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License Frequently Asked Questions
What is the primary difference between a Tier 1 and a Tier 2 license.
Tier 1 License
Best used for licensed agents who do real estate full time. This license is exclusive to your market of about 1 million people. You will get significantly more web hits than a tier 2 license.
Tier 2 License
Best used for unlicensed folks who are interested in doing lease/options part time. You will get about half the number of leads a tier 1 license user.
Do you have to be a licensed real estate agent to hold a license to this system?
Tier 1 License
 Highly recommended as you will get tremendous amount of exposure. There is nothing illegal about specializing Lease/Options, however, local real estate boards will demand to see all your paperwork frequently. It soon becomes too much of a hassle without one. Been there fought that.
Tier 2 License
 You still need to follow our system of contracts in order to do lease/options legally.
Can I start with a Tier 2 license and then grow up to a Tier 1 license holder?
Maybe. If you are the only one in your market, this is probably a safe approach. If someone else expresses a desire to hold a tier 1 license in your market, you have the first rights of refusal. Any money you paid will be applied towards your new license.
What is the relationship between tier 1 and tier 2 license holders? Why should there be one?
Years of experience has taught me there is WAY more to gain by working with "competitors." By working together, you will make more money as a whole. More importantly, you will have someone to rely on while you are on vacation in Mexico.
How is compensation handled between tier 1 and tier 2 license holders?
 Whatever you agree to. We work on a handshake in Vegas and every deal is unique.
Why should I pay to use your system?
It has taken me years to dial in the process of making money doing lease/options. If you don't have a combination of business experience, real estate experience and data base experience, it will take you at least 2 years of frustration to reach the equivalent of one month using my processes, procedures and software.
What kind of traffic to you get on a daily basis?
 I'm averaging about 100 hits a day with mostly unique visitors. You can click here to view a recent report.
How much business do you generate on a monthly basis?
 During the summer months I average about $10k a month. During the dead months between November 15th and January 15th, I do about $4k a month.
How much work do you put in?
 The amount of work dedicated to Lease/options is about 20 hours a week. I do marketing on Mondays and show houses on Wednesdays and Saturdays. The rest of my time is spent on other businesses or goofing off.
What are you bringing to the table that those traveling gurus don't provide?
I am providing you a business process designed to make you money. Lease/option gurus are perfect teachers to help you understand the principles of lease/options. In fact, you really need to study lease/option concepts BEFORE using my system. My teacher, Dr. Tom Brewer is an excellent guru if you haven't already found one. Essentially, I took his principles and applied them to day to processes and procedures.
Since I am an agent already, why wouldn't I just use the system provided by the MLS?
Lease/options provided through the MLS are a serious waste of time. 90% of the agents that "clicked lease/option" on the MLS don't have a clue how to generate contracts or handle the mechanics of a lease/option. You don't have time to wade through the thousands of newbie agents who don't want a lease/option after you spent hours teaching them how it works. There isn't enough meat on the table to include them anyway.
As an agent, does your system supplement my existing business?
 YES!!! By leaps and bounds!! Many of your clients eventually turn into conventional buyers and sellers. If anything, my system will probably double your conventional business. I personally turn all these leads over to my wife who handles conventional buying and selling.
I am not an agent and don't have a clue about business in general. Does your system work for me?
 No. You will get eaten alive. Don't waste your money on my system unless you have some self-employment experience.
I am a pretty savvy investor and own several rental properties and would like to convert them into lease/options. Would this work for me?
Yes. You will be extremely happy you did and a tier 2 license would work perfectly for you. That's how I got into the business. I became fed up rehabbing properties and chasing rent. I do lease/options on my properties and have never looked back. Better cash flow, better tenants and almost no maintenance. My systems evolved from my own practical experiences. Your peers will be begging you to help them.
Can I do sandwich leases using your system?
Yes. However, it is not recommended for anyone that doesn't have a tremendous amount of property management experience. Unless you know how to juggle chain saws and alligators, you shouldn't mess with sandwich leases.
How many of the buyer/tenants actually succeed?
Less than 20%. The sad fact is that no matter how much you help these folks, 80% don't have the discipline to keep a steady job and work on their credit.
Do you inform your buyer/tenants & sellers the chances of success?
Yep. I sleep at night because I don't make up crap and tell people the brutal unforgiving truth.
What happens when the buyer/tenant doesn't make it?
50% don't make it because... They just give up and walk away. 50% of these leave without a trace. 30% leave a mess, 20% "go down fighting" with the whole eviction enchilada.
30% extend the contract because... They dilly dallied and don't clean up their credit.
20% make it because... They listen to your advice.
During the lease/option, who holds all that surplus money? There are 2 scenarios:
The owner keeps it. At the end of the lease, the surplus money (option fee + rent credit) is called "Ernest Money" and shows up on the HUD1. In summary the money is "cut from the top."
Title company holds it. Once in a while there will be a buyer who will demand this and the seller willing. I have never actually seen it. Since most conventional agents think this is the way lease/options must be consummated they rarely strike a deal.
Does a lease/option help or improve a buyer's credit?
No. Unless payments are sent through a title company. Warning: If payments are sent through a title company, just one day late will destroy a lease/option contract. Most buyers don't have the balls to do this.
Are owners really ok with "no background checks, no credit checks, no questions"?
No. They all whine, stamp their feet and complain but I don'tbudge on that issue. It's my way or the highway. If they have a problem with it, I tell them politely to find someone else to help them. Once you've been doing this a couple of years, you will also see the wisdom. My frequently asked questions for partners specifically answers why we don't ask questions.
Will a 2% option fee fly in my market?
I have no idea. Throw a property up and see if it moves. If it doesn't move, it's priced too high. You will always recommend to your sellers to start with a number they want and let it fall just a bit every week until it moves. Let the market decide. A quick gander at Craigslist will give you some ideas.
How long does it take to move someone's credit up from 550 to 650?
It is really a function of aggressiveness. I've seen buyers move it up 50 points in 2 months and some take a year to move it 5 points. I always refer my buyers to professional credit cleaners as I have found that people who don't hire a professional never come even close to making it.
How much does a credit cleaner cost?
The 2 I recommend charge differently. One offers a "menu" of services the other one charges $850 for a year. Let your buyers select who they feel most comfortablewith. NEVER recommend just one vendor in the real estate business.
Why don't you help buyer/tenants pursue foreclosures or short sales?
All of your prospects have bad credit or they need to move fast. Because their credit is so bad, they don't qualify for a cupcake. Occasionally, you will get someone fall out of the sky who doesn'thave a clue about how good their credit is but it's very very very rare. You take that buyer to the bank or refer that person to agent in exchange for some Benjamins.
Do I have to do evictions?
 No. However, over time, you will want to learn how because it's easy and generates a lot of repeat business. Nevada is extremely landlord friendly. Other bleeding heart states like California may force you to keep the option fees high.
Do I have to have a long term commitment to use your system?
 No. There is an up front cost associated with bringing you online. After that, you pay as you go. My contracts simply freeze prices for a period of time. If you don't pay, I simply turn your site off.
Can I take my domain name with me if we no longer do business?
Yes. I don't want to own your domain name. If you decide you don't want my services, you may leave at any time and you can take your domain name with you.
Will your system continually improve?
Yes. I'm a geek with years of practical business experience. I believe in constant and never ending improvement in everything I build.
How long will this system be practical in my market?
You are probably reading this page because there is too much inventory in your market. Most markets have too much inventory for about 5 years. When the inventory in your market approaches zero, you probably won't need my services.
Your system doesn't look as robust as something delivered by Microsoft. Why is that?
I built this mostly myself and I have to admit it does have duct tape & coat hangers in some areas. That's why its so cheap! As I get more licenses, I will invest in more infrastructure, hire costly advisors and pass that cost onto new affiliates :)
How do I know that all this stuff you've been saying above isn't just a bunch of sales crap?
Call my competitors here in Vegas or Scott in Reno who has just come on board. References.
If I decide to get one on one training in Vegas, can we party like rock stars afterward?
Yes. I would be disappointed if we didn't!!!