Today, all of the cards are in your favor when it comes to finding a buyer for lease option properties. For you, that means maximum earnings as an investor. It also means a lot less work on your part because buyers are lining up for what you are offering.
You have many resources available to use for how to find a buyer now. But, cooperative lease options and Millennials are the two biggies.
Cooperative Lease Options for a Fast Payday
Good sources of buyers that may not immediately pop into your mind are other investors using the cooperative lease option method. This can be the right choice if you are just beginning your career (or side job). These happen very quickly because you flip the entire option to purchase rather than remain in the deal the way you do with sandwich lease options.
The cooperative lease option (also known as wholesale lease options) can deliver a payday in as little as a few hours under the right circ*mstances. Without a doubt, it is the fastest way to your first payday. However, retail buyers do bring much bigger paydays and Millennials are your retail target market.
How to Find a Buyer Now for a Bigger Payday
There are tens of millions of Millennials out there (80 million of them). You’ll easily find thousands and tens of thousands right in your local neighborhood or town. This market is more about sandwich lease options rather than cooperative lease options. Millennials are facing a tough home buyer’s market. They very much want to buy their first home and you are the right person to help with their two biggest desires. 1. Qualifying to become homeowners. 2. Moving into a white-picket-fence home right away.
The key to finding Millennials who are ready to fulfill their dream of home ownership is having the house they want to call home. This is nothing more than a nice house in a nice neighborhood. The right house easily sells itself when you post it on social media. All you have to do is deliver the right message. Your message must address the difficulties that first-time Millennial buyers are facing.
Your Message to Millennial Buyers
The three biggest hurdles for Millennials are their down payment, their credit score, and their debt-to-income ratio (DTI). The sandwich lease option method solves all three problems.
The number one message you want to communicate is that you help people having difficulty qualifying for a mortgage get over that hurdle. First of all, the lease option fee goes directly towards their down payment.
A seldom considered but powerful message is that today’s buyers are growing homeowner equity through lease options. When the buyer completes the purchase in a year or two, their home will be worth more than the lease option price they lock in today. That means they will need a lower down payment to qualify for a mortgage compared to waiting while home prices to go up even more.
You’re also giving them the ability to improve their credit score while enjoying the house they will soon own. A lease with an option to purchase is a great motivator for buyers to work toward cleaning up any credit errors they have. Time is also on their side when you give them one or two years to complete the purchase. You can even report on-time rent payments to the credit bureaus to directly help them improve their score. You can encourage them to talk to a mortgage broker about exactly how to qualify for a mortgage in the fastest way possible. And you can encourage them to get credit counseling if needed. Clearly communicating these messages is how to find a buyer now.
Lease purchase options also help with the buyer’s DTI in several ways that might not be obvious if you don’t help them understand. First, as they improve their credit score, it decreases the debt they owe. This directly improves their DTI. Second, Millennials are at the exact age when their careers are beginning to take off. Pay raises and promotions will soon increase their income. The extremely tight employment market is working in their favor for more pay. More income is the other way to improve their DTI. Combining more income with less debt will have a tremendously positive effect on their DTI over the next couple of years. There are many other reasons why their DTI will improve over the next year or two such as car payments and student debts going away. How to find a buyer now is as simple as marketing the right messages.
Your Marketing Techniques for How to Find a Buyer Now
Marketing to either a wholesale buyer or a retail buyer requires two simple but different approaches. I cover the basics of both here.
Marketing a cooperative lease option is very easy. It’s somewhat of a technical name for a simple business concept. You find a house and take out a purchase option. You then wholesale the option to another investor for a profit. Very simple – inexpensive – no complications – you are out of the deal. Other investors are actively looking for these deals. You’ll find them in bunches at real estate investing clubs and groups. Hand out a few flyers and they will start calling you if they don’t corner you right there at the meeting. Take advantage of all the contacts you make by building a buyer’s list to use in the future.
Millennial marketing for how to find a buyer now is also very inexpensive and probably much easier than you thought. It’s a marketer’s dream come true. Sandwich lease options are the perfect solution for this huge market of buyers. To find buyers, all you do is cast a broad net using social media or a very local net to attract drive-by traffic with bandit signs.
If you don’t already have a Facebook page for your business, now is the time to make it happen. You can communicate everything needed to attract all of the buyers you want. Let them know how you will solve their biggest home buying problems and post photos of the home they can be living in next week. Give them your contact information and ask for theirs (so you can build a future buyers list). Ask them to share what you are offering if it isn’t quite what they are looking for. You will be contacted. You will build a list for promoting your future deals. You will be very popular.
Old school bandit signs are also still highly effective for grabbing the attention of Millennials who have not thought about rent-to-own. Buyers will start calling as soon as you put up a big sign in the yard letting people know the house is available with rent-to-own conditions. Half the homeowners on the street will phone their younger brother, sister, niece, and nephew to let them know they can move into their dream home tomorrow. Include your Facebook and other social media contact information and your message will spread far and wide.
There are dozens of ways to get your marketing message out to the tens of thousands of people in your area who will respond. You want to use cooperative lease options to turn a fast payday. But the bigger payday answer to how to find a buyer is now is providing solutions to the home ownership problems of Millennials. If you still have questions or want every one of the answers, here is what you do now:
- You learn the basics: Investing In Real Estate With Lease Options.
- Next are the details: Buying and Selling with Lease Options.
- Create your Wealth Building Arsenal.
- Personalized Coaching.
Being a top-performer with lease options means knowing all of the alternatives available. As you uncover unique situations, you need specialized tools and methods that include:
- Cooperative Lease Options.
- Get the Deed “Subject To.”
- Working with Realtors.
By Wendy Patton
For more than 30 years, I’ve used the Sandwich Lease Option System to earn myself and my students millions of dollars. From my experience, I know there is plenty of room and opportunity in the real estate investment market for everyone wanting to participate to find profitable deals. It’s because of that fact and my personal success that I share the Sandwich Lease Option System with others.
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