A dark shadowy figure came out of the corner of the alley and approached me quickly.* I had been
searching for this legendary wealth creation guru for years and finally I had found him! My search
was over. His presence was even eerier as his face was masked with a thick winter scarf.
He motioned with his Diamond studded cane for me to come closer and I nervously approached. He
had the presence of a man specially endowed with the knowledge of financial freedom. I leaned
forward and hungered for the words that I knew would finally make me wealthy. He began like this:
PSSST, hey kid, come here !
I understand that you want in on my well kept secret on how to make the best Real Estate Deals of
You won’t have to make 100 phone calls per day with a rotary dial phone and check a little box to
You don’t have to spend a fortune advertising with free refrigerator magnets.
You won’t have to ring door bells all day. (Mom said don’t talk to strangers anyway.)
You won’t need banks, lawyers or large down payments. (Everyone say Amen!)
“I once was young like you and I spent all my money on fixers, auctions, tenants, toilets, bus
rides and seminars. Everyone seemed to be making money in real estate except me. Then one day I
came upon the secret from my Mentor that I will now pass on to you. Are you interested ??? Are you
I nodded my head like one of those 1960’s toy dogs sitting in the back of acar window. “Yes, yes
please tell me wise one.” I was drooling with anticipation for the words of wealth, just like a
hungry man watching a PBS cooking show on Kansas City BBQ ribs (hold the secret sauce).
“The secret is quite simple young man; ‘Why own when you can Control?’ You must learn the art of
Controlling real estate instead of it controlling you. If you understand this one principle you
will profit in ways you have never dreamed. You will have the Midas touch. Imagine generating
upfront profits, residual cash flow, profits at the close, notes and assignment fees just by
utilizing this specialized knowledge.”
“But, Omnipotent One” I replied, “I still don’t understand how you control something unless you have
title to it.”
“AH HA !! Questions, good, you’re paying attention. Young man,understanding this technique of lease
purchasing has made me the wealthy man I am today. A Lease Purchase can be defined as taking the
best of two basic real estate techniques; a lease and a sales agreement combined with that of an
option. Lease Purchasing is all about control and more importantly cashflow. If you have the control
you can create the cash flow. Ownership is a liability for most beginning investors that they can
hardly afford.”* A tacky writer’s opener to get your attention. Besides it’s still better than
opening with a dark and stormy night. (I think someone has used that onealready!)
Now listen carefully and you will have the rest of my secret.
“A Lease Purchase can let you control good properties in good neighborhoods by obtaining possession
and control instead of title and liability. You must become a smart renter!”
Now, let’s break this down into three simple steps:
Step 1. Just like a tenant, you will have possession of the property by renting. You must negotiate
a lease for as long a time period as possible. Remember the longer the better.
Step 2. Next negotiate all the terms of an option to purchase in advance. An option is the right to
purchase the home at a predetermined price and prenegotiated terms.
Step 3. You must have an assignment clause within your contractual agreement. An assignment will
allow you to transfer or sell your rights to another. If you structure your contracts correctly you
can take an owner’s property and have the RIGHT to rent it, sell it, assign it, sublet it, hypothecate
it and much more. You can make more money than you ever dreamed possible with someoneelse’s home. Let
everyone else purchase the fixers and foreclosures. You will use this concept to have leverage,
create profits and have control with minimal liability.
“So kid, now do you understand that the money is made in the CONTROL, not in the ownership?”
I nodded yes.
I wanted to ask the strange old man some more questions, but in a blink of an eye he rode off in a
blaze of glory in his chauffeured white Towncar. A passerby came up to me and asked who the strange
man with the scarf was. I told him that I wasn’t really sure, but he did leave behind his Silver
Author’s Note: Hey, this article started off corny, might as well end it thesame way.
Diamond Consulting Group
Success, One Person at a Time !
Claude W. Diamond J.D.