Real Estate Open House - What Is a Lease Option - Part 3

[@blinddog4288]

I like it!!! I've sold 4 homes on lease options and done close to everything you guys have suggested. The 2 differences are: 1) I had a set price that was usually about $10k over current value and at the end of the first year (around Dec or Jan) I would contact them and say if you could come up with another $5k towards the principle, than I would give them an $7-8k credit. My thoughts were that the more they have into it then the less likely they will walk away and Dec-Jan is getting them to think about their income tax return. Most people in the case of a lease option have kids and that means a large tax return.

[@maurodobici69]

hows it going now?

[@Peter-200]

This channel is far too underrated

[@peterc2696]

I agree

[@hermannzon7153]

Agreed

[@jacobfussell8826]

So much value here. Not enough subscribers and views. Like it for the KZbin algorithm!

[@chillmusicdoggo]

holy cow the intro music blasted my ears hahaha

[@KrisKrohn]

Wow. sorry about that. Too late to fix now.

[@consciousvibestv3489]

My God, the intro is just fine. It’s about the content. It’s free guys.

[@chillmusicdoggo]

It's okay though, really appreciate the content!

[@KrisKrohn]

Glad to hear!

[@eyuelzero]

I came here looking for that comment lmao

[@deiontaenicholas5360]

I just started watching these videos and I am super excited about my future. Thank you for your energy and intelligence being shared! I am a 22 year old college kid who wants to be successful, this is a vehicle I would love to use

[@dagvdugdang4643]

ow, my folk, how's about your plan now ?

[@daviddiaz9365]

I paid $900 for this course. Now its free. WOW!!!!!!

[@daviddiaz9365]

Sulaiman Shah its very good highly recommend

[@KrisKrohn]

There is a lot more in the course!

[@sedrickwarren8494]

Hey kris. I’m a truck driver and wanting to get this business. How do I buy the course?

[@sedrickwarren8494]

How do I buy the course?

[@MariaFlores-dc2uu]

FC BayernMunich -How did this Course work out for you??

[@cashmaxout2745]

You taught me more in one night then all the other videos . I'm only 18 and im trying to get my real estate license in 6 to 8 months . I really like ur videos thanks man

[@TheTsugnawmi2010]

OK so let me see if I'm following: - If they choose the £3K down payment, the rent (in an area w/ min. £1100pcm) is set to £1400pcm to compensate for the lower down payment. - Each month, the house's equity increases by £25 because the rentors are looking after it (at no expense to me since the contract states that repairs are their responsibility). - Therefore, after 2 years, the house's down payment value has increased by £600 (£25 x 24 months) to £3600. - So if the tenants stay for another 2 years, the must pay the new amount. If they choose to buy instead, the house's value is still increased anyway so I make a profit either way. If they move out then the next tenants will pay the £3600 down payment and £1400 rent and the process repeats.

[@mohammedkahaf2428]

You made that so clear by listing it, thanks man :)

[@irelpiomercado3478]

Hi guys, where will you base the down payment , monthly rental, the rebates for equity from? Do you need to have basis for that or its your own judgement to have that price? Your response will be highly appreciated 😀

[@roundedges2]

Irel Pio Mercado He began with normal market rent. Then from top to bottom option added 300, 200, 100 to monthly rent.

[@harryl6274]

So do you lose your down payment that they gave you? Because you said 600+3000 and the 3000 is the down payment and where does the $25 come from each month or do you decrease that from the houses purchase price?

[@cihatecicek]

The person to buy with rent ..we said he doesnt qualify for bank credit ..assuming he stayed 4 years and built some equity say 30.000 USD ... how will he /she qualify for a bank loan at that time after 4 years ? that should be a question mark in their mind I guess ..

[@feelnrosieallover]

I learn so much watching your videos. The best!

[@donnarebrown9656]

Do you charge interest? Do you put together an amortization schedule? What is default process? Is the loan agreement filed with court?

[@marcelinaeinstein55]

This is getting better by each video, I have never head of a sandwich lease? Wait, can't wait to see your 4th and final video on option to buy/lease. Marcelina Einstein 👍🤝

[@kristenbollettiero3197]

These videos are literally GOLDDDD

[@stevenfoster9402]

Well...not literally.

[@ArupBhanja]

What beautiful nuggets you have shared Kris and opened my eyes to possibility I didn't know.

[@kuvasz93]

Hi Kris, if the deposit amount and the payments for 2 years is being applied as credit towards the purchase price of the home, where do you make the profit? A bit confused, Thanks.

[@Thettruthornothing]

Great info and great energy kris & Steven. However, in my experience, things don’t always run as smooth with renters as you might like. Expect late payments at some point in the lease term. It happens more often with these types of deals.

[@G_SixT]

One question that is really confusing me. So with how you started you took out a line of credit on your first house to get the second. If you do a lease option to a family, can you still take out a line of credit on that second property to get a third property? Wouldn't it affect the lease option in some way?

[@markyyyyyy6520]

The 4th place in the numbers that have 3,300, 7,400, and 14, 800 is for what? It's not clear for me. Thank you for the answer or explanation si Kris Krohn.

[@2ksy462]

Great info, thank you. But can someone please explain me the third and fourth column?

[@thecollectivegamer3600]

for heavens sake be an approachable human being. had me dying! lmao

[@rudyhernandez7589]

i would love to know the steps to buy the home?

[@thierrypapilloncoaching]

Wow okay no problem until the 3rd point. I didn't underatand a word of that, could anybody help me pls?

[@xCCflierx]

9:54 if they dont buy the house don't you get the most gains? because when you sell it they take the 3k-10k downpayment with them in equity, and also 25-200/month in equity each month. but if they never buy then they never get that 3k-10k back and any further down payments that they make.

[@michaelmisilo6411]

Kris awesome video once again!! I would love to hear you do a video on your worst experience with a tenant. If you have one or if not what process to go through when finding the perfect tenant who isn’t crazy. Thank you

[@KrisKrohn]

Great idea. I use a property manager, so my experiences are far removed.

[@mphophasha7814]

Steven's voice sounds a lot like Ross from Friends

[@josh8stagner]

How do they eventually afford the house when they couldn’t in the first place?

[@geminigirl1111]

i’m about to watch the 4th video but i still need the hand holding lol

[@mohaugaleforolwe6971]

Hey love the series , I'm currently really looking to get into real estate and the L.O. really sounds so much more beneficial. Quick question is the deposit part of the total cost of the house or is it not?

[@jelowry22]

I haven't bought a home and I want to. How can I?

[@createbuild5835]

Thanks for making this great informative videos series Kris! I have several properties im thinking of soing lease options but not sure how yoi structure legally to comply witj dodd frank?

[@IV_Skitzo]

Hello Kris, On the third option how are you making monthly profits? If your mortgage is $1000 and you are renting the house for $1200 and setting aside $200 to build that equity towards the house; where is your ROI?

[@jasonwiesner5539]

How do I sell a property that I don’t technically own if I am flipping a rental to own that I bought with the same strategy? Do I have to qualify to close on it on my own first to turn around sell it to the buyer? Thanks

[@dougwentzel2358]

My only question is whether that equity you are giving each month is returned at the end of the contract even if they don't buy?

[@brandonstanton7614]

How would property tax be dealt with? Would I as the owner be paying it or would that be something that gets put into the contract and they would take care of it? Sorry if it was mentioned and I missed it.

[@MJ-cf9nl]

Property tax and insurance are all factored in the payment they give you, for example: your mortgage is $1000 (including tax and insurance) and you rent the house for $1300 (which is $1200 rent and $100 toward the equity for the renter to own).

[@DragonRidersTV]

But, in a rent contract, YOU need to do the big maintenance on the home. How do you do that?

[@roundedges2]

That’s why he says don’t rent it out. Lease option the contract says the tenant does all maintenance.

[@kareem4788]

Hey Limitless TV, Great video love your presentation skills. Quick question, how do you qualify people to L.O. the house without credit or going through the bank??

[@reeseobedoza1938]

When doing a lease option, do you do it with a fully furnished house?

[@kaylagarcia7073]

What's the maximum years you would lease the contract to a family? You said 2 years I'm guessing you wright a new one if they can't buy in 2 years but what is the maximum amount of years you would recommend?

[@-danielalexander-]

Since you have done real estate in arizona, that is where I live, what are the rules about owning a house for so long before you can rent it out, does that apply to the lease option and is there a way around it? Thanks for the great videos and info.

[@DriftyPapi]

Thanks For Expanding My Knowledge Give Hope Mane 💭🤝🏝

[@OsmanAhmad]

Handling numbers for multiple properties could be too much. Do you have any program recommendations that would make this stuff easy?

[@kattysharma786]

Hey kris i want to know i leased a basement for 6 months. I did not understnd the concept of equity ?please tell me how it is done

[@aventurandoconfredy]

What do you do if the family cannot find a lender due to bad credit though??

[@joelsurgenor7932]

Can some one explain what happens the family’s down payment? The initial 3-5-7 grand. Do they get it back or do you keep it. It looks like they get it back 🤷🏼‍♂️

[@kunalpatil4885]

Means if they buy then only they get access to equity otherwise they the owner gets access to renters equity Right?

[@Cali_Girl1]

What happens if housing values drop, and the appraisal does not come in at the pre-agreed upon sales price at the time the Lease Option comes due?? This will affect the Buyers ability to obtain a loan. What do you do in that situation?

[@Clanicehair]

awesome video, very informative

[@pamelabuchanan9777]

you guys are great

[@bobbylim4874]

If The Renter decided to purchase the house , do you deduct the down payment towards the price of the house ? thanks...!

[@neeldathreddy6023]

Hey your vedios are very much informative and i have a question if the tenant wat to extent there time for an year then how the down payment should be and what else is required

[@4cornersoftheworld159]

Did they say after the 2 years of leasing if the tenants want to extend they need to put down another upfront deposit?

[@nickdesposito4394]

Just a quick question that if anyone can answer for me that would be great, i was just wondering what the overall price that I (theoretically) bought the house for would be with the numbers just so i could get a better understanding of what the down payment would actually be along with the credit towards the actual purchase of the house.

[@laurenwebber6396]

This gives me hope for the futre 🤞👏

[@slaniaidos4542]

Sir kris in the 3k row it must be $3,600in 2years.thanks! Very informative superb!😊

[@milkywayandbeyond]

The one thing I don't understand is why anyone would sign onto something like the 3K down, 1400 rent, 25 equity agreement. Wouldn't they be better off paying market rent ($1000) and saving $400 per month those 2 years?

[@consciousvibestv3489]

You guys are rock stars! Love, love, love it.

[@KrisKrohn]

Thanks Ann!

[@ryanleyu157]

sry i still dont get about the downpayment part what equity thingy is there anyway as your member to ask for mentor ?? tbh im just a beginner and just a college student hope you can reply

[@fiftyslady8945]

Kris, I love your videos and they are so inspiring. Thanks for doing all that you do! I can't find the answer to this questions anywhere and have been searching and searching, could you shed some light? You say PM companies don't deal with lease options so how do I get a tenant? Am I supposed to fly out each time I hold an open house? Or can I hire someone to do showings/do background checks/deal with evictions? I'm so stuck, any help I would be grateful for.

[@linojames8416]

Hey Kris, how does this work for a non-US citizen to start off with leasing and then purchasing it. And start doing real estate investment. I'm really keen in doing this.. looking forward to your reply. Many thanks.

[@SiEO0702]

RIP headphone users on the intro.

[@nazeem8085]

Patryk Kopec read that as the intro started

[@brandonserraty2370]

Question! After their 2 year lease is up, would they have to put down another 3k-10k down payment to renew the lease?

[@timiusprime1529]

How much do they put down when they renew for another 2 years?

[@xmiradorxful]

so how do -we subscribe to get your guidance/contracts etc. How do i buy the course>??

[@S33Estate]

Hello Kris I'm really intrigue by this lease option. My question I have is, are we only renting 2 buy (assuming I just bought the house), hold and sell 4 years down the road, or what if someone wants to buy my house right after I just bought it? Do we sell it? If I bought the house for 230k and I sell it for 245k, do I sell?

[@hiDadsouppodcast]

So how do they buy the house after two years?? By getting a bank loan and needing a great credit score and proof of income..

[@AndyDittmar1]

Notification team because I want to know this stuff!

[@gregromney8662]

Hey Kris, I'm looking to do a Lease to Own option on one of my recently acquired properties. When doing the math, I actually get a better return if the tenant chooses a lower down option payment w/higher monthly rent. Does this sound right?

[@monicaeddy1962]

Isnt it common for them to get denied again from bank? At that point do they just extend?

[@kriskrohn143]

W/h/a/t/S/a/p •+1•908•7•9•38•9•05

[@kriskrohn143]

For advanced info

[@irelpiomercado3478]

Hi guys, where will you base the down payment , monthly rental, the rebates for equity from? Do you need to have basis for that or its your own judgement to have that price? Your response will be highly appreciated 😀

[@blakeogorman7961]

Could this also work on a unit?

[@luigi4549]

In your previous video you mentioned that the down payment was not refundable but on this one you are saying that the down payment is added to the additional credit that the buyer is building as a selling strategy. Can you explain that this is the part where i am confused .. do they get it back or not ?

[@Sparky_1G]

So if they dont want to buy what happens to the down payment of 10k?

[@soundsoul8519]

Great Videos, appreciate that!

[@AdventureRolls]

Hi kris and steve I have one question. If you book home value from owner for 150k but let’s say price will go up... then how will owner still sale you house for same price. Becz I’m sure he know price goes up... I’m sure doesn’t want to same price after 7 years. So how you guys handle this thing... one more question do guys return deposit to renters if they dnt want to continue after 2-4 years... pls pls pls tell us... thank you

[@vinnylobalsamo669]

Hey! quick question! the minimum number at which I can sell my house, is that just what my house is actually worth? for example, like you said initially with the 200k house scenario, after the market value increased my minimum number at which I could sell the house would be 210k, correct?

[@MyeongsooChoi]

Do this Real Estate tips only work in America?

[@milehighmiracle7445]

How does the process work of making money when you have a house but still owe let's say 150k and the people renting the house want to buy it?

[@benendesc3931]

How do you actually buy a house after house from just money from the first

[@williamv.4711]

All this lowkey really savage!!

[@ThomasColeman-j8n]

Love it

[@brandonsmith-tb6fl]

Can I do this all is the UK?

[@w3b979]

Rip ears

[@brycematheson712]

w3b Seriously. Just about blew out my eardrums with that intro.

[@snicker2250]

I looked at this comment and thought: "What do you mean?". Well after 2 seconds I understood.

[@marcbeauvois4332]

I was wondering what if someone comes in and say they just want to buy the home instead of the lease option?

[@kanohapedro7502]

How can I become a part of your team? Thank you for all your videos by the way, I’m new to your channel! If I ever land Real Estate(s), first thing I say to myself is “Thank you for investing your time on Kris’ channel! Now quit your job!!”

[@certi-jayy5949]

Do you work with guys in the UK

[@christophernadel329]

I am trying to go to the link but it brings up an error.

[@ElAmazingGaston]

This is my first time waching these series, does this work in any country, I am from Argentina and I'm broke !

[@luisinzunza4772]

Hey chris, does your team charge any additional fees to set up deals with us and them run the numbers and pretty much do the job for us? And how many times can you use the equity from the same house?

[@KrisKrohn]

You can just use your equity one time, but often it's large enough, you can invest in several new properties with it. I'd be happy to go over several options with you. Let's chat: limitlessmentor.com/TV/index.php?id=comments

[@luisinzunza4772]

Thanks chris! What about the question about your partners ,just curious👊

[@irainkoolaid]

do you need furniture in the house or can it be completely blank

[@KrisKrohn]

No need for furniture.

[@sedrickwarren8494]

How do I buy the course?

[@carlosm2154]

Wait but, how do they buy the house after????

[@micraw714]

We just got approved for a 400k mortgage with excellent terms, I hope I make the right choice. Exciting but scary!

[@aveenoboom3179]

Mic Raw So?

[@jeremymora8584]

Done

[@angel2671998]

Im from india so th whole experience, market, contacts, rules will be completely different right

[@MJ-cf9nl]

Yes, look into your own countries rules and regulations then try to do something that works for you there.

[@indardahiya4628]

hello Khris I'm from India can u suggest a way to get in contact with you

[@akiemsmall2828]

Where you’re passive income?

[@purposewithangelina7976]

Thank you. Thank you.

[@kysevader]

In 16, Canada I need to join a collective or .. community of people to learn. How would I get involved with you guys?

[@tloe3]

I don’t understand the equity part. So if they select 5 k down payment, I give them 100 in credit a month?

[@MJ-cf9nl]

5K goes toward the price of the purchase that you will agree on when they decide to buy, but they pay you monthly rent which should cover the owner's monthly mortgage payment (including tax and insurance) as well as some profit and some equity toward the house price. For example: the owner's mortgage is $1000 per month which includes the tax and insurance, then he can rent it for $1300 as example which will include $200 profit and $100 toward the equity for the house when they decide to buy it. Rent ($1300) = mortgage ($1000) + profit ($200) + equity ($100). After 2 years when they decide to buy the house then $2400 ($100 x 24) will be added to the downpayment they gave you and total will be subtracted from the total purchase price of the house.

[@christinablue69]

Hi Mr. Krohn. How does the newly passed tax law effect everything you have been teaching us now?

[@KrisKrohn]

This aren't much different on the Real Estate side.

[@tylerlewis2061]

How do I get ahold of you?