house property income

warren: my name is warren rosenthal. i'm fromindianapolis, indiana. i found out about the program off of an overworked investor sign.i tried to do this on my own for several years and kind of failed at it most of the time.i knew i had the skills to be able to make it work but i think the thing that i reallyfelt the most was i needed somebody to help me, like a mentor, somebody that could getme started in the right direction. i knew at that point that i probably could take itand make it work right for me. warren: i've been in the program for a littleover 7 months and i'm at the point where i can do between 3 to 5 deals a month and i'vebeen able to completely replace my income doing that. after i started working with joe,i did my first deal in a week and a half.

it was a gentleman who had good cash flowbecause he had a good income from his work but just couldn't qualify for a mortgage.he was really looking for a house for his family. so by my showing this gentleman thisnew house, he was able to get into a house with very little money down and he and hisfamily got into a home. now he's actually working with a financial advisor and a mortgagebroker to be able to cash out and close that deal.warren: well, per deal i make about anywhere from about $2,000 to $2,500. i have a listright now of over 600 people so it makes it pretty simple. i just have to tell everybodyabout that property -- i blast it out to them and then i start showing the property. wheni first started off, i would go to the want

ads in the paper and find people that wereselling their house for sale by owner or people that were renting properties and i would askthem a couple of simple questions like, 'would you consider selling your house with the rentto own method instead of just renting it?' or with somebody who was selling their housefor sale by owner, i would call them and ask them, if the property has been on the marketfor quite some time, if they would consider selling their house rent to own versus justselling it outright. and most of the time, with a lot of the people, between two to threeout of five would say yes, and then they would consider it more. so then it was the processof either working with them over the phone or actually going out and meeting with them.and as i got better and better at it, i did

a lot more of just working with them overthe phone. warren: the main thing that i need to do isshow them the value of working with me, and how i can actually add value to them and helpthem to move a property quicker by my being involved in it and not just trying to marketthe property by themselves. first of all, i show them that it works out really wellfor them because it costs them nothing. by working with me i'm not adding any additionalcosts but i am adding extra value by marketing their property alongside of them. that doesn'tdisadvantage them in any way -- it just doubles the marketing effort that they're doing. whathappens next is that they're pretty motivated by that time and so it kind of weeds out theones that aren't motivated and just don't

really want to do anything in that category.so after i start to talk to them about that, then i show them the value of working withsomebody that has marketing skills (to be able to build a list of over 633 people) andhow i can blast that out, plus the other proprietary websites that we use to be able to marketthat property out. because with most of these people -- they're just amateurs at it -- they'rejust for sale by owner or for rent and they don't really know how to get that propertyout to the masses. at that point, i show them the value of working with me. there is noextra charge that costs them, and they like that of course, because with a lot of thesepeople, if they're selling their house for sale by owner, it's probably because theyjust don't have enough equity or have enough

room in the property to be able to sell itwith a realtor. it would cost them money to be able to close but with me, it actuallywouldn't cost them anything and i would probably be able to get them a better value becausei can usually get them more money for their property than they can if they would sellit with a realtor. but i've used the push button method to where i actually have somebodythat works for me for a very low hourly wage, and all she does is find people on the differentwebsites like craig's list and some of the different websites. then we have a form letterthat she emails to them and they can go through my system and email me back and say they wantto consider more information. my system then will give them more information and completelylay it out for them before i ever even have

to speak to them.warren: with the for rent method, we're selling the house on terms and people are coming tous because they have an issue -- mostly it's a credit issue -- of why they are not justbuying a house outright. so basically we know there are two ways of buying a house: if youbuy it cash you can usually buy it significantly discounted but if you don't have cash, andyou need to go by terms and then you have to abide by those terms. and the thing is,the seller is in control at that point and they dictate the terms. and so the buyersare ready to take those terms because they don't want to rent a home, or they don't wantto rent an apartment -- they actually want to own something. it might take them a yearor two years to be able to qualify for a mortgage,

and in the meantime, they're sitting in ahome or an apartment that they're just renting, but by doing it this way, they actually getto go into the house and start to work on the house -- they can paint it, they can adda fence to the home, etc. they can do all of these things so in that two year periodof time while they're trying to qualify they're already setting this home up for themselves.so they're 2 years ahead of the game, and then when they cash out and buy the house,it's theirs outright -- they get all the fruits of their labor.warren: every so often i do get emails back from these individuals and they say thingslike, 'thank you! i couldn't have done it without you! you sure are a great blessing!'these are the actual words that they use.

this has to be one of the best jobs i've everdone in my life because of the gratitude that i get from both sides, from the sellers andfrom the buyers, to be able to put the buyer and the seller together and to help thesepeople, and to really be able to help people and make money doing that is what my life'swork is all about. warren: one of my favorite deals was a deal(and you'll hear about this when you take the program and you start to hear joe talkabout these things) with one of those houses that you could qualify as a fixer upper special.i think it was a little beyond that; it was a pretty messed up dilapidated house. andthe reason why this one was so fun and it gives me so much joy to be able to have donethis is because the gentleman that was trying

to sell the house was almost at his wit'send. he was probably going to let the house go and he just didn't know what to do andhe didn't have the money to fix it up. so i asked him and said, 'let's go ahead andput a sign in, a lockbox. we'll send people through it, and we'll market it as a fixerupper special.' at first, there were several people who had gone through it and the firstperson who really wanted to buy the house or to rent to own it were all set to do itand then their finances fell through, which what was great about this process -- i hadother people in pocket. you'll learn how to keep a pipeline going of other people besidesthe one or two people that came to that house that showed a lot of interest. that way, you'llknow it's never a done deal until you actually

collect the checks and sign the contracts.so that same day, when they pulled out of the deal, i knew i had other people in itand i was just about to call this other individual, but within an hour, they called me, and theysaid, 'is this house still available? i really want it.' they were the ones that ended upgoing into it. and they were in a situation where they had been out of work for a littlewhile so they had some additional bills that hurt their credit. they weren't sure abouthow long it was going to take them before they would qualify for a loan. but they justdidn't want to live where they were living anymore; in apartments and rented houses,because they weren't up to the quality of what they wanted. they wanted more controlof their living arrangements so that they

could do work -- so what was so great abouthis house is it fit their needs so well, and they were able to go in and do all the work.as i said, it was in pretty bad shape and they needed to do the work and they took thathouse and made it their own. the great part about this whole thing is that, here's a housethat the seller thought he'd never even be able to sell, ever, because it was in suchbad shape. within six months, and at this point when we speak now, this woman is workingwith a broker that i've teamed up with, part of my team, and they're going to be able toclose this loan probably at the end of this month. so she's actually getting the financingand buying this house outright within 6 months. warren: on that deal, i made $1,500. and theway i get paid on that was with the down payment.

that was what they could afford; $1,500. iwas happy to take that. it's a little less than what i would have liked but i was happyto take that because the seller really needed to sell that house and to get somebody inthere. so i stopped the paying on his side (he had a payment that he had to pay everymonth and now i had somebody paying that payment for him) plus he didn't have to dish out between$5,000 and $8,000 to get his house fixed up. they were taking over the complete fix upand repairs of that property. so i made $1,500 doing that, and i was glad to do it -- i havea happy seller who's been telling all his friends about me, and i have a happy buyerwho's telling all her friends about me. therefore, that's going to build momentum for my businessin the long run.

warren: the thing that's always amazing aboutthis property -- the people who think that you can't do this remotely -- this was aboutan hour and a half away from where i live -- i've never seen the house, not once; onlyfrom digital pictures. i never even put the sign out of the lockbox -- i had the sellerdo that. i asked him to go to a hardware store and buy a sign and i told him what to writeon it and then he bought a lockbox and he put a key in it. so i've never even been tothat house. i physically didn't even have to do anything as far as putting signs up.i probably only had about 3 hours' worth of my time total into that house, which meansi made like $500 an hour. warren: the most i ever made at this pointis $4,000 off of down payment, and i've had

two deals that made $4,000, one just now recentlyand one about two months ago. the one two months ago was a gentleman who wanted to moveout of his home -- he didn't want to live in the area where he lived. all of his familylived in a separate part of town and he wanted to live closer to his family. i was able tofind a buyer for that house. that was a great and unusual story, and a great success story,too, because the first tenant buyer that i found for that house ended up not being ableto do it because when we searched out her credit report and her background a littlebit more, the seller decided that she wasn't quite right for that. what we do in thesetransactions is we put the seller in control of the transactions -- we work with them andwe help them but they do have the say. so

i had to go ahead and put somebody else intothe home which was pretty amazing because then i got an email within hours from somebodydesperately needing a home because she was in a deal and she was with another investorand what happened was that he was going to go ahead and buy a house but his financingfell apart and she was supposed to get that house within two weeks. she was already inthe process of moving out of her house and into this house so she was pretty franticabout getting a new house. what happened was that it worked out perfect. i was able toput her into this home and her credit worked out perfectly and the process worked out completelyperfect and so within two weeks, she was in this home and i made $4,000 off of that. iwould say i probably put two hours into that.

all i had to do was put a couple signs outand then i just put it up on my website. and i just have to tell you that the websitesthat i use right now, where i get leads from -- i pay absolutely nothing for that. i doall of that free on all the free websites out there.warren: i made the $4,000 on the down payment. when they come up with the down payment ona rent to own situation, we basically dictate what the down payment's going to be. now it'susually based upon the area, the monthly rent that that house is renting for, and then thevalue of that home. so when somebody comes to me and they say, 'i would like to havea house and how much is the down payment?' my first question is, 'well, how much haveyou prepared for a down payment for a house

like this?' and then they will say, 'oh, idon't know, maybe i have $3,000.' i say, 'well, if you had $4,000 i could definitely makethis happen.' so she said, 'okay, i do have $4,000. i could do that.' so when she comesand puts a down payment down then that goes toward the purchase price of the house, andthat down payment is what my company uses to get paid for our services. the great thingabout it is that if he told me that he needed $150,000 for the house, what i would do isput the house up for $154,900 and then i would expect that i could get somewhere between$3,000 and $5,000 down payment so that when i do collect that down payment, it comes offof the purchase price of the house and then i actually get him a little more value outof the house and he loses nothing.

warren: like i said earlier, the great valueof working with me is it costs them nothing. on the purchase price side and on the marketingside -- i never charge them for what i do. the seller gets a qualified tenant buyer.i work all the contracts. i set up all the contracts and dictate all that for them sothey don't have to do anything on that part. they have somebody that's working with thebroker right now so that they can cash out within two years and he can actually sellhis house. he completely got the value and a little bit more of what he wanted for hisselling price and all it took him was to just say yes to my question of what he would bewilling to sell the house rent to own. all it took was a yes and a couple of phone callsand the deal was done.

warren: the way i do this without a realtorslicense -- you see, in joe's course he teaches you how to use a certain contract, and hesupplies all of these contracts for you, and one of the contracts that we use is calledthe lease option memo and it makes me a principle in the transaction. that way, i can do thiswithout being a licensed realtor. it actually gives me a stake in the property. it makesme a principle in the deal. and then all i have to do is when i go ahead and sit downto close with the tenant buyer and i have an addendum to that lease option memo whichtransfers that principle that i had to the tenant buyer. it's a very simple, one or twoparagraph contract. it transfers it over and at that point, and i am no longer in the deal-- i have transferred my principle rights

to the tenant buyer and the rest of the contractsare between the tenant buyer and the seller. warren: 633 at this point. i've got to tellyou, it's pretty simple and it's pretty inexpensive. and at first, joe will tell you that you haveto do some of the grunt work up front. that's what i did. i did what he said. i followedthe directions and i went out and bought the ugly signs that you'll hear about, those yellowcorrugated signs and some of the racks, and i went around and i put them on telephonepoles. i put them on corners. i did everything i knew to put those signs out. that startedto generate a list for me right at the very beginning with barely any money out of mypocket. and then eventually what i've done is gotten to the point to where i've beenable to build a system (which joe offers)

is the push button system which just workson its own. so i have these houses already and when i find houses, i put them up on thewebsites and generate leads from there. and those are free leads. i get probably between15 and 25 people a day contacting me about the homes that i have. i used to call themall personally right away because when i first started the business, i had more time to dothat, but now i've gotten so busy with the amount of transactions that i'm doing thati don't have time to call everybody back. so the great thing about the push button systemis that it keeps emailing them and auto responding to them about different things and the differentlevels of the program that we have available. i get to check the messages -- i have somebodyright now that i've hired to write up all

my messages and they print them all out forme so i can just scan them. it takes me a lot less time to just scan over a messagethan to listen to the actual message. so i read the messages now and then i can pickwhich ones i want to respond to right away. if i have some properties i know i need tomove quicker for some reason, or if i can tell by the message that they're a betterquality lead, i will probably contact them back myself by phone. otherwise, i let thepush button system continue to give them messages and essentially i let them call me. when they'reready and they're motivated, then they call me, and at that point, then i know that ihave somebody that wants to go ahead and do this.warren: before investing in real estate, i

had several businesses that i owned and idid some sales work for some companies. i sold some programs and things like that. butthe biggest chunk of my business career is has been that i owned a service business andi had several crews that worked for me. to replace my income full time as an investor,it didn't take me very long at all. it only took about a month in this program. i waspretty motivated to do this because at that point, i was pretty frustrated in what i wasdoing even though it made me a six figure income -- i just wasn't happy doing the typeof work that i was doing. and so i was pretty motivated to make this change and i changedit pretty quick. i did it in a month's time. it's been consistent and it's actually growing.as you do this, you'll get better and better

at it. i'm at the point now to where i'vebeen doing it for around 7 months, and i'm starting to come into my own and it's goingsmoother and smoother for me; i'm getting better and better and smoother at it. my timeon the phone and with sellers and buyers is much quicker because i'm able to word my sentencesso that they're much more powerful and pithy. i can get my point across in a lot shorterof a time. that enables me to spend less time doing this work. i make even more money doingthis job because i'm getting better and better at it and i do more and more transactionsthan i did, say, three months ago. warren: in my old business, sometimes i wouldwork eight to ten hours a day. and there were hours where i didn't really like to work.sometimes i had to work a lot of evening hours

because i was working with people and i hadto call them. what's great about this business is that i can just go ahead and put it tothe side for two to three hours a pop if i want to or even half a day, and then i cantell my wife, 'hey, lets go ahead and take the kids and lets go hiking.' (we have a parkclose by to our house). 'let's go hiking in the woods.' then i can just shut it all down,go hiking in the woods, then come back and pick it up any time. so that's the greatnessof what i do now, that i'm in complete control of my time. and i guess if i wanted to bein complete control of my hours, i can do that too, to where i can only work so manyhours a day. right now, what i'm doing is i'm trying to build it to the point wherei can put it on autopilot. my time frame now

is that in about a few more months (i gavemyself a year to learn how to do this right) i'm going to put it on autopilot. i'm justabout there right now. what it means is that you get the push button method system in place.i have a gal who answers my messages for me. she even emails them back. we have some basicquestions that we get now that we've seen over and over so we've answered them backwith essentially a form that answers those questions for them. but what i'm trying todo is get them to go to the website because the website will inform them with the audioand the written script of everything they really need to know which answers about 99%of their questions. when they come back to that, all they have to do then is at thatpoint, call up the specifics of the property

that they want to talk about which is reallyonly what we need to talk about -- the property, not the process. i still have to talk to thosepeople and i have to make those phone calls a lot of times. and sometimes i even needto go out and put a few signs out. i do that less and less now because i generate so manyleads without the signs. i do that less and less, and a lot of times we need to go outto a home and take pictures and those types of things. i'm just going to have someonedo that for me. i can hire someone very inexpensively to be able to do that for me.warren: i'm working about, on average, 35 hours a week, and when i said i expect toput it on autopilot, i expect to put this end of the business on autopilot and let thispart of the business build itself. but then

i'm not going to stop there, because the greatnessof this business is there are levels, and this is just the foundation. joe will teachyou that the most important part about having a business is having cash flow, because youcan't really build a business without cash flow. and for instance, when you need a newcomputer and those types of things, you don't have to worry about that -- you have thatmoney and you have that capital in order to be able to do that, in order to build theinfrastructure of your business. warren: the next step is that i'm going togo ahead and build wealth. you see, the cash flow and wealth are two different things andi understand that. at that point when i start to build wealth, i'm going to start to pickup properties subject-to, which joe will teach

you how to do, and i'm going to keep thoseproperties in order to build long term wealth and to have a residual income coming in whichgives me multiple streams of income. warren: with subject-to, it's explained prettyclearly in the course. and the great thing about it is you don't have to use any of yourown money to do this. you're just helping people who are distressed right now becausethey can't keep up with the mortgage payments on the property or they need to move becausethey have a job transfer, or whatever reason why they need to be out of their home. whatyou're going to be able to do for them is to be able to take over their payments fortheir property. they're not actually buying the property -- you're taking over the paymentsof the property and getting the deed subject

to the mortgage. what i do at that point inthe rent to own process is i just find a tenant buyer. at that point, they're going to giveme a down payment of $3,000 to $6,000 dollars which goes right into my pocket, and thenwhen i get the home subject-to, like i said earlier, we talked about terms? -- well, i'mgoing to be able to get full market value for that property. so if i took over the propertyand it was a $130,000 house and they only owed $115,000, i'm taking that property overat $115,000, so i've already built that equity into the home immediately and i might evenbe able to get more than $130,000 because they're buying it on terms. so then, whenthey buy that home and cash out, at the end of the contract, one year or two years orwhatever the contract might be, i also make

that money on the back end. and that's whyits long term wealth. now, if they don't buy the property and i continue to keep the property,the property continues to go up in value, which is good because it continues to appreciateand i continue to make more money that way on the back end and also, i can charge a higherrent. warren: it's pretty nice to be able to drivethe carpet highway to work every single day. people say, 'well, what's that?' the 'carpethighway' -- i get out of bed, and it's about twenty steps to the office, and there i am-- in my office. my messages are already written out for me. my push button method comes throughthe email so i have all these email leads that are sitting right there from people wantingto see my houses and sellers wanting to do

the rent to own method with me. so i wakeup in the morning and i have all these things already set and i just go ahead and startthat process. i can go into that office any time i want. on some mornings, i like to sitout, especially in the better weather days, in the backyard and read the newspaper, drinkcoffee and hang out with my children and my wife. we home school the children, so we don'thave to get up and go drive in the hustle and bustle traffic or any of those things.as a matter of fact, i really don't have to deal with traffic very much at all becausewhen i set my appointments, i set them in the middle of the day so that i'm not on therush hour parts of the day in the morning and the evening. so my day is a lot more calmthan normal like when you have to get up every

day and fight traffic and go to work and dealwith those types of situations. warren: like i said, my wife and i owned businessesin the past, so we had already been in the entrepreneurial mindset. my wife was reallypretty supportive because, and i've got to tell you -- we've done some programs and theyjust didn't work for us and we failed, but we never quit, and that's the important thing.in this program, joe will tell you - just don't quit. if you do the work and you putthe work into this process, this process does work -- you just can't quit. so i didn't haveto convince my wife too much because she was pretty much of the mindset of supporting meand my decisions in business ventures. my family and friends kind of knew that we'vedecided to go and do our own business so they

already knew that we were kind off the beatenpath; that we home school our children and do those types of things. so, people usedto think of us as odd. and it's really funny -- i think our neighbors probably wonder whatthe heck i'm doing half the time because i can be out in my yard just hanging out duringthe day, playing with my kids, and i bet you they wonder, 'how does this guy earn a living?'i work any hours that i want and any time i want, and i love that freedom and to beable to have that that freedom is worth a lot -- a lot more than a double six figureincome would be -- i'd rather make a little less money and have the time with my familyand my friends now with the freedom i have. warren: this has been a dream of mine eversince i've started a business. i've always

wanted to deal with investing in real estateand owning property. i just didn't know how to do it. and i tried and i dabbled in a fewthings. i failed and i succeeded. most of the times where i succeeded, i succeeded becausei just kind of stumbled into it, not because i really knew what i was doing. right nowi feel like i really have a handle on that. so the process that i learned in joe's classis going to teach me how to build long term wealth to the point that i can retire, andi don't even have to do any of this work. i can either have people in place and havethe business in place, making the cash flow, or i can have the amount of properties thati need that will continue to pay off and bring me a residual income where i can be anywherein the country or anywhere in the world and

i'm still making the same amount of incomeand never having to be concerned about a business at that point.role play between warren and joe: warren: ring, ring.joe: hello? warren: hi, joe. this is warren rosenthal.i see you have your house here for rent. joe, i was wondering, would you consider sellingyour house rent to buy instead of just renting it?joe: perhaps. warren: i have a list of buyers that wouldbe interested in buying your house with this rent to own method -- i have over 633 peoplethat are highly motivated right now and could rent your house. now these people might notbe able to buy your house outright right now,

but in a year or two, they would be able toqualify for a mortgage and buy your house. joe: how much do you charge for that?warren: that's a great question, joe. it doesn't cost you anything to work with me. my servicesare absolutely free. i get paid by the buyer. the reason why that works so well is becausei get paid from the buyer and the down payment that they put down for your house.joe: so how does the lease option work? warren: a lease option is a pretty simpleprocess and it works really well. i do three to five of these every month and it's verysimple and very smooth. the simpleness of being able to do a lease option is becauseit just takes a couple of contracts. i find a buyer (somebody that's interested in yourhome) and then they have to be able to be

able to qualify within a year or two, andi do that already -- before i even start this process -- i have them prequalified and readyto go, so i know that they can qualify for a mortgage. and they just have to be ableto have a good income coming in to be able to make the payments on the property, andhave money for a down payment. joe: so how much can you sell my propertyfor? warren: i can sell your property for the fullmarket value of the property right now because we're selling it on terms, which means thatwe dictate what the price is. do you have any idea of what your house is valued at rightnow? joe: it's probably around $150,000.warren: how do you come up with that price?

do you know that because of the other homesin the area that are selling for around that price?joe: yes, and i saw a sign next door, and there's a house just like it and it sold twomonths ago for that. warren: that's fantastic. do you have anyidea of what you think your house would rent for monthly?joe: about $1,200 a month. that's what i'm asking.warren: and if you don't mind me asking, what is your full payment, with your tax and insurance,and your mortgage payment? what does that cost you per month?joe: $975. warren: $975. and you're looking to rent itfor around did you say, $1,200? so you want

to make a little bit of cash flow so we havea little bit of room there. if we go ahead and put that up for the price of $1,200, thenwe can probably bring three to five people to that house within the first week.joe: that sounds pretty good. do you have the paperwork for that kind of thing or doi have to come up with that? warren: the great thing about it is that itdoesn't cost you a dime and i also have the contracts set in place. these contracts haveall been certified by attorneys and they're all legal for the state that we work in. it'sa pretty simple process for you. all you have to do is sign the lease option memo. thenwhat i'm going to do is come out and put a sign in your yard (and i'll explain more ofthis as the process goes) and i'll put a lockbox

on the house so that i can have access tothe house. now is this house vacant or do you live in it?joe: it's vacant. warren: a vacant house is good because theni can get more people through the house. i don't have to set up an appointment with youso that works out really well. the more people i can have looking at your house, the morelikely we're going to find a buyer and we're going to find one quick.joe: but you've got 600 people right now that are interested in buying a house?warren: yes sir. and what i'm going to do immediately is when i get the lease optionmemo (and i have a link that you can just go ahead and sign it electronically onlineand set the purchase price of the property)

then at that point, i can blast that propertyout to every single one of them within hours. joe: let me see if understand this. you'regoing to take the price that i'm asking for; you're going to charge the buyer for the leaseoption fee or the down payment. they're going to owe exactly what i want. i'm going to getthe first month's rent and you're going to get me my deposit.warren: what i'm going to do is i'm going to bring you the first month's rent and becauseit's a rent to own situation, there is no deposit. there's only a down payment. that'sa nonrefundable down payment -- whatever we receive for the down payment is what my companykeeps for its services. that way it doesn't cost you anything for the process. and that'show we make money. the great thing for you

is that when the put down that down payment,they put down a pretty decent chunk of change; say $3,000 to $5,000 - that puts a lot ofskin in the game for them. and that's why this is a different process than just a rentalprocess. this is a rent to own and so there's a complete paradigm shift with the peoplethat i work with that are going to come into this home because they want to own this house-- they're going to treat it like they own it and then they're going to take care ofit like they own it. a great example that i always use is when you rent a car. nobodyever washes a rented car but when they lease a car, even if they're not going to buy thatcar, and let's say they lease it for two years, they're going to take care of it like theirown. so these are the type of people that

i'm bringing to your home. they have a mindsetto where they're going to go ahead and own this home and take care of it. they're goingto ask you questions like, 'can i paint it? can i do these things?' and all of these partsthat are adding value to your home and showing you that these people are more serious abouttaking care of your property. they're going to be emotionally tied into the home. they'regoing to be physically tied into the home. and they're going to be financially tied intothe home. that's much more important because in a rental process, they're really not in,any of those ways, tied into their home which is why, most of the time, they don't careof the property. joe: how likely is it that they'll actuallyexercise their option?

warren: that's a really great question. tobe honest with you, the national average right now is about 30%. now i'd like to see my percentageto be more in the 50% range. the reason why i believe i can make that percentage higheris because when i work with these people from the very beginning, i have them working withmy broker and not only is he a broker but he also fixes credit. so he's going to startwith them at the very beginning and show them exactly what they need through this processto be able to fix their credit and be able to outright buy the house or get bank financedso they can cash you out. joe: so it's not really likely that they'llbuy it? warren: as i said, it's about a 30% nationalaverage. now if you think about this as an

investor and if they don't buy in two years,is that a good thing or a bad thing for you? well it's really a good thing because if theydon't buy it in two years, they have the mindset of taking care of that property which meansmost likely, you'll have people who have added fences and put in new carpet and did thingsto the house. so they've added value to the home and now they're going to walk away fromthe home. there's a possibility that they will. let's just say they do. at that point,two years have passed and your house has appreciated. they've paid down your mortgage so that yourhouse costs you less. its appreciating at the same time, and it costs you nothing becausethey're paying your payment. and now what we can do is turn around and put somebodyelse in there because i'm very confident in

my talents to be able to put somebody intothat home within a few weeks to a month. we'll also be able to charge a higher rate rentbecause two years have passed and your house will be worth more, so instead of that original$150,000, maybe it's worth $159,000 now and we can get more money for the property. soif you think about it, if that happened, 10 times over, you're actually better for that.now that's not my goal -- my goal is to be able to help you, to be able to have yourhouse cashed out in two years and the buyer to be able to really own a house. becausethat's what they wanted -- that's what they came into this process doing -- they didn'tjust want to rent, they really wanted to own this home. i take it personally and i workvery diligently, side by side with these people

so that they can actually be successful andcarry through with what they wanted to do. joe: it's a two year lease option?warren: usually it's one to two years. we can do a one year renewable. the reason whyi say two years is because in my experience right now, i've found that most of the peoplethat are coming into this process need about two years to clean up their credit. now that'snot always so but i like to be able to give them enough room to be able to make this happen.i'll know usually right off the bat, with my broker, when he does their credit report-- he comes back and he says things like, 'i can do this in six months,' or, 'they'redoable in twelve months,' or, 'they're doable in eighteen months.' so if we knew they weredoable in six months, then i would do the

contract for a year and just give them a littlebit of leeway. if he came back and told me it was 18 months, i would do it in two years.but that's always in your control. i'll always come back to you and show you this personon paper. i will show you exactly where they stand and you and i will discuss whether thisperson is right for your home or not. i will give you my opinion on it, and what i understandabout it according to how i work. but, i will always give you the last say so that you'realways in complete control of the situation. joe: well, i'd like to have a two year orlonger lease. the longer the lease is, the better, so that i don't have to worry aboutit if they're not going to exercise the option. warren: the longer the lease, the better,you're right, for yourself, because that's

the least amount of time that you have tobe concerned about it. if we could get a longer lease, that would be fantastic although youcould make more money if you did a two year lease because then, if they don't buy thehouse, and lets just use an example like -- this persons a great tenant, you've never had anyproblem, they pay the payment on time for every single month -- they've never been late,and two years pass by, and they actually have been working on their credit but they're stillnot there -- they're still not ready. see, the great thing about it is you're in control,it's your property -- you're in control at that point. you could extend that lease foranother year or two years, and at that point, you could ask for a little bit more moneyon the rent, and you could ask for al little

bit more money on the selling price. it putsyou in control throughout this whole situation. joe: so if i don't like the tenant, i don'thave to take them. warren: absolutely. you're in complete control.when i show you that lease option memo (it's just a one page memo), it's going to showyou exactly what the process is and how much control you have. i call it the 'stab me inthe back contract' because you could actually turn around and take that tenant buyer fromme if you wanted to and i really wouldn't have any recourse. now i know that's not goingto happen because you're an honest guy. my point is that you don't have to stop doingwhat you're doing to market your house. i found you because you were marketing yourhome. you can continue to do that process

alongside of me and i will not compete withyou. but i can tell you that i have a pretty decent process going on right now, that i'mvery talented at what i do and i'm probably going to find somebody quicker than you canfor the home. plus it doesn't put you -- i know you probably have a full time job andthen you have to answer all these phone calls when you come home, show the property to people,run over there, and then they don't show up, and then you have to deal with all of theseheadaches -- so you put all of these headaches on me and i'll take care of it because that'swhat i do full time which i have a system in place that works very smoothly for.joe: well, it sounds pretty interesting. what do you have to do to put it together?warren: it's real simple. i'm going to go

ahead and send you a link to sign that leaseoption memo. i have that online so you can electronically sign it. once you sign that,all i have to do is go out and put some signs out in the area or put a sign in your yard.i'm going to ask you to give me an extra key so that i have access to the property andi'll put a lockbox on the house. joe: email it over. i'll take a look at it.warren: well, actually i don't even have to email it. all i have to do is send you thelink and then you can just go ahead and go on that site and then read it over yourself.then, with the way the website's designed, i have a complete explanation of it. you probablyalready saw that. do you remember going to the website when i first sent you that email?joe: i don't remember.

warren: you don't remember? what i can dois i can go ahead and send you that link because i think it would be very valuable for youto be able to listen to that. there's a quick audio message on there and then there's thescript out below it. i'd like you to go ahead and listen to that and scroll down and readit at the same time because it's going to explain the whole process to you again eventhough we went over it over the phone. i want you to hear it in that light because i dohave it laid out, and if i missed anything in this conversation, i know it's not missedthere. it'll answer 99% of your questions so that you're fully informed and most importantly,i want to make sure that you're comfortable with this process so that when we go aheadand move forward, you'll be ready -- because

i'm very aggressive in my marketing, and atthat point, as soon as you say okay, i'm going to be out there marketing that property andi can tell you -- sometimes i have people within a few days, and it might shock you,so i don't want you to be shocked -- i want you to be ready and fully convinced that thisis the way you want to move. warren: the really neat thing about this isthat basically it either makes sense to them or it doesn't. you're going to have the realtough ones where it just doesn't make any sense to them right now. but time and circumstancechanges a lot of things and i've had quite a few people that might have said no to meoriginally, then they're saying yes to me two or three months later. so they've paida few payments and they realize that that's

a little bit painful for them and then theywant to consider what i have to say. for instance, in a for sale by owner, if they just put itup on the market, then they haven't even had the chance to even see if what they're doingis going to work. it might take them about a month or three months, if and when theydon't get any showings or they only have one showing every two weeks, to realize that,'this isn't going to work. i need to do something else.'warren: the important part about this process, because of the push button method which worksso well, is that once they sign up on the list, that auto responder is going to keepasking them, 'i'm interested in your home. are you ready to go? i'm interested in yourhome are you ready to go?' and at some point

they're going to respond back to that. that'sthe good thing about that -- i never lose them. and i don't have to keep track of thatand continue to call them back. i let that process work automatically.warren: if they don't send me the memo within the next day, i usually give them a call thenext day and ask them where they stand and if they've been able to make a decision. andi can tell you this -- what i've found is as i get better at it, more people do it rightthere and then with me on the phone. i've found that the more you do it and the betteryou get, the more confident you are in your abilities, then the more confident they arethat you can do this for them, because that's really what it is -- they just want to know-- can you do what you say you're going to

do and can you make this happen? because they'rereally dealing with some pain right now, and that's why it's important to ask them questionsand find that pain and pull that pain out to the top during that conversation, so thatthey can see that they have a payment that they're repaying every month on somethingthat's not paying off for them at all. and once they can see and realize that (i feelthat that's the most valuable thing that you can do for that person) then you can startto help them. i like to be able to help people -- that's what i do -- i help people; bothsides -- buyer and sellers. warren: the first and foremost thing is tostart listen to the course and start taking the steps, step by step, starting at the foundationand what joe will suggest you do first. first,

you have to build a cash flow -- you haveto do the grunt work first. don't be afraid to pick up the phone and call people. it'scheap -- the phone is the cheapest thing you can have. you already have one in your houseand you're already paying for it. the newspaper is cheap. you can go to the want ads and startcalling off of those. you don't have to go out and spend a lot of money with this atfirst. that's the most important thing -- don't put that pressure on yourself by spendinga lot of money at first. then, the next thing is getting some of those signs. they're cheap.you can get signs for a $1.50 or $2.00 a piece and start putting those signs up and startgenerating those leads. those are the most important things that you can do right now.then, just build your confidence and get smooth

with the process. joe gives you some scriptsthat in the program. follow those scripts and read those and become really smooth withthose. you can even practice with your dog, or your kids or your wife or the tree in theback yard. get good at it and get smooth with it, because that confidence level is whatyou're going to need when you do this process. warren: what i'd like to say is that, rightnow, during this process, i'm building a cash flow and i can see the end game. that's theimportant thing -- i can see where i'm going with this and i'm getting better and betterat it. and i can tell you, as i said earlier -- this is the best job i've ever had. i'mthe most happy i've ever been -- my wife even comments on how on my other jobs i was a littlemore grouchy and i would get off work and

i wouldn't wanting to do things with the familybecause i just didn't like what i was doing. at this point i'm so happy. i got a text theother day when i checked on a house that i placed a tenant buyer in, and i just wantedto check if everything went smooth over the weekend with the move. and she wrote me backand said, 'thank you so much! i couldn't have done this without you! you've been a greatblessing!' and that's it -- that's my pay right there. plus at the time i made $1,500on the deal. but i could have taken it for free just because of that one comment, becauseof how it made me feel in my job. so i love my job. i love what i do and i can do thisforever because of how much i love to do it.