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On the mini option audios Jack mentions the strategy of buying foreclosures at the courthouse with cash, then selling for what you have in it, with an option to buy it back for half the profit or all of the profit. That way you huge upside wealth with no risk. I have been contemplating this technique for some time now. I am trying to think of ways to sell this idea to an end buyer…..here are my thoughts.
1. You can live beyond your means, for example have a $100,000 loan payment in a $200,000 neighborhood.
2. Your basically going to be paying rent for the next 3 to 5 years or however long your going to stay in the property.what other ways could you sell this idea.
This strategy to me is probably the most creative and the most effective way to make some serious money in this market. I go to foreclosure sales every week. I have the capital to do this. I am just having a hard time making it practical. If i could do this once a month, I could create some serious upside wealth for the future.
What are some of the ways to structure this buy back option?
1. you buy it back whenever there ready to move at the same price?
2. you split the profit above the cost 50/50, 40/60, 30/70
3. You sell the option to them on payments???
thanks for the help
I just structured option on a house I just sold where I rehabbed it, sold it to a new buyer. I made a little profit, but I have the option to buy back when they want to sell, 40/60 split of any upside. They got a 30 yr. fixed rate loan for 3.875%. I know they are happy with the deal because they know I sold it to them right and they have equity already ‘in todays market’ from day one.
Just feel out the party you are dealing with. The only thing they can do is say no. What ever you do be upfront and honest, I have found more people are more apt to do business with you if you don’t fluff some big game they have heard from other people.
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