As I alluded to in the introduction to this chapter, real estate options are definitely not for dummies. To make it as a profitable option investor, you need to possess an imaginative, analytical, and creative mind. First, you must have the imagination to be able to visualize various types of properties being put to a myriad of different uses. And then you must be able to put an option deal together from scratch that makes financial sense to all of the parties involved in the transaction. Finally, you must be creative enough to package the property for maximum resale value and market it to a targeted group of prospective buyers who are willing to pay your asking price. Granted, this is not rocket science, but you will not get very far as an option investor if you have no imagination, cannot solve problems, and have zero creativity. Nowadays, too many people fall into the trap of mistaking education for brains. I know of a certain Harvard Business School graduate who flaunts his MBA degree every chance he gets, yet he has pretty much been a flop as a real estate investor. He apparently does not have the temperament and mental toughness and just cannot hack it in real estate. On the other hand, one of the sharpest real estate minds that I have ever encountered belongs to a 25-year-old high school dropout with only a GED or high school equivalency diploma. The thing that this real estate whiz kid has over most other people who are better educated is that he is constantly thinking two moves ahead of the other party in a transaction. And he has an abundance of good old-fashioned common sense. In other words, he has the good sense to know that when you buy an option on a piece of property, you are also buying an option on the property's location. So, he never gets sucked into buying an option on the best property in a bad area.
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The dynamics of investing can be very emotional and stressful if not properly managed. When you are aware of what is all involved you give yourself the power to avoid those situations or at least manage them effectively. That will make your investments more exciting, rewarding, and enjoyable. Those positive factors will only lead to greater success in all that achieve with investments and life.