[Tim Myers]

Tim Myers

I have a few questions about buy back options.
I know jack said in a couple of places that you could sell for what you have in a property, then retain an option to buy it back later.

1. How do you sell this idea to a potential buyer?
2. what is in it for the buyer?
3. I am assuming I would have to sell for sale by owner rather than using real estate agents because they will not understand, correct?
4.how long should the option be to buy it back?

I know jack said you could buy foreclosures all cash, then sell them to an investor or owner occupant for what you paid for it. Then have an option to buy it back in the future. That way you have huge potential for upside wealth without any money invested. Is this a good idea today? I know you don’t make any money right away, but you could have quite a bit of upside if you did this once a month.

[Anonymous]

Anonymous

HI Tim

Do you understand the reason why you would sell for what you bought for? If you sell for what you bought for then you don’t pay any taxes on the sale YET you control a lot of equity. If you sell for a $10,000 profit, then you pay taxes on the $10,000 gain.

1. you sell the idea to a potential buyer by giving them a choices. You can buy the house for $120,000 with payments of $1200 a month or you can buy for $65,000 with payments of $650 BUT if you go for the $650 this is the deal then I reserve the right to buy the house back for $70,000 in 3 years. ( so they make $5k) — or you could buy back for $65,000)

2. they get to live in a $120,000 house for $650 a month – champagne taste on a beer budget

3. I would never get an agent involved in this

4. when the $8k tax credit was around, the buyer had to stay in the house for 3 years. So the option would have been for at least 3 years ( and the buyer got the $8k) — now, the option could be for as long or as short as you want.

If you are selling to someone who is getting new financing, it makes it easy for them to get financing if the house is way below market, PLUS when you buy back, you can take over the financing they have in place so you get a 30 year fixed loan at a low low interest rate.

This is also a great way to work with people who need to find a exchange property fast. They will have CASH to spend.

[Anonymous]

Anonymous

That’s just ONE of the Option techniques that Jack teaches in his new Option Home Study course which will kill the competition.

Yes, you can keep the option for future growth

you can sell the option for fast cash ( and keep an option to buy it back later for what you sold it for)

You can get paid to make your option go away.

You can use 2-3 options as a down payment on real estate. Or bundle several options to BUY real estate that would be free and clear

After a year, you can trade your option tax free.

There are so many ways to make this work.

[Tim Myers]

Tim Myers

Thanks Jackie!
This technique would absolutely kill the competition. Everyone else would be sitting on their inventory trying to sell for top dollar in a wholesale market, meanwhile i am running circles around them buying and selling for what I have in it.

tell me if i am right on this, down the road I can sell my option on time to the buyers living there if they don’t want to move, i can have them refinance and pay me off, I can sell my option to another investor, or I could take title sub 2 and rent it out after they leave.

How do i advertise this to potential buyers? I don’t want to spill the beans to any investors out there figuring out what i am doing.

thanks so much for the help
Tim

[Jerry]

Jerry

QUESTION – LEGAL DANGER:
How do you avoid having this later declared to be an illegal “Financing Device” in which all benefits to you can be stripped away by a Judge, who can also charge you with a crime and punitive damages?
Thank you, Jackie.
Jack Easton

[Anonymous]

Anonymous

Hi jack

the answer is DISCLOSE DISCLOSE DISCLOSE what you are doing to all parties involved.