Don’t have a lot of cash to work with? Not sure about a property’s value? Real Estate Options might be just the technique you’re looking for. While there are many creative real estate investing techniques you can employ, options are one to keep in your tool kit! Options give you control with out ownership and can be a powerful money making technique. I love them because they provide me safety, an opportunity to help the seller and a handsome profit.
An option allows us to purchase a set of rights including purchase price, time to close, and terms of the sale. Once you have the option you have two choices; close on the property or simply sell your rights in the option for an immediate profit. That’s right you can sell your option to another party (as long as it isn’t a non-assignable option). Imagine no payments, no holding costs, no maintenance or insurance costs and yet you can still choose to profit even before you close. The key with options is control without ownership.
Check out my other post about lease purchasing homes.