Lease Purchase - Claude Diamond’s Blog

GUTS Sales and Lease Purchase Webinar

Fri, 6 May 2011 21:23:49 -0600

Want more info ? Go to www.LeasePurchaseGuts.com
see you there

Radio Interview on The Sales Training Workshop

Tue, 15 Mar 2011 16:08:02 -0600

AM RAdio 1220 San Francisco

The GUTS Sales training Workshop

Tue, 8 Mar 2011 21:23:16 -0700

http://bawb.info/

Lease Purchase Mentee Success Story

Sat, 5 Mar 2011 18:41:39 -0700

A Motivating Lease Purchase Success Story

G.U.T.S. Sales Training Video

Fri, 4 Mar 2011 09:12:59 -0700

MY Interview with Joe McCall on GUTS Sales Training Method

The Lease Purchase Solution Speaking Gig (Promo Video)

Mon, 31 Jan 2011 15:47:44 -0700

Speaking in San Francisco on 2/17/2011

Lease Purchase Speaking Gig 2/17/11

Thu, 20 Jan 2011 08:13:33 -0700

Just confirmed a speaking gig at the Bay Area Wealth Builders Association on Feb 17
http://bawb.info/index.html
I will speak on Lease Purchasing;”How to control real estate without it controlling you”.
What’s the future of California Real Estate .
How To Use the GUTS Sales and MArketing System
Free Lease Purchase Newsletter; http://www.TheLeasePurchaseTimes.com

2011 Free Success Book excerpts

Sat, 1 Jan 2011 16:59:46 -0700

Some free Success Products to get 2011 off to a good start. Click on the above picture or just go to www.ClaudeDownload.com

How to make your business Indispensable

Wed, 29 Dec 2010 15:55:28 -0700

The Success Chronicles Part 6.mov-Learn how to make your business thrive and make your competition react to your innovations-unbelievable service and value.
Don't compete when you can be the leader.

How To Make Money in Lease Purchase Real Estate

Mon, 13 Dec 2010 10:16:20 -0700

Making Money Before Christmas (testimonial)

Tue, 7 Dec 2010 16:11:38 -0700

MAKING MONEY BEFORE CHRISTMAS

Claude Diamond Said this Was the Ugliest House He Ever Saw!!!
I Love It! This is a Beautiful House!!

Hey, don’t laugh! I did this deal 18 days before Christmas.

I bought this ~1380sf house in Birmingham, Alabama as an REO (Bank Owned Property) from CitiBank at $5,250.00 and quickly sold it to an investor/buyer. The great thing was I bought and sold it - sight unseen with just a bunch of photos from the local Listing Agent and a little research on the internet. I had the listing agent send me photos of both the good and the bad of the property which I used in my advertising. I also had him put a lockbox on the door and a sign in the window. It took a little bit of work to find some good local Contractors and Handyman for some estimates for repairs. My plan was to flip it without doing any repairs but leave it up to the Buyer with some good numbers and references.

The Tax Assessment value was $58,000.00 and it needed about $10-15K in repairs.
I sold it for $22,000.00 with $5,000.00 down and created a note for monthly payments of $161.00 for 15 years. Notice the down payment I received was just shy of what I paid for the property! But what I loved about this deal is I left money on the table for my Buyer to be able to rent-out or sell outright at a profit as well….a Win-Win! A great way to do business.

I also sold it as an assignable deal to the investor with my approval on the new buyer. If a Buyer defaults in the future, I will simply take the house back and start over and sell it again with a nice size down payment…after it has been fixed up! And over the years it will appreciate in value from the low point from when I bought it.

Claude was an awesome mentor to me on this property and helped me through some of the “ins and outs”. He especially helped me keep what I call a “balanced focus”. A good mentor/coach is so important, even for the more experienced investors. I would be more than willing to help others with mentoring as well.

It is ugly, but the little deals add up and are great for anyone. The deals are everywhere right now, and you can easily make it a “Win-Win” for both you and the Buyer which is so important.

Some last words…don’t hesitate! The deals are plentiful right now, just go out and do it, you will be well rewarded! Don’t let anything get in the way of your dream.

Chuck

Chuck Lidtka
Renton, WA
“Sprint to the End!”

Lease Purchase 2011

Thu, 18 Nov 2010 11:23:09 -0700

What are the necessary skills to profit with lease purchase creative real estate in 2011? The answers may surprise you.

The POWER of LEASE OPTIONS

Wed, 20 Oct 2010 10:55:39 -0600

The POWER of LEASE OPTIONS
By Claude W. Diamond J.D.

What if I showed you a way to profit in real estate without tying up your hard earned principle, not having to apply for mortgages, low or no overhead, no maintenance, no taxes, no insurance or association fees to pay? I bet you would probably say that that type of investment does not exist or that such an idea is the product of another real estate guru’s wild imagination!

Well, it’s time to learn about one of the best kept secrets in creative financing: The Power of The Lease Option, known also as ‘Lease Purchasing’, ‘Renting to Own’ or ‘Leasing with an Option’. Anyone can control (not necessarily own) quality residential real estate that can generate immediate up front profits, positive cash flow and high quality paper. This can all occur without having to become a real estate expert or by having to look at hundreds of houses. If you know how to rent, then you can put together all kinds of profitable cash generating transactions with just a telephone and a specialized win/win concept. Lease Purchasing allows you to create small and large deals without ever going to the bank.
Why should you consider Lease Options ?
Controlling real estate through Leasing with an Option, whether it’s for your own home or as an investment property, is by far the superior method of finance. Lease Options help to remove the traditional adversarial relationships that exist between buyer and seller and produces greater profits.

In most real estate transactions there is a natural tendency between the buyer and seller to try and beat each other up. One wants a lower price and the other wants a higher one. Not to mention all of the other items that have to be negotiated. Next come all of the difficulties associated with deposits, qualification, appraisals, title companies, lenders, escrows, lawyers, etc., etc. Lease Purchasing eliminates these problems, lets the buyer and seller have a win-win experience and get the deal done.

A Lease Option is a process where a rental agreement or Lease is combined with a purchase or more specifically, an option contract. Price, length of contract, escrow instructions, rent credit and other pertinent terms are all negotiated in advance. The tenant/buyer has a percentage of his rent credited to the down payment or off the price. In many cases, more money is being applied monthly, than an actual mortgage payment would be to the principle.

All the parties concerned can benefit by doing a Lease Option transaction. Let’s examine some of the advantages for all the Principle parties.

From the Tenant/Buyer’s Perspective:
Generally, this is a renter who can’t purchase a home by conventional means. This buyer does not have a large enough down payment for a bank loan, has minor credit problems, a new job, high loan to debt ratio or other reasons that make a traditional purchase of a home impractical (impossible) at this time. The buyer is aware of the advantages of home ownership (tax shelter, appreciation, security, etc.) and is eager for a chance to get involved in a home of his own and get out of the rental rat race. Our buyer can lock in the future purchase price even though ownership may not transfer for a year or more. A percentage of the rent can be credited toward the downpayment or off the price. During the terms of the contract, the tenant/buyer has time to check out the house, neighborhood and to obtain the best financing.

From the Landlord/Seller’s Perspective:
If you are a seller and the market demand is very low for your property, the best way to get your full asking price would be to Lease Purchase your home. Since you are being flexible on your terms you are entitled to get your full asking price and a higher than average or premium rent for your property.

When you find a prospective tenant/buyer you normally receive option consideration. This is a nonrefundable amount, that in many cases, can be several months rent. If and when the buyer wishes to utilize her option, then you will hopefully receive your capital profits when escrow closes. If the potential buyer, however, allows the option to expire you also win since you can begin the whole process all over again and either renegotiate the contract or find a new tenant. In either case, you receive more option consideration for the same property. If the property sells, then you use some of your profits to reinvest in another house. The potential for profit for the seller is fantastic since a well negotiated deal will always reap profits at every stage of the Lease Purchase.

From the Investor’s Viewpoint:
The Lease Purchase has everything an investor needs to make prudent and profitable investments in real estate. Utilizing very small down payments (1-2%), an investor can control properties that normally require 10-30% down without utilizing a lender nor going through the loan application circus.

A good deal can generate profits three different ways:

1. Cash upfront with option consideration
2. Cash monthly (rent)
1. Cash at the close (or a first class note)

From the Professional Viewpoint:

If you are a Realtor, Mortgage Broker, Real Estate Consultant or Attorney there is no better solution for your clients then to utilize the Lease Purchase as a problem solving strategy. They are looking for marketing, financial and cash flow solutions in this tenuous economic climate. So many buyers cannot qualify, sellers are looking at investment homes that are vacant. The solution is to consult the Lease Purchase Solution. We have found consulting in this niche area allows us to be a problem solver and create consistent cash flow.

Other strategies involve the assigning or flipping of the optioned property to a third party or just being a consultant for the buyer and seller and retaining a portion of the option consideration.

In summary, controlling properties by renting with a Lease Option is the absolutely best way to be involved in real estate as a creative investor. You can obtain great cash flow and high profits and assume minimal risk. Lease Purchasing can be the best way to create quick cash flow for the first time homeowner or the seasoned investor.

Claude W. Diamond J.D. is CEO and founder of the Diamond Consulting Group and CC & R Property Investments, Inc. which is based in Chula Vista, CA. If you would

The Real Estate Secret of Lease Purchasing

Sat, 9 Oct 2010 14:30:23 -0600

The REAL ESTATE SECRET of Lease Purchasing
BY: CLAUDE W. DIAMOND J.D.

DON’T EVER BUY.........RENT !!!!!
Such blasphemy! What kind of successful investor would advise anyone to rent instead of becoming an owner?
The answer: a smart one!
What if I showed you a way to profit in real estate without large cash deposits; not having to apply for bank loans, no overhead, no maintenance, no taxes, insurance or home owner fees to pay. You would probably say that that type of investment does not exist or that such an idea is the product of the author’s wild imagination.
Well, it’s time to learn about the best kept secret in real estate: it’s called Lease Purchasing, known also as ‘renting to own’ or ‘leasing with an option’. Anyone can control real estate that generates immediate positive cash flow without having to become a real estate expert or by having to look at hundreds of houses. If you know how to rent, then you can put together all kinds of profitable cash generating transactions with just a telephone.
Lease Purchasing allows you to create small and large deals without going to the bank.
Why Lease Purchase?
Controlling real estate through Lease Purchasing, whether it’s for your own home or as an investment property, is by far the superior method of finance. Lease Purchasing helps to remove the traditional adversarial relationships that exist between buyer and seller and produces greater profits.
In most real estate transactions there is a natural tendency between the buyer and seller to try and beat each other up. One wants a lower price and the other wants a higher one. Not to mention all of the other items that have to be negotiated. Next come all of the difficulties associated with deposits, qualification, appraisals, title companies, lenders, escrows, lawyers, etc., etc. Lease Purchasing eliminates these problems and lets the buyer and seller have a win-win experience and get the deal done.
A Lease Purchase is a process where a rental agreement is combined with a purchase or more specifically, an option contract. Price, length of contract, escrow instructions, rent credit and other pertinent terms are all negotiated in advance. The tenant/buyer has a percentage of his rent credited to the down payment or off the price. In many cases, more money is being applied monthly, than an actual mortgage payment would be to the principle.
All the parties concerned can benefit by doing a Lease Purchase transaction. Let’s examine the advantages for the buyer, seller and investor.

From the Buyer’s Viewpoint:
Generally, this is a renter who can’t purchase a home through conventional means. This buyer does not have a large enough down payment for a bank loan, minor credit problems, a new job, high loan to debt ratio or other reasons that make a traditional purchase of a home impractical (impossible) at this time. The buyer is aware of the advantages of home ownership (tax shelter, appreciation, security, etc.) and is eager for a chance to get involved in a home of his own and get out of the rental rat race. Our buyer can lock in the future purchase price even though ownership may not transfer for a year or more. A percentage of the rent can be credited toward the downpayment or off the price. During the terms of the contract, the tenant/buyer has time to check out the house, neighborhood and to obtain the best financing.

From the Seller’s Perspective: If you are a seller and the market demand is very low for your property, the best way to get your full asking price would be to Lease Purchase your home. Since you are being flexible on your terms you are entitled to get your full asking price and a higher than average or premium rent for your property.
When you find a prospective buyer/tenant you normally receive option consideration. This is a nonrefundable amount, that in many cases, can be several months rent. If and when the buyer wishes to utilize her option, then you will hopefully receive your capital profits when escrow closes. If the buyer, however, allows the option to expire you also win since you can begin the whole process all over again and either renegotiate the contract or find a new tenant. In either case, you receive more option consideration for the same property. If the property sells, then you use some of your profits to reinvest in another house. The potential for profit for the seller is fantastic since a well negotiated deal will always reap profits at every stage of the Lease Purchase.

From the Investor’s Viewpoint: The Lease Purchase has everything an investor needs to make prudent, profitable investments in real estate. Utilizing very small down payments (1-2%), an investor can control properties that normally require 10-30% down without utilizing a lender nor going through the loan application circus. A good deal can generate profits three different ways:
1. Cash upfront with option consideration
2. Cash monthly (rent)
3. Cash at the close (or a first class note)
4. Arbitrage Assignment Fee’s
5. Hybrids (Sandwiching and assigning)

From The Professionals Viewpoint: Many a professional within real estate such as realtors, lenders, Attorneys, escrow and title people are utilizing Lease Purchasing profitably as an alternative strategy. For many of their clients traditional financial methods for buying and selling are just not practical. The professional who can offer alternative option strategies allows a plethora of profit options for their business in challeging times

Other Lease Purchase strategies involve the assigning or flipping of the optioned property to a third party or just being a consultant for the buyer and seller and retaining a portion of the option consideration.

In summary, controlling properties by renting with an option (Lease Purchasing) is the absolutely best way to be involved in controlling homes and obtaining great cash flow, high profits and minimum risk. Lease Purchasing can be the best way to create quick cash flow for the first time homeowner or the seasoned investor.

Claude Diamond J.D. (yes, I answer my own phone (970) 281-5151
Complimentary Lease Purchase Times Newsletter
Just go to www.TheLeasePurchaseTimes.com

Cold Calling Reality Sales Training

Sun, 8 Aug 2010 09:40:22 -0600

We teach the GUTS Sales Training System by making calls together or letting you watch Claude make the calls and you listen.

The New Lease Purchase Times Newsletter Video

Sun, 1 Aug 2010 16:43:24 -0600

http://www.TheLeasePurchaseTimes for complimentary subscription

The Lease Purchase Times newsletter Offer

Wed, 28 Jul 2010 18:32:26 -0600

Our 16th year of informative and “How To” information onLease Purchase and option real estate investing-Just click to receive/
*How to find Lease Oprtion deals*
* The Lease Option Diet*
* Consulting with lease Purchasing
* The Lease Option mindmap
* Guts Lease Purchase Selling and Marketing
* Where to find the best anchovy pizza in Southern California

What should be in a good Lease Purchase Agreement !

Wed, 14 Jul 2010 09:55:47 -0600

What should be in a Good Lease Purchase Agreement ?
BY CLAUDE W. DIAMOND J.D.-
http://www.ClaudeDiamond.com

Lease Purchasing is one of the most profitable and practical ways to be in real estate. You don’t need a bank or a pot of gold to get started. There is an absence of Tenant & Toilet problems (if setup correctly)! It’s creative and even fun !
Lease Purchasing can also be a nightmare if you do not have the foresight to have well designed, strategically written contracts.

Recently I was asked by a reader (via our Web site www.claudediamond.com) where he could find good generic Lease Purchase contracts. To me that is like asking a neurological surgeon if he can recommend a do it yourself brain surgery kit and combination salad maker!

I advised the reader that there are generic contracts from several sources. One such source is your local real estate agent or office. They have the multi-purpose fill in the many blank type forms.

The question remains, however, are they any good or even WORTH THE PAPER THEY ARE WRITTEN ON ?

My handy Law Dictionary defines Generic as follows: Something not specific or not referring to a specific thing.

Generic contracts are just that generic. They are designed with the one size fits all concept. In reality, they are not designed to protect you or your interest in the particular Lease Purchase transaction with which you are currently involved.

I have collected many of these so called generic Lease Purchase contracts for years. Not only have I gotten contracts from Realtors and stationary stores; others came from the get rich quick, while staying in bed all day, books and seminars. They all have one thing in common. They’re garbage ! They are poorly written and lack the necessary clarity and/or specific verbiage inorder for the contract to be enforceable.

I have designed and utilize six specific contracts for my own Lease Purchase deals. Which one I use is determined by the hat I am currently wearing at the time. Am I the Landlord/Seller, the Tenant/Buyer or the Assignor/Assignee? Will I be Subletting, Assigning, Sandwiching, Pure Optioning or just quick flipping ?

TIP: I always carry a couple copies of my Lease Purchase Contracts in my car’s trunk right next to my earthquake emergency kit* compartment. An investor is always prepared !

Here are a few suggestions for items that should be contained in any Lease Purchase Agreement. Some of these may seem like obvious inclusions. Having been involved in Lease Purchasing for many years now, I can tell you that the obvious is not always so!

1. Identify the principle parties: Who is the Tenant/Buyer and who is the Landlord/Seller?
It might even be a good idea to do business as a corporation.

2. Location of the property: Use the parcel identification number (PIN) and the street address.
There should be no mistake about which property you are dealing with.

3. Date and Signature: Make sure all the owners sign the contract. This includes spouses, partners or anyone who has ownership or an equitable interest in the property.
Big problems can occur with a Lease Purchase if you don’t have all the owners sign. Better yet, check the title, loans, etc.

4. Term: Be specific on the length of the contract.
Strategy Tip: If you are negotiating with the owner make the contract for as long as possible. If you are the owner or are subletting the property, make the contract no longer than one year.

5. Be Specific: All the terms, including Price, Rent Credit, Closing Costs, Option Consideration, Financing and Escrow should be included. No term should be ambiguous. Be specific !

6. Right of Assignment:Be sure that you have the right to sublet-transfer and convey the property to a third and in some cases a 4th Party.

Generic Contracts, YUCH !!! I would recommend that you never use a generic contract! If, however, you choose to do so, have it reviewed by a competent attorney who is either a real estate investor or who specializes in real estate law. (Sorry, it’s the Perry Mason in me!) Better yet have him design an agreement that meets with your needs, expectations and of course, PROTECTS YOU.

P.S. Without sounding too legalistic make sure your agreement also includes-Indemnification-disclaimer-notification and Force Majeure clauses too. There are several other clauses that can be also included to maximize your profits and decrease your expenses. Give me a call and we can discuss

Free Newsletter-The Lease Purchase Times © just call 800 324 4652 or go to www.TheLeasePurchase.com

The Best Home Business in the World (or Welcome to the World’s Second Oldest Profession)

Mon, 14 Jun 2010 12:27:57 -0600

The Best Home Business in the World (or Welcome to the World’s Second Oldest Profession)
By: Claude W. Diamond J.D.

I just read read through a very hefty entrepreneurial type magazine web page, checking out the so called “business opportunities”. Lately, it seems that everyone wants to quit their job and become part of the free enterprise system. They want to be their own person and have the satisfaction of running a business that will guarantee them the freedom to pursue their dreams and to create a high income*.
There seem to be more ways people can enter the world of entrepreneurship (and lose money) than one could ever dream of. The glossy enticing pages offered by many companies are just waiting to show you all the different ways in which you can become part of the American Dream.
It’s not just chicken and flipping burgers anymore folks. Why just for going $100,000.00 (and more) into debt, you too, can become part of a franchise that cleans houses (yuck), you can bake cookies in a hot oven all day in the local mall or you can sell Jalapeno flavored gourmet jelly beans to weary travelers at airports. While these opportunities may tantalize the heart strings of some, I am still a fervent believer in the world’s second oldest profession, Real Estate.
Note: As a kid, I worked for many years after school and on Saturdays in a Grocery Store/Deli in New York City. Believe me when I tell you that the only things you get from a retail business are very long hours and remarkably little pay! (Especially when it’s your Mom and Dad who run the business).
None of the opportunity type publications explore the possibilities of the best home based business in the world; a Creative Real Estate Investment Business.
Just think about it for a moment. What if I told you that you could operate a very profitable, stimulating, creative and fun business from your own home. Imagine no more commuting or car pooling every morning! You would need a telephone and a yellow felt tip marker (fax & computer are helpful, however, they initially are optional) . Employees are not a necessity nor is an expensive retail location required. There are no high priced franchise fees or royalties to pay to some strange company located in an ivory tower in New York or Chicago. Best of all you can do deals in real estate without having been born with a silver spoon in your mouth.
If you have the need to feel like Albert Schweitzer you can rest assured that you are helping your fellow Americans get rid of their problem properties or possibly you are aiding another to get into a dwelling they might own someday with a creative Lease Purchase. You would be in control of your own business and would have a hand in determining your income goals. Sounds great doesn’t it ?? Uh Oh ! There is a catch, however. The following are required to make the above occur:
A. Specialized Knowledge: It takes very specialized knowledge to make money in this business. Read, study, join an investment club or just find yourself a Mentor. Someone who has made it and is willing to share his knowledge with you.
B. Implementation: The Implementation of that knowledge. (The world is full of people with lots of degrees and who have no money!) It takes guts to take that first step and make something happen. If you have gone to the trouble, time and expense to learn something, take a chance at greatness and make it work. If you don’t Succeed the first time, learn from your mistakes and try again.
*Reality Check: I’m told that statistically very few actually make it. I have an acquaintance who left his safe & secure 40 hour/week job and opened a mail box type franchise outlet. He, his wife and daughter all consistently work 70 hour weeks, have less free time and he makes the same amount of money that he used to working 40 hours/week!
C. Hard Work: Sorry folks, I had to use those four letter words! It takes HARD WORK, but it’s the only job you will ever love.
D. Desire: As my Mentor used to say “It ain’t going to happen unless you want to make it happen.” You must have the desire to want to make it in this business. You must have the ability to constantly motivate yourself, to keep making offers on properties and to constantly educate yourself. Only you can make yourself successful!
“Hey, if it was easy , everyone would be doing it!”
In the final analysis, when you add it all together; working at home, low investment, high rewards, job satisfaction, working part time or full time and making the kind of income you feel you deserve, a private Real Estate Investment Enterprise is truly the Greatest Home Business in the World.