*Note: The article presented here is written by authors not affiliated with hashemian.com.
This site is not responsible for any errors, omissions, or objectionable content.
Exercise care before engaging in business with any companies mentioned in this article.

Go to: /articles/2005/10/03/ for other articles.

Real Estate Options: The Best Kept Money Making Secret

You have permission to publish this article electronically or in print, free of charge, as long as the bylines are included. A courtesy copy of your publication would be appreciated - send to alex@wealthautopilot.com.

Title: Real Estate Options: The Best Kept Money Making Secret Word Count: 610 Author: Alex Nghiem Email: alex@wealthautopilot.com Article URL: www.submityourarticle.com/articles/easypublish.php?art_id=2789

The article is preformatted to 60CPL.

Real Estate Options: The Best Kept Money Making Secret Copyright 2005 Alex Nghiem

Real estate investing is currently a very hot topic because of the increasing property values and the number of investors who are looking for a safer alternative to the stock market.

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?

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 www.wealthautopilot.com/course-a

Article Topics
Adsense Advertising Bankruptcy Blog Credit Card
Debt Google Ira Marketing Mortgage
Real Estate Rental Retirement Rss Search Engine
Seo Stocks Tax
Recent Articles

Read Financial Markets  |   Home  |   Blog  |   Web Tools  |   News  |   Articles  |   FAQ  |   About  |   Contact

© 2001-2010 Robert Vahid Hashemian
Support the effort
Liked this page?
Please consider creating a link to it
from your Web site.

hashemian.com
هاشمیان.com

 Home

 Blog

 Web Tools Add Free Web Tools custom Google Toolbar button (Requires Toolbar >V4)
Usage

 News

 Articles

 FAQ

 About

 Contact

 Financial Markets Book
Read Complete Book



BOOK
Payback Time: Making Big Money Is the Best Revenge!
Phil Town
$26.99


BOOK
Estate Planning Smarts: A Practical, User-Friendly, Action-Oriented Guide
Deborah L. Jacobs
$19.95


BOOK
The Survivors Club: The Secrets and Science that Could Save Your Life
Ben Sherwood
$14.99


BOOK
The Third Option
Vince Flynn
$7.99


BOOK
SHIFT: How Top Real Estate Agents Tackle Tough Times
Gary Keller
$24.95

|real-estate-options-best-kept-money-making-secret|

more…




TAX 2009
Amazon Tax Central

aStore - Hashemian.com on Amazon

Visits: Powered by hashemian.com

 

 

 

 

 

Search Hashemian.com





Best Of Alabama CD 22 Greatest Hits
$9.98
Ends: Fri Mar 19, 2010 20:23:43 EST


Making Memories RIBBON CHARM ALPHABET & FAMILY WORDS
$3.49
Ends: Fri Mar 19, 2010 20:23:50 EST


1937 PAQUEBOT REAL PHOTO PC, SYDNEY, NSW TO HANOVER, NH
$7.99
Ends: Fri Mar 19, 2010 20:23:50 EST


Zippo Advertising Pocket Knife & Money Clip ROMAN MEAL
$5.52
Ends: Fri Mar 19, 2010 20:23:58 EST


Musk Ox Horn/Knife Making/Randall Scales/Knives
$200.00
Ends: Fri Mar 19, 2010 20:24:06 EST

more…