Birmingham Lease Options with Denmark Properties
Ashley and Antonio Denmark have built their Birmingham Lease Options real estate business to help tenants become homeowners. In today’s episode, they talk about how they got started in real estate and how they decided to pursue lease-purchasing. They discuss the system they have in place to actually help tenants, as well as some of the benefits of using the lease-purchase to gain income.
At Denmark properties, they work to help people get out of stressful situations and help people become homeowners with Birmingham Lease Options. Their main focus is lease-purchasing, and they lease-purchase homes and help tenants who may not qualify for a loan at that point get set up in the system to become homeowners in sixth months to a year.
Both Ashley and Antonio are from Florida, but they love Alabama because of the price of real estate in Birmingham versus Florida. Antonio got his start in real estate to be a homeowner and also create passive income. They would buy two properties initially — one to live in and one to rent.
While they were in college, they built their credit and saved student loan returns so they were able to afford their first properties. They talk about stuff they did in college to help build and establish credit, to set themselves up for success later on.
Ashley speaks to her experience about leaving her job to work on real estate full time while raising a family. Leaving her job to focus on Birmingham Lease Options ended up being a really good thing, and she is able to watch her kids and take them with her.
Their first two properties were in West End — maybe one of the worst parts in Birmingham to buy a house to live in. With the property they were living in, they were fixing it up and paying themselves rent. In the property they bought to rent, Antonio fixed it up enough to get it suitable for tenants. They just owner-financed their rental property, and sold the house they were originally living in. This was the beginning of their Birmingham Lease Options career.
After reading Rich Dad, Poor Dad, Antonio would realize real estate would be the right avenue to developing their passive income. When they bought their third property, they knew their ventures in real estate would be something special.
Their idea to do Birmingham Lease Options actually came out of one of their flips houses. It was a long journey to actually get that property sold, and they would become aware of the money they potentially would lose if they put themselves in the same situation. Antonio also didn’t enjoy being a landlord, and with lease-purchase, it is the tenant’s responsibility to fix those things.
Process for Birmingham Lease Options: The first step is to get the house, but sometimes it can be to get the tenant first and find out what they want. They look for properties that are pre-foreclosures and they can be all in at 65%.
Their process is to buy the house, fix them up, and instead of putting them on the market for resale, they look for a tenant buyer that they can help to build their credit. The tenant buyer ends up paying off any holding costs.
If you find a house first, how do they find a tenant buyer? Ashley does marketing on several fronts looking for people who want to own their own home. They work with their mortgage specialist to narrow down their candidates. They also put down their deposit, and then work on a plan to reach their closing date. A team checks up on them every three months to see where their credit is.
Their process has been a big contributing factor for their Birmingham Lease Options business, especially strong marketing and expectations that hold the tenant accountable.
They found their team through word of mouth. Join your local REIA group! They met their agent and lawyer through their REIA group and met their mortgage specialist through their agent.
When you do Birmingham Lease Options, you essentially become their agent. You monitor them and write up the contract when it’s time. On their lease-purchases, they get the down payment, the monthly cash flow, and the back end.
The market really doesn’t dictate whether or not lease-options are feasible. As long as you have the people that can help them qualify. If you’re motivated and you want to own a home, Ashley and Antonio can help.
Mentioned in this Episode:
Contact by phone: (205) 277-6777 ext. 103