Using Options Versus Private Lending When Working With Flippers

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  • Somewhere within the vast Jack Miller content on here, I heard him talk about his approach to working with Flippers using options versus private money loans. I recall him saying that they should like this arrangement because it would allow them to work on more projects and make more money.

    Does anyone have a link to the audio or video where I heard that? I’ll keep looking, but in case someone knows off the top of their head.

    Also, has anyone tried this in your town? In all the meetups I’ve attended, I’ve never become aware of someone operating this way. Kinda curious how that would be received.

    And honestly, when I mention the word options in investor circles even in different contexts, it seems like few take advantage of them. That seems like an advantage to those of us who have access to these thoughts and ideas if this is prevalent.

    Found it, it’s at the tail end of part 1 of 3 of this one:

    Creative Financing Solutions

    And I described it wrong. Jack would buy the house and then sell an option to the Fixer at half the difference between his purchase price and the projected retail price. This saves the Fixer from going into debt, but also gives Jack the advantage that if the work is not completed, it’s still his house and he moves on.

    William that is exactly correct. It is also explained in the option tapes. I am glad more people don’t know the intricacies of options. Gives us an extra way to construct a deal.

    And this blog post which is out of the Creative Financing Solutions workbook pretty much goes through the scenarios.

    Shared Appreciation Financing

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