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Buying A Home – Zoning And Architectural Review Board Restrictions
When you buy a home, you need to be aware of the various things that can limit your control over the property. This is as true for finished lots and single family homes as it is for townhouses, condos, and apartments. It’s a good idea to understand these ...
Is A Townhouse For You?
With the huge variety of real estate choices on the market today, many people aren't even clear on what a townhouse is, much less whether or not it's the right choice for them. So what, exactly, is a townhouse? A townhouse, also called a rowhouse, is ...
Missouri Real Estate – The Show Me State
Nicknamed the “Show Me” state, Missouri is an interesting mix of big cities and rural lands. Missouri real estate prices do not require you to “show” a lot of money. Missouri The quintessential midwestern state, Missouri offers interesting contrasts. On ...
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In the last 10 years, stock investors lost trillions of dollars in the stock market, so they are still understandably skittish about returning to the market.
Most beginner real estate investors often start in real estate investing by a rental property using the traditional method. That is, they put down 5% to 10% and then borrow the balance from the bank. While this works, it requires more capital than most investors can initially raise, but more importantly, it creates unnecessary risks.
A better and lower-risk way is to use a real estate option, which is arguably the best kept money making secret in the industry. Having talked to thousands of investors, I have found that probably less than 10% understand how to use this very powerful technique. However, savvy investors such as Donald Trump use real estate options in almost all of his deals.
A real estate option can be used for multiple reasons (estate planning, speculation, etc.), but this article will focus on using a real estate option to quickly generate cash.
Unlike stock options, which can be high risk, a real estate option is less volatile and offers some key advantages.
* A real estate option allows you to control a property without owning it. Ideally, you want to use an option on an owner-occupied property. Most homeowners are not trained to sell a house and often end up not being able to sell it within a reasonable time frame.
Essentially, you use an option to control a property while marketing it and as soon as you sell the house, you pocket the difference between the strike price (the price the seller agreed to sell the house for) and the selling price.
* When done properly, you can get a real estate option on a property, market it and cash out 30 to 45 days (I have a client who has done it as little as 4 days and made $9,800).
* By
using options only on owner-occupied homes, you avoid many of the drawbacks of traditional real estate investing (vacancies, holding costs, mortgages, repairs and tenants).
* Another huge advantage is that in any city, there is a large number of homeowners who would gladly let you option their house, especially if you can know how to sell it quickly. The key is to demonstrate that you have a pool of eager buyers who are ready to purchase, and you can build this pool of eager buyers through marketing and networking.
* The amount of money you risk is low because you can often negotiate a 90 day option on a $100,000 house for $10 (yes, ten dollars). If you can't sell the house, then you are out of $10 and some sweat equity. However, with every house you option, you are continually building a more complete database of what your buyers want.
* Using options doesn't require you to get a license. Starting today, you can go out and acquire an option on a property and start marketing it.
* Real estate options are very flexible because you can option almost anything. While single residential homes are the most common thing to option, you can also purchase an option on land, commercial buildings, apartment buildings and even trailer parks.
In summary, using real estate options is not a well known technique but savvy real estate investors have been quietly using them to make a fortune for years.
Isn't it time you did the same?
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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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Real estate spotlight, May 25, 2012Seattle Post IntelligencerBy AUBREY COHEN, SEATTLEPI.COM STAFF Is your dream to live on Lake Washington? How about in this home, 8750 Sand Point Way NE, listed for $3.395 million? The 6200-square-foot house has five bedrooms and 4.5 bathrooms, including a master suite with a ... |
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