Flip Tip Summary
Check out this tip from Zack Childress, on how to get your first deal under contract and create cash flow, without ever buying the house. Check it out…only on FlipNerd.com
Flip Tip Transcript:
Mike: Hey, it’s Mike Hambright from FlipNerd.com and we have a quick VIP tip to share with you from Zack Childress, who is going to share a tip on how to get your first deal under contract and create cash flow, without buying the house.
Zack: All right, guys, here it goes. So what I want you to do is go to your rental section, call your rental ads. This is a free lead gen. Call your rental ads, when they answer the phone, you’re going to ask a very qualified question. When the person who has the property, you simply say, “Do you have any other properties available to rent?” If they say no, then they are a homeowner who did not sell their house and to ease the pain from the payment, they’re trying to rent it out. So this is a candidate for what we refer to as a “lease option prospect.”
So we simply say to them, “Would you consider giving me a long-term lease with the option to buy the property at a later date?” If they say yes to that, you are now in control of a property that you can then sub-lease out to another tenant buyer, absorb the cash flow off that property, and you now, my friends, are making cash flow on a house you never bought. But don’t forget, if they say they do have other rental properties, you could simply ask them if they would be willing to sell or give you the option to buy any of the other portfolio. And that means that that prospect was a burned out landlord. You can get all of this simply from a rental ad and it works, but you have got to pick up the phone, make the calls, and qualify them as you go through.
Mike: That’s great, Zack. So hey, just to clarify, if folks want to learn more, typically offer to a sandwich lease option, where can they go find out more?
Zack: They can go to any of our sites we talk about it, REISuccessAcademy.com.
Mike: Thank you for joining us for another FlipNerd Flip Tip.
We’d like to thank our sponsors, RealtyMogul.com and National Real Estate Insurance Group.
To access the most robust social platform in existence for real estate investors, where you can find off-market wholesale deals, find great vendors to help you in your business, and learn and socialize with other real estate investors, please visit the all-new FlipNerd.com. If you’re not yet a member, you can set up a free account in less than a minute.
Mike: Please note the views and opinions expressed by the individuals in this program do not necessarily reflect those of FlipNerd.com or any of its partners, advertisers or affiliates. Please consult professionals before making any investment or tax decisions, as real estate investing can be risky.
