Every real estate investor knows about leverage (the use of borrowed funds to improve one's capacity and to increase the rate of return on an investment). And every real estate investor knows that tenants can sometimes be a headache. But most real estate investors do not know that if you control a home, rather than own it, you can make huge profits with very little expense.

What do I mean when I say "control homes?" What I mean is this... You have total and complete control over every single aspect of the home, but your name is not on the deed. You can live in the home, you can make improvements to the home and you can even sell the home.

How is this possible? Simple. A lease contract puts you in immediate control of a home as far as occupancy is concerned. When you throw an option to purchase contract into the mix, you now have an exclusive right to buy the home at a later specified time for a specific amount of money.

Let's talk about how we can make a lot of money with very few headaches using leverage to control these homes. I will try to keep it short and sweet.

First, find a seller and negotiate the control of his/her home with a lease purchase contract. Let's say that Sally the seller agrees to lease purchase her home to you for the following terms: $700 per month rent, $1,700 down ($1,000 option deposit and $700 for first month's rent), a $250 monthly rent credit, a sales price of $75,000 and a term of 1 years. Assume that you got a pretty good deal and there is a little room for mark-up.

Since you know the value and appeal of the lease purchase contract to buyers who cannot qualify for a mortgage for one reason or another, you can jack up your sales price and monthly payment. You place a classified ad in your local newspaper and your phone rings off the hook. Your ad reads like this, "Rent-to-Own. No Qualifying! $3,800 down, $800 per month."

You find an interested tenant/buyer and tell them your terms: $800 per month rent, $3,800 down ($3,000 option deposit and $800 for first month's rent), a $100 monthly rent credit, a sales price of $89,000, and a term of 1 year.

Your tenant/buyer likes your terms so you run them through the pre qualification process. They are perfect so you close the deal.

How much did you make? According to my profit calculation form, you will make exactly $2,100 up front, $1,100 in monthly rental payments, and $13,800 in back end net profit for a total net profit of $17,000 in one year.

Let's take a step back for a moment and see what you've accomplished. You've gone out and controlled a home for 1 year for a total of $1,700. You got a good deal on the home and the only risk you were taking is that it might take you a couple weeks to find a qualified tenant/buyer. Well, I've got news for you... When someone sees an advertisement for a lease purchase deal in the newspaper, they are all over it. Why? Because you are offering financing terms that no bank, mortgagor or lender can touch with a ten foot pole.

What about tenant headaches? Forget 'em. Click here to read the report "Put your rentals on automatic pilot and get the best tenants available."

Imagine doing four or five of these deals a year. I do two to five of these deals each and every month because they are so quick, easy and lucrative!

Jeff Beaubien, www.Lease2Purchase.com is the President and founder of Beaubien Investment Company in Howell, Michigan. He specializes in creative real estate techniques, but focuses on the most powerful technique of them all; the lease purchase contract.
As a result of his success in real estate, Mr. Beaubien is the author of his real estate course, The Lease Purchase Handbook.