About Us

Just a quick note about my experience in real estate.

My name is Lloyd Penrod and I'm the President of North State Property Investments. I bought my first house (for $1,000 down) in Northern California in 1984 and have been though booming markets and a long recession. I've dealt in:

• pre-foreclosures
• probate properties
• bank owned property (REO)
• government owned property
• assigning contracts
• simultaneous closings
• lease options

I was even mentioned in Robert Allen's (author of the best sellers "Nothing Down" and the new "Multiple Streams of Income") book "Creating Wealth" for buying and reselling a house in one day using a simultaneous closing and making nearly $18,000.

Now my favorite real estate strategy for buying or selling is using lease options. Why? Because lease options can be structured so that all parties get what they need and they are so easy to put together.

On Selling Property

In good markets, if I don't need all the cash right away, a lease option can get me the top sale price. And there are always so many Tenant / Buyers wanting property that I can quickly fill a property and work around my schedule instead of waiting for a buyer to come along. No more negative cash flow while waiting for a sale.

In slower markets this is the best technique there is to quickly move a property! The smartest people learn from the mistakes of others. In 1990 the real estate market had softened due to recession and then Gulf War started and the real estate market died! I had just closed on a pre-foreclosure for $126,000 that appraised at $152,000. I'd planned on a quick turn over for a small fast profit. No one seemed to even be looking at houses. I sat for months waiting for a vacant house to sell while making mortgage, utility and insurance payments. At the time the thought of getting the equity out of the house seemed most important. Finally I did my first lease option to a couple who didn't have enough for a down payment. They paid $1,400 per month with $400 per month credited towards the purchase. This was a house that would have rented for about $1,000. The house sold after the lease ended for $155,000. The lease option stopped the monthly loss and gave me immediate positive cash flow - and a nice profit. I've liked them ever since!

On Renting Property

I've owned as many as five rental properties at one time and hated dealing with all the problems involved: advertising, meeting and choosing suitable tenants, poor cash flow and especially maintenance and repairs.

I've also had to do one eviction.... not collecting rent while paying mortgage payments, insurance, utilities, trash collection and water.....and the whole time knowing the fellow was not taking care of the property. That is the bad news.

The good news is this all changed when I found out about lease options. Now this is the only way I will do rentals on single family homes. I can:

• Set a sales price I would be happy with.
• Have a motivated tenant who will take care of the property as if it were their own. A tenant who has first of all made a substantial nonrefundable cash-up-front commitment (2% to 5% of the sales price) as option consideration, to be applied to the purchase price. And who also is further motivated because they are receiving a portion of the above market rent credited toward the purchase price.
• Have a tenant who will make the payment on time or will forfeit their rent credit for that month.
• Have a tenant who will take care of all maintenance under $200.

It's like putting your property on auto pilot. One of the keys is to lease option the property for one year and give a generous rent credit. You can ask a higher price for a lease option property to help make up for the rent credit. And the high rent credit makes it very easy to quickly find a good tenant / buyer.

A little secret in lease options: I'm glad if the Tenant / Buyer doesn't buy the property the first year. If they do not buy two things can happen.

1. Most of the time they will want to extend the agreement for another year. You can collect additional option consideration and the rent amount and rent credit is negotiable.
2. Or if they choose not to buy and they move, the option consideration and rent credit were nonrefundable, you can do it all over again with new tenants.

Lease Options can be very profitable!

Our Information and Contract Packages give you the information and paperwork you need to structure your own lease options. Or, my Consulting Service lets you take advantage of my years of real estate experience.

I know we can quickly solve your real estate problem and put thousands of dollars in your pocket if you are selling. Or save you money if you are wanting to get into a lease option.

Give a call to see what I can do for you. You can save or earn thousands of dollars in cash and achieve your lease option goals in 30 days!

Ask for Lloyd Penrod at (707) 944-9489

E-mail: nfinance@napanet.net