Hmm...so i'm sitting here working on my - Posted by Ray

Posted by David on October 26, 2000 at 12:02:42:

If you buy a property, and the market tanks on you,
or you discover problems in the property that would
make the project unprofitable, you (and the bankers
money) are fully exposed to the entire downside.
However, with the LO, you could choose not to exercise
your option and only lose the consideration, which
should be much less than what you would be into the
property if you bought it.

Hmm…so i’m sitting here working on my - Posted by Ray

Posted by Ray on October 23, 2000 at 22:33:05:

Business Plan and I’m trying to explain how our L/O program will work and why it absolutely has to work. I’m trying different ways to describe it so that someone with no RE experience can easily grasp why it is that it has to work. So I type “It works because blah, blah, blah…” and I delete it. Then I type “the reason it works so well is blah, blah, blah,…” and I delete again. I try to think why I’m so absolutely positive, Hmm… it’s kinda like a… law of nature? Hmm… and then I start to type… "Our Lease Option program works so well because it is based on one of the most well known scientific theories ever!!! Our Lease Option program is Real Estate’s version of Einstein’s
theory of Relativity, which states that "For every “Action”, there is an equal and opposite "Reaction"
Our Lease Option program works because "For every “Serious Don’t Wanter” there is an equal and opposite “Seriously Do Wanter”…

I just thought I’d share that with you

Any Thoughts?

Is that why creative real estate works?

Hmmm…

Re: Hmm…so i’m sitting here working on my - Posted by Potash

Posted by Potash on October 24, 2000 at 23:01:45:

Since you seem determined to not allow scientific accuracy to get in the way of a good idea, why not throw in comparisons to the Coriolis Effect string theory, and the Heisenburg Uncertainty Principle!

Re: Hmm…so i’m sitting here working on my - Posted by David

Posted by David on October 24, 2000 at 15:33:34:

Thing about a buisness plan is that its
not only about your buisness, its also about
how you are going to look after someone elses
buisness - the source of finance the plan is
directed to. So maybee comments about LOs
reducing your downside risk to the consideration,
and reducing operating costs such as acquiring
new finance, will show how LOs help to protect
the financers investment.

Re: I rather liked his deep thoughts of… - Posted by Lori Samson

Posted by Lori Samson on October 24, 2000 at 12:12:58:

Realativity! Notice the word ‘REAL’? I kinda liked Ray’s views! He put a twist on something so simple and made it rather scientific! LOL I think we get boring in our old age of real estate and he brought us a kinky new light on th0.htbject of options!

Lori:)

Re: Hmm…so i’m sitting here working on my - Posted by Dave T

Posted by Dave T on October 24, 2000 at 09:34:06:

Lease option programs work because the buyer gets into a house with little money down, is given an opportunity to build rent credit toward a purchase price reduction, and the sale price is locked in until the option is exercised. If the buyer decides that the house is really not for them, then the buyer only forfeits a small option consideration without the hassle of trying to sell a house.

Lease option programs especially appeal to borrowers with credit issues that may be resolved within one or two years. They are able to get into a home now, and lock in their purchase price, while their credit is being rehabilitated.

Lease option programs appeal to renters who may be first time home buyers. The lease option period gives the future home owner the security of “just renting” while getting used to the experience of homeownership.

I am sure that there are other excellent reasons why the lease option program is successful, but these come quickly to mind.

Additionally, if you decide to use the action-reaction statement, you should attribute it to Newton’s Laws of Motion – not Einstein’s Theory of Relativity.

Re: Hmm…so i’m sitting here working on my - Posted by JohnBoy

Posted by JohnBoy on October 24, 2000 at 09:29:24:

It works because it provides a solution to a problem!

Re: Hmm…so i’m sitting here working on my - Posted by Ray

Posted by Ray on October 25, 2000 at 23:13:09:

Suzi, Suzi, Suzi,
just an inch or so down from your reply is another reply of mine in which I clearly state, (even in the subject line, mind you, so everyone on the board can see it) "Thanks for the Tip on Newton, I’ll change it!
It’s not that I am so “determined to not allow scientific accuracy get in the way of a good idea”

It’s more like I am so “not the in allow accuracy to idea determined a good scientific of way”

Paalleezzzeee, get it write wen yu r triing 2 mak mee luuk stooped annnd unedumicatid!

synceerli yores
sur Izik… Hayes

Re: Hmm…so i’m sitting here working on my - Posted by Dale Renworth

Posted by Dale Renworth on October 25, 2000 at 24:44:55:

Yeah, I spent days driving Heisenburg around. The guy never could make up his mind. And he kept looking in closets for dead cats. He and that dude Coriolis kept me going around in circles. Don’t waste your time with these guys. They 'll tie up all your time.
Get it?? Tie up? String theory – never mind

Re: Hmm…so i’m sitting here working on my - Posted by Ray

Posted by Ray on October 25, 2000 at 22:30:32:

Hi David,
Thanks for your reply.
I understand your point about reducing operating costs, but could you try again on the “reducing the downside risk to the consideration”, I don’t think I’m with you on that one?
thanks

Realtivity…Cool…I like it! - Posted by Ray

Posted by Ray on October 25, 2000 at 22:21:34:

Hi Lori,
Thanks for the laugh, but that part about “our old age”? Well… I don’t know about all that. Whatever happened to “You’re as old as you feel”???..Wait a minute…that doesn’t work anymore either…nevermind
Lori, every wednesday I go to a meeting made up of 30-50 Real Estate People. Are these people my “Realtives”?

By the way, nice web site, I only recently visited.

Thanks for the tip on Newton, I’ll change it. (nt) - Posted by Ray

Posted by Ray on October 24, 2000 at 11:05:24:

nt