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..

  1. REAL ESTATE BROKER: Setup Lease-Option Search Page on JamesOrr.com
    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 DealLease-OptionMarketingOptionalTenant-BuyersUltimate Nomad ChecklistWeek 2

  2. Customize your Lease-Option Search Page on JamesOrr.com
    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 DealLease-OptionMarketingOptionalTenant-BuyersUltimate Nomad ChecklistWeek 2

  3. Setup custom domain name for your Lease-Option Search Page on JamesOrr.com
    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 DealLease-OptionMarketingOptionalTenant-BuyersUltimate Nomad ChecklistWeek 2

  4. Class Watch "Mock Tenant Screening" Recording of Live Class
  5. Class Watch "The $5,000 Lease Demystified" Recording of Live Class
  6. Class Watch "The Lease Option – The Lease Part II" Recording of Live Class
  7. Get or create "Lease-Option" documents
    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

  8. Read through "Lease-Option" documents
    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

  9. Meet with Contract and Paperwork Attorney to review "Lease-Option" documents
    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

  10. Determine your Tenant-Buyer Evaluation Criteria
    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

  11. Determine your Rent (or Lease-Option Rent)
    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

  12. Determine your Lease-Option minimum Option Fee
    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

  13. Determine your Lease-Option strike prices
    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

  14. Class Watch "Marketing for Tenants" Recording of Live Class
  15. Review "Marketing for Tenants" Recording of Live Class
  16. Review "Tenant Buyer Sales and Marketing" Recording of Live Class
    If you have not recently watched the recording of the live presentation of "Tenant Buyer Sales and Marketing" you should review it:

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

    Advertise Property for RentLease-OptionMarketingTenant-BuyersUltimate Nomad ChecklistWeek 43

  17. Review "Marketing for Tenants" Recording of Live Class
  18. Review "Tenant Buyer Sales and Marketing" Recording of Live Class
    If you have not recently watched the recording of the live presentation of "Tenant Buyer Sales and Marketing" you should review it:

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

    Lease-OptionMarketingTake Calls from TenantsTenant-BuyersUltimate Nomad ChecklistWeek 43

  19. Class Watch "Tenant Buyer Sales and Marketing" Recording of Live Class
    Watch the recording of the live presentation of "Tenant Buyer Sales and Marketing" available on:

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

    ClassesLease-OptionMarketingTenant-BuyersUltimate Nomad ChecklistWeek 43

  20. Review "Mock Tenant Screening" Recording of Live Class
  21. Give Tenant/Tenant-Buyer copy of "Lease"
  22. Give Tenant/Tenant-Buyer a copy of signed "Lease"
  23. IF TENANT-BUYER: Give Tenant-Buyer a copy of signed "Option"
    If you're doing a Lease-Option, once your Tenant-Buyer has signed the "Option" give them a copy.

    LeaseLease Signing and Lease ReviewLease-OptionTenant ScreeningTenant-BuyersTenantsUltimate Nomad ChecklistWeek 61

  24. Read "Nomad with Lease Option Exit Book" for your city
  25. Class Watch "Nomad with Lease Option Exit Overview" Recording of Live Class
    Watch the recording of the live presentation of "Nomad with Lease Option Exit Overview" available on:

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

    ASAPClassesLease-OptionTenant-BuyersUltimate Nomad ChecklistWeek 17

  26. Class Watch "Analyzing Deals 201: Selling with Lease Option" Recording of Live Class
  27. Class Watch "Cash Flow Explosion" Recording of Live Class
  28. Class Watch "How to Acquire a Multi-Million Dollar Real Estate Portfolio with just $3,000" Recording of Live Class
    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://realestatefinancialplanner.com/3k/

    ClassesGet Your First Deal DoneLease-OptionNomad BasicsTenant-BuyersUltimate Nomad ChecklistWeek 15

  29. Sponsor Read "Lease Option Ad for Property Listed in MLS for Clients"

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.

Also, the Real Estate Financial Planner™ software can also adjust their numbers to see how changing each assumption impacts the entire model.

Improvements

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

  • Add tasks for both videos.
  • Create additional info from the presentation on this page.
  • Consider modifying presentation to show 15% down non-owner occupant loans.

  1. Sponsor Read "Facebook Ads for Real Estate Agent and Lender Sponsors"
  2. Sponsor Read "100 Ways to Get a Nomad Client in the Next 12 Months"
  3. Sponsor Read "Prepare for Investor Meeting Checklist"
  4. Sponsor Read "At Investor Meeting Checklist"
  5. Sponsor Read "Before for Real Estate Agents"
  6. Sponsor Read "During for Real Estate Agents"
  7. Sponsor Read "After for Real Estate Agents"
  8. Sponsor Read "Lease Option Ad for Property Listed in MLS for Clients"
  9. Sponsor Read "Standard Process Improvement Questions"

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