Flipping Option Contracts

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  • I know we have a lot of information and courses available in regard to Options. What I’m wondering is, do we have any specific information/courses that specifically addresses the the in’s and out’s of flipping option contracts as a primary business strategy?

    Not sure I understand your question. With any of the strategies we discuss at CashFlowDepot, you can turn it in to your primary business strategy. Or, even better is to combine several strategies to create a business strategy.

    Each person’s needs are different so there is no one right answer.

    If you need to generate a lot of cash fast to pay off bills or build a nest egg, then flipping contracts or wholesale flip deals are a good way to do that. So is a Highest Bidder Sale.

    But, ultimate financial freedom comes from CASH FLOW, so eventually you need to focus on ways to generate cash flow or at least incorporate it in to your business strategy. These include master leasing, buy subject-to then rent out, lease options.

    It is always better NOT to focus on one technique or a strategy, but instead to learn many different ways to solve real estate problems.

    If you focus on one technique or strategy, then present that to a seller but they say NO, you are stuck. But if you have multiple ways to solve real estate problems ( that is really what it is all about), then you will do many many more deals. Do not be technique driven.

    An example, a seller owns a house worth $185,000. Their mortgage balance is $100,000. The house is in perfect condition. They need to move across country to be closer to ill parents. They say they need to sell fast. What they really mean is they need to get rid of that monthly payment fast.

    If you only offer to get an option on their property, then try to find someone to sell the option to. They might say yes. But they might say no.

    It is better to offer several ways to solve their real estate problem

    You could
    Lease their house with the right to sublease (master lease)
    Get a lease with an option
    Buy subject to the mortgage with plans to rent out or sell with a wrap ( would probably require a 2nd mortgage for their equity too) or a wrap
    get an opton then do a highest bidder sale to find a buyer ( could be to cash out or sell to person with highest down payment)

    What else can you think of?

    As I’ve said many times, it is better not to be a one trick pony. Have a lot of tricks. Learn many different techniques and strategies so you can solve many more real estate problems ( do more deals)

    Valuable advice like this is why a subscription to Cash Flow Depot is one of the best investments a real estate investor could make! Thanks, Jackie!

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