Have you ever heard me talk about quick-turn leasing before?
Someone from the U.K. called into my podcast hotline asking me about this strategy after he heard me talking about it a while ago.
And let me be clear: I like LOVE this strategy. 🙂
I love it because:
- It’s simple
- It’s quick
- It’s easy to do remotely, from anywhere in the world (Have I told you lately how much I love traveling with my family?)
- You can literally outsource 100% of it
You heard me right. You‘re not going to make a ton of money per deal compared to wholesaling houses, but a respectable amount for sure…
And you can outsource 100% of it. (did I mention that already? 😉
That’s part of the reason why I think it’s such a cool strategy.
So what is it?
In a nutshell, it’s just like it sounds… it’s about flipping leases.
If you’re a traditional wholesaler (like me), then you’re used to flipping houses/contracts, right?
You get a house under contract to buy it and flip the contract.
But what if you got a property under contract to lease and you flipped…the lease?
That, friends, is quick-turn leasing at the highest level. In fact, my good buddy and fellow investor, Todd Toback, and I created a course a few years ago that does a deep dive into this very strategy.
Here’s how it works in the real world…
- There are a lot of landlords out there who are advertising their houses for rent… so look for a property that’s listed for rent (ideally it meets a few other minimum criteria).
- When you find one, you get the property under an option to lease, and then you sell/flip that option to a shiny, new tenant, who steps into your shoes.
Let me say it another way…
You basically become the tenant (for a short time) with the right to sublease the property.
- So, you get an option on the property to lease it,
- Then you sell that option to lease it to someone else.
- And you walk away, out of the deal with a little profit.
What’s a little profit?
Typically, you go for 1 month’s rent. (That’s a fee for the tenant to buy the option from you.)
Now, you’re probably thinking, ‘Joe, how is this worth it if I’m only making one month’s rent?’
Well, I’m glad you asked. Here’s why…
This is super simple and easy. You can do all of this over the phone. And by you, I mean your team members you’ve outsourced this to.
So, to play this like Joe, you’d:
- Hire a virtual assistant (VA) to do the marketing for you,
- Hire a sales guy/gal to talk to landlord sellers on the phone,
- Maybe hire a Realtor to handle the advertising and selling.
Remember I mentioned that I got a call about this on my podcast hotline? Not only did the asker want to know more about the strategy, but he also asked if he should only use this strategy on the nicer, higher-end homes.
And to that, I say maybe.
Yes, you make more money on the higher-end homes. But it’s harder to find tenants for those properties.
I personally wouldn’t want do deal with the very lowest end of the market (these are typically higher maintenance tenants and landlords), but that’s not to say you can’t or shouldn’t do the cheaper homes…
Heck, if you do 5-6 deals at $750 a pop, then use that for your marketing for the bigger deals… well, that sounds impressively like just smart business, doesn’t it?
One more amazing story I’ve got to share with you about this strategy…
I remember hearing from a homeless man who was living in his car. He’d heard me and Todd on a podcast talking about this strategy and our quick-turn leasing system…
He ended up taking action on this strategy—and, get this—called me up a few months later to say “thank you” and shared that, thanks to this strategy, he was able to move into an apartment, furnish it and buy a new car.
He was averaging 4-5 per month, $1,000 per deal. Quick-turn leasing changed his life.
WOW! All because he implemented this one, simple strategy.
He went from being homeless to making $4k-$5k a month, then transitioned into regular wholesaling from there, and even got his Realtor’s license.
Pretty remarkable, right?
This just shows you it works…
Quick-turn leasing is one of the fastest and easiest ways to deals.
And (start broken record) it can be 100% outsourced too! 🙂
I wonder…should you consider this strategy for yourself?