Newbie Needs Info On "pure Options".
Hi Everyone,
I just left a 3 day seminar on Options. I'm sure the information was very valuable as on more tool for the tool box. But to be totally honest most of the information just flew right over my head.
My question is, in what situation would I need to propose a pure option to a seller.
I'd hate to have an opportunity staring me in the face and not realize it was there.
Any feedback I can get on this subject will be greatly appreciated.
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an example would be if you knew that you wanted to buy a prop. at a later date. if you had one prop. and it was going to take 2 weeks to close and you were recieveing cash from the deal needed to purchase prop.2 the option to buy could be used to give you time to clear funds needed to buy prop.2...............km
Great example, kenmax! You always offer brilliant advice. You, CommercialKing, and rajwarrior are always unselfishly helping others, and I have learned much from all three of you. May I ask who taught this Option seminar?
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Sure. It was Jack Miller. I would have mentioned it in my original post, but I was't sure that we could mention the names of people.
Has anyone out there used the option technique to control a property for a nice profit? Could you share that experience with me?
Thanks for the feedback!
I flip with an Option, but I use a nonexclusive Option. It doesn't take the property off the market, so I don't have to pay a large amount of cash no matter how high the FMV of the property is.
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Relative to other forms of RE contracts and agreements options are pretty straight forward. Hence if you find that you did not understand most of the information that is a signal to spend more time reading up on RE investing in general and option in particular.
It is not a good or bad things so do not take it personally. Just an indication that you have a learning curve to climb. When to use an option becomes more obvious as you get used to what an option does and how deals normally get structured.
Did the course provide you with much in the way of materials to take away so you can read later?
To get a different perspective, check your local library to see if they have books on RE investing. Some REI clubs have lending libraries. Getting more then one source means you can compare the points being made and that can help lock in the points being communicated. If you find a book you really like you can buy a copy.
John
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I would think that Jack Miller must have covered a many uses for options. I know of no one who has more knowledge or expertise about options than Jack does.
Was he down in your area or did you attend the one by San Francisco airport?
LeaseOptionKing - there is a guy on ebay who also uses the nonexclusive clause in his contracts.....are you using his program?? just curious how you liked it b/c I've been seriously considering buying it. the mentoring would be worth it if nothing else!
Nonexclusivity is not a new idea. It's been around for a while. Rarely will Sellers have heard about it, though.
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does wendy teach this in her courses...? is the nonexclusive clause the way you would urge newbies at this to go?
I don't think she does. I know LeGrand uses it for Optioning high-dollar luxurious homes.
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He was in San Francisco last month. My mentor that I have latched on to told me that while I am studying LeGrand, it's like the freshman year of college. But Jack Miller is like going for your PhD. in creative rei. The information and strategies he was sharing were top shelf. My only problem is that I don't have that much exposure to the different senarios that he was presenting. I'm quite sure that as my experience grows so will my understanding of how to use the different strategies. Jack did mention that he has made more money using options than any other technique he's used. I found that very interesting.
edmeyer,
Thank you for your real life senario of how you made use of an option. That example turned on a light for me.
Correct me if I'm wrong, a good defenition of an option would be-presenting a seller with an offer that is an "option" to buy their house at present market value and at the time I decide to excerise my option I get to keep the difference of the future value or price?
This is a great website for us newbies to come and pick the brains of you seasoned pro's out there. Thank you very much for all of your help. Keep up the good work.
cashmoney2