Lease optioning with a twist of Gerber - Posted by Paul O'Prey

Real Estate Investing
1

Posted by Brad Crouch on October 30, 1998 at 21:20:32:

Dick,

There is a guy named Michael Gerber who wrote a book called, “E-myth”. This is a business book, although I believe that to simply call it a business book, may not do it justice.

This is from what I’ve heard and read about it. I haven’t read it yet although it is on my list of books to acquire.

I imagine that the fellow from Australia probably believes that everyone here has read “E-myth”, and so has most likely made a reference to a technique contained in that book that he is considering using in conjunction with building a “lease option network” in Australia.

Brad

2

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.

Paul O’Prey

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Re: Lease optioning with a twist of Gerber - Posted by Dick Gerber

Posted by Dick Gerber on October 30, 1998 at 18:11:40:

What is a “twist of Gerber?”

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Re: Lease optioning with a twist of Gerber - Posted by Bud Branstetter

Posted by Bud Branstetter on October 27, 1998 at 17:05:35:

From a business stand point I am sure you are consulting with real estate attorneys down there. Hiring people on a commission basis is good if they bring in the business. I don’t really see the need though. If you design your script(questions to ask) in order to prescreen prospects you can hire a telemarketing firm or other such personel to do the phone work. Initially you will want to do the negotiating with the seller. I can see hiring someone on a commission basis to do that. You would need a strong contract to avoid them competing against you.

Closing can be farmed out until you get big enough to employ your own closing personel. Servicing also can be farmed out or part time help used until more business justifies full time personel. Eventually you will need an office manager to run things while you give you seminars in the U.S. Another way to achieve productivity of employees besides commission is profit sharing. Worked for Sam Walton.