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How to Make Money with Real Estate Options: Low-Cost, Low-Risk, High-Profit Strategies for Controlling Undervalued Property...Without the Burdens of Ownership! »

Book cover image of How to Make Money with Real Estate Options: Low-Cost, Low-Risk, High-Profit Strategies for Controlling Undervalued Property...Without the Burdens of Ownership! by Thomas Lucier

Authors: Thomas Lucier
ISBN-13: 9780471692768, ISBN-10: 047169276X
Format: Paperback
Publisher: Wiley, John & Sons, Incorporated
Date Published: February 2005
Edition: (Non-applicable)

Author Biography: Thomas Lucier

THOMAS J. LUCIER is the President and CEO of Home Equities Corp., a privately held Florida corporation established in 1995 that specializes in the purchase, fast turnaround, and resale of small residential rental properties in the Tampa Bay area.

Book Synopsis

Spend like a miser, profit like a mogul

Who says you have to spend money to make money?Savvy real estate investors follow the examples of Donald Trump and Walt Disney, turning substantial profits on properties without incurring the debt, risk, and maintenance costs of ownership—and now, so can you!

In How to Make Money with Real Estate Options, real estate expert Thomas Lucier introduces you to the low-risk, high-yield investment vehicle that can earn big bucks even for small investors. Lucier explains what real estate options are, how they work, and why they are the tools of choice for thousands of successful investors. Step by step, he shows you how to:
* Locate potential option properties using the Internet, want ads, and "bird-dogs"
* Contact and negotiate with property owners
* Perform due diligence and avoid options pitfalls
* Prepare an option agreement that protects you
* Insure real estate options with title insurance
* Package and sell optioned properties for optimum profits

Packed with no-nonsense advice on how to identify the most profitable properties and manage every step of the option process, How to Make Money with Real Estate Options is a practical guide to one of the secret weapons of savvy investors.

	List of Downloadable Forms	xiii
	Introduction: Real Estate Options: What They Are, How They Work, and Why You Should Use Them	xv
	What you need to know about real estate options
	The difference between a straight real estate option and a lease-option
	The seven key elements of a real estate option transaction
	How a real estate option transaction works
	Why you should add real estate options to your repertoire of strategies
	Twenty-four good reasons to buy options instead of properties
Part I	How You Can Make Money in Real Estate Today Without Ever Buying any Property
Chapter 1	Why Real Estate Options Are Less Risky, More Profitable, and Easier to Use Than Most Property-Flipping Strategies Being Taught Today	3
	Why most property-flipping transactions are under intense scrutiny
	Five obstacles that investors must overcome when flipping properties
	Six costs that eat up profits when flipping properties
	Why the concurrent closing strategy is usually extremely hard to implement
	Why it makes more financial sense to flip options instead of properties
	How savvy investors can use real estate options to provide just-in-time property
Chapter 2	The Most Profitable Types of Properties to Buy Real Estate Options On	10
	Why you must be able to visualize a property being put to a variety of other uses
	The seven most profitable types of properties to buy options on
	Why it's best to specialize in at least two different types of option properties
	How I turned a $500 option into a $15,000 profit in less than 30 days
Chapter 3	What It Takes to Be a Profitable Real Estate Option Investor	21
	Why a positive mental attitude is the most essential element in achieving success
	Twenty reasons most people fail to make it as real estate investors
	Why you must use today's technology in your option investment business
	How to set up a home office for your option investment business
	Why you shouldn't form a separate business entity before you do any deals
Part II	Five Realistic Strategies That You Can Use to Make Money with Real Estate Options Today
Chapter 4	How You Can Use Options to Make Money from Obsolescent Properties That Can Be Put to More Profitable Uses	33
	Why properties with curable obsolescent flaws make ideal option properties
	The three types of obsolescent flaws that cause properties to lose value
	How obsolescent properties can be put to their most profitable use
	Why option investors are usually buyers of last resort for obsolescent property
	What you should check for when you come across an obsolescent property
	Why you must be able to think outside your local real estate market
Chapter 5	How to Use the Lease and Option Strategy to Make Money with Single-Family Houses	41
	Why most of the lease and option strategies being taught today are not profitable
	How a lease and option transaction works
	Why you must always use separate lease and real estate option agreements
	Six key terms that must be negotiated in all lease and option agreements
	The best type of house to use the lease and option strategy on
	The property owners who are most likely to agree to a lease and option deal
	Memorandum of Lease Agreement
Chapter 6	How You Can Use Options to Profit from Properties with Correctable Problems	52
	Six main conditions that cause property problems
	Why government agencies can be an excellent source of problem property leads
	The two types of problem property owners you are most likely to encounter
	Three types of problem properties that scare off most conventional investors
	Why properties with problems that require specialized knowledge to solve are the most profitable
Chapter 7	How to Use Options to Control Properties That Can Be Rezoned for More Profitable Uses	59
	How the rezoning process works in most jurisdictions
	What you must include in your rezoning application package
	Why you must know who the anti-rezoning zealots are in your area
	How to quickly determine if a potential option property can be rezoned
	Why it's best to take the path of least resistance when applying for rezoning approval
	What you need to do when buying an option on a property you want rezoned
Chapter 8	How You Can Use the LASH Strategy to Profit from Long-Term, Flat-Rate Master Leases and Real Estate Options	66
	How the LASH strategy works
	Where to find valid lease agreements
	Twenty key provisions that must be included in your master lease agreement
	Three ways to best protect your position as master lessee
	Four key points that must be negotiated in a master lease
	Why tenant selection is the most important aspect of the rental property business
Part III	A 12-Step Process for Buying and Reselling Real Estate Options
Chapter 9	How to Use the Internet, Property Wanted Ads, Bird Dogs, Finder's Fees, and Direct Mail to Locate Properties to Put under Option	81
	The most important advice in this entire chapter
	How to locate all of the out-of-town property owners in your county
	How to use a property wanted web page to search for properties online
	How to use classified property wanted ads to find potential option properties
	Fourteen questions to ask owners calling about your property wanted ads
	How to use bird dogs to find potential option properties that are not advertised
	Downloadable Letter to Vacant Property Owners
Chapter 10	How to Perform Due Diligence on a Potential Option Property	95
	How to use the Internet to perform due diligence research on properties
	Why you should do a Google search of the property owner's name
	Where to find the names of all the property owners in your county
	Where to search for property records online
	What to do when your county's property records are not available online
	How to locate the owners of vacant properties
	What you must doublecheck on every potential option property
	Ten questions you must ask owners before you ever buy a real estate option
Chapter 11	How to Thoroughly Inspect a Property before You Buy an Option to Purchase	112
	How to locate a competent building inspector
	How to conduct a thorough property inspection
	How to inspect suspicious properties for environmental contamination
	Why you must be on the lookout for indoor mold when inspecting properties
	Thirteen Property Inspection Checklists
Chapter 12	How to Accurately Estimate a Property's Current Market Value	131
	The difference between a property's assessed value and its appraised value
	The three common methods used by appraisers to estimate property values
	How to calculate a property's capitalization rate
	How to use gross rent multipliers to estimate an income property's value
	Property Appraisal Report Checklist
	Monthly Income and Expense Analysis Worksheet
	Property Fix-Up Cost Estimate Worksheet
	Estoppel Letter to Lenders
	Current Market Value Worksheet
Chapter 13	How to Negotiate Low-Cost Options and Below-Market Purchase Prices with Property Owners	145
	Six basic rules to follow when negotiating with property owners
	Thirteen crucial terms that must be negotiated in every option agreement
	Five negotiating tools that you can use to obtain lower prices and better terms
	Five FAQs property owners often pose when negotiating real estate options
	Why you must negotiate a fixed purchase price at the time you buy the option
	What to do when a property owner rejects your initial offer to buy an option
Chapter 14	How to Prepare Your Option Agreement So That You Are Fully Protected during the Option Period	157
	The three essential elements of a real estate option agreement
	Nineteen clauses that must be included in your option agreement
	Why you should hire an experienced, board-certified real estate attorney in good standing to prepare your option agreement
	How to find a board-certified real estate attorney in your area
	Why all real estate agreements must be properly witnessed
	Real Estate Option Agreement
Chapter 15	How to Use Title Insurance to Insure Real Estate Options	166
	Why most title insurers consider real estate options to be risky
	What a standard real estate option endorsement doesn't insure
	What title insurers look for in a real estate option agreement
	Three factors I always consider before insuring an option
	Letter to Title Insurers
Chapter 16	Why All Property Title Transfer Documents Must Be Held in Escrow during the Option Period	173
	Four documents that must be signed by the optionor and held in escrow during the option period
	Why a signed warranty or grant deed is better than a performance mortgage
	Why you should record a memorandum of real estate option agreement
Chapter 17	How to Close on the Purchase of a Real Estate Option	177
	What to do if the optionor refuses to sign all of the documents at the closing
	Why it's best to use a board-certified real estate attorney to close transactions
	Joint Escrow Instructions
	Memorandum of Real Estate Option Agreement
Chapter 18	How to Clean Up a Property under Option to Maximize Its Curb Appeal and Resale Value	184
	How to complete a fast property cleanup on schedule and within budget
	How to clean up and secure a vacant property under option
	How to find competent professionals to clean up your properties
	How to avoid being ripped off by unscrupulous cleaning contractors
	What you need to know about your state's construction lien law
	Cleanup Cost Worksheet
Chapter 19	How to Package, Market, and Resell Your Real Estate Options for Maximum Profit	192
	How to calculate the resale price for a real estate option
	How to package properties to fully highlight their best features and future potential
	How to overcome the "fear-factor" that some prospective buyers may have
	The five best methods to market properties that you own real estate options on
	How to use the Internet to market your properties globally
	How to sell your real estate option agreements
	How income from the sale of real estate options is treated for tax purposes
	Assignment of Real Estate Option Agreement
	Notice of Assignment of Real Estate Option Agreement
Chapter 20	How to Exercise Your Option and Buy the Property	205
	How to exercise your real estate option
	How to purchase a property under option
	Fourteen key provisions that must be included in your purchase agreement
	Three contingency clauses that must be included in your purchase agreement
	What you need to know about the Real Estate Settlement Procedures Act
	Four things that must be done in conjunction with the closing
	Exercise of Real Estate Option Notification Letter
	Real Estate Purchase Agreement
	Buyer's Closing Checklist
	Resources	216
	About the Author	221
	Index	223