Wendy Patton
Hows Wendy's products, does anyone recommend them? Wanting to get the following courses:
1)Get Realtors Begging You to Buy Their Listings
2)Selling on Lease Options – "Making Fortunes in Options”
Your input would be appreciated
PCMedic,
Wendy's products, do you need them? I would think that you are much more up to date then any published material. Bakersfield is in a class by itself. Only you know what works well and what does not.
Lets see now, We are in a classic up Spike. You want to do Lease Options into that? Do them, but may I suggest you discount out your option paper almost as fast as you create it. Why?
Go get a few history books examine prior spikes and then read up on what happens directly afterward. If you hold them and the Spike terminates and slides back you will be very busy in performance covering your options.
However if they are sold and gone and yes you took a discount but look at the money you have in hand. Now you let it settle and watch for the spreadout at the end. Then in you go again. Play the lease option game if you must or you might at that time go into full ownership and juggle your mortgages to get the very best 30 year low interest that you can. Of course if Allan starts it rolling the other way with about a 1/4 point up in interest, you have read the hand writing on the wall so get ready.
Remember, You can do as well when it goes up as when it comes down. Afterall you are an Investor in Real Estate.
So watch with great care for the wiggle at the top prior to reversal. At the bottom you watch for the spread out and you go the other way.
Nothings has changed just different terms and a bit faster in tempo. Now lets see Warren da Buff just took a position in China Petroleum, interesting.
Cheers Lucius 8-) 8-)
Lufos...what you were descrbing i'm not sure about or understand for that matter,I am new to all this, I need some instruction on options on how they work and when to use them etc..I am told I am in a great market place here in Bakersfield. I just need to get the basic down on options etc..I really appreciate your reply and you trying to help,
pcmedic,
will exercise my Option for $1. The buyer and seller will split legal fees for the transaction 50/50. Ten year option. Land next surrounded by (no kidding) 5 golf courses.
Lufos is saying to get an Option, which you usually pay a sum for , small is better, to lock in a future price at today's price. Then discount out (sell) your Option to someone for a fee and make your money. Otherwise when the econmy declines, having paid money now for a benefit later (a low purchase price) might not work out. The homes' values will go down in a declining economy, and you will have paid, say $3,000 to buy a $165,000 home for $135,000 in 23 months (great deal), but 23 months later the house is worth $130,000 cause no one's got money and everything is losing value.
SO pay as little as possible for the Option, RECORD it in the Recorder's Office (!), and either sell it or hold on 23 months. Find a buyer willing to pay $165,000 and double close in a Title Company to earn $30,000 cold cash (give the government $8,000 at tax time).
Alternatively, just get a thirty year mortgage (Lufos said juggle since many investors have several loans going simultaneously) and buy at $135,000 now. Ta-Da! Rent and sell.
I believe Lufos is leaning toward gathering funds to buy properties at rock bottom prices in the near future. Options are fine. Pay low.
I actually paid all except $1 dollar on an Option for 5 acres, paying $6,500. It avoided a partnership and the "partners" got their down payment for the other 15 acres. Twenty acres was the take it or leave it offer from kids after a probate settlement. No property taxes yearly for me (the "partners" pay) and I (or my "assigned"
Best to you. Alan
Additionally, with the land Option I mentioned, the land was pledged and agreed to in writing by the Optionor, as collateral for failure to give Specific Performance. In other words, since it's not always possible to convince a seller to complete the Option you paid for when values go way up, the contract must be better written to explicitly show the consequences on non-performance, called Specific Performance, which is what you'd be sueing for in the event of Seller's failure to let you buy the property.
Adding the "property as collateral for performance" statement merely agrees with what partners who need money will say in the beginning, "You can trust us, etc.). Since we can, and for the benefit of clarity, only if you turn away and keep all our option money would this go into effect: we get all twenty acres (or the court may pare it down to 5 acres actually Optioned) and the prevailing party has all legal fees including court and attorney costs reimbursed by the losing party.
Alan
Wendy's stuff is pretty good. Definately buy it an study. While all of the guru stuff has many limitations, it is the most time efficient way to learn.
Brenda