Cash Flowing in a Down Market!

Today I would like to share with you a great technique on how to cash flow in real estate in a down market. In todays market, there are a lot of homes for sale that will continue to sit and become COLD LISTINGS. But with the right leverage and technique, you can turn a cold listing to a hot cash flowing property. To own real estate is great, but to control it with out ownership is even better. Let me show you how. You find a seller that has trouble selling their home. Maybe they took a job in another state, divorce, or inherited the home from a family member. For whatever reason the property is vacant, and needs to sell quick. Lets say they are asking for $50,000 for the home, and it will appraise for $65,000 easy in a down economy. For this to work, you will need to be open and honest with the sellers about your intentions for the home. Now pay attention! You offer them the full asking price of  $50,000. They owe $25,000 with a monthly mortgage of $400. You are sure that you can rent the property for $650 a month. You explain to the seller that you would like to lease the property with the option to buy and the right to sublet the home. You all come to a written agreement allowing you to lease the home for 2 to 3 years with the option to buy,with a down payment of $1,000 nonrefundable and monthly payment of $400. You now find a buyer who would like to lease the property from you, who now has full control of it. You lease it to them for 1 year at $650 a month with a nonrefundable down payment of $2,500, and selling price of $65,000. They now have 1 year to aquire financing to purchase the home from you who control the deal. Now you have turn a cold listing into a cash flowing home. You made $1500 off the option fee, $250 for 12 months in rental income, and $15,000 when the home sells to your end buyer. Now everyone is happy!