I decided to take a 90 day option with assignability for my price of which was agreed to

How to Make $20,000 and Never See the Property…

Hey, I guess that we all have our weak moments of being careless and foolish. Well…when you understand, you may think different later as I did?

I have been buying and selling real estate for many years. I have bought and sold it just about any imaginable way, and more.

One of my favorite ways to transact is to use options and assignments. It is indeed the most powerful way on earth to control real estate. When asked of most people, how do you control real estate? The extreme high majority says that you have to spend money and buy it.

That is true for the most part if you want to own it. However, suppose you recognize a super real estate deal now that has wonderful potential, but you do not have the money or the ability to finance it now. If you wanted to put it on "layaway" till later how would you go about that?

If too many others see you "kicking the tires" they may come to also realize the potential and buy it before you can and are able to. Then I guess that you out of luck?

The best way by far is to "tie up" the property with the use of an option. This allows you to have exclusive right to buy for a set price for a period of time. This now allows you time to perform your "due diligence" process and make a final determination if what you want to do may indeed work for you?

Many sellers may require some type of non-refundable option monies to be put down to secure this right. I am okay with this, except, I want to put down a maximum of $100 that is refundable. That way, I am able to do lots of options without much to any risk. 

After I have done my homework, due diligence and or tested the waters, I am now ready to make a decision. I can say no, get my deposit and walk away. I can secure a type of financing and move ahead with the purchase. I can agree to extend the time of my option, or I can do my all time favorite.

What I like to do best is to assign my interests to another buyer for more than my option to purchase, of which is an option fee. Why on earth would I do that? Suppose that I know there is value that I can prove, but cannot get financing that is acceptable, and or the margin after improvement is there, but less that my acceptable criteria.

I would then remarket the property highlighting the true improved value to another. If the new buyer agreed as such for my price, he would pay me the difference between my selling and my buying price and I would assign over my option interests in the property.

With all that said, I got a lead that a certain piece of real estate was for sale and no interest. It had been for sale for a while, reduced in price and marketed poorly. I was familiar with the area, but not the exact property.

I knew it had some potential, but not sure how much? I decided to take a 90 day option with assignability for my price of which was agreed to. I mailed out the option agreement and it was signed and returned. I had a friend that lived near there install a small for sale sign visible from the street.

A few days later I get a call of inquiry. Someone else had been thinking about making an offer, but just kept thinking about it and did not take any action. He seemed to know the property very well and asked what the selling price was?

We "haggled" for a few days and came to an agreement. I sent him the paperwork and he signed it and sent back a check for $20,000. That works for me. I never did get to see that property. But that's okay… some things are better not to be seen.

To learn more about the power of options and assignments, please visit my website today. Thank you…