How Much Down Payment Do I Need For A Lease Option Deal?

Read Transcript for “How Much Down Payment Do I Need For A Lease Option Deal?”

“Hi, Joe and Carolyn. Joe, my question is, I receive a lot of emails asking me about down payments. How much can I put down? This happened during my conversations with sellers after my rent method pitch. Also, should I call back the sellers if they don’t leave a voicemail?” – Bernard Green

Joe: By the way, for those of you who have had contact with her, Carolyn is not my wife – she’s my mom. She’s 80 years old. She’s still working for me. She’s been working for me for years. She does a lot of the building and keeping track of the databases and things like that for me. She’s wonderful. Who else are you going to trust with your money? (Although I have a pretty good bookkeeper, too). She doesn’t know anything about real estate, other than what she’s heard on my recordings.
 
Joe: In answer to your first question, you don’t put any money down; there’s no money down. This is what we do – no money down deals. Never put any money down, never use your credit. So, with that said, you have to decide, ‘How are we going to do that, how are we going to make that happen?’
 
Joe: In some of these other videos, I’ve talked about finding the value for the person who you’re working with, finding out what their options are, helping them understand what those options are, and showing them that you are the best option for the situation that they’re in. And 90% of the time, we ARE their best option, even though they’re not getting a down payment from us.
 
Joe: Everybody wants a down payment; that’s normal. Everybody wants a deposit; that’s normal. Everybody wants more money for their property; that’s normal. But, what’s the reality? If you talk to the top real estate agents in your town, you can ask them, ‘Do you get your people more money than anybody else?’ and they’ll tell you, ‘No, we get market rent for what we’re doing. We’re not going to get more than market rent. We’re not going to get more than market sale price.’ And that’s what we have to work with in order to make this happen.
 
Joe: The second part of your question was, ‘Should I call back the sellers if they don’t leave a voicemail?’ if you don’t have a phone number, obviously you can’t call them back. The email system and the Automarketer will send them an email and it’ll follow up with them after that, so count on the Automarketer to do its job.
 
Joe: If there’s no phone number in the response they give you, you can also check the ad – if there’s a little green link on each lead in the lead form, you can click on that and you can see the ad that they posted and see if there’s a phone number in the ad, and if there is, I would call that phone number. Try to get in touch with these people. A phone call is going to have a much higher chance of conversion than an email. Alright, good luck to you. Bye, bye.