Ever Wonder Why Or How The Show Me The Money Strategy Is Potentially Profitable?

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Ever Wonder Why Or How The Show Me The Money Strategy Is Potentially Profitable?

How many of the more mature eyeballs reading this particular post. Recognize the featured image of Superstar actor Tom Cruise. In his blockbuster hit “Jerry Maguire.”

Clearly the younger eyeballs are wondering (out loud!) who of ‘what” is the name “Jerry Maguire” actually referring to? Fair enough. Basically Tom plays a non traditional Superstar sports agent.

And this one memorable scene in the movie. Is where “Jerry’s” superstar client. A wide receiver on the football team. Played by veteran actor Cuba Gooding Jr.

Cuba’s character asks Jerry to “Show him the money!” Which -truth told- is really not much different than what today’s rather skeptical on or offline potential prospect is constantly asking of any and all vendors, agreed? Absolutely.

So let’s have a much closer, far more in depth look at why and how, “The Show Me The Money” marketing approach. Is so versatile and potentially profitable. Are you ready?

So How Does This Show Me The Money Approach Actually Work?

Great question. Ever heard the name “Joe McCall?” Joe is most definitely an expert when it comes to consistently earning a ton of money in the real estate investing niche. By strategically using the “Lease W/Options” method.

First of all he’s written a descriptive book on this incredibly popular method of real estate investing. He talks about successfully whole selling real estate. And consistently doing so is what has allowed him to lose his traditional 9-5 job.

But consistently doing so has also opened the door extremely wide. To several potentially lucrative multiple streams of income producing opportunities. For example.

He sells his book to the “DIY” (Do It Yourself) crowd. However, let’s be brutally honest here. At best one -two percent of these aspiring individuals ever accomplish anything  in terms of consistently earning any type of profit.

Using his proven methods. And of course right about now. You’re probably Wondering…

Is The Lease Purchase Strategy Really A Good Idea?

Obviously this will ultimately depend on what your overall goals and current and future financial situation is. Truth told, if you are ever tempted to enter into this all too common financial arrangement.

It’s always best to figure on the worst case scenario. Meaning: If for whatever reasons down the road at the end of your agreed upon lease period. You’re not sure if you’ll have the necessary employment security and therefore the much needed income stability in place.

In order to go forward with the potential purchase of the property. Then it’s probably best not to enter into this type of financial transaction in the first place.

However,in the case of  real estate wholesale expert Joe McCall. He also earns an impressive annual income. Working closely, one on one with aspiring individuals. In essence coaching them on “how to” successfully earn money. In their first few transactions.

When You Say Multiple Streams Of Income! (Some Aspiring Entrepreneurs Take The Saying Literally!)

Without calling it an “Academy” Joe also has a paid membership site. And aspiring real estate investors or aspiring entrepreneurs. Basically pay a monthly or annual access fee of X in order to be exposed to Joe’s expert knowledge.

Plus Joe also accepts large fees to basically go out and structure complete transactions A-Z. And then either:

A.) Legally assign the transaction over to equally experienced investors with lots of cash. Who -truth told- are not really interested in taking both the time and effort involved. In order to prospect on or offline. To find and structure their own deals.

Instead they’re equally satisfied to partner with a seasoned expert like Joe. And allow him to structure a win/win deal. Where Joe not only receives nice  financial compensation on the initial front end of the transaction.

But later on, 3-5 years later to be exact. If and when the buyer decides to exercise their option to  actually buy the property. Joe also receives at least 25 or X% of the long term back end appreciation profits.

(And if by chance, there is no or very little back end upside appreciation of the property after the 3-5 year lease with option period ends. Joe also has a proven contingency strategy for this occasional situation as well.)

B.) Or Joe may decide initially going in. He will receive more upfront cash on the initial front end of the transaction. And he also gets the difference in rent payments.

When You Definitely Know What You Know (Others Who Want To Learn What You Know Will Pay For The Privilege Of Learning It!)

Because he contracts to pay so much per month to the current owner(s) of the property.Throughout the entire lease period. But his potential tenant buyers.

Are are the ones entering into the potential lease with purchase option with Joe. They will typically be paying a higher lease payment, (monthly rent) to Joe. ( Or Joe-s assignee, if Joe decides to assign his contract to another cash rich investor.)

Strictly for conceptual illustration purposes only. Let’s say Joe (or one of his higher en students), sets up a lease with option transaction. And he or they are legally bound to be responsible for monthly rent payments of $1,200 per month.

For a period of 3-5 years. However, as son as their new tent/buyer physically occupies the property. Their monthly rent/lease payment to Joe or his ultimate assignee is $1,600 per month.

And obviously, Joe or his assignee nets (in this particular case only!) The $400 dollar per month difference in the two amounts. And if the prospective tenant(s) remain in the property for the entire five year period. Joe or his assignee grosses the $400 or X dollar differential for the entire 60 months. Say what?

( $400 x 12 = $4,800 dollars per year times 5 years equals an additional gross front end profit of $24,000 dollars.) Keep in mine. Not all of this gross amount goes directly into Joe-s pocket. Huh? No way.

Because legally, Joe is responsible, (throughout the life of the entire lease period. He’s legally responsible for paying the current owner(s) $1,200 or X amount of dollars per month.

And If You’re Wondering What Is The Lease Buyout Price? (And How In The World Do You Accurately Figure It Out?)

And any and all standard property maintenance responsibilities fall on Joe or his assignee-s. Plus, the tenant/potential buyer. Usually get a certain agreed upon amount of their monthly rent credited to their ultimate down payment amount.

However. And if need be Joe or his assignee could use his part of the difference in monthly rents to secure a higher risk interest rate loan. And the ultimate agreed upon final sales price.

Will typically be based on several standard factors. Such as the current credit rating of the buyer/ tenant(s) at the the time they legally entered into the transaction. The areas typical appreciation rate over the last five years or so.

And the current and anticipated interest rates of the local institutions in the immediate area etc. And both parties agree, before actually entering into this legal arrangement before hand.

Are you starting to better appreciate. How and why “The show me the money” marketing approach is so incredibly versatile and potentially profitable? Say yes.