Dean Graziosi’s Weekly Video Blog (Episode #51) is a short YouTube vlog (April 2, 2013) where Dean outlines a practical lease-option real estate strategy used by a successful student, Greg Murphy. Dean summarizes Greg’s process: building lists of tenant-buyers and cash buyers, sourcing distressed homeowners (foreclosure/behind-payments) via local ads/signs, securing properties with lease-option agreements by covering arrears and payments, then assigning or reselling to investors or tenant-buyers for upfront, monthly, and closing profits. Dean also notes Greg’s small-town base (Boonville, Mississippi) and offers a brief personal shout-out to a 19-year-old student, Jeremy, who recently lost his mother.
Questions this video answers
April 2, 2013.
8,000 people (Boonville, Mississippi).
19 years old.
$500 per month; three months behind.
$1,500.
Chapters
Hi, this is Dean Graziosi, and welcome to the weekly blog. I'm sitting here on our new set. We filmed a couple new shows today. I'm really excited. More of a living room, relaxed atmosphere. No tie on this one. And they went really good today. Hey, I had the opportunity of flying Greg Murphy, which a lot of, you know, if you're new to the site, Greg's just one of our many successful students. But I want to remind you of something. Greg is doing amazing things with lease options. He's making money on the way in. He's. He's making money in the middle, and he's making money in the end. And let me just give you. I'll paraphrase everything Greg told me in about an hour's worth of time. He's building his buyers list. Two kinds of people on his buyers list. One is a tenant buyer, someone who doesn't have a lot of money, but they have a little bit to put down and they can afford to pay a little extra rent because they want to have a lease option themselves. They're a tenant who wants to become a buyer, hence tenant buyer. Also, he's making a list of cash buyers because cash is coming in the market. Guys, there is a wave of, of investors coming in the market. They're not as smart as you. They're not going to find as good of deals as you. So you need to get their money, make them a great deal of money while you put money in your pocket. So he makes a list of tenant buyers and cash buyers. Then he goes and searches with bandit signs and ads on Craigslist, ads in the local paper, flyers at the local laundromat. He's looking for people that are behind on their payments and going to lose their house, going to go through foreclosure, and are willing just to walk away if they didn't have to make payments. So what he's doing is finding people that, hey, say, Greg Murphy, take this house off my hands. So let's use an example. Someone's losing their house for $500 a month, and they're three months behind. Okay? What Greg does is say, hey, I'll pay your three months up and I'll pay all your payments. I just want to be able to buy this house when I want this lease option for the amount you owe on the property. People are going, you can stop me from foreclosure and take over my payments. I'm out. He locks that up in a lease option. Now he comes over to his list, his tenant buyers or his investors. And if an investor wants it, man, he sells it right away, puts some money in his pocket because he's got the option. It's a lease option. The option is to buy right at a set price. If not, he gets a tenant buyer to pay him. Say, let's use this example, that was three months behind. It cost him 1,500. He gets a tenant buyer to put up three grand. He takes that three grand, puts 1500 bucks in his pocket and pays those payments up. Now if that payment is 500amonth, he charges the tenant buyer $650 a month, takes that extra $150 a month, puts it in his pocket. That's his profit in the middle, made a little up front. Makes it every month in the middle. But then he sets a price down the road two, three years for 20, 30, maybe even $40,000 more than he's locked it up for. So when that house finally closes and the new end buyer buys it, he makes money in the end for the closing. Now, I only had a few minutes to share that with you, and I know it sounded simple, but guess what, guys? It really is. Greg Murphy is doing unbelievable things, doing lease options, and so can you. He lives in a tiny little town of 8,000 people in Boonville, Mississippi. I'm sure it can work right where you live. So why not give lease options a try this month? Thanks so much. And you know, I wanted to do a little shout out to Jeremy, one of our successful students. He's a 19 year old kid. He was in my school studio just a couple days ago. I was interviewing him on his first couple of deals, him and his partner. And Jeremy lost his mom. And I just want to say, Jeremy, I'm touched by all the responses from the whole DG family. I want to let you know that you're in our prayers. And I know your mom is extremely proud of you. I know I am. So everybody take care. Have a wonderful week and I'll see you next time.
