The option contract is fast becoming one of the best ways investors are using to mitigate their risks during a trendy economic cycle.  With home values being in constant flux, it is prudent to utilize caution and the proper investment vehicles to obtain wealth.

A real estate option contract is unilateral.  Meaning, only one side has the legal obligation to perform.  It allows buyer to aquire the rights to a property, that they can decide to sell, rent, bring in partners, etc, all within a given time frame.

I’ve heard it said that an equitable interest is created by the signing of the option contract.  This is technically not correct.  The equitable interest doesn’t really start until the signing of the purchase and sale agreement is finalized.  At that point, a true legal equitable interest exists.  However, yes, in the case of an Option Contract, you do have a LOT of resources available that othewise were not there.

More on Options to come…

Your friend and mentor,

Brandon

Here you go Anthony…though you are already on your way. Enjoy.

PS. Sorry no deer for you on this one.  We’ll try to get you one next time. 
Brandon

As you may be aware, once somebody has a purchase and sales agreement signed, they have an equitable interest in a property, UNLIKE a straight option agreement.  A straight option contract is not an executory contract (meaning a contract where both parties have an obligation to perform in the future).   Rather, a straight option does convert to being an equitable interest, the moment the option is EXERCISED, and a sales agreement is signed.  There, now that all that garbage is out in the air.  What in the world does this have to do with you ????

Read the article from the Pennsylvania Association of Realtors:  Full link to this article from PAR is at the bottom of this post.

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Best of the hotline: Marketing

an equitable interest

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So, What in the World do I have to Think about this ?

First, it’s awesome that PAR has recently brought this up, because I’ve been thinking about this exact thing when buying Bank REO’s. 

You know, sometimes I’m a little opinionated….OK…Yeah, I might get on your nerves because sometimes I just tend to tell you exactly how I’m feeling.  When they say about getting the owner’s permission to advertise a property.  I really think the rules were being setup for real estate agents themselves to make sure they have the permission of owners to advertise a property first.  Not just taking it upon their own beliefs and listing properties for sale.  You know..make sure all your papers are signed off, i’s are dotted, t’s are crossed.  I really doubt if they even had this in mind. 

Here’s my gig.  Would I mind if the seller’s knew I was relisting their house I have under contract ?  No.  Would I want to be required to have their permission?  NO.  It is really none of their business.

Next point.  Could the original sale fall through for one reason or another ?  Sure.  Title flaws happen every day.  As long as the sales contract on the back end is clearly alerting the new buyer to the fact that their receipt of clear title is contingent upon this intermediate buyer receiving clear title….besides.  It would also show up on the seller’s disclosure statement in a couple places:

1) Owner’s Name

2) Other things that may prevent title from transferring section.

yes, agreed that for a “standard” buyer, regarding loan commit dates, etc those are important things.  However, for a buyer showing up at the door with cash/proof of funds letter….different story.

Overall, Jim.  Thanks for the article!  I enjoyed the read this afternoon and am looking forward to learning more ways to be a capitalist in an “ever-increasingly socialistic” society.

Brandon

http://www.parjustlisted.com/archives/2029

First quarter of 2009, Brad Wozny began revealing to the real estate investing community, a brand new strategiey for real estate investors.  His method has proven successful in the boom years fo the housing climate, as well as throughout the economic crisis.  His method begins with a concept named six figure syndication.

Syndication involves the process of different people or companies working together to harvest mutual benefits where all involved prosper.  Many people are better at items than others.  Syndication involves utilizing ones positive traits and combing them into a formidable foe.

Six Figure Syndication takes your traits and focuses on your strengths.  Some people are fantastic at creating deals.  Some investors have a ton of cash, but are not good at finding profitable opportunities.  Many investors are fantastic at attracting quality buyers, and already have a ton of buyer’s in their funnel for available deals that need to be capitalized on.  Other investors yet, are experts at all three and have the opportunity to choose which part of the system they can achieve maximum benefits.

Six Figure Syndication allows you, the investor, to make a profit in a real estate transaction whether you have cash, or no money sitting in your bank account.  That is the absolutely sweet part of the whole plan.

Being able to utilize the power of the internet has changed the field position.  From marketing to finding deals, to informing the world of your golden opportunities available for purchase, it has changed the real estate investing game.

In summary, six figure syndication has brought something new to the real estate investing game.  Now, only for a short time period, Brad is opening the flood gates to allow investors to learn how to do the same thing he did.  Brad’s Eight Figure Empire is a proven, fast paced, action oriented training regimen for investors surge forward in these trying times.

Stop grabbing at the air, and get syndicating to make monster paychecks in your town.  You will be shocked to find how many investors near you that can work in a collaborative manner to decimate your competition.

Instant Investor Cash Cycle (my review page is hyperlinked) has some incredible free reports and videos that you have got to check out.  The Billionaire Boy is pretty cool. 

Real Quick…it’s about Nate.  Nate has figured out how to go from riches to rags and back to riches again….and he is showing you how to do it in today’s economy.

So…Check it out by Clicking Here.

I remember when I first started real estate investing…  I was learning about No Money Down/Buying Owner Financed Homes, Buying Preforeclosures, Flipping Properties, etc.  I sucked up every bit of information I could get my hands on.

As of this time, I have been to Steve’s Bootcamps, have his Business in A Box course, have his Wholesaling for Quick Cash Course, and his Rehabbing for Big Bucks course.

Here is an Overview of what is included in the Wholesaling for Quick Cash Course:

The introduction talks a little about Steve’s background in the restaurant business.  Right off the bat, we also learn something else.  Everybody is human, and human’s make mistakes.  Steve made his share and manged to jump right back onto the wagon.

Ethics and Morals

Well, we start off with some Ethics and Morals.  I know…sounds a little hub-drub, and it probably is.  But you know, after being in the game this long…I realize that everyone starts out looking to make a buck or two, but you ultimately need to be able to do it without selling out your soul.  That’s where many fail.  Steve nips it in the bud right here.

Advantages/Disadvantages for Wholesaling

One advantage that is obviously discussed:  how fast you can make some money.  He also discusses the evolution of being simply a wholesaler, to an investor.

How to Get Started:

Steve mentions right off the bat a Bible verse: Proverbs 14:23.  All hard work brings a profit, but mere talk leads only to poverty. 

I can’t tell you how often that has been the case in my life.  Don’t talk.  Just do it. 

Steve discusses whether you may want to start out as a Birddogger instead of a wholesaler first (he did !).  Then he moves into analyzing neighborhoods.   Frankly people, this is where I find many investors getting it wrong.  I’m telling you, a lot of hoods look like great cashflow generating commodities, and then you realize…whoops…I was wrong a couple months or years down the road.  Even to this day, if I’m buying a property to use a  rental property, it is still going to be at least a zone 3/4 property.  (Don’t know what this is ?  Get the course.)

Building Your Team and Working With Agents

Steve tells you who you need to have on your team, how to get them, and how to work with them for maximum profitability. 

Private Lenders

Steve talks both about Hard Money Lender’s and why they can be the wholesaler’s best friend.  (You need them in your corner to cash out your buyers).  He tells you step by step how to do this.

Settlement Companies/Attorneys

- Not all attorneys are created equal

- Expecting service-what happens

- Pricing

Ahhh…then we start getting into the nitty gritty (if that wasn’t enough).

Repair Costs/Estimating

Let me see, if Steve saves you a fraction of your repair costs, it will be worth the cost of this course. 

Reminds me: I don’t have my financial calculator with me, but I can attribute over $50,000 of net profits to this one course.  ROI…??  Don’t know…but it sure beats stocks!

Locating Opportunities

Estimating Values

Estimating Repairs

Making Offers

Getting it to Closing

Building a Buyers List:  PS: For the best service on Building a Buyers List, Click Here for FREE Trial.

Assigning the Deal and Making Non Assignable Contracts Assignable.  How do you do that ?

I hope you enjoyed this review.

The course is thorough, complete, and has made many people in this country a handsome return.  I’ll have my review on steve’s rehabbing course done next week.  (It’s my personal favorite

Brandon

Update on my Miller Street Home Flip…well, it’s still under contract.  I know..taking a long time and I’m not having a good feeling these people are going to get funded.   I am going to start marketing to get some back up offers on it and go from there.

I’m supposed to know for sure by next Wed..let’s hope!

Brandon

None.

Learn how to build your own list by learning how to research this information on your own.  It’s not hard and most counties are online now these days.  You really need to learn how to research your own titles to properties.  Why ? Because then you get to be first for your deals.  You can cherry pick what you want to go after. 

You know in your heart, that the true sweet deals, have probably been “removed” from that list anyway.

Matter of fact, what I do is pay somebody how to do it online.  I learned how to do it on my own.  Then, I taught them, and they do it now for me.  No, they don’t know really what that person is, or how to work the deal.  But I do.

I’ll try to put together a little guidebook/video product explaining how to research titles to properties over the next week.

Happy Investing!

Brandon

Ahhh…Finally.  Another marathon weekend of putting things together…but I have the finding vacant homeowners guidebook wrapped up with a new payment processor, affiliate company, etc. Yadda…yadda yadda.

Anyway, if you want to check it out, click the link below:

Finding Vacant Homeowners

More on this soon, but I wanted to at least get the product up and running.

Brandon