How Can You Sell A Property If You Don't Buy It First (Part 2)
This is continuation to our previous blog post Getting Rich Selling Real Estate You Don't Own
You could become a Real Estate agent/broker and earn commissions for selling, but being a Real Estate agent/broker requires a few courses and a license. It is a full-time job that only pays well when the market is active and rising. It allows you to discover opportunities (bargain deals and partners) to build your own a Real Estate empire – it also requires a lot of work. Nothing wrong with working. But here’s the lazy man’s way to riches in property.
If you aren't a Banker, Appraiser, Lawyer, Insurance Agent, or Tax Collector, and you want to be on the profitable selling side in real estate deals consider using Real Estate Options.
What Is A Real Estate Option?
A Real Estate Option gives you control of a piece of Real Estate without buying it. By having an option on a piece of Real Estate property, you have the exclusive right to either buy that property, or not to buy it. The choice (option) is yours.
It is an exclusive right. That means that no one else can buy or sell that particular Real Estate property during the term of your option. It can be a lot, a house, a condo apartment, a store, factory or warehouse.
During the period of your option, the owner keeps paying all of the inherent costs of the property; taxes, assessments, upkeep & maintenance. He also collects the rent. In many cases, you as a tenant, can get an option to purchase your own rental property from the owner. How?
You ask! “Mr. Landlord, your place is worth about $100,000 would you give me the option to purchase it during my tenancy for $100,000 using any rent I have paid as the down payment?” As often as not, you will get an option. If you ask. In real estate, all such contracts must be in writing. But contract forms are usually free on the internet.
What could be better than controlling Real Estate without buying that real estate? Let the owner keep paying the taxes, maintenance and costs. During the option period you can either sell the property, or sell the option itself, for a profit.
If the seller sells the property to someone else, while you hold this exclusive option, you are entitled to any monies the seller receives over the price you have agreed to pay for the property or if the seller sells the property for less than what he agreed to sell it to you on your option, you are legally entitled to collect the difference from the seller.
Exclusive means exclusive under the law.