Nomad With Lease Option Exit Overview

Normally, we discuss the traditional Nomad model of converting owner occupant homes to rentals after living in them for year. This is shown in the image below.

However, when we’re talking about Nomad with Lease Option Exit, the model is changed slightly. We convert properties to lease options with tenant buyers (instead of straight rentals) and, additionally, we replace sold properties that were purchased by tenant buyers with new properties. This is shown in the image below.

Why do Nomad with Lease Option exit?

Here are some of the benefits of doing Nomad with lease option exit and what we cover in the presentation in detail…

  • Raise down payment money for future Nomad purchases
  • Improved cash flow
  • Speed up Nomad
  • Limit having to “move in”
  • Significantly reduce/eliminate Capital Expenses (CapEx)
  • Lower management/maintenance headaches
  • Can buy more than 1 each year

Class on Nomad with Lease Option Exit

The following is a video of the live webinar presentation I gave to Nomads from Fort Collins on May 23, 2017 on Nomad with Lease Option Exit Overview..

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If you're going to allow your Tenant-Buyer to select any property from the MLS where you'd buy it and then offer it to them on a Lease Option, then setup your search page on JamesOrr.com.

Talk to James to have him show you this and get it set up for you.

Mark this task complete when it is setup or if you decide you're not doing this.

Analyzing DealsASAPFirst Meeting: Analyze DealsLease OptionMarketingOptionalTenant BuyersUltimate Nomad ChecklistWeek 2

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If you're going to allow your Tenant-Buyer to select any property from the MLS where you'd buy it and then offer it to them on a Lease Option, then after James sets up your search page on JamesOrr.com you will want to customize with your specific investing criteria.

Mark this task complete when you've customized your Lease Option Search Page on JamesOrr.com.

Analyzing DealsASAPFirst Meeting: Analyze DealsLease OptionMarketingOptionalTenant BuyersUltimate Nomad ChecklistWeek 2

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If you're going to allow your Tenant-Buyer to select any property from the MLS where you'd buy it and then offer it to them on a Lease-Option, then after James sets up your search page on JamesOrr.com you may want to purchase and setup a custom domain name for it.

The custom domain name will allow you to use that domain name on your marketing and have it URL frame the page James set up for you.

Ask James and he can usually get you a domain name and set it up for you for about $10 per year.

Mark this task complete when you've purchased a custom domain and had it set up for your Lease-Option Search Page on JamesOrr.com.

Analyzing DealsASAPFirst Meeting: Analyze DealsLease OptionMarketingOptionalTenant BuyersUltimate Nomad ChecklistWeek 2

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Watch the recording of the live presentation of "Mock Tenant Screening" available on:

https://LearnToBeRich.com/mock-tenant-screening/

Mark this task as complete once you've watched it.

ClassesLeaseLease OptionPrepare to be a LandlordProperty ManagementSolving Tenant ChallengesTenant BuyersTenant ScreeningTenantsUltimate Nomad ChecklistWeek 42

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Watch the recording of the live presentation of "The $5,000 Lease Demystified" available on:

https://LearnToBeRich.com/5k-lease-demystified/

Mark this task as complete once you've watched it.

ClassesLeaseLease OptionPrepare to be a LandlordProperty ManagementSolving Tenant ChallengesTenantsUltimate Nomad ChecklistWeek 44

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Watch the recording of the live presentation of "The Lease Option – The Lease Part II" available on:

https://LearnToBeRich.com/the-lease-option-the-lease-part-ii/

Mark this task as complete once you've watched it.

ClassesLease OptionPrepare to be a LandlordProperty ManagementSolving Tenant ChallengesTenant BuyersTenantsUltimate Nomad ChecklistWeek 46

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Have your Contract and Paperwork Attorney prepare your "Lease-Option" documents for your Tenant-Buyer or create them with your Attorney's help.

Mark this task complete once your Contract and Paperwork Attorney has prepared your "Lease-Option" documents.

ASAPLeaseLease OptionPaperworkPrepare to be a LandlordTenant BuyersUltimate Nomad ChecklistWeek 57

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Read through your "Lease-Option" paperwork. Highlight any sections you have questions about. Write down your questions.

Mark this task complete once you've read through your "Lease-Option" paperwork. You'll be scheduling time to meet with your Contract and Paperwork Attorney to have your questions answered in another task.

ASAPLeaseLease OptionPaperworkPrepare to be a LandlordTenant BuyersUltimate Nomad ChecklistWeek 57

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Meet with your Contract and Paperwork Attorney to go over the highlighted sections of your "Lease-Option" documents. Ask your Attorney your questions about the paperwork.

Mark this task as complete once you understand and feel comfortable with your "Lease-Option" documents.

ASAPLeaseLease OptionPaperworkPrepare to be a LandlordUltimate Nomad ChecklistWeek 58

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Determine and write out the criteria that you'll use to evaluate a Tenant-Buyer.

Mark this task as complete when you have written evaluation criteria to be in compliance with Fair Housing Laws.

ASAPLeaseLease OptionPaperworkPrepare to be a LandlordTenant ScreeningUltimate Nomad ChecklistWeek 54

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Determine what Rent you'll charge for the property or, if you're offering a Lease-Option, what Lease-Option Rent you'll charge for the property.

This is often done by researching what Fair Market Rent is.

Some Real Estate Brokers may subscribe to a service that allows them to pull rental comparables to help to determine rent.

Mark this task complete when you have determined your Rent.

Analyzing DealsASAPLeaseLease OptionNet Operating IncomePrepare to be a LandlordRentUltimate Nomad ChecklistWeek 55

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If you're offering the Tenant-Buyer a Lease-Option, determine what is your minimum acceptable Option Fee.

Mark this task complete when you have your minimum Option Fee for your Lease-Option or if you're not doing a Lease-Option at all.

Analyzing DealsASAPLease OptionPrepare to be a LandlordUltimate Nomad ChecklistWeek 55

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If you're offering the Tenant-Buyer a Lease-Option, determine what price the Tenant-Buyer can purchase the property from you in year 1 and year 2.

Mark this task complete when you have prices for year 1 and year 2 for your Lease-Option or if you're not doing a Lease-Option at all.

Analyzing DealsASAPLease OptionPrepare to be a LandlordUltimate Nomad ChecklistWeek 55

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Watch the recording of the live presentation of "Marketing for Tenants" available on:

https://LearnToBeRich.com/marketing-for-tenants/

Mark this task as complete once you've watched it.

ClassesLeaseLease OptionPrepare to be a LandlordProperty ManagementTenant BuyersTenant ScreeningTenantsUltimate Nomad ChecklistWeek 40Week 55

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If you haven't recently watched the live presentation of "Marketing for Tenants", you should review it again now:

https://LearnToBeRich.com/marketing-for-tenants/

Mark this task as complete once you've watched it.

Advertise Property for RentLeaseLease OptionProperty ManagementTenant BuyersTenant ScreeningTenantsUltimate Nomad ChecklistWeek 40Week 55

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If you have not recently watched the recording of the live presentation of "Tenant Buyer Sales and Marketing" you should review it:

https://LearnToBeRich.com/tenant-buyer-sales-and-marketing/

Mark this task as complete once you've watched it.

Advertise Property for RentLease OptionMarketingTenant BuyersUltimate Nomad ChecklistWeek 43

More info about this task...
If you haven't recently watched the live presentation of "Marketing for Tenants", you should review it again now:

https://LearnToBeRich.com/marketing-for-tenants/

Mark this task as complete once you've watched it.

LeaseLease OptionProperty ManagementTake Calls from TenantsTenant BuyersTenant ScreeningTenantsUltimate Nomad ChecklistWeek 40Week 55

More info about this task...
If you have not recently watched the recording of the live presentation of "Tenant Buyer Sales and Marketing" you should review it:

https://LearnToBeRich.com/tenant-buyer-sales-and-marketing/

Mark this task as complete once you've watched it.

Lease OptionMarketingTake Calls from TenantsTenant BuyersUltimate Nomad ChecklistWeek 43

More info about this task...
Watch the recording of the live presentation of "Tenant Buyer Sales and Marketing" available on:

https://LearnToBeRich.com/tenant-buyer-sales-and-marketing/

Mark this task as complete once you've watched it.

ClassesLease OptionMarketingTenant BuyersUltimate Nomad ChecklistWeek 43

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If you have not done so recently, review the recording of the live presentation of "Mock Tenant Screening" available on:

https://LearnToBeRich.com/mock-tenant-screening/

Mark this task as complete once you've watched it.

LeaseLease OptionProcess ApplicationProperty ManagementSolving Tenant ChallengesTenant BuyersTenant ScreeningTenantsUltimate Nomad ChecklistWeek 42

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Give your Tenant/Tenant-Buyer a copy of the "Lease".

Mark this task complete when done.

LeaseLease OptionLease Signing and Lease ReviewTenant BuyersTenant ScreeningTenantsUltimate Nomad ChecklistWeek 60

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Once your Tenant/Tenant-Buyer has signed the "Lease" give them a copy.

Mark this task as complete when done.

LeaseLease OptionLease Signing and Lease ReviewTenant BuyersTenant ScreeningTenantsUltimate Nomad ChecklistWeek 61

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If you're doing a Lease-Option, once your Tenant-Buyer has signed the "Option" give them a copy.

Mark this task as complete when done.

LeaseLease OptionLease Signing and Lease ReviewTenant BuyersTenant ScreeningTenantsUltimate Nomad ChecklistWeek 61

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Read the "Nomad with Lease Option Exit Book" for your city:

https://LearnToBeRich.com/book/

Mark this task complete when done.

ASAPLease OptionNomad BasicsTenant BuyersUltimate Nomad ChecklistWeek 17

More info about this task...
Watch the recording of the live presentation of "Nomad with Lease Option Exit Overview" available on:

https://LearnToBeRich.com/nomad-with-lease-option-exit-overview/

Mark this task as complete once you've watched it.

ASAPClassesLease OptionTenant BuyersUltimate Nomad ChecklistWeek 17

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Watch the recording of the live presentation of "Analyzing Deals 201: Selling with Lease Option" available on:

https://LearnToBeRich.com/how-to-analyze-a-lease-option-deal-with-brians-spreadsheet/

Mark this task as complete once you've watched it.

Analyzing DealsASAPCash FlowClassesLease OptionNet Operating IncomeReturn On InvestmentTenant BuyersUltimate Nomad ChecklistWeek 19

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Watch the recording of the live presentation of "Cash Flow Explosion" available on:

https://LearnToBeRich.com/how-to-maximize-rental-property-cash-flow/

Mark this task as complete once you've watched it.

Cash FlowClassesLease OptionNet Operating IncomeReturn On InvestmentTenant BuyersUltimate Nomad ChecklistWeek 48

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Watch the recording of the live presentation of "How to Acquire a Multi-Million Dollar Real Estate Portfolio with just $3,000" available on:

https://LearnToBeRich.com/nomad-just-3000/

Mark this task as complete once you've watched it.

ClassesGet Your First Deal DoneLease OptionNomad BasicsTenant BuyersUltimate Nomad ChecklistWeek 15

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Read the "Lease Option Ad for Property Listed in MLS for Clients" blog post on

https://LearnToBeRich.com/lease-option-ad-for-property-listed-in-mls-for-clients/

Mark this task as complete when you're done.

CraigsListFor LendersFor Real Estate AgentsLease OptionMarketingSponsors

Previous Presentation

I gave a version of this presentation to Nomads in Fort Collins on July 21, 2016 as well. The video of this presentation is below.

Book on Nomad with Lease Option Exit

As a Christmas gift to my clients in 2016, I wrote a new book on the Nomad with Lease Option Exit model. In it, I walked through how to do the entire Nomad model starting with just a very, very small down payment… for my local clients… about $3,000.

Since then, I wrote software that took my book and made versions of it for about 750 different cities. Instead of using the price, rent, appreciation, etc of properties in my local market, I use price, rent and appreciation for each of 750 different cities. That means that while the book story is the same, there are 750 different versions because the math changes (cash flow, depreciation, sale price, etc) when you have different properties.

You can access the version for your city by going to the Nomad with Lease Option Exit book page.

IMPORTANT NOTE: I don’t know your city like you know your city. So, if the assumptions I used in the Nomad with Lease Option Exit book for your city are wrong, let me know and I will change them in the database. Once I change them, it will re-write the book with the latest numbers.

Also, Premium Nomads can also adjust their numbers to see how changing each assumption impacts the entire model using the Nomad Calculator Classic.

Improvements

The following are improvements I plan to make to this page based on some of my Standard Process Improvement Questions.

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