Hello,

Are you looking massive cash flow from residential rental properties?

I am and that’s why as my leases come up for renewal I’m NOT renewing them with the current tenant unless they want to give me a down payment and pay a substantially higher monthly payment with an “Option to Purchase”.

Right now I’m switching all my rental properties out of a standard lease agreement and into a selling situation with a tenant/buyer. My son is now 19 months old and I’m a little tired of dealing with all the hassles of regular rentals so I’m now going to occupy my properties with people who are interested in buying a home with a “Lease and an Option to Purchase Agreement”. This has long term benefits for the occupant and a lot of benefits for us as the investor/owner.

Firstly – It increases our cash flow massively. I won’t go into all the detail here but their payments are based on a higher interest rate than what I’m paying at the bank and their amortization is also shorter. By working these “spreads” we’re able to create a lot more cash flow than a regular rental property. There are other ways of structuring this sort of deal. Another way is to have the tenant/buyer pay an “Option Payment” as a non-refundable earnest deposit then credit a portion of the monthly rent back to them when they eventually buy.

Secondly – We’re protected against the possible chance of the tenant/buyer not paying their rent because we’ve received a substantial deposit from them as an “Option to Purchase Payment” generally in the range of 3-5% of the property value or more. If they default on their rent they run the risk of losing this deposit and the right to purchase the home at a later date.

Thirdly – As these occupants have put up a sizable deposit they are going to be a little more inclined to take better care of the property which protects their investment and ours. Buyers with a vested interest tend to have a little more pride of ownership it seems.

Fourthly – A typical “Lease with an Option to Purchase” will be written with a fairly long lease term of at least a few years or more so we are much less likely to experience vacancies and the associated costs. If a Tenant/Buyer does move out or default we are allowed to keep the deposit they paid and receive another 3-5% from the next Tenant/Buyer who moves in. We will also experience less maintenance issues as Tenant/Buyers tend to treat the property as their own home and will take care of more maintenance issues as they come up.

As an investment strategy “Seller Financing or Rent to Own” deals definitely get an “A” Plus in my book.

This takes me back to my first question:

Are you looking massive cash flow from residential rental properties?

If you are and you’re interested in having a look at or entering into a joint venture on one of our current projects please click on the following link. Current JV Opportunities

Sincerely,

Wade Fenner

Are you having a tough time finding all the cash you need to fund your real estate transaction?

Are you able to find great deals but just can’t come up with the all the money you need to put the deal together?

Worse yet….

Have you ever had to walk away from an extremely great opportunity for lack of funding? 

Don’t worry you’re not alone. It sucks but these scenarios have happened to every investor I’ve ever met and I don’t want it to happen to you. I don’t know about you but I feel 2010 is going to be the best year in a long time and I want to be ready for it.

As the economy and the real estate market improve more people want to borrow money but with so many people lining up at the door banks can pick and choose who they want to lend to. Self employed people and investors are pretty low on their list of likely candidates.

If you’re not a triple “A” borrower forget it,
the bank will just slam the door on you!

Is this happening to you? Have you tried to get a loan lately and were told no? How long are you going to let this go on before you do something about it?

I don’t know about you but to me raising capital is one of the most important fundamentals in the real estate investing business and without it you’re sunk.

In the last few years I’ve had my weakest links exposed and its cost me a small fortune so now I’m doing everything I can to improve “how” I operate my business. When the market was strong, as it had been for years, I use to be able to raise hundreds of thousands of dollars by simply making a few phone calls but times have changed. Now I actually have to work at it,

Raising capital has become another “job”

that requires some serious thinking and marketing efforts. Keep reading and you’ll find out why it’s going to get a lot easier for you very soon.

During the real estate meltdown my own weak-links were exposed like an open wound and subsequently I got my ass kicked like a lot of other investors. Instead of sitting around crying the blues I took the biggest leap in my business career and did the one thing that was hardest for me……

I went asking for help

And I went back to school. I spent a lot of time doing some serious soul searching and asking myself a lot of questions. Questions like: What do I really want to do in business, how do I want to do it, and who can help me get the job done in a manner that will really make a difference to me and a difference to those around me?

Then with precision timing Greg Habstritt landed in my lap again. I’ve know Greg for years, I even had him speak at one of my earliest events, but I hadn’t seen him around much until last year. Now I can’t get enough of the guy.

Last spring I attended Greg’s 4 or 5 day commercial real estate program, loved it, and have attended every program of his since. I even applied for, and was accepted into, his exclusive personal mentoring program which only has 16 members world-wide.

The point is

When Greg Habstritt speaks, I’m listening

And apparently so are a lot of other people like the five hundred or so attendees at Engage Today 2009 when Greg managed to get Richard Branson, His Holiness The Dalai Lama, President F.W. de Klerk, and Stephen Covey on the same stage at the same time. 

They’re listening along with the rest of the world as they wait to see what Greg is going to do next. I’m waiting impatiently because I know what he’s doing next and I’m going to be there because for me it will probably be the 2nd most important event of the year.

Last year when I took a hiatus from Foreclosures Canada I spent a lot of time thinking about what I wanted to do for my clients. Well this is it, making world class recommendations to you from my first hand experiences.

I’ve never been one to blow smoke or make referrals lightly and I’m not going to start now. All I can say is, if you are going to take one program this year to help your real estate investing business this is it.

Last year I attended Greg’s “Money Attraction Bootcamp” and though it was one of the best events of 2009. Now he has grown that program into

“Advanced Money Attraction”

which is being held at the end of this month. I truly believe this program will blow your mind not just with the content of the program but with Greg himself as a speaker and educator, his depth of knowledge, and how he over-delivers at every event he ever puts on.

I could go on about how he has personally raised over $30,000,000 for his own real estate deals, what he has learnt about attracting wealth, how he has built and sold a dozen companies and how many people attend his programs but I’m not going to. Go see for yourself.

Go to “Advanced Money Attraction” and have a look at the massive value he has put into this program. Discover Greg’s strategies for accessing capital for investing in houses, apartment buildings, commercial and industrial properties without ever going to the bank.

I can’t say enough about what I’m learning from Greg but I will say he consistently over-delivers at every event he ever puts on and I look forward to seeing you there.
Sincerely,

Wade Fenner