hether you are an how flexible you can be if you
advanced real estate don't have to deal with monthly
investor or just getting mortgages or on going repairs.
started, real estate options can
be an ideal investment technique. 2. Getting started with real
A real estate option is a way to estate options doesn't require a
control a property without owning lot of cash. In many cases, we
it and it locks in the buying have controlled a $100,000
price for a specified time. property for $10. This is
especially important for a new
Most investors don't understand investor since startup capital is
how to use a real estate option, often an issue.
which is unfortunate because it
is one of the most powerful tools 3. Options are great at
in real estate investing. In generating quick cash. Once you
fact, super successful investors have the option locked up, you
such as Donald Trump routinely can market the property to create
use real estate options for quick cash. You should focus on
maximum leverage. making at least $5,000 per option
deal, and there's no practical
Here are 7 reasons why options upper limit to how much you can
are ideal for real estate make (one of our colleagues made
investors, beginner or advanced. over $300,000 on a land option
deal)...all without having to
deal with tenants, repairs or
1. Since you don't own the holding costs.
property, you are not obligated
to make house payments. You also 4. Using options is a great way
don't have to deal with repairs, to enter the luxury home market
holding costs or tenants. Imagine or control properties in hot
markets. Since these are higher of thousands of dollars to his
priced homes, you should expect business because most deals that
to pay a higher option fee. We are not viable with other
have controlled $500,000 techniques (foreclosures, short
properties using $100 to $1000. sales, etc.) are often great
In many markets, a $500,000 is a candidates for real estate
starter home but the point is options.
that you can control a lot of
real estate for a very modest 8. BONUS REASON: Real estate
fee. options are very flexible and can
be used with all types of
5. Options are scaleable because properties including single
a single real estate option can residential homes, multi-units,
be used to control a small deal apartment buildings, commercial
or a large one. properties and land. You can also
specify the option period, which
6. Options offer multiple exit offers additional flexibility. In
strategies. You can either many cases, you can even extend
exercise the option to buy the the option period, often for an
underlying property; you can sell additional modest fee.
or assign the option to another
party; or you can ensure that the In summary, using a real estate
seller has to pay you off because option is an ideal investment
the option creates a flaw in the technique for beginners because
title. options don't require much cash
and can generate cash quickly.
7. Using options allows you to For advanced investors, using
convert dead leads into viable options to convert dead leads
ones. For an experienced into deals can add tens of
investor, this alone can add tens thousands of dollars per month.
About the Author:
Alex Nghiem is the co-founder of Wealthautopilot, which provides coaching and educational products/events for real estate investors who want to turbo charge their results immediately. To get a weekly free newsletter on cutting-edge real estate tips and a 6-part course on real estate options, visit http://www.wealthautopilot.com/course-a
Source: www.isnare.com
