Introduction To Options

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Topics: Options

This is the introduction to the Introductory Options Home Study Course Manual.  The Options course is a recording of a 2 day seminar taught by the Legendary Jack Miller.  It is followed by another 2 days for the Advanced Options Seminar and now the home stucy cours.

Welcome to the Options Seminar.  A long time ago in a land far away, I was struggling to get into real estate.  I didn’t have enough money of my own to buy any of the good deals that came my way, and having been raised in the great depression, I was scared of personal debt.  Nor could I find any “investors” who would make their capital available to me to buy houses with.  I was stumped, going nowhere fast.

Then I discovered Options.  Without actually realizing it! Rather than listing properties for sale for others for 7% commissions like all the real estate Brokers, I started contracting to buy houses in my own name.  My target price was about 20% below the market, subject to my finding the financing or re-selling them.  The key to my profits lay in negotiating a profit into the prices and terms at time of purchase in order to make the contracts sufficiently attractive to the buyers’ market that prevailed.

Suddenly, through Options I started making serious money.  I bought all the houses I could afford personally to keep as investment rentals.  I sold the one’s I couldn’t buy for myself to raise cash with which to buy others and to pyramid my real estate equities and cash flow.  Options were the break through that I had been trying to find. 

Just five years after entering into my real estate career, at age 45 I was able to retire on my rental income stream and begin traveling on a full time basis.  Long after I’d quit work, I began to write books and present seminars.  I have made a lot of money in the information business, but it was the use of Options that gave me the financial security to be able to pursue my muse as a writer.

Let me issue you a challenge:  It’s fairly easy to go into the seminar business, make a lot of money, then to buy houses; but try to find anyone else in the single family house seminar business today who’s achieved financial independence actually doing what he teaches prior to getting into the seminar business.  You won’t! Maybe that’s why most of what you hear from migrant gurus who promise instant riches doesn’t work when you try it.

There’s an old saying that “you can’t go back to where you’ve never been”.  Let’s face it, if the teacher couldn’t get rich practicing what he preaches, how can he show you how to do it?  The proof is in the pudding.  Show me anybody in America who has enough material to fill two seminars to overflowing with Option strategies.  They just don’t have the experience required to be able to teach this much information.

Success breeds imitation.  I was the first person ever to write a book and to offer seminars on the subject of using Options to buy houses, but there have been a lot of people since then who have latched onto my ideas and run with them despite the fact that everything I teach is copyrighted.  When they haven’t had the first hand experience upon which to base their offerings, something gets lost in translation.  That’s not the case with my seminars.  I’ve made more money using Options than with any other technique. 

Often copied, but never duplicated, my courses and books are packed with personal case studies that tell you in detail what I did and just how I did it.  I continue to find new ways to use Options, so my books are updated with each seminar.  Over the years, the information in the Option seminar has grown from 30 pages taught in a one day seminar in 1977 to over 400+ pages.  That’s why I have had to split the Option course into two seminars.  The introductory seminar is crammed into two full days.  These are jam packed with dynamite techniques, sample Options, and actual case studies that simply are not available from any other source.

In this Introduction to Option Strategies Seminar, you’ll learn fundamental Option concepts and the ways in which they can be applied as a spring board to catapult you into profitable real estate acquisitions.  In the Advanced Options Strategies course, you’ll discover how to make the quantum leap from merely ”earning a living” to creating a major estate.  These two Options seminars will give you all the tools you’ll need to enable you to create your own real estate fortune.  More importantly, you’ll be able to do this with little cash and credit.  When you complete my seminars, I will have done my part.  From here on in, whether or not you achieve success is up to you.

FORWARD

What do you really know about Options? For the past 3 decades I’ve been teaching Options and Option techniques in my investment courses and through dozens of articles published in my newsletter, The CommonWealth Letters, and other real estate magazines.

Options and Lease/Options have become an article of faith with popular tape series, get rich quick seminars, and do-it-yourself fortune building books.  Ask anyone how to buy property using “Nothing Down” and “Nothing -A-Month” financing and they invariably tell you to use some form of Lease/Option.

Based upon the amount of street knowledge currently in circulation, it’s amazing that so few Options are actually in use or so little specific information is available to the “would be” user, But that might also be due to the fact that Options are much more complex than one might expect once a person confronts the problems of exactly how to use them to put together real estate transactions.  I hope this book will help out.

One of the first problems the Option user encounters is finding someone knowledgeable and experienced in their use.  Suppose you were trying to buy a house using an Option; you’d have to be able to explain it to the seller – and possibly to his accountant and attorney — so that he understood it.

You’d have to be able to draft a satisfactory Option document which met all the legal requirements needed to make it valid and enforceable in the legal jurisdiction where it is to be used.

To do this, you’d have to understand those legal requirements.  Then you’d have to be able to find an escrow company or title company willing to document your transaction, escrow essential documents, and to close it – and who’d have had enough experience to do it correctly so as to protect your interests.  But that’s just the tip of the iceberg.

Depending upon the circumstances of the parties involved, you’d need to be aware of the peculiar tax ramifications of Option transactions.  Options fall under a separate code section of the Tax Code.

When you enter into an Option transaction it makes a difference whether the Option consideration is monetary or non-monetary; whether it counts as a portion of the down payment or not; whether any lease or lease-back is involved and how rents are structured in relation to market rents for comparable properties.

Each of these variables can affect the value of the Option to one or both of the parties entering into the Option agreement.  You’d have to secure adequate tax counsel to advise you on these matters.  That could be a problem, since Option tax specialists with actual experience are virtually non-existent.

By now you should be beginning to get the picture.  Real estate Options retain so much of their mystique because so little is known or written about their special requirements.  And like any unknown, one’s first reaction is to mistrust them.  On the other hand, when one possesses even a little knowledge concerning ways in which they can be used to take advantage of their unique advantages, they are transformed into one of the most powerful tools available in commerce. 

As in so many things, knowledge gives the knower tremendous opportunity when it is limited to only a few people who know how to use it effectively.  The reason why my course on Options is presented so rarely and to such a select group is precisely so that the value of the insights presented will be retained for the few who’ve taken the time and expense to learn about them.

Guard your book well.  Be wary of lending it to any one at any price.  In it I’ve tried to give you sufficient information to enable you to structure creative and profitable transactions using Options together with rudimentary legal and accounting insights which will assist you in drafting necessary documentation to put them to work for you immediately.

While the main thrust of this book is toward highly leveraged control over real estate properties, bear in mind that Options have a long history of use in the fields of commodity speculation and hedging, executive compensation, securities trading, locking in long term financing, land development, purchase and sale of business opportunities and intricate tax strategies involving millions of dollars, control over rentable space, mineral rights, ownership of virtually anything man can imagine.  As a matter of fact, my biggest Option transaction, which generated $700,000, involved Optioning the stock of a corporation, then helping the owner sell it.

Options have been in use in real estate for a long time.  In Westminster Abbey’s Monk’s Library there’s a yellowed scrap of paper dating from the year 1223 A.D.

When you are ready to SUPER CHARGE your real estate business… and your bank account… you need to learn about Options.

You can get INSTANT ACCESS to Options Training with  Premium Membership

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