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Gang,
Just completed Jack Miller’s Introduction to Real Estate Options Strategies. It’s 174 pages and packed with wonderful Option information.
As you may know, my goal is to read (and update) each of Jack’s courses on CashFlowDepot.com.
This course is wonderful, BUT THE TAX ADVISE IS OUTDATED!!!!!!!!
Said another way: You can learn a ton about Options from this course, BUT DO NOT RELY ON ANY – ANY – ANY OF THE TAX ADVICE JACK GIVES.
It’s important to remember that Jack taught this course in 2008, and he passed away in 2009. Many changes to the tax laws have occurred over the past 14 years.
What I say here is true of all of Jack courses. Be sure to run anything you learn in Jack’s courses by a competent real estate professional in your state, or where you will be doing deals. This includes seasoned investors, attorneys, CPAs, etc.
There’s no way to remove or alter (by much) the content in Jack’s courses. His tax discussions are intertwined throughout his manuals. Instead, my plan is to insert much strong CYA language at the beginning of each of his courses.
I’m now starting on Jack’s “Owner Will Carry” manual.
Love y’all,
Bill Cook
770-815-8727Yes one thing Jack discussed was about Net Listings. It’s not illegal as an action in the state of Florida (your state may be different), but it does violate NAR so you cant list a house as a net listing on any MLS. That should not matter because the owner is the investor, the investor is acting as a principal not an agent, and therefore there should be no notion of an agent getting “an amount over the salesprice”.
Also, Jeff Watson supports avoiding phantom tax with the use of an option for acquisition, which then changes after a year to seller financing. https://www.youtube.com/watch?v=q-JT8dK4IKk&t=1284s
That makes sense. Another thing that can be done as part of the option agreement is to be able to “novate” the contract. which would allow you to market the property and sell it to someone else, or complete repairs, or both. There seems to be an infinite list of possibilities to incorporate using options.
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