amount of $1,000 or less will only be due and payable when the Tenant/Buyer is found. Under no circumstances would I agree to pay more than $1,000 for a deposit, and more often than not the issue won’t even come up. People who wouldn’t even rent to an individual without a credit check, first month’s rent, and a security deposit, will let you control their home with none of those requirements. And Sellers apprehensive about renting out their home will allow YOU to do so, because you guarantee all rents and repairs. If a Seller does demand a deposit, call it Option Consideration, because that makes it tax-free to the Seller until either you buy the house or default (let the Option run out). Plus, the Seller doesn’t have to give the money back to you, as in a security deposit. So, the Seller benefits from calling it Option Consideration, and so do you, because a security deposit wouldn’t be applied towards the purchase price. Understand? Good.

So you have the Agreement signed, and you even have it (or a memorandum thereof) filed at the County Clerk’s office if you didn’t trust the Seller or if there’s a lot of equity. (This prevents an unethical Seller from borrowing any more money on the property, since it clouds the title.) Now what?

Now you have to find your Tenant/Buyer. This should be the easy part. The best way to do this is to simply place an ad in your local newspaper. Usually, they will bill you for the ad 30 days later. Keep it simple, and try to stay at 3 lines (or whatever their minimum is) to be cost-effective. In some areas, it may be a good idea to place the same ad in both the Houses for Sale and Unfurnished Houses for Rent sections. The headline should read as follows:

NO QUALIFYING! No Credit Check!

Don’t tamper with that headline! Both statements together are more potent than either one apart. It’s been tested again and again. Then you put in some other information, such as:

  • The number of bedrooms and bathrooms
  • The square footage
  • The monthly payment
  • The sale price

Never disclose the down payment! When a potential Buyer calls, simply ask, “How much do you have to put down towards your new home?” You may only want $5,000 for a down payment, but the Buyer may say that he/she has $8,000. If you had advertised $5,000 in your ad, that’s all you would’ve gotten! Your market for Tenant/Buyers is HUGE! You are looking for individuals with credit problems and even bankruptcies. A bankruptcy that is 2 years old with reestablished credit is B+ credit under this Program! You want someone with credit problems who has the down payment and who makes good income.

When you place your first ad, you will see how many hoards of people there are out there who are in just that situation. Your phone will literally ring off the hook if you are in a medium-sized city or larger. Hopefully, you got a good deal on the price of the house from your Seller, but you can pay full retail and still make a good profit (for instance, if there is no equity). You automatically raise the price of the property by 10 percent. In 12 months, the house will increase by about 5 percent due to appreciation (if in a good area). And appraisals can go up or down by 5 percent, so you’ll be safe by raising the sale price an additional 10 percent. My Contracts let the Tenant/Buyer know that additional funds may be required to close (in the rare case the appraisal falls short). I will gladly agree to pay full price for a home if it gets the Seller(s) to sign my Lease Option Agreement, because I know I can still make a lot of money!

You make money in 3 ways.

Let me illustrate with an example. You bought a home with a present-day value of $100,000. That is, you signed a Lease Option on the home. You and the Seller agree on the sale price of $93,000. The Seller is being transferred and just wants out of those monthly payments without hurting his/her credit. By the way, a Lease Option Agreement will release 75 percent of the Seller’s Income-to-debt Ratio off the Seller’s credit report, allowing the Seller to easily qualify to buy another home. Simply renting out the property won’t do this, so be sure to mention this benefit to the Seller. Plus, the Seller gets to deduct interest on a loan payment he/she isn’t even having to make, not to mention the tax benefits (depreciation) of having a rental, because as far as the IRS is concerned, the Seller is merely renting the property to you. Explain all the above benefits to each Seller you are negotiating with.

Back to the scenario . . .

You have a Lease Option for $93,000 (the loan payoff) on a $100,000 house. You raise the price to $110,000. Your ad would read as follows:

NO QUALIFYING! No Credit Check!

Gorgeous 3 bed/2 bath. 2,000 sq. ft. North.

Only $110,000! $850/mo. 555-5555 lv. msg.

You need to use the Free Voice Service (if you don’t have one), and always put “lv. msg.” at the end of your ad, or you’ll get a lot of hang-ups. Never put the actual address in the ad. It might even be a good idea to get a separate voice mail to use only for ads, so the Sellers won’t know this ad is for their house. You should try to get near 3 – 5 percent down. This is nonrefundable, and my Contracts clearly state that. My Contracts also have a place where the Tenant/Buyer can write in his/her own handwriting that it is understood that all monies paid are nonrefundable.

Here’s how you make money:

You get a down payment on a house you don’t even own, charge more rent than you have to pay the Seller, and get paid the difference between your asking price and what you have to give the Seller.

Let’s say you get $10,000 down in the previous example. The Seller’s mortgage payment is $695. Your rent for the Tenant/Buyer is $850. You made $10,000 up front, and you get $155 per month in income on a house you don’t even own. You would get an additional $7,000 from the Buyer when he/she obtains financing and cashes you out. And this is on a bad deal! Sometimes, you will make $30,000 on the tail end! If the Seller’s mortgage payment is high, you may have to sacrifice your monthly spread. In rental property, you need a positive cash flow, but with Lease Options you do not. But it’s still nice to have if you can get it, of course. Your Contract with the Seller has him/her agreeing to make all repairs during the first 60 days of the Lease Option. You tell your Tenant/Buyer that you will do all maintenance and repairs the first 30 days.

Got it? Read that again and again until it “clicks.” .


Since your Tenant/Buyer is not renting, but is buying, he/she is responsible for all repairs, maintenance, and upkeep on the property. This includes lawn care, pest control, and all appliances. Whereas your Agreement with the Seller was included in one document (Lease and Option together), your Lease Agreement and Option Agreement with your Buyer are separate Agreements. That way, if you have to evict your Tenant/Buyer, you simply bring the Lease Agreement to court, and leave the Option Agreement at home! Generally, Tenant/Buyers lose their paperwork, but even if the Option is presented in court, it is so slanted in your favor that you are probably completely protected. Tell the Tenant/Buyer that if he/she can afford to pay a little more in rent, you’ll give him/her double in rent credit. For example, let’s say the Tenant/Buyer can afford $1,000 a month without hurting his/her budget. You are asking for $850 per month.

To get that extra $150 a month in rent, you will give your Tenant/Buyer $300 a month in rental credit. This will come right off your bottom line (the money you would receive when your Tenant/Buyer closes and actually buys). Remember, present-day dollars are worth more than future dollars! Always! Plus, your Tenant/Buyer may not purchase in 12 months, but you are getting your higher rent right now without having to wait until later. This also encourages the Tenant/Buyer to make rent payments on time, because if received after the 1st, rental credit will not apply for that month! In the above scenario, you would receive only $4,000 at the end when your Tenant/Buyer buys. But you still get $10,000 down and $305 each month. What if your Tenant/Buyer doesn’t buy?

You can extend the Option for another year (the price goes up another 5 percent, and you get an additional down payment of $1,000 or so), the Tenant/Buyer can move to another property you have, or the Tenant/Buyer can forfeit everything paid and just leave. What if your Tenant/Buyer comes to you and says, “I’m sorry. I know I promised I would buy this house, but my wife is pregnant again (or whatever), and I just have to take this higher-paying job in another state. I’ve paid my rent on time each month for 6 months, and I’ve never called you for any reason. We’ve even built you a deck and planted flowers. Please, let us out of our Lease.” What would your response be?

I would say, “Well, just clean the place up before you go, and if you need a reference, feel free to give my name and number.” Do you think I’m sad or happy? Give up? I’m ecstatic! Why? Because I’ll just get another $10,000 down from someone else! You’ve got to love this business! Now, if I had a really great deal where I make $30,000 when my Tenant/Buyer buys, and if I only have an Agreement with my Seller for 24 months, I might cringe a little, but in the above scenario, I’m pleased whether my Tenant/Buyer buys or not. It’s also important to mention that most mortgage companies will not allow rental credit to go towards the down payment, so never claim that it will! Rental credit simply comes off the sale price of the home, but you can take a separate check that will apply towards the down payment. Just be sure that you keep photocopies of all checks and bank statements, and tell your Tenants/Buyers to keep their canceled checks. You will need this information when you walk your Tenant/Buyer to the mortgage company in 12 months.

How will you get someone with bad credit financed?

Most mortgage companies have an almost “secret” Lease Purchase Program. After a Tenant/Buyer pays 12 payments on time (your Tenant/Buyer should have a checking account), they can get financed, even with a prior foreclosure on record (but the interest rate will be high). Always get your down payment in certified funds, though! That’s cash, cashier’s check, or money order ONLY! Most people don’t know about this special program available at mortgage companies (and some banks, but the LTV or loan amounts are lower), so just tell your Seller that you have lending sources who will finance your Tenant/Buyer in 12 months.

Don’t be too generous with the details.

And NEVER tell them that you will be requiring your Tenant/Buyer to make the repairs or that you will be getting a large down payment. That’s why it’s important to use a separate phone number in all ads and to never list the property’s address. Some Sellers wouldn’t be too happy to know how much you are selling their home for or won’t understand how you can ask for so much. Keep the mystery alive! You are “guaranteeing” the repairs, which is all the Seller needs to know. Some mortgage companies are unethical (to say the least) and will try to get you to ask your Tenant/Buyer to back-date a Lease Option to finance them now. Don’t do it. That’s fraud!

The next part is VERY IMPORTANT, so read it carefully. The paperwork that you give to your Tenant/Buyer is far more extensive than what you give your Seller. You will use the following:

  • Lease Option Receipt
  • Tenant’s Option to Purchase
  • Fixed-Term Lease Agreement
  • Landlord-Tenant Checklist

Another concept that makes my Program different from anyone else’s (although some people may mimic my ideas in the future) is that I do not charge a security deposit to my Tenant/Buyers.

Here’s how it works.

You get a nonrefundable down payment, plus you get first and last month’s rent. In the previous scenario, that would be $10,000 down plus an additional $2,000 (first and last month’s rent), for a total of $12,000.

My Contracts are written this way, so they will only work with my Program.

If the Tenant/Buyer doesn’t default and pays as agreed, you will “gift” the last month’s rent back to the Tenant/Buyer, providing the Tenant/Buyer cleans the place up upon moving. It’s not a security deposit, but it functions as one. The Tenant/Buyer is actually paying for something tangible–the last month’s rent–so it cannot in any way be construed as a security deposit. In some states, you must pay interest on deposits and/or put them in a separate bank or escrow account, but with my system, you avoid all that nonsense! You still give the Tenant/Buyer incentive to keep the place clean, because you will give a full month’s rent back to the Tenant/Buyer. Understand? Now, this is how to prepare for such a situation. When you receive first and last month’s rent, give your Seller the first payment. You are now over 1 month ahead on your payments. Put the other $1,000 in the bank! Don’t touch it for any reason!!! You will use it for a few possible scenarios only.

Let’s say your Tenant/Buyer just put in a 30-day notice. You still owe a payment to your Seller, but you will receive no such payment from your Tenant/Buyer, because your Tenant/Buyer already paid for the last month’s rent. But you are 30 days ahead, remember? That’s why I do that! Beginning to understand? Now, if your Tenant/Buyer cleans the place up, you give your Tenant/Buyer the $1,000 back. You can use it for a couple of other reasons, too. Let’s say your Tenant/Buyer just stops paying. Maybe he/she is bitter and refuses to leave. Admittedly, this is rare when dealing with higher-income people like the ones you will be dealing with, but let’s say it happens.

Your response should be,

“You have a couple of choices. I can sue you, get a judgment against you, and haunt you for the rest of your life, or you can take this envelope with 10 crisp new $100 bills, providing you leave immediately and clean the place up.” Which would you choose? And where did you get the $1,000? It’s the Tenant/Buyer’s own money! Just make sure the bum leaves the place clean before you pay him/her off, and get something signed and witnessed in writing that he/she is leaving voluntarily. And, as a last resort, you are paid ahead by 30 days or more, so you simply evict, and use the $1,000 to do so and clean the place or make repairs for the next Tenant/Buyer. It’s extremely doubtful it would come to that, though. By the way, my Lease Agreement is legal in all 50 states.

It will also work for rental property (homes and apartments), and it’s only 1 page back and front. It requires no deposit (first and last month’s rent also works on rental property), and it doesn’t charge late fees (illegal in some states). You don’t get rich by charging late fees; if someone is consistently late, get rid of that person. Another important note: If Lease Optioning (or renting out) houses built before 1978, you must give that Tenant a booklet entitled, “Protect Your Family From Lead in Your Home.” You also must include a Disclosure form. Call 1 (800) 424-LEAD and request a copy of the booklet. Also request the EPA-approved Disclosure form. You can order the booklets in quantity at an extremely low price, and you can photocopy the Disclosure form. Do not photocopy the booklet! Don’t be so cheap. Give your Tenants a real copy, okay? Or at least print a quality version from the EPA Web site. You can download or print a free camera-ready copy at:

A final word: If you are serious about being a real estate entrepreneur, you will need business cards. They will get you very little business, but it’s unprofessional not to have one to give out if asked for it. You might also consider magnetic signs on your car, or in the very least, a piece of heavy stock paper with the words, “WE BUY HOUSES!” and a phone number stuck to the inside back window of your car (right side, so you can still see out the window).

Be sure to read the Rules, too. Each rule is crucial, so don’t break any of them. This comes from years of experience, so I know what I’m talking about. And be sure to check out the sample ad pieces provided with this Course. Feel free to use them as a guide to making your own. And, as always, Best Riche$ to you!


1. Always DISCLOSE! Never claim you own the house (you will never be asked), and ALWAYS tell the Seller you will be putting a Tenant/Buyer in the house. Never claim you will live in the house yourself.

2. Always give the Seller a Lease Option Agreement in a single document.

3. Always give your Tenant/Buyer 2 separate Agreements–a Residential Lease and an Option. Bring only the Lease to court if you have to evict.

4. Always have the Tenant/Buyer write in his/her own handwriting that he/she is aware that all monies are nonrefundable if he/she doesn’t buy. This will protect you if you have to go to court. You could say, “Your Honor, here it is in Jim’s own handwriting; he even misspelled a couple of words!”

5. Always get an “Authorization to Release Financial Information” signed by the Seller, so you can contact the bank or mortgage company directly to check on the loan balances, and see if the Seller has made the payments.

6. Always have the Seller name you as “additional insured” on the Seller’s fire insurance policy. This costs nothing to the Seller. Demand to see (and keep) a copy for yourself.

7. Always have both spouses sign all the paperwork, or one day you will find yourself in court for “taking advantage of one of the parties.”

8. Never let your Tenant/Buyer pay the taxes and/or insurance! Many mortgage companies will try to convince you to do this. If you’re not careful, a mortgage company will get you screwed! This will create an “equitable interest” on the part of the Tenant/Buyer, and you may not be allowed to evict but may have to foreclose instead. If your Tenant/Buyer is not already bankrupt but goes bankrupt during a foreclosure, you are in deep trouble!

9. Never accept a Lease Option for less than 2 years. Don’t you do it! The minimum is 2 years, 3 is better, but 5 is ideal. Ask the Seller, “How long would you like me to make your mortgage payments for you and guarantee all maintenance and repairs?” They may say, “As long as you want to!” Anything over 5 years is considered an installment sale by the IRS, but that is not your concern. That’s the Seller’s problem! What if YOU have only a 2-year Lease, but it expires? Ask the Seller, “Do you want me to continue making your mortgage payments, or do you want to start making them?” Should work every time!

10. Never promise that you can get your Tenant/Buyer financed. It should be in writing that you cannot.

11. Never accept a check (personal or business) for the down payment or first and last month’s rent. You must require certified funds or cash only! If you violate this rule, you will regret it one day. Make such a mistake in Lease Options, and you will soon be saying, “Randall told me so.”

12. Never give your Tenant/Buyer an Option for longer than 12 months. Never! Your Contract should give them no right to renew.

13. Never allow your Tenant/Buyer the right to assign his/her Option or to sublet. We only Lease Option to owner-occupants for their primary residences.

14. Never sign a Lease Option with the Seller for more than 12 months. If you’ve agreed to start making payments in 2 months on a 12-month Lease, you’ve obligated yourself for only 10 months. The Lease should be for 12 months with the right to renew for additional periods.

Rules are nonargumentative, nonflexible, and not open for negotiation. Violators, proceed at your own risk and financial peril! (Ooohh, scary!)


We Buy Houses! Any Area. Any Price Range. Any Condition.

We also purchase income property and will consider land and commercial. We pay TOP DOLLAR for apartment buildings! If you will take a discount, we can pay ALL CASH and close quickly. If the cash isn’t your primary concern, you can take advantage of the tax benefits by owner-financing. We will pay a reasonable down payment and give you a good interest rate and favorable terms.

Are you having trouble making your mortgage payments? Bought a second home thinking the first one would sell quickly, and now you’re making a monthly payment on two homes? Expired listing? House won’t sell? Little or no equity? Job transfer? Divorce? WE CAN PROVIDE YOU WITH DEBT RELIEF!!! We will lease your house for the amount of the mortgage payment with an Option to buy it at a later date (rent-to-own). We will find (and qualify) a Tenant Buyer to put in your house who will cash you out in a couple of years. In the meantime, your mortgage payments will be made (we guarantee that in writing), and we will take care of all the maintenance and repairs ourselves. Plus, you get the tax benefits of having a rental.

We guarantee your payments whether the house is vacant or not, and you’ll never get a single call about maintenance or repairs. The only downside is that you will have someone living in your house. We can also give you an Option without a lease. No one will be living in your house; however, you’ll have to continue making the mortgage payments. You decide which way is best for you. Under the Option program, we sell your house for you, but we do not take it off the market. You can still list it with a real estate agent or even sell it yourself, but we don’t make your mortgage payment under this program. The property must be nonowner-occupied to qualify. We are not real estate agents or brokers, and we do not charge commissions to sell your house!

Do you have a very luxurious home ($200,000 to multi-millions)? We will pay CASH and sign an Agreement in 24 hours or less!

Facing foreclosure? Don’t get ripped-off by those vultures who would try to steal your house! We will make up your past due payments and pay you a reasonable portion of your equity. Don’t waste time! Call us NOW!!!

Are you a landlord who is tired of this business? Would you like your rent payments on time each and every single month and hassle-free? We will sign a LONG-TERM lease and do our own repairs. No more vacancies, evictions, late rent, or management nightmares! We are the solution to all your problems!


Call YOUR NAME HERE 24 hours a day at (555) 555-5555, and leave a detailed message. We will return your call within one business day. Call us FIRST!!!


Sell Your Home In 24 Hours!

We will pay full price and all closing costs (you furnish title insurance) if you will sell rent-to-own (Lease Purchase). We will always pay on time, do our own maintenance and repairs, and never bother you for any reason. Please, call YOUR NAME HERE 24 hours a day at (555) 555-5555, and leave a detailed message.



This course is merely a written compilation of my knowledge concerning Creative Real Estate, intermingled with my own beliefs, opinions, and personal preferences. If you want or need legal advice, seek a competent attorney (if you can find one). The same goes for accounting, tax, and any other professional advice. You have just been disclaimed!