Here's a quick and easy Options deal read:
Lease Option with an Owner Financed Kicker!
Last week, we shared how 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.
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. Plus, you are killing the goose that lays gold eggs in the form of monthly cash flow (monthly rents).
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 it 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 after 13 months of renting. 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 ~ June 24th & 25th, 2023. Early-bird pricing ends on June 18th, 2023.
Think of all the deals you'll be able to do
IF the Option tool is in your creative deal structuring toolbox!
Better bust a move if you're coming!
The Power of Options 2-day
Zoom Seminar
June 24th & 25th, 2023
This course will be Recorded and all attendees will receive the
Power of Options Manual (in .pdf format), the Options Presentations, Documents, and Recordings of the 2-day Event!
~ $597/person
~ $397/Invite a Friend
~ $397/Returning
Options Seminar Attendee (discount available to those who have taken the Pure Options Seminar in the past)
Early Bird Special ends June 18th, 2023
Hurry and save $Moolah$
Options are the most Powerful and most
Versatile tool in Real Estate!
Come join Bill from the comfort of your own home! Meet new friends and greet old ones on
Zoom.
Wine optional. Clothes, a must!
Why is The Power of 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?
Options are the most powerful and most versatile tool in real estate. At the same time, Options are the least understood and least used deal structuring tool in real estate. Why, you ask? Beats me! Most investors only have one tool in their creative deal structuring tool box: The big damn hammer! Yep, the
.70-cents-on-the-dollar-all-cash-offer hammer. Boring! And very limiting!
For more than 20 years, Bill Cook has used Options to make
impossible deals possible. Bill learned Options from the very best ~ Jack Miller and Pete Fortunato. Last year, Bill eagerly accepted the challenge to continue teaching the Power of Pure Options to real estate investors across the country!
Join us for this incredible 2-day Options Zoom Seminar 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?!"
Zoom Class
ONLY!
We know how expensive it can be to attend seminars, so to help out a bit, we decided to host The Power of Options as a Zoom only Seminar. Save money on travel and hotel and join us from the comfort of your own home.
REGISTER NOW!
June 24th & 25th, 2023
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.
Most investors have heard of options and think options can only be used with leases....as if it's a single deal structuring tool. Truth is, a Lease Option is two separate creative
deal structuring tools working together to make a single transaction work. The lease gives someone use of the property. And the Option gives someone the right to buy the property at some point in the future.
Here's what your competition doesn't know: An Option can be used by itself to create massive wealth! We call this a Pure Option.
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 Zoom Seminar 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
How can I use a Pure Option?
Pure Options have many uses. For example:
- Buy a property
- Sell a property
- Park a property
- Protect a property
- Help someone who DOESN'T want to sell their
home
- Help someone who needs money but can't get a loan
- Help someone buy a property they can't possibly afford for a price they can easily afford
- Sell a property and still keep the appreciation
- Capture a property's appreciation and amortization on a property you don't yet own
- Sell a property for a seller who doesn't want to use a realtor
You may be asking, "With so many uses, why haven't I heard about the Power of Options
before?"
Well you are asking the wrong question, my friend. You should be asking yourself, "With so many uses, where do I go to learn how to use Options?"
At Bill Cook's The Power of Options Seminar, of course!
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.
