Buy Me Please! I'm on Sale Seriously. I'm Valued at ONLY K550 Million. Highly Negotiable!
In my previous blog post, I discussed how You - The Buyer - may purchase real property using very little or none of your own money at all using certain little known secret techniques or strategies.
However, in today's blog post, I thought I should share with you ONLY one of these little known secret techniques as a "Dyonko" or "Sample" to enable you see how these strategies may benefit you in your own real estate investment efforts if and when you decide to apply them as well as consider signing up for the entire E-Course Training Series if you haven't yet done so that is.
The One Technique I wish to share with you today is This -> : Using OPTIONS As A Way To Help YOU Buy Real Estate Affordably!
Now, the question you may be asking yourself right now is, "What Really Is Mean't By The Term 'OPTIONS' As Used In Real Estate Investing And How May You Use And Apply This In Your OWN Real Life Situations?"
Well, dear prospective real estate investor, Options are a special form and group of creative finance strategies or techniques used in the world of real estate investing to enable you - the buyer - have CONTROL of a piece of real property using ONLY very little money down or indeed any other form of consideration such as personal goods like cars for instance, even though PROPER OWNERSHIP of the said piece of property may be months and years away if ever! Note the language used here ; it is about gaining CONTROL and NOT OWNERSHIP for the time being whilst you work your way around to gain Complete PROPER OWNERSHIP of the said property in question within an agreed upon time frame with the seller.
The rationale behind all this is simple. It is simply this : You - the purchaser - buying the option gives the seller a certain SMALL amount of money or indeed any other form of consideration as earlier on alluded to in one of the paragraphs above in exchange for the RIGHT to buy the seller's property at an agreed preset given price within a defined and desired time frame.
BUT, WHAT THEN DO YOU STAND TO BENEFIT AS A BUYER FROM SUCH AN ARRANGEMENT?
Well, dear real estate investor, you as a buyer stands to benefit by locking in the price in advance inspite of appreciation and taking control of the seller's property without putting in a gargantuan cash investment outlay or indeed any other huge form of consideration. This therefore gives you enough breathing space to organize yourself and arrange for more funds from other reasonable sources.
There are about Five (5) distinct variations of the Option Strategy you may use as a buyer and/or seller of real estate.
As a "Dyonko" or "Sample", here is just one of these variations for your personal consumption and eventual assimilation. Read below.
THE LEASE OPTION STRATEGY
The lease option strategy is one of the most common and frequently used Option Strategies used by many shrewd real estate investors - both buyers and sellers - respectively! Buyers who don't have enough funds and sellers who happen to be in great urgent NEED of Cash can use and apply this same strategy in their endeavors.
BUT, HOW DOES THIS STRATEGY OPERATE IN ACTION?
Well, this strategy can be applied by buyers who don't have enough cash or equity. It is a strategy that entails using whatever available equity or consideration one might have at his or her disposal as Option Money whilst at the same time settling for purchase of the said piece of property later on when enough funds have been organized from other sources. If you happen to strike a good deal, the seller may give you complete CONTROL of his property as consideration for your commitment thereby allowing you to earn a little extra income through a Sub-Lease Arrangement. And this extra income you earn through a sub-lease arrangement can be saved and added on top of any other funds you organize to help you finish paying for the property in question within an agreed time frame!
For instance, if you work in a stable company or rather if you own and run your own business and happen to receive a regular and steady flow of income, you may use the Real Estate Purchase Agreement or Contract to enable you source for more funds from either your employers, banks or indeed any other valid and reasonable source of funds to help you finish paying for the said piece of property in question and close the deal within the agreed upon time period.
BUT, WHAT IF YOU'RE A SELLER, HOW DO YOU BENEFIT?
Well, if you happen to be a seller, you benefit by first of all retaining the property as your own until such a time the buyer finishes paying for it. Secondly, you benefit by retaining the tax advantages associated with property ownership whilst at the same time locking in the sale in advance at an agreed and acceptable preset price and thirdly and finally, you benefit by getting the Option Money or indeed any other form of consideration should the buyer decide to back out of the deal.
Therefore, the Option is a very powerful strategy indeed that both buyers and sellers can use should they find themselves in serious liquidity problems when it comes to buying and selling of real property!
For example, I know and I've read of a number of real people that have successfully used this very same technique in their own real life situations to acquire real estate property. And their is nothing standing in your way if you wish to apply this same strategy in your own real estate transactions except yourself.
You could therefore use it right this very moment to help you buy the property of your dreams!
So, the next time you find the property of your liking, try to entice the seller to enter into a "Rent To Own Agreement" with you and see what happens. Remember that this is but just one of the many other strategies you could employ in your asernal of techniques.
And therefore, if you haven't yet signed up for the entire E-Course Training Series on how to buy real estate using very little or none of your own money at all, then do so -> HERE now. You'll be glad that you did!
NOTE : Looking for property to Buy, Sell, or simply to Rent, then please click on the highlighted words right in this very sentence.
So, until next time, stay blessed.
I love to hear your comments. Both positive and negative ones are all welcome. So, go right ahead and drop a comment below.
