Lease optioning with a twist of Gerber - Posted by Paul O’Prey
Posted by Paul O’Prey on October 26, 1998 at 23:30:55:
I am an Aussie corporate lawyer who is currently designing lease option contracts that fall outside of restrictive Australian (Victorian) legislation governing this wonderful concept (yes, you look and think hard enough and it can be done!!). I have been doing it piece by piece for a couple of months now. However, given that I will be entering the marketplace in the near future, and given the restrictions on my time, I am thinking of engaging the help of some other people so that I am able to work on the lease option business rather than in it.
From what I have seen over here in Aussieland I will be creating a market for creative financing on lease options in this State (no-one seems to be doing it - or if they are, they are being VERY quiet about it) and so a lot of groundwork and education of both sellers and buyers will need to take place. I am certainly not afraid to try, and try hard to get the lease option concept up and running here in Victoria!!
Have any of you engaged the help of others to assist with the marketing and selling of your lease option deals? If so, how did you do it so that the helpers remain motivated and satisfied?
I am thinking something along the lines of setting up a company (a wise vehicle for lease option transactions anyway) and retaining helpers on a commission basis (they receive, say, 50% of the cashflows generated by each sale the particular salesperson generates). I will also pay cash bonuses to helpers upon them individually achieving 10 deals, 20 deals, 50 deals etc, and always keep in their minds that equity in the growing company will be available for the top performers.
I will review all deals and, where necessary, perform the closing of deals, draft the contracts, and develop marketing strategies etc but I will not be able to do all of the groundwork and administration myself (again, time constraints of my current job).
I do not currently have huge lumps of capital available to enable me to hire people on a full salary basis - hence the commission idea.
Any suggestions as to how I should reward people who help me would be much appreciated. What would you be happy with? What works?
Thanking you in anticipation.