HOME CASH PROFIT SHARING PROPERTIES

CONCEPT

1. Home Cash sells you a property BELOW current market value and pays ALL CLOSING COSTS*.
2. Immediately after Home Cash enters into a 7 year lease option with you, to purchase the home back from you for CURRENT market value, which is MORE money then you bought it for.
   1. Upon execution of the lease option, Home Cash will give you a significant non-refundable lease option deposit of AT LEAST $10,000.
   2. Home Cash will pay all closing cost when it executes the option.
   3. Home Cash becomes your immediate tenant. Rent will be the exact amount of your mortgage (PITI).
   4. There is no property management because Home Cash is your tenant
3. Home Cash executes a profit sharing agreement with you on any amount its sells the property for excess of its option price. The profit share will be 50/50.
4. Home Cash executes its option to buy the property from you sometime in the future.
   1. You get paid your profit from the lease option.
   2. Home Cash resells for an amount higher than the option.
   3. You share in this profit 50/50.

SUMMARY

1. You buy a house from Home Cash Below market value
2. You are net out of pocket very little money. See financial example.
3. You never have to worry about a tenant. You have Home Cash as your tenant day one.
4. Home Cash buys the property back from you at a profit to you.
5. You share in the future profit that home cash makes off of reselling the property.

FINANCIAL EXAMPLE

1. Home Cash sells you a property for $130,000,that is worth $150,000.
   1. You buy the property with a 90% investment mortgage
   2. You need to come to closing with 10% of purchase or $13,000.
2. Home cash executes the Lease option and gives you AT LEAST $10,000 as deposit. You are net out of pocket only $3,000 maybe less depending on property. In fact some properties you may actually GET MORE MONEY BACK at execution of lease option then you brought to closing.
3. Home Cash rents from you and you are CASH FLOW POSITIVE when you throw in your tax savings!
4. Home Cash executes the Option to Purchase for $150,000, Your profit is $150,000 minus $130,000 or $20,000. Your cash flow is $20,000 profit, minus $10,000 deposit, plus principal put down on loan of at least $13,000. So you at least get $23,000 from the option exercise.
5. Home Cash sells for $200,000.
   1. Closing costs are approx $5,000 for estimate. (as partners we share in closing cost)
   2. You profit $45,000 divided by 2. Or $22,500.

RETURN ON INVESTMENT (ROI)

1. In this example your net original investment is $3,000. Your profit from the transaction is $42,500!!!
2. That is a 200% rate of return for 7 years!

WHAT IS A LEASE OPTION?

• Buyer pays the seller option money for the right to later purchase the property. The lease option money may be substantial.
• Buyer and seller may agree to a purchase price now or the buyer may agree to pay market value at the time the option is exercised. It is negotiable. However, most buyers want to lock in the future purchase price upon inception of the lease option.
• During the term of the lease option, the buyer agrees to lease the property from the seller for a predetermined rental amount.
• The term of the lease option agreement is negotiable, but the common length is generally from one year to three years.
• A portion of the monthly rental payment typically applies toward the purchase price.
• Option money is rarely refundable.
• Nobody else can buy the property during the lease option period.
• The buyer generally cannot assign the lease option without seller approval.
• If the buyer does not exercise the lease option and purchase the property at the end of the lease option, the option expires.
• The buyer is not obligated to buy the property.