Lease Purchase Pitbulls? A $4400 profit with a bad property.

Here is a deal that I had high hopes for but didn’t end the way I expected. I am really big on sharing a ton of useful information and letting you know the good, the bad, and the ugly side of lease purchase investing. Although, it is hard to say there is an ugly side to Lease purchasing, there are certainly deals that i wish I would have done something different. I had a seller call on one of my signs in San Diego. The house was in a so-so area, but I decided to set up a three-year lease option for market rent and a $30,000 discount in price. I was marketing the property as a sandwich deal (One set of contracts with the owner, and another with the tenant buyer).

I marketed the property hard for four weeks, but was not able to find a buyer. The rabid pit bulls next door, the car with the flat tire across the street, and the loud radios booming were not exactly wooing my tenant buyers.

I was pretty disappointed because I knew my potential profit could have been in the tens of thousands. Instead of giving the property back to the owner, I found somebody who had only $2,000 down but was willing to give me an additional $2,400 over the next eighteen months. I created profit upfront and a residual stream of cash every month.

I assigned the contract to my tenant buyers; I took away my liability; and I am off to the next one. After complaining to my wife about the deal, she reminded me that I had about ten hours into the deal. That is over $400 an hour! If I had to do it all over again, I probably would not have done this deal. The great part is…I had nothing in it except for advertising costs. I love lease purchasing because it allows me to make great profits without keeping me awake at night. And remember…get your pitbull spayed or neutered (they are not very good at finding tenant buyers).

If you want to know more about lease purchasing or my mentoring program, call my office anytime. (619) 464-2232. If you want a copy of our free publication “The Lease Purchase Wealth Report” and a free Lease Purchase Training CD Click Here