mentor question

[lumpy]

Has anyone heard of Claude Diamond and of his mentoring program? Any help and or advice would be greatly appreciated. Thank you in advance
                                                                     George

[kimtucker]

Yes,  I saw him speak at a Bill Bronchick re conference in Denver & Claude is the opening speaker at an event I am hosting in Kansas City on September 11th& 12th 2004.

His forte is lease options.  He leases a property having the original owner repsonible for major repairs and then releases at a higher rate to a new lease to own buyer who is responsible for the minor repairs.  The down payment money he receives from his buyer covere the down payment money the original seller may need down, and he has virtually no repair expenses.  Then he starts working with the new buyer to get them qualified for a loan to buy the house.  

He makes money off of properties with out owning them.

Great person to work with if you want to learn lease optioning - he even answers his own phone.  I am not a lease option person, but a friend of mine purchased his mentor course - a little pricy, but if you actually follow through with what he teaches, you can more than pay for the price.  But if you do not have good follow through, then you might want to save your money.  He doesn't give you a magic pill or do the work for you.

If you are anywhere near KC, you might want to catch his presentation on the 11th.  

Kim Tucker

[Jeff Adam]

It is funny that you mention Bill Bronchick and Claude Diamond together.   Claude actually mentored Bill about 10 years ago!  That is where the connection is....

Claude Diamond is a reputable guy and has done several deals..  I have a friend of mine who went thru his mentoring program 6-7 years ago and is very successful today!  

I will share with you one of Claude's strategies that has worked well for me:

-Purchase a property for 80% of market value in uprising market.
-Put an ARM loan on it
-Lease option for 10% over market value for one year.  Make sure you get at least $5k option money and your buyers have decent credit.

Using this strategy, you can enjoy the monthly positive cash-flow, as well as selling the property in one year for anticipated market value.  Using this strategy you can easily make $40-$50k per deal.


Best Riches,
Jeff Adam

[sarafina]

Hey Jeff,
              I like the strategy you just listed. Are you against lease optioning for more than 1 year? Everything i've read on lease options so far have talked about 2,3 years.
             Also what method are you obtaining the 80% of fmv homes. Pre-foreclosures or people just wanting out of their homes or what?
           Also do you give rent credits if your t/b exercise the option or not? Oh..one last question...I'm 19, fulltime student with an average credit rating, i wouldnt be a great candidate for a loan in the first place. Do you think I could do this with a sandwich lease and still be successful? thanks.

[Jeff Adam]

Sarafina:
If I were you I would stay away from lease options do to the fact that 50% dont even make it to the closing table.  I would concentrate on doing wholesale deals....

To answer you questions, I am not against a 2-3-4 year lease option, however they have to come up with more option money...
And yes, the money goes towards the down, payment, if they excercise the option..

Forget the sandwhich lease, keep it simple.  Buy Ron Legrands wholesale/retail program on ebay and start your career wholesaling.  My investor friends that stricly wholesale make $15 - $30k a month!


Best Riches,
Jeff Adam

[mac82]

what is a sandwich lease?  As you can tell, i'm a big newbie.

[tara.lancaster]

Mac,
A sandwich lease is basically when you negotiate a lease option with a seller, and then you in return find a tenant buyer and place them in the house at a higher price and also put yourself if a position to receive positive cash flow each month. You are the middle man for the two parties and then once the tenant buyer exercises his or her option, they cash both you and the original seller out and you make a profit depending how well you structure the deal.

[Bluemoon06]

Are you against lease optioning for more than 1 year? Everything i've read on lease options so far have talked about 2,3 years.

Real estate is local, for instance I employ this same basic strategy here in Texas.  In Texas the legislature in an effort to prevent evil real estate investors from taking advantage of poor unsuspecting home buyers has passed a law that makes it very difficult to do an executory contract (A contract under which something remains to be done by one or more of the parties like in a lease option or contract for deed).  In this law if the purchaser has paid more than 40% of the value of the property or made payments for more than 48 months then the seller may not enforce the remedy of recession or forfeiture and acceleration.  In human language you can’t evict them for not paying on time, you have to foreclose on them.  So the most I will go is 12 to 24 months so that I can get one more year out of them if I have to and take another year to get them out before they trigger this clause.

[mac82]

Mac,
A sandwich lease is basically when you negotiate a lease option with a seller, and then you in return find a tenant buyer and place them in the house at a higher price and also put yourself if a position to receive positive cash flow each month. You are the middle man for the two parties and then once the tenant buyer exercises his or her option, they cash both you and the original seller out and you make a profit depending how well you structure the deal.

You say depeding on how well you structure the deal, could you give an example of one?  It just doesn't seem like there would be a lot of room in there.  Also, does the seller know that you are just going to be a middle man, and do they sometimes change the deal once they see the tenant isn't as reliable as they had hoped?

[mac82]

Mac,
A sandwich lease is basically when you negotiate a lease option with a seller, and then you in return find a tenant buyer and place them in the house at a higher price and also put yourself if a position to receive positive cash flow each month. You are the middle man for the two parties and then once the tenant buyer exercises his or her option, they cash both you and the original seller out and you make a profit depending how well you structure the deal.

You say depeding on how well you structure the deal, could you give an example of one?  It just doesn't seem like there would be a lot of room in there.  Also, does the seller know that you are just going to be a middle man, and do they sometimes change the deal once they see the tenant isn't as reliable as they had hoped?

Is it basically subletting with the option added?

[campbellgroup]

I have never heard of these guru's you speak of but after reviewing the topic I will add my 2 cents. I dislike anything that look even the slightest bit grey. Buy fix sell, or Contract, assign, move on.To me lease and lease options and sandwhich lease options are like headache,double headache, what are you thinking headache. Buy low sell high. It doesnt get any easier than that.