Many real estate beginners usually start their careers using the traditional method of buying a property then selling it for a profit. In these situations, they usually have to borrow money from banks and money lenders to invest in the property. You probably thought that there was no way to start real estate investing without having to pay much. But there is: real estate options.
Problems of Real Estate Beginners
We all started at the bottom so we know how a beginner would feel when starting his or her career in real estate investing. Most of us had little or no cash when we started. Some even had full or poor credit! Finance and funding are always the first problems that a beginner feels pressed to solve. He or she might not be able to afford the properties he or she picked.
Real estate beginners also have this fear of lack of experience. There’s also the nagging thought that he or she doesn’t have enough knowledge on real estate, or that he or she doesn’t know how to find deals.
These problems had already been addressed. In finding deals, all you need to do is brush up on your marketing skills and learn how to promote yourself. Learn tactics on how you can get people to come to you. Get referrals. Learn through the tactics of the real estate investors before you.
Regarding lack of experience, didn’t we all feel that at first. The best thing to do would be to educate yourself and continuously and constantly learn about the market. Even the most successful real estate investors nowadays still educate themselves and observe what goes on in the different niches of real estate.
Regarding the lack of cash, there are banks and hard or private money lenders that you can borrow money from.
There is an alternative, however, to real estate investing without these many problems and disadvantages. With real estate options, you can do real estate investing in a simple and inexpensive way!
The Advantages of Real Estate Options
With real estate options, you are given the exclusive right to control a real estate property without buying or owning it. And on the period of your option, no one else can buy or sell the property! Your option has to be satisfied first.
What does this exactly mean?
This “exclusive right” means that you have control of the property, and that, while you are really not the owner, you have the right of an owner. No one but you has the right to buy or sell the property without satisfying your option. It is you who either sells the property, or the option.
Another advantage of the real estate options involves the finance and funding of the investment. With options, you are not going to be the one to handle the property expenditures and holding costs. You’re not the owner, after all (you only have the right of an owner). It is the owner who will pay for these expenditures.
Regarding the money needed to get an option on a property, there is also only little cause for worry. Real estate options deals are low-risk in a way that you can negotiate a 90-day option of a $100,000 for as little as $10! Yes, you read it right: $10.
This’ll all boil down to how well you can market yourself to the homeowners that they would agree that you option their property. One way you can get them to agree to a real estate option is that you show them a pool of eager buyers who can readily buy their property. Having a pool of buyers ready can prove to the homeowners that you can sell the property quickly.
Using options on real estate also doesn’t require you to have a license! And the last advantage or a real estate option is that you can do it with almost any type or property. Single residential homes are the most common properties used with options, but you can also use options with land, commercial properties, and apartment buildings.