I recently spoke with an investor who said, "Bill, the early-bird special of $597 for your Power of Options Seminar is pretty steep."
"Maybe so," I
replied, "but have you considered the amount of money you'll lose if you're NOT on the Zoom call on June 24th & 25th?"
Here's how Kim and I lost $217,300 because we
failed to use a Pure Option on a single deal.
In February 2011, Kim and I were working foreclosures in Adairsville, Georgia. A target property we found was on Adairsville Pleasant Valley
Road. The borrowers owed over $100,000. The house was vacant. We couldn't find the owners.
We loved the house and wanted to buy and keep it as a rental. The problem: The fair market value was only $85,000
- way below the loan balance, plus it needed an $8,300 rehab.
Kim called the lender and began working the lender's top bid. She successfully helped the lender understand their sale number
was way too high. They lowered their opening bid price to about $57,000. Kim and I were the only investors with this information!
At the same time, a friend of mine (we'll call her K.K.) told me she was
going through a divorce, needed a nice home, but couldn't pay more than $80,000. She had two young kids. I knew this foreclosure property would be perfect for them.
I promised to help K.K. buy the property at the March 3,
2011, foreclosure auction.
IMPORTANT: Without our help, there was no way K.K. would have known about, or known how to buy this property. To boot, in helping K.K., Kim and I would be giving up a great investment
property.
There was an incredible deal structuring tool in my toolbox that I failed to use. MY mistake COST us
$217,300!
At the March 3rd, 2011, Bartow County foreclosure auction, K.K. was the top bidder at only $57,700. Incredible deal, right?
What did Kim and I get? Nothing, nada, goose egg. Not even a thank you card.
How should this deal have been creatively structured? Because K.K. was able to buy a great house at way below market due to our effort and know how, we should have gotten a Pure Option to buy this property from K.K. at any time over the next 30 years for K.K.'s purchase price of $57,700.
Would K.K. have agreed to this? Absolutely! Why? Her other choice was to not own this beautiful home and instead be our tenant and paying ever-increasing rent.
Today, this home is worth about $275,000. By not securing an Option on this deal, I made a $217,300 mistake ($275,000 FMV - $57,700 purchase price = $217,300)
How would YOU feel if YOU made this mistake? Do YOU think knowing how to do Options would be a valuable deal-structuring tool?
Understand, you are paying for June's Power of Options Seminar whether you attend or not. If you're not there, your cost could be hundreds of thousands of dollars in missed deals. Do YOU think it would be idiotic to repeat MY stupid mistake?
Options are one of the least understood and least used deal structuring tools in real estate. We look forward to seeing you on the Zoom call at the Power of Options Seminar on June 24th & 25th, 2023. Can't make that date? Don't worry, the class will be recorded, so you can listen/watch at your
convenience!