Making Big Money With Real Estate Options – Real estate For sale

 Much is written and said about making money with options by Stock Brokers, Commodity, Gurus, etc.  They don’t know a thing about a much more profitable, and safer way to invest in options.  That way is buying and selling Real Estate Options.  Almost anyone, with a little coaching or training, can invest in Real Estate Options with very little money and reap big dividends with minimum risks.  I doubt that you could buy a stock or commodity option for $10.00; however, I have bought Options to buy Real Estate for as little as that.  I have known other people who got it down to $1.00.  Unbelievable, right?  But it’s true.Now, where in the world would we find properties that we could buy an Option to buy with a small amount of money?  Right in the local newspaper and in your area Realtor’s Multiple Listing Service (MLS).  This is especially true with today’s lousy (in most areas) housing resale market.Maybe first, so that we all know what we are talking about, we should explain a few terms, names, etc. about Options.  You can’t tell the players without a scorecard.What is an Option?  An Option is a contract between two (or more) parties concerned with one party (the Optionee) buying an Option to purchase, Lease, or whatever, Real Estate from another party, (the Optionor).  Let’s further identify these two parties:1.  The Optionor:  This is the party who owns or controls the Real Estate in question.2. The Optionee:  This is the party who wants to buy the Option to buy the property from the Optionor.The Option, as stated, is a contract which should be in writing.  It must contain language showing that the Optionee paid some consideration for the Option.  The Option should be for some specific period of time; a month, a year, 5 years, etc.  The Option must also include the purchase price of the Real Estate if the Optionor does exercise the Option.Now, once the Option Agreement is signed by both parties, the Optionee has control over the subject Real Estate for the entire time period of the Option.  To protect the Optionee I would recommend that the Option be recorded at the County Courthouse.  This protects the Optionee in that if any title search is done it will show that the Option exists.There are many variations and Objectives that can be included in an Option Agreement.  In essence, maybe to better understand an Option Agreement, just look at a standard Sale And Purchase Agreement wherein the buyer has deposited earnest money (somewhat like an option) to buy the property from the Seller.  If the Buyer defaults on the agreement he loses his earnest money.Now let’s get into some examples of using pure Options.  You probably have heard about “Flipping” houses or other properties wherein a party (Buyer, Flipper) enters into a Sale & Purchase Agreement with a seller, puts up some earnest money, then goes out and finds another party that they can contract to “Sell” the property to before they have actually closed on buying the property.  Then they either assign the Sale & Purchase Agreement to the third party or do a “Double” escrow wherein they close on the purchase with the first party, turn right around and close on the sale to the third party.This is really nothing but a form of an Option.  In my opinion it is much cleaner, better, less paperwork, etc., to just buy an Option on the property than it is to go out and find another party who would like to buy the property and sell the Option to them.  By buying and selling the Option it also saves time and money for both the eventual Optionee (buyer) and the Optionor (seller).  Less closing costs, etc.I’ve been promising a case history, so let’s do one. Mr. Adams is a Land Developer, Entrepreneur, Real Estate Investor, etc.  Mrs. Walters is a widow who owns several Real Estate properties.  Mr. Walters had been the one who handled and managed the Real Estate.  His passing has left Mrs. Walters owning the Real Estate with little experience or interest in trying to continue to manage these properties.  Therefore, she has most of these properties up for sale.   Also, Mrs. Walters’ cash flow situation is not good.  She really needs to sell off some of those properties.        One of the properties is a 40 acre piece of land located fairly close, but outside the city limits.  Mrs. Walters has the land listed for sale at $1,000 per acre or $40,000.  Mr. Adams knows that there is a shortage of lots with restrictions allowing Manufactured Homes (mobile homes, but not trailers).  After spotting the 40 acres for sale, Mr. Adams visits several Manufactured Home dealers located on the same side of town where the land is.       In checking with the County Tax Office Mr. Adams discovers that there is the previous year’s taxes owed on the property, in an amount of $450.00.  Mr. Adams makes the following offer to Mrs. Walters.          1.  Mr. Adams will pay the back taxes on the land as consideration for the Option to buy the land for a price of $40,000.  The Option is for a period of one year.           2.  Mrs. Walters accepts the offer and they enter into an Option Agreement which Mr. Adams has recorded at the County Courthouse.  BENEFITS TO THE PARTIES:          1.  Mr. Adams has total control over the land for only $450.00 .  If he does exercise the Option, he will get the $450.00 back as the taxes will be paid.  He knows if the land were developed into Lots allowing mobile homes, it would sell quickly.  2.  Mrs. Walters is hard pressed for cash flow.  The Option pays the taxes and stops the penalties.  Even if Mr. Adams does not exercise the Option, her taxes are paid.  
In doing a little homework, Mr. Adams has discovered there is a shortage of lots that allow manufactured homes.  In discussing this situation with dealers of manufactured homes, Mr. Adams has also obtained the names of developers who have been selling developed lots to buyers of homes from these dealers.  They have explained to Mr. Adams that the majority of buyers of manufactured homes do not usually already have land or a lot to put the mobile home on.  Some of these home buyers have the home placed in a mobile home park wherein they rent the space for the home.  However, many of these buyers would rather have their own land to place the home on.In doing a little more homework, Mr. Adams does some research on the land itself.  He had already done much of this before, in order to buy an “Option To Buy” the land.The land is located on a County Road with frontage.  Water and electricity are available along the road.  The homes in the area require septic tanks for sanitation. He discovers that for approximately $10,000 per lot he can get the following improvements:1000 gallon Septic Tank (installed) =$6,500
Water Lines from road to lot =$1,000
Driveway and Pad for home =$2,000
Electric Meter Loop =$500Other off-site improvements, such as streets and dirt work, should be approximately $160,000 for the forty lots.  Figuring another $40,000 for miscellaneous costs, the engineer’s estimated total to develop 40 lots which are ready to move onto, is $560,000.Next Mr. Adams, in talking again to mobile home dealers, appraisers and developers who have been selling lots, discovers that the fair market price for a developed one acre lot is $32,500.  This would compute to a total gross sale for 40 lots to be $1,300,000.  Armed with all this research, Mr. Adams is now ready to take the next step and sell his Option.Gross Sales proceeds from 40 lots @ $32,500 per lot is $1,300,000     
Less: Cost for streets & other off-sites $160,000             
On-site improvements for 40 lots $400,000           
Cost for sales commission (20%) and other overhead $260,000            TOTAL ESTIMATED COST TO DEVELOP & SELL is $820,000                 NET ESTIMATED PROFIT……………………………………………………$480,000Mr. Adams decided that a 100% Gross Profit would be a fair return on money that he didn’t even have to pay.  Therefore, he asked $40,000 for his Option to purchase the land.  Hardly had he made the presentation to the first developer when his offer was accepted.  As stated before, lots acceptable for mobile homes were in short supply.  The developer could see a quick profit of $400,000 as soon as he could get the site work done.So our hero, Mr. Adams, with a little research work was able to make a profit of $39,550 in a few weeks. These posts are the opinion of the author who is not engaged in rendering legal, accounting, or investment advice.  If such advice is required or desired, the services of competent professional persons should be sought. 

Lake Worth Houses For Sale – Real estate For sale

Most of us are engaged with our day to day errands. After a hectic day work at office you would want to relax yourself at sweet home. Then the best way out would be to purchase a house where you can water view. It would be even a perfect place on weekends you can enjoy with your family. But there are others that have fewer alternatives and elasticity. However everyone’s priorities will differ so you need to pick the best house plan for you. If we look into today’s real estate market we find a huge number of agents helping buyers to get the best house that would match their taste and preferences.Lake Worth is a city with more than 100 years of history that has become a refined gem on Florida’s Gold Coast. The community of some 30,000 residents covers five square miles and is located at the center of the Palm Beach Coast, around midway between Boca Raton and West Palm Beach. The area features a typical city center that includes a number of buildings listed in the National Register of Historic Sites. The invigorated downtown traditional and art district is home to an assorted blend of arts and crafts. Historic had long been known as the site of some of the world’s best ocean fishing. Inhabitants of enjoy low crime, good schools and a relaxed South Florida lifestyle. The housing market in the area is tremendously varied. Senior housing, gated communities, vacation properties, estates and large single-family homes and other types of real estate are all available, many with stunning riverside views. There are homes and real estate in every price range that are sure to satisfy any lifestyle.With several houses for sale at you can find the best and can make a good and safe investment on the properties here. While others may enjoy outdoor activities and family friendly atmosphere. You can find everything you need to know about Lake Worth houses for sale in the surrounding areas. We also offer you some interesting tools to help you make your search easier and sign up to match your search criteria. Those fascinated in residential real estate in find many variety and styles of homes for sale in, as well as community events of interest and local amenities exceptional to the area. One can find amazing amenities out at Houses. It just makes your life easier, simpler and hassle free. There are many housing communities in that are close to public and private schools, shopping centers and restaurants. Grab the opportunity today and get the best house at Lake Worth.Lake Worth houses for sale feature lake views, swimming pools and easy access to day to day requirements. Buy a residence at Lake Worth and Boynton Beach Florida and there is a lot of real estate for sale in Florida they provide the best facilities you had ever dreamt of.