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I have been studying the option information on this website and my mind has been opened up to a whole new area of investing. I have done one wholesale deal this month and made $6400. Is it realistic to make over $10,000 a month just doing wholesaling and short term options? Is it hard to do a short term option for 80% of the value of the home and then sell the property for 90% of the value in this soft market we are currently in? My goal is to make $10,000 3 months in a row so i can leave my corporate job! Please give me your advise on what to do.thanks
Tim,
I believe Jack Miller did exactly that in the 70s. He would get a house under contract for 80% of value, then sell it for 90% of value simply by using options–he would “bet” $100 with the owner that he could sell the house–this is all in his “Options” book. I guess it depends on where you live and what properties are going for, but I think 10k a month is doable. Remember though, you still have a job and you won’t really be free until you sprinkle some rental homes into your equation as well.I think part of the answer comes in the financing of the person buying your option at 90%. I dont think current guidelines will allow the financing of the option using a simultaneous close because you will have no title seasoning. It would not be an issue if you had a cash buyer, but there are few homeowners who are really cash buyers these days
However, it may work if you lease option the house and hold it for 90 days before re-selling it at the 90% level. Given todays market pace it is probably realistic to hold onto the option for 90 days total cycle anyways. You would need to verify that holding the lease option 90 days would suffice for title seasoning.
Just my .02 cents
Jim
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