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Home Owners In Trouble! Real Estate Bubble, Rising Interest, Variable Rate Loans Concern Fed.
Hurricane Katrina, floods, earthquakes, high fuel prices, shrinking pocketbooks, and now, worries over variable interest rate loans are discussions heard throughout the nation. With mounting concerns by the Fed over rising inflation, there is a serious ...
Modular Homes - Affordable Housing
With soaring real estate prices, many Americans are looking to alternative home options. Modular homes are one of the popular affordable housing options. Modular Homes Modular homes represent almost 8% of all new U.S. home sales, with nearly 43,000 of ...
The Multiple Listing Service And The Realtor
MLS is the Multiple Listing Service. The MLS is a database - an extremely convenient way to know what properties are for sale at any given moment. This makes it very useful to real estate agents and brokers. Basically, the MLS is like a huge property ...
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Most investors don't understand how to use a real estate option, which is unfortunate because it is one of the most powerful tools in real estate investing. In fact, super successful investors such as Donald Trump routinely use real estate options for maximum leverage.
Here are 7 reasons why options are ideal for real estate investors, beginner or advanced.
1. Since you don't own the property, you are not obligated to make house payments. You also don't have to deal with repairs, holding costs or tenants. Imagine how flexible you can be if you don't have to deal with monthly mortgages or on going repairs.
2. Getting started with real estate options doesn't require a lot of cash. In many cases, we have controlled a $100,000 property for $10. This is especially important for a new investor since startup capital is often an issue.
3. Options are great at generating quick cash. Once you have the option locked up, you can market the property to create quick cash. You should focus on making at least $5,000 per option deal, and there's no practical upper limit to how much you can make (one of our colleagues made over $300,000 on a land option deal)…all without having to deal with tenants, repairs or holding costs.
4. Using options is a great way to enter the luxury home market or control properties in hot markets. Since these are higher priced homes, you should expect to pay a higher option fee. We have controlled $500,000 properties using $100 to $1000. In many markets, a $500,000 is a starter home but the point is that you can control a lot of real estate for a very modest fee.
5. Options are scaleable
because a single real estate option can be used to control a small deal or a large one.
6. Options offer multiple exit strategies. You can either exercise the option to buy the underlying property; you can sell or assign the option to another party; or you can ensure that the seller has to pay you off because the option creates a flaw in the title.
7. Using options allows you to convert dead leads into viable ones. For an experienced investor, this alone can add tens of thousands of dollars to his business because most deals that are not viable with other techniques (foreclosures, short sales, etc.) are often great candidates for real estate options.
8. BONUS REASON: Real estate options are very flexible and can be used with all types of properties including single residential homes, multi-units, apartment buildings, commercial properties and land. You can also specify the option period, which offers additional flexibility. In many cases, you can even extend the option period, often for an additional modest fee.
In summary, using a real estate option is an ideal investment technique for beginners because options don't require much cash and can generate cash quickly. For advanced investors, using options to convert dead leads into deals can add tens of thousands of dollars per month.
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SF's diverse real estate frenzy expected to lastSan Francisco ChronicleHow much hotter is the San Francisco real estate market getting? Let us count the ways. -- Office buildings: The 33-story tower at 555 Mission St. is in escrow. Reported price: $450 million. That's about $800 per square foot - the highest figure since ...and more » |
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Commercial real estate services expanding in USReutersBy Ilaina Jonas | NEW YORK (Reuters) - New commercial real estate brokerages are launching in the United States, in what may be a sign that the market's recovery is durable. Australia's UGL Ltd (UGL.AX), a huge property manager, plans to expand in the ...and more » |
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