|Make Thousands With One Sentence!
Sometimes you can't see the forest for the trees and so maybe your approach in real
estate needs some "outside the box" thinking. Have you ever:
- Not made an offer because you didn't know the total repairs needed on the property.
- Just didn't feel comfortable with your knowledge of property values to make an offer.
- Didn't know 100% for sure if you could close on the deal if your offer is accepted.
What this all means is TRULY we're only limited by our imagination in creative real
estate. So, if you fit any of the above listed items take a more open approach with OPTIONS!
Now, Options are not anything new creative real estate but they may be on the way you
should be using them. One thing I have learned and that was impounded in my head through the school
of hard knocks is now my one motto:
"Am I prepared legally and financially to handle the absolutely worst-case scenario
on this deal if my offer is accepted?"
If the answer to the above posed question is "no" then I either don't do the
deal or change my offer. I only want deals that are no-brainer and can't lose. In fact I would rather
do one great deal, versus ten marginal deals if my "worst-case" scenario would
have a possibility of happening.
So, here we are and to my entire point and teaching that is absolutely necessary for
you I feel to become a truly successful creative real estate investor. You definitely MUST use
Options when they are needed to minimize your risk and those dreaded "worstcase" scenarios
that eventually happen to us all.
There is one sentence you can use in your contract that can turn in ordinary "Offer
To Purchase" into a straight option minimizing your risk:
"Seller grants buyer exclusive 30 day (60,90) option to purchase property at said
price and terms."
If I feel a deal is marginal at best but still think there may be a possible opportunity
then I will use my Option clause on any offer I make. For example I may be concerned about the length
of time it will take me to find a qualified tenant/buyer or if there is enough equity in the property
to wholesale it. In fact for all those wholesaling properties I feel this is an absolute must clause
that you must utilize.
If I can take another section in here that in wholesaling using total Options is
critical. Many of those wholesaling properties simply are cash strapped which means you really have
to utilize Options just like I have outlined here for you since you aren't in a strong financial
position to buy/hold properties.
I'm simply NOT going to get stuck with a deal that doesn't lead me to profits and
cashflow.....and neither should you! If the deal doesn't make total financial sense minimizing your
risks, then put a total limit on your risk with a straight Option on your offer.
Now, don't let your fear and even lack of knowledge limit your ability to make
significant wealth in real estate. Good hunting as luck has absolutely nothing to do with it!
Scott Rister is an author and "real world" investor just like yourself.
Scott started investing in real estate over seven years ago for the sole reason so many do which
is to supplement income and eventually replace the corporate job. After learning first hand what
"down-sizing" in the corporate world means, Scott focused more intently on shifting from
emphasis from buying techniques to finding truly motivated sellers. In less than a year Scott has been
involved with over 60 real estate transactions that ended up with a check with his name on it. You can
learn more about his program at
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