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..
- 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
- 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
- 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
- Class Watch "Mock Tenant Screening" Recording of Live Class
Watch the recording of the live presentation of "Mock Tenant Screening" available on:
https://RealEstateFinancialPlanner.com/mock-tenant-screening/
ClassesLeaseLease-OptionPrepare to be a LandlordProperty ManagementSolving Tenant ChallengesTenant ScreeningTenant-BuyersTenantsUltimate Nomad ChecklistWeek 42
- Class Watch "The $5,000 Lease Demystified" Recording of Live Class
Watch the recording of the live presentation of "The $5,000 Lease Demystified" available on:
https://realestatefinancialplanner.com/the-5k-lease-demystified-nomad-2017-edition/
ClassesLeaseLease-OptionPrepare to be a LandlordProperty ManagementSolving Tenant ChallengesTenantsUltimate Nomad ChecklistWeek 44
- Class Watch "The Lease Option – The Lease Part II" Recording of Live Class
Watch the recording of the live presentation of "The Lease Option – The Lease Part II" available on:
https://RealEstateFinancialPlanner.com/the-lease-option-the-lease-part-ii/
ClassesLease-OptionPrepare to be a LandlordProperty ManagementSolving Tenant ChallengesTenant-BuyersTenantsUltimate Nomad ChecklistWeek 46
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- Class Watch "Marketing for Tenants" Recording of Live Class
Watch the recording of the live presentation of "Marketing for Tenants" available on:
https://RealEstateFinancialPlanner.com/marketing-for-tenants/
ClassesLeaseLease-OptionPrepare to be a LandlordProperty ManagementTenant ScreeningTenant-BuyersTenantsUltimate Nomad ChecklistWeek 40Week 55
- Review "Marketing for Tenants" Recording of Live Class
If you haven't recently watched the live presentation of "Marketing for Tenants", you should review it again now:
https://RealEstateFinancialPlanner.com/marketing-for-tenants/
Advertise Property for RentLeaseLease-OptionProperty ManagementTenant ScreeningTenant-BuyersTenantsUltimate Nomad ChecklistWeek 40Week 55
- 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
- Review "Marketing for Tenants" Recording of Live Class
If you haven't recently watched the live presentation of "Marketing for Tenants", you should review it again now:
https://RealEstateFinancialPlanner.com/marketing-for-tenants/
LeaseLease-OptionProperty ManagementTake Calls from TenantsTenant ScreeningTenant-BuyersTenantsUltimate Nomad ChecklistWeek 40Week 55
- 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
- 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
- Review "Mock Tenant Screening" Recording of Live Class
If you have not done so recently, review the recording of the live presentation of "Mock Tenant Screening" available on:
https://RealEstateFinancialPlanner.com/mock-tenant-screening/
LeaseLease-OptionProcess ApplicationProperty ManagementSolving Tenant ChallengesTenant ScreeningTenant-BuyersTenantsUltimate Nomad ChecklistWeek 42
- Give Tenant/Tenant-Buyer copy of "Lease"
Give your Tenant/Tenant-Buyer a copy of the "Lease".
LeaseLease Signing and Lease ReviewLease-OptionTenant ScreeningTenant-BuyersTenantsUltimate Nomad ChecklistWeek 60
- Give Tenant/Tenant-Buyer a copy of signed "Lease"
Once your Tenant/Tenant-Buyer has signed the "Lease" give them a copy.
LeaseLease Signing and Lease ReviewLease-OptionTenant ScreeningTenant-BuyersTenantsUltimate Nomad ChecklistWeek 61
- 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
- Read "Nomad with Lease Option Exit Book" for your city
Read the "Nomad with Lease Option Exit Book" for your city:
https://RealEstateFinancialPlanner.com/book/
ASAPLease-OptionNomad BasicsTenant-BuyersUltimate Nomad ChecklistWeek 17
- 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
- Class Watch "Analyzing Deals 201: Selling with Lease Option" Recording of Live Class
Watch the recording of the live presentation of "Analyzing Deals 201: Selling with Lease Option" available on:
https://RealEstateFinancialPlanner.com/lease-options-classes/
Analyzing DealsASAPCash FlowClassesLease-OptionNet Operating IncomeReturn On InvestmentTenant-BuyersUltimate Nomad ChecklistWeek 19
- Class Watch "Cash Flow Explosion" Recording of Live Class
Watch the recording of the live presentation of "Cash Flow Explosion" available on:
https://RealEstateFinancialPlanner.com/how-to-maximize-rental-property-cash-flow/
Cash FlowClassesLease-OptionNet Operating IncomeReturn On InvestmentTenant-BuyersUltimate Nomad ChecklistWeek 48
- 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
- Sponsor Read "Lease Option Ad for Property Listed in MLS for Clients"
Read the "Lease Option Ad for Property Listed in MLS for Clients" blog post on
https://RealEstateFinancialPlanner.com/lease-option-ad-for-property-listed-in-mls-for-clients/
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.
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.
- Sponsor Read "Facebook Ads for Real Estate Agent and Lender Sponsors"
Read the "Facebook Ads for Real Estate Agent and Lender Sponsors" blog post on
https://RealEstateFinancialPlanner.com/facebook-ads-for-real-estate-agent-and-lender-sponsors/
- Sponsor Read "100 Ways to Get a Nomad Client in the Next 12 Months"
Read the "100 Ways to Get a Nomad Client in the Next 12 Months" blog post on
https://RealEstateFinancialPlanner.com/100-ways-to-get-a-nomad-client-in-the-next-12-months/
FacebookFor Real Estate AgentsMarketingMeetupMeetup SetupSponsors
- Sponsor Read "Prepare for Investor Meeting Checklist"
Read the "Prepare for Investor Meeting Checklist" blog post on
https://RealEstateFinancialPlanner.com/prepare-for-investor-meeting-checklist/
- Sponsor Read "At Investor Meeting Checklist"
Read the "At Investor Meeting Checklist" blog post on
https://RealEstateFinancialPlanner.com/at-investor-meeting-checklist/
- Sponsor Read "Before for Real Estate Agents"
Read the "Before for Real Estate Agents" blog post on
- Sponsor Read "During for Real Estate Agents"
Read the "During for Real Estate Agents" blog post on
- Sponsor Read "After for Real Estate Agents"
Read the "After for Real Estate Agents" blog post on
- Sponsor Read "Lease Option Ad for Property Listed in MLS for Clients"
Read the "Lease Option Ad for Property Listed in MLS for Clients" blog post on
https://RealEstateFinancialPlanner.com/lease-option-ad-for-property-listed-in-mls-for-clients/
CraigsListFor LendersFor Real Estate AgentsLease-OptionMarketingSponsors
- Sponsor Read "Standard Process Improvement Questions"
Read the "Standard Process Improvement Questions" blog post on
https://RealEstateFinancialPlanner.com/standard-process-improvement-questions/