eal estate investing is making secret in the industry.
currently a very hot topic Having talked to thousands of
because of the increasing investors, I have found that
property values and the number of probably less than 10% understand
investors who are looking for a how to use this very powerful
safer alternative to the stock technique. However, savvy
market. investors such as Donald Trump
use real estate options in almost
In the last 10 years, stock all of his deals.
investors lost trillions of
dollars in the stock market, so A real estate option can be used
they are still understandably for multiple reasons (estate
skittish about returning to the planning, speculation, etc.), but
market. this article will focus on using
a real estate option to quickly
Most beginner real estate generate cash.
investors often start in real
estate investing by a rental Unlike stock options, which can
property using the traditional be high risk, a real estate
method. That is, they put down 5% option is less volatile and
to 10% and then borrow the offers some key advantages.
balance from the bank. While this
works, it requires more capital * A real estate option allows you
than most investors can initially to control a property without
raise, but more importantly, it owning it. Ideally, you want to
creates unnecessary risks. use an option on an
owner-occupied property. Most
A better and lower-risk way is to homeowners are not trained to
use a real estate option, which sell a house and often end up not
is arguably the best kept money being able to sell it within a
reasonable time frame. house, especially if you can know
how to sell it quickly. The key
Essentially, you use an option to is to demonstrate that you have a
control a property while pool of eager buyers who are
marketing it and as soon as you ready to purchase, and you can
sell the house, you pocket the build this pool of eager buyers
difference between the strike through marketing and networking.
price (the price the seller
agreed to sell the house for) and
the selling price. * The amount of money you risk is
low because you can often
* When done properly, you can get negotiate a 90 day option on a
a real estate option on a $100,000 house for $10 (yes, ten
property, market it and cash out dollars). If you can't sell the
30 to 45 days (I have a client house, then you are out of $10
who has done it as little as 4 and some sweat equity. However,
days and made $9,800). with every house you option, you
are continually building a more
* By using options only on complete database of what your
owner-occupied homes, you avoid buyers want.
many of the drawbacks of
traditional real estate investing * Using options doesn't require
(vacancies, holding costs, you to get a license. Starting
mortgages, repairs and tenants). today, you can go out and acquire
an option on a property and start
marketing it.
* Another huge advantage is that
in any city, there is a large * Real estate options are very
number of homeowners who would flexible because you can option
gladly let you option their almost anything. While single
residential homes are the most options is not a well known
common thing to option, you can technique but savvy real estate
also purchase an option on land, investors have been quietly using
commercial buildings, apartment them to make a fortune for years.
buildings and even trailer parks.
Isn't it time you did the same?
In summary, using real estate
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
