The Special Sweat Option

For those of you who have fix-up abilities, and access to just a small amount of cash, this could be your ticket to multiplying your wealth quickly and virtually without any risk.

This strategy is incredibly powerful for generating real estate profits. Please note, however, that while this technique does not require any credit, it may require an investment of from $100 to two or three thousand dollars (some of our techniques do not require any cash or credit). But the return on investment can be phenomenal, and can build your net worth incredibly fast. Even after taxes, your investment can more than quintuple (x5) in just one year!

Note also that our program explains everything in much greater detail than found here.

The basic structure is in the form of an option. An option is simply an agreement between you and the seller that gives you the exclusive right to buy the property during a specified time period, but does not obligate you to buy it. It is your choice. (Copies of the actual option agreements are included in the program.)

But this is no ordinary option.

Up until now, the problem with options has been in getting a seller to accept one - most sellers do not want to take their property off the market until it actually sells. Our investor group has overcome this hurdle by inserting a “kick-out” clause, which allows the seller to continue trying to sell his property if you do not exercise your option in a reasonable amount of time. If another qualified buyer comes along and makes a legitimate offer,the seller then notifies you of the offer, and you would then either commit to closing on the option within 45 days, or forfeit the option. In the event you are called upon to close early or forfeit, you could always choose to forfeit and simply walk away.

Here’s how it works (terms may vary):

Seller owns a $150,000 home which is, for the moment, vacant - he has already moved out, or it was a rental. The home needs a bit of work, and you estimate that about $3000 and some hard work can increase market value to $165,000. Since the seller has nothing to lose, and everything to gain by accepting your one year option offer, you negotiate a purchase price of $145,000, and your consideration for the option (required to be legal) would simply be that you would do "X" dollars worth of repairs to the property during the option period (forfeited if you do not buy, so keep this amount as small as possible). Bear in mind that "X" dollars worth of repairs does not have to be materials costs - it can just as easily be your labor, or a combination of the two.

You immediately go in and do the necessary repairs - usually completed in about a month - and immediately place it up for resale at its new, higher value of $165K. You can list the property for sale because your option provides you with what the law calls "equitable interest". When you find a qualified buyer, you simply exercise your option  with the seller and resell to your buyer all at the same closing. This is known as a double escrow or simultaneous closing (explained in detail in the program). You do not need any money - at closing, your buyer and his bank put up $165,000. From this, the escrow officer pays off your seller - $145,000. That leaves you $20,000. After subtracting the $3000 you invested, your profit is $17,000 - nearly 6 times your investment. Don't worry about the details of closing - the escrow agent (closing officer) does everything. The ONLY thing you have to do is 1) get the option agreement, 2) effect repairs and 3) find a new buyer. It really is that simple. The entire deal may take 2-6 months. Depending on property values in your area and other factors, the profits will normally be at least 20% of the value of the refurbished property.

In the example above, you now have $20,000 - enough cash to do this same thing at least 6 more times. If you make roughly the same net per transaction, you convert that $20,000 into $120,000 within the next six months or so.

You may notice that the author’s specially designed option agreement (included in the program) includes a clause that “quietly” states that, except for a few minor costs, the seller pays virtually all closing costs, which keeps your profits high, and makes it easier for you to sell the place (you can pass those savings on to your buyer). Of the closing costs not paid by the seller, the rest will be paid by YOUR buyer. The agreement also includes full right of possession, which means you could live there, if you need to, during the option period - or sublet it while you try to find a buyer. Furthermore, if your seller finds a buyer before you do, and you are not ready to close, then you are not obligated to complete the agreed upon repairs. Better yet, the “kick-out” clause provides you with a four month exclusive option - the seller cannot offer his property to another buyer for the first four months (this can be changed to three, etc., if seller balks). Seller’s biggest objection will be taking his property off the market. You can overcome this objection by telling him if a buyer comes along, the buyer can still buy it - from you. You would exercise your option using the double escrow, so the seller does not miss out on any sale. In fact, because the property has been fixed by you, it is even more likely to sell more quickly. The seller simply cannot lose, no matter what. And you stand to make huge profits.

Now, at first we worried that once the "exclusive" period of our option was over, the seller would find a buyer before we could. But we found that we needn't worry about that, because of a little thing called human nature. Look, if you were that seller, would you do the work of trying to sell the place when you already have someone doing that for you ( you, the person with the option)? And would you pay a Realtor commission when you already have someone working hard to sell the place for you, at no cost to you? Of course not. You know that the person with the option will work harder than any Realtor to sell the place, because he will not make a profit until he does. So, the seller just sits back, watches his cable TV and lets you do his work for him. So, it is easy to see that the seller will not find a buyer before you do.

As simple as this strategy is, it becomes even simpler when 1) you have the rest of the program to clear up details on double escrows, options, closing etc, 2) you have the actual agreements used, and 3) you have free access to a mentor, if needed.

This strategy is powerful, and relatively simple. And as good as it is, it is merely the one we GIVE AWAY! Imagine what the entire program holds in store for you...

Home

Further info on option and related to seller
Secure FTPS on the planet Go FTP FREE