^Throughout the course of this book, I have given you detailed, step-by-step instructions on how to use real estate options to control undervalued properties with immediate resale profit potential. In this business, you make your profit upfront when you buy low-cost options on properties that are priced well below market value. But you do not get paid until you turn around and resell the option for a profit. And getting paid is what this chapter is all about! It should not take a rocket scientist to understand that there is a direct correlation between how well a property is marketed and how fast an option sells. If you do not get anything else from this chapter, please get this: Market the property, not the real estate option. Never lose sight of the fact that what you are really selling is not the real estate option agreement itself, but rather the property under option. The fact is, I have never advertised a real estate option per se; instead, I have always advertised the property under option. The trick to quickly reselling your options is to target your marketing toward prospective buyers of the type of property under option. For example, I recently resold an option on a run-down, rail-front bulk warehouse, which had been used to store bags of building materials, such as cement, stucco, sand, and pre-mixed concrete. For your information, the term rail-front refers to properties accessible by rail. To find prospective buyers for a rail-front warehouse located in Tampa, Florida, I went online and did Google searches for construction-related trade associations, building materials manufacturers, and distributors. And from my search results, I was able to compile a listing of 30 prospective buyers. I e-mailed each prospect a detailed property fact sheet, which included a picture of the property facing the railroad tracks. Two months later, I ended up reselling my option to a distributor of silica sand, which is used in sandblasting. I was able to resell my option on a rail-front bulk warehouse because I focused my marketing on prospective buyers who would have a need for that particular type of property. In this chapter, I give you the lowdown on exactly how to:
1. Calculate the resale value of real estate options.
2. Package properties under option to highlight their best features.
3. Market properties under option so you can sell your option agreements for maximum profit.
4. Assign or sell option agreements to third parties so you can make money in real estate without ever actually buying any property.
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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.