Richard Geller – Apartment MLO Course
Richard Geller – Apartment MLO Course
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Richard Geller – Apartment MLO Course
Do you know about reserve accounts’?
Did you know that many apartment buildings can be controlled using cash that is sitting in these reserve accounts’?
Bill H was a corporate pilot who stumbled on the secret of reserve accounts when he flew a wealthy doctor around as part of his Job He asked the doctor how he had accumulated his wealth and the doctor told him how he bought apartment buildings using an almost secret underground method
And the doctor let it slip that often the money for the purchase was sitting in the landlord’s own account, in a shadowy corner of the financial world where its known as a reserve account
Right then and there. Bill H. offered the doctor free flying lessons
In exchange. when they were 12,000 feet above the ground, they’d put the plane on autopilot and the doctor would show Bill how the reserve accounts let anyone take over an apartment building and have a wad of cash already sitting there ready to spend on improvements
Fast forward and Bill H. has bought buildings again and again with this secret method. He has amassed a huge apartment empire starting with
Ugly buildings Here’s the reason why ugly buildings are a better wealth building tactic using reserve accounts at least at first as you build your apartment empire
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The landlord owned the building probably for a long time Then the market turned Neglect set in as the landlord milked the property for cash and stopped managing actively Stopped reinvesting in fixing up apartments after tenants left
The building went downhill A downhill building causes tenants who are good people to see the handwriting on the wall and move away. So more and more units are vacant
This causes the building to go from profit to loss. Now the landlord becomes increasingly desperate And his mind is elsewhere anyway — perhaps his wife is sick Perhaps he has high blood pressure and health problems himself Sometimes he’s moved and is no longer able to attend to the buildings hands-on anymore
So the building declines some more
That’s when you can snag the building and use the reserve accounts trick to do it Yes its true Someone is handing you the deal and saying
“Here’s the building and here’s the money to fix it up”
Imagine that you drive over to a building and enter the gate You start to look around It’s a 50 unit complex and its seen better days You have neither cash nor credit But what you do have is the willingness to take over the building, fix it up and get it producing cash again
How can you get control over the building and get the funds to fix
All you need is this one simple formula
Master Lease Option + Reserve Account Cash = Home Run
The Master Lease Option gives you the control over the building and the right to use the reserve account cash
It puts you into the driver’s seat and often lets you start drawing out cash to fix up the property When you get new tenants in you can exercise the option or
Flip the building right away without fixing it up at all!
There is a lot to be said for the quick flip. Set up the Master Lease Option with the landlord and then flip the property to another investor
The investment world now is full of people with a bit of cash who are seeking a way to get a good return on their money You’ve packaged the deal where there wasn’t a deal before Someone with cash but not so much initiative as you have pays you for your option and steps into your shoes
You’re out of the deal immediately and you have $10.000 $20.000 or $50.000 in the bank and all you did was find the building. get the Master Lease Option signed, and cashed your check
Reserve account cash makes the flip infinitely easier
Its a marketing game at this point Find landlords in trouble. sign Master Lease Options. and flip the deal to your stable of investors who are waiting for these dealsThey can acquire the building and start getting amazing cash flow And you’re off to the next deal. Its win-win-win You win the investor wins. and the landlord gets out
And the neat thing is…
There are tens of thousands of buildings you can go after with almost no competition
There are over 600.000 apartment buildings in the United States of more than 5 units. Many average 40 units, many are 200 or 300 units. You can cut your teeth on a smaller deal. then move up to a larger deal
Out of those 600,000 buildings, a sizable percentage are ugly buildings, buildings with problems Buildings where the landlord is motivated to get out. They see the Master Lease Option as their ticket out Why”
Landlords are trapped until you come along with the Master Lease Option
They don’t know they can do this They can’t go to the bank and borrow more money The building has too many vacancies for that. And they don’t have the time or energy to fix things up They are burnt out and Just want -out ‘
So you come along with the Master Lease Option and they love you You are the way out Look at it from their point of view They can get out they can get someone actively working on the building and turning things around, and they get a financial windfall when you exercise the option and buy them out.
Of course You don’t have to have cash and you don’t need to exercise the option
You can leave that to another investor Its up to you Path one is to tie up the building and flip it Path two is to fix up the building and then sell it or hold onto it. It’s all your choice
The Master Lease Option and the reserve account secret are your tools to get the job done — to get into the exciting and profitable world of no-cash apartment investing
Now you just need one thing…
Get the Know-how from my simple and easy home study program Charlie Dobens is a real estate investor who as an attorney has coached students to 20,000 units closing successfully, many with Master Lease Options and most with no cash or very little cash of their own
For the first time ever. Charlie and I have put together a comprehensive no-fluff video course that shows you exactly how to use the Master Lease Option and the reserve account trick to build your apartment empire starting with no cash and no credit of your own
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Step by step videos guide you through the process on your first deals
Video #1 shows you step by step how a total beginner did his first 10 unit building using Master Lease Options and gives you some great guidelines Video #2 shows you how to find these deals and shows some specific examples including a 44 unit building that was acquired using no cash no credit methods
Video #3 guides you through structuring your Master Lease Option and how to find the option money if you need any with no cash We focus on specific case studies in this and all the videos
Video #4 shows you how to get OUT with cash. or what investors term the Exit Strategy. Exits are spelled out with more case studies and some key mistakes that beginners make and how to avoid those mistakes And we show you how to use seller financing as a great technique for mastering no-cash deals
Plus you get a complete manual for Master Lease Options
Here’s the complete newly-updated (July 2012) manual on Mastering the Master Lease Option
The Master Lease Option Explained 7
Purchase Option Explained 7
Master Lease Details 8 Length of Master Lease and Purchase Option. 10
Classifying Apartment Buildings 11Do You Need a Broker’s License for a Master Lease? 13
A Master Lease is a Win – Win for Both %’ Buyer and Seller 15
When a Master Lease Option Makes Sense 15
There are Many Reasons to Buy on a Master Lease Option 16 Benefits for the Seller 17
Benefits for the Buyer 17
Win – Win for Both Seller and Buyer 18
One Disadvantage to the Buyer 18
How to Find Master Lease Opportunities 18
What Must Go Into a Master Lease. 20
Master Lease Option Combines the Best of All Financing Methods 23
Grow Your Apartment Building Portfolio. 23
Master Lease Business Plan Summary 27
Future Vision For the Building 28
Current Market Analysis 29
SWOT Analysis 30
Determine the Length of the Master Lease. 34
Working With Sellers 36
This is All About Business 36
Pitch to the Seller 36
Working the Seller Through the Deal 39 High Level Master Lease Option Process 41
Example of Seller Helping Turn Property Around 42
Maximizing Profits From Your Master Lease. 43
Formula For a Successful Master Lease 43
Example of Calculating the Successful Master Lease Formula 46
Making Your Profit From NOI 48
Know What It Takes to Succeed With a Master Lease Option 50
When You Need Private Money. 51
What Happens When the Buyer Defaults? 53
Risks and Solutions to Hidden Dangers of Master Lease Options 54
Have an Exit Strategy 56
What Else You Can Master Lease Option 57
You Don’t Even Need a Motivated Seller 24
Who Needs Banks When You Have the Master Lease 24
Success Strategy for Your Profitable Master Lease Plan 27
And, you get the complete forms that you can adopt for your own The course comes with forms that Charlie uses in his day to day practice and that have been shown to work You will have to adopt them for various state and local situations but they will give you what you need to hand to an attorney and say -here is what I want you to do.”
Master Lease Option Letter of Intent Form
General Master Lease Option Contract Master Lease Option Letter of Intent
Option Agreement for Purchase of Real Property
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