Whether you are an advanced real estate investor or just

getting started, real estate options can be an ideal

investment technique. A real estate option is a way to

control a property without owning it and it locks in the

buying price for a specified time.

Most investors don't understand how to use a real estate

option, which is unfortunate because it is one of the most

powerful tools in real estate investing. In fact, super

successful investors such as Donald Trump routinely use

real estate options for maximum leverage.

Here are 7 reasons why options are ideal for real estate

investors, beginner or advanced.

1. Since you don't own the property, you are not obligated

to make house payments. You also don't have to deal with

repairs, holding costs or tenants. Imagine how flexible you

can be if you don't have to deal with monthly mortgages or

on going repairs.

2. Getting started with real estate options doesn't require

a lot of cash. In many cases, we have controlled a $100,000

property for $10. This is especially important for a new

investor since startup capital is often an issue.

3. Options are great at generating quick cash. Once you

have the option locked up, you can market the property to

create quick cash. You should focus on making at least

$5,000 per option deal, and there's no practical upper

limit to how much you can make (one of our colleagues made

over $300,000 on a land option deal)…all without having to

deal with tenants, repairs or holding costs.

4. Using options is a great way to enter the luxury home

market or control properties in hot markets. Since these

are higher priced homes, you should expect to pay a higher

option fee. We have controlled $500,000 properties using

$100 to $1000. In many markets, a $500,000 is a starter

home but the point is that you can control a lot of real

estate for a very modest fee.

5. Options are scaleable because a single real estate

option can be used to control a small deal or a large one.

6. Options offer multiple exit strategies. You can either

exercise the option to buy the underlying property; you can

sell or assign the option to another party; or you can

ensure that the seller has to pay you off because the

option creates a flaw in the title.

7. Using options allows you to convert dead leads into

viable ones. For an experienced investor, this alone can

add tens of thousands of dollars to his business because

most deals that are not viable with other techniques

(foreclosures, short sales, etc.) are often great

candidates for real estate options.

8. BONUS REASON: Real estate options are very flexible and

can be used with all types of properties including single

residential homes, multi-units, apartment buildings,

commercial properties and land. You can also specify the

option period, which offers additional flexibility. In many

cases, you can even extend the option period, often for an

additional modest fee.

In summary, using a real estate option is an ideal

investment technique for beginners because options don't

require much cash and can generate cash quickly. For

advanced investors, using options to convert dead leads

into deals can add tens of thousands of dollars per month.