Over the past three weeks, we've shared three Pure Option Deals with you.
With the first deal, we acquired a Pure Option from a homeowner who didn't want to sell his home. Because we agreed to pay the owner's property taxes, which allowed the owner to keep his home, he granted us the right to buy his house at some point in the future at a pre-agreed to price and
terms.
In the second deal, you saw how I lost $217,300 because I didn't use a Pure Option when creatively constructing the deal. By the way, you can watch the video story about this property on our website. https://billandkimcook.com
The third deal showed how we've made ~ thus far ~ $155,000 because we did include a Pure Option in our deal structure.
Now, let's look at an option deal with which most real estate investors are familiar ~ a lease Option Deal......but with an Owner Financed kicker!
In February 2017, we bought a home on Reynold's Bridge Road in Kingston, Georgia. Our purchase price was $43,500. With the cost of rehab, we had about $55,000 invested in this property.
After rehab, the fair market value for this property was about $115,000. At first, we considered selling (flipping) the property and pocketing the cash. As we all know, flipping incurs huge tax consequences.
To avoid this tax hit, Kim and I switched to a different deal structure: a Lease with a Purchase Option. In addition, we would agree to owner finance the property to the tenant/buyer if, for 12 months, they proved they would take care of the property, make their rent payments on time, be easy to work with, and be a good
neighbor.
Because Reynold's Bridge Road would start life as a rental, and if it remained a rental for at least 12 months, the property, in the IRS's eyes, would be an investment property rather than a dealer property. This means this property would qualify for long-term capital gains tax treatment, 1031 tax treatment, and installment sale tax
treatment. In other words, we would keep more of what we earned instead of having the government steal a big chunk of that away.
In May 2017, we rented the property to a very nice couple. Monthly rent was $1,120 per month. At the same time, we gave them an Option to buy the property for $140,000 thirteen months later. We also agreed to Owner Finance the property to them, if the tenants were in good standing and did what they promised. In
other words, we'd be the bank.
The owner financing terms were $10,000 down with monthly payments of $925 (PI only), at 7.679% for 30 years.
In 2018, this nice couple bought the property from us, and we owner financed the property to them. They still live in and love the home today. This is a great example of a true Win-Win Deal!
Do you see how valuable our Option work was to the deal? Without it, there's a good chance this transaction would have fallen apart.
Time is running short. Our Power of Pure Options two-day seminar is fast approaching ~ May 21st & 22nd, 2022 in Tampa, Florida. Our room block runs out on May 6th. Early-bird pricing ends on May 15th, 2022.
Better bust a move if you're coming!
Think of all the deals you'll be able to do IF the Option tool is in your creative deal structuring toolbox!
Click here to watch this quick 2-minute video on the Options Seminar:
The Power of Pure Options Seminar
May 21st & 22nd, 2022
Tampa, Florida
~ $647/Attend in person
~ $347 Bring a Friend
In-Person Class ONLY!
Because the Options structures we teach are so advanced, the Power of Pure Options Seminar is an in-person class ONLY. You won't find it on YouTube. It won't be recorded. To attend this gotta-be-there Event, click to REGISTER!
May 21st & 22nd, 2022
Marriott Tampa Westshore
Tampa, Florida
Hurry! Our room block ends on May 6th!
(if you have trouble booking your room, please call Kim at 770 815-8728)
Why is Pure Options a Must Attend Course?
Were you around during the 2008-2009 downfall? We had a crazy economy with even crazier real estate prices, right?
Did you survive it? With education and a 'by-gosh' determination, we did! Reckon we're in for it again? Are you prepared this time?
For more than 20 years, Bill Cook has used Pure Options to make impossible deals possible. Bill learned Options from
the very best ~ Jack Miller and Pete Fortunato. Bill is eager to take this baton and continue teaching the Power of Pure Options to real estate investors across the country!
Join us for this incredible 2-day Options Event and let Bill Cook help catapult you lightyears ahead of your competition!
The knowledge you will gain after spending the weekend with Bill will help you learn how to talk with sellers and structure deals that will leave your competition scratching their heads and saying "What the heck?!"
You and I know that, in this crazy market we are experiencing, Opportunities will arise on every street corner, if
you know how to structure an Option.
Have you ever used a Pure Option when making creative written offers? Heck, have you even heard of Pure Options? We're not talking 'lease options' here. We're talking Pure Options.
Pure Options are one of the most powerful deal structuring tools in real estate investing, yet most investors don't know
how to use them. The best part is, your competition has no clue what they are or how they work. So get a jump on them! Don't charge forward in this crazy economy without this incredible tool in your toolbelt!
Pure Options allow you to stick your foot in the door. Pure Options allow you to solve a homeowners' real estate
problem, even when they might not want to sell their house right now. What? That's a thing? Then how do I make money, you ask?
Ahhh, let Bill show you!......
During the 2-day Options Event You'll
Learn:
- What is a Pure Option and what makes them so powerful?
- The important paperwork used to secure an Option.
- How you can sell a house for well below market value and still capture all the appreciation!
- How an Option can be structured so it captures both appreciation and amortization in a deal!
- How an Option can be used to cut yourself into a deal, even when you don't want the property!
- Must an Option consideration only be cash? Hint: NO!
- If cash is used as an Option consideration, when is it subject to taxation?
- Why is holding an Option so much safer than holding title?
- When you hold an Option, what are the ways you can be paid?
- How to protect your Option from getting passed over by title searchers (Deed Dogs).
- The difference between Strategic Options, Tactical Options, Magic Options, Buy-back Options, and Asset Protection Options.
These and so many other questions answered during this 2-day Event!
What types of Options will Bill discuss in
class?
- Strategic Options
- Tactical Options
- Magic Options
- Buy Back Options
- Extension Options
- Interest Options
- Asset Protection Options
What is a Pure Option?
Most real estate investors only experience with Options is when an Option is used with a Lease Agreement. Most mistakenly believe
'lease option' is a single deal-structuring tool. Wrong!
Correctly stated, it is a lease with an option to purchase within a pre-agreed-to time frame. Each deal structuring tool captures
a different benefit. The Lease captures USE. The Option captures the right to PURCHASE.
We call it a Pure Option when the Option is used by itself - not in combination with a Lease Agreement.
What You Will Receive at the Options Seminar:
- A detailed manual that explains what a Pure Option is and how it works.
- The documentation you need to do a Pure Option, as well as secure it to the target property.
- Examples of real-world Pure Options
- A 100% money back guarantee if the seminar was not worth your valuable time.
May 21st & 22nd,
2022
Marriott Tampa Westshore
Tampa, Florida
$647 ~ Attend in Person
$347 ~ Bring a friend!
(Hurry! Early Bird ends Sunday, May
15th)
