All Forum Posts by: Michael Carbonare

One of the biggest hurdles for new investors? Not enough capital to start. You want to build a long-term portfolio, but traditional financing seems out of reach. Instead of waiting years to save, you can use a short-term strategy to generate cash flow quickly and reinvest those profits into long-term wealth-building deals. For many, wholesaling is the first strategy that comes to mind—but here’s the truth: Wholesaling is tough. You need to constantly hunt for deeply discounted properties, compete with experienced investors, and deal with unpredictable sellers and cash buyers. If you don’t have a strong marketing system, it’s a grind. That’s why I recommend an easier, more predictable way to generate cash: Lease Options and the 𝗖𝗼𝗼𝗽𝗲𝗿𝗮𝘁𝗶𝘃𝗲 𝗔𝘀𝘀𝗶𝗴𝗻𝗺𝗲𝗻𝘁 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝘆. Instead of chasing distressed sellers who must sell at a deep discount, why not work 𝘄𝗶𝘁𝗵 motivated sellers who simply want debt relief or a solution to their situation?

Lease Options let you control properties without owning them. You get the benefits of real estate without the headaches of mortgages, rehabs, or tenants.

𝗧𝗵𝗲 𝗖𝗼𝗼𝗽𝗲𝗿𝗮𝘁𝗶𝘃𝗲 𝗔𝘀𝘀𝗶𝗴𝗻𝗺𝗲𝗻𝘁 𝗦𝘁𝗿𝗮𝘁𝗲𝗴𝘆 is a unique way to raise cash by helping sellers secure a tenant-buyer who wants to own the home in the near future. You assign the lease option agreement to a tenant-buyer and receive an assignment fee without needing to close on the property yourself. Why this approach works:

Less Competition – Most investors ignore lease options because they don’t understand them. That’s your advantage.

No Deep Discounts Needed – You’re not fighting over distressed properties; 𝘆𝗼𝘂’𝗿𝗲 𝘄𝗼𝗿𝗸𝗶𝗻𝗴 𝘄𝗶𝘁𝗵, 𝗰𝗼𝗼𝗽𝗲𝗿𝗮𝘁𝗶𝗻𝗴 𝘄𝗶𝘁𝗵, flexible sellers.

Wholesaling requires a ton of lead generation and negotiation. Cooperative Assignments offer a simpler, more efficient path to profits compared to traditional wholesaling, making them a great option for investors looking for a practical way to get started without risk and $0 cash upfront. This is one of the most effective strategies for starting out because it allows new investors to build confidence, raise capital, and transition into long term deals.

𝗧𝗵𝗲 𝗖𝗼𝗼𝗽𝗲𝗿𝗮𝘁𝗶𝘃𝗲 𝗔𝘀𝘀𝗶𝗴𝗻𝗺𝗲𝗻𝘁 𝗔𝗱𝘃𝗮𝗻𝘁𝗮𝗴𝗲

I talk about this strategy often. Why? Because it’s how I got started in real estate investing.

Like many new investors, I had little cash and no access to traditional lenders. The only person willing to lend me money was Paulie—a guy who charged a point a week and always had a baseball bat within arm’s reach. THAT was hard money.

“Try wholesaling,” they said. So, I did. And I failed. Spectacularly. Getting sellers to accept half-price offers wasn’t as easy as they say. A friend of mine is a successful wholesaler, so I asked him how he does it. His answer? 10,000 pieces of mail every month. . .ten thousand!  No, thank you.

Then, I met an investor who was already successful doing what I wanted to do. He introduced me to The Cooperative Assignment Strategy. It changed everything.

Why Cooperative Assignments?

✅ No risk, no cash out of pocket

✅ You work with, cooperate with, the homeowner instead of negotiating against them

✅ No tenants and toilets

✅ No maintenance or repairs

✅ Short-term deals with sizeable assignment fees

✅ Those fees can fund long-term strategies like buy-and-hold or fix-and-flip

If you’re an aspiring investor looking for a low-cash entry point into real estate, Cooperative Assignments are an effective strategy.  

Like all things, becoming a licensed Agent has its pros and cons. I've been investing in real estate for 30 years. I've never been licensed. Not anti-Realtor by any means. I just was never a good employee and needed to do my own thing. That said, everything I read and Realtor friends I speak with confirm that sales are far and few between in residential housing at the moment. Sales have plunged to 1995 levels according to one stat sheet I saw. Combined with the changing regulations following the NAR settlement, many real estate agents are leaving the industry.

I almost gave up on real estate investing before I even started.
When I first considered investing in real estate, I was drowning in paralysis of analysis. I spent months, no, years, reading books, buying No Money Down cassettes, (Carleton Sheets, anyone?), attending "free" nothing down seminars, (Tom Vu?? 😄), and second-guessing every potential deal. Sound familiar?
The truth is, most new, aspiring investors don’t fail because of a lack of information—they fail because they don’t take action. Your goal is to move from hesitation to execution faster than I did.
If you’ve been stuck on the sidelines, overanalyzing and waiting for the "perfect" deal, here’s my best advice:
✅ Stop chasing the perfect deal. There’s no such thing.
✅ Find a mentor or accountability partner. An investment in education is an investment in yourself. It will be the best investment you ever made. Guidance cuts your learning curve.
✅ Take one small action today. Whether it’s making an offer or calling a seller—momentum matters.
What’s holding you back from your first deal? Drop it in the comments.

To add to what has already been posted, wholesaling is hyper-competitive. I have an investor friend who is a very successful wholesaler in a market, (south FL), that is crawling with wholesalers. Over lunch, I asked him how he stands out in such a crowded field. He casually told me he sends out 10,000 pieces of mail every month. . .ten thousand! He has a staff of 3 or 4 assistants to handle the details, and his break even every month is $30K. Wholesaling is not the walk in the park that the IG and TikTok billionaires claim. Definitely not for the faint of heart. There are easier strategies to start your new venture.

To add to what Nicholas wrote, wholesaling is hyper-competitive.  I have an investor friend who is a very successful wholesaler in a market, (south FL), that is crawling with wholesalers.  Over lunch, I asked him how he stands out in such a crowded field.  He casually told me he sends out 10,000 pieces of mail every month. . .ten thousand!  He has a staff of 3 or 4 assistants to handle the details, and his break even every month is $30K.  Wholesaling is not the walk in the park that the IG and TikTok billionaires claim.  Definitely not for the faint of heart.  There are easier strategies to start your new venture.

Hi, Paige.  Lease options, and there are a variety of types of lease options, can be a good starting strategy for many aspiring investors.  I'd be happy to answer your questions and offer some advice.  DM me with some details about what you are trying to do and we can talk.

@Joe S.  Protecting yourself in a sandwich lease isn't usually a problem.  Strong agreements that protect your position in the deal, and recording a Memorandum of Option with the county will go a long way to protecting your interest.  Does this guarantee that a seller wont give in to greed and try to get out of your agreement?  Nothing can guarantee that.
Looking back over 30 years and hundreds of deals I can recall only two occasions when a greedy homeowner tried to bail on our deal.  In both cases I settled with the homeowner to avoid aggravation, lost time, and expensive lawyers. I made a few thousand less than expected but I figure that's just the cost of doing business sometimes.
Based on my experience I wouldn't let the remote possibility that a homeowner might go into greed mode dissuade you from doing these deals.

@Shawn Ackerman  You're preaching to the choir.  I started with lease option assignments 30 years ago and still working these deals today.  Low risk, low cash requirement, great flexibility to offer sellers to get the deal done.  I'm a fan.  I'm surprised more aspiring investors don't turn to this strategy to begin their real estate careers.  Doesn't have the sex appeal of wholesaling, I guess. LOL

Most people think real estate investing requires huge capital, perfect credit, or bank loans—but that’s not always true. Creative strategies like lease options allow investors to control properties without owning them upfront.
Here’s why lease options are a game-changer:
🔹 Low Risk, High Leverage – Instead of buying a property outright, you lease it with the option to purchase later. This gives you control without needing a large down payment or a mortgage.
🔹 Profit Multiple Ways – You can rent the property for cash flow, sell the option at a profit, or buy it later at a pre-agreed price (often below market value).
🔹 Great for Sellers & Investors – Motivated sellers can turn a vacant or hard-to-sell property into income while investors secure future deals without a huge upfront commitment.
🔹 Ideal in Any Market – Whether home prices are rising or falling, lease options allow you to lock in today’s price while benefiting from future appreciation.

Other creative strategies—like seller financing, subject-to deals, and the BRRRR method—can also open doors, but lease options remain one of the most powerful, low-risk, minimal cash out-of-pocket ways to build a portfolio.