How to Clean Up a Property under Option

admin — Tue, 29 Dec 2009 12:26:10 +0000

It always amazes me how a professionally applied industrial-strength cleaning can dramatically improve any property ’s appearance.

So it’s necessary to always include a clause in your option agreement that gives you the right to enter and clean the property during the option period. You must give a property under option an old-fashioned industrial-strength cleaning to make the property more visible and accessible to prospective buyers passing by and keep vandals, arsonists, homeless squatters, and drug addicts from gaining easy access to the property.At the same time you can also maximize the property ’s curb appeal and increase the property ’s resale value.

Don’t confuse an industrial cleaning with an extreme property makeover. There is a world of difference between giving a property an industrial-strength cleaning and doing an extreme makeover like the ones shown on TV, where they take a building apart and put it back together. An industrial-strength cleaning is nothing more than a very thorough cleaning, which dramatically improves a property ’s curb appeal by:1. Removing all of the trash from the building and grounds.2. Putting the building and grounds in a broom- and rake-clean condition.3. Cutting and removing all of the overgrown brush, grass, and weeds from the grounds.4. Trimming shrubs and trees.5. Pressure washing all exterior walls to remove grime, mildew, mold, graffiti, and peeling paint.6. Pressure washing concrete walkways to remove grime, mold, grease, and oil.

Whatever you do, please do not do like a rookie option investor in Dallas,Texas, who got carried away during a property cleanup and had new carpet installed in a house he had under a three-month option.

Finally,once a property is put under option, time is money and you cannot afford to dilly-dally around with the cleanup. And the trick to completing a fast property cleanup on schedule and within budget is in knowing how to develop a cleanup plan based on the property ’s appearance and information that was derived about the property ’s physical condition during your pre-buy inspection of the property.Then, calculate a budget by using a bottom-line mentality.

Lease Options : A Great Way To Make Money In Real Estate

admin — Fri, 18 Dec 2009 13:23:13 +0000

For all of you aspiring real estate entrepreneurs and investors who want to make money in the real estate game Lease Options and Options are great way to accomplish this with little money or no credit. Let’s examine the beauty of making money in real estate using this creative way.
Lease Options and Options. Lease options are a great way to take control of a property without owning it. In a lease option scenario you would take control of the property by leasing it from the owner with the option to buy it.
When you lease the property from the owner of course “subject to” their existing mortgage you must have in your lease agreement the right to sublease to a tenant buyer. Buying a property “subject to” the current mortgage loan it simply means that you don’t get new financing, you would just leave the existing loan in place and take over the payments.
Once you have made a “subject to agreement” with the seller you would then sublease it to your tenant buyer. When you sublease to a tenant buyer, the difference between the payment on the mortgage and the rent that you would collect from your tenant buyer would be your “spread” or the monthly cash flow that you would receive.
In addition, to this fabulous arrangement you would also make money when that tenant buyer has paid you a non-refundable deposit to move into the house. The deposit would go right in your pocket. Sounds pretty good doesn’t it?
This non-refundable deposit would be applied as a down payment for them on the house and subtracted from their purchase price. Furthermore, you make money on the back end when that tenant buyer finally gets financing and buys the house from you.
When the house is bought by the tenant/buyer the owner’s loan balance is paid off and if they had any equity and they were willing to leave some on the table, your back end profit would derived from that.
Your back end profits would be the difference between the price that you optioned to buy the house for from the owner and the purchase price that you gave to that tenant buyer. Sound easy doesn’t it? Well, in reality it is.
Let’s move on to examine a straight option. In a straight option you would simply get an option to buy a property at a specific ideal price. An ideal price would be a price that would allow you to make a substantial profit when you’ve have sold the property.
For example, a house by the lake is appraised at $700,000 and has been on the market for a while and the owner is willing to sacrifice some equity to get rid of it.
You’ve negotiated with the seller to get an option to buy the house for $600,000 and you then turn around and sell that option to a buyer for $650,000 .You just made $50,000 and everyone benefits from your efforts. The seller sold a house they had trouble selling and the buyer of your option and the house instantly gets $50,000 of equity from the house and of course you made your $50,000.
In conclusion, as you can clearly see using the Lease Option and Option methods are creative ways that A Real Estate Investor or Entrepreneur can use to easily make money in real estate.

Derivatives Options » Real Estate

How to Clean Up a Property under Option

Lease Options : A Great Way To Make Money In Real Estate