Use Options to Make Money
The key to consistently making money with this strategy and every other option strategy that I have outlined in this book is to be able to think outside your own local real estate market. I say this because in my professional opinion, the number one reason that most vacant commercial and industrial properties usually remain [...]
When I come across a vacant property with all of the telltale signs of obsolescence that appears to be a potential option property, I always do a quick visual inspection of the outside—I use an inspection checklist like the following sample—to try Copyright Thomas J. Lucier 2005. To customize this document, download it to your [...]
When people ask me what I do for a living, I tell them that I am a professional property locator who specializes in using real estate options to control undervalued properties with immediate resale profit potential. I then go on to give a brief explanation of how I go about finding new owners for all [...]
The most profitable type of properties to buy real estate options on are derelict-type properties that do not appeal to many prospective buyers. And they are also the easiest types of property to put under option because option investors are usually buyers of last resort for obsolescent properties. In other words, no one other than [...]
The only reason I invest in real estate instead of widgets is that it is one of the very few businesses left in America where private individual investors can profit handsomely by turning problems into opportunities. And nowadays, white elephant properties can be a bonanza for savvy option investors who have the ability to visualize [...]
The most profitable types of obsolescent properties to put under option are commercial buildings. The commercial real estate industry classifies commercial buildings according to their location, age, monthly rental rate, amount of amenities, and type of tenants into the following four classes: 1. Class “A” buildings: Large, relatively newer buildings with modern amenities such as [...]
The three types of obsolescent flaws that cause properties to lose value are: 1. Functional obsolescence: Functional obsolescence occurs when a property loses value due to its architectural design, building style, size, outdated amenities, local economic conditions, and changing technology. Look for properties with design features that would be relatively easy to upgrade or replace. [...]
Small vacant commercial properties with obsolescent flaws that are economically feasible to cure are potentially the most profitable type of properties to buy real estate options on. I say this because many small, vacant, obsolescent commercial properties: 1. Can often be bought at purchase prices that are below their replacement cost. 2. Have owners who [...]
For the purpose of buying a real estate option, I define an undervalued property with immediate resale profit potential as: “Any property that can be purchased for at least 20 percent below the sale price of comparable properties in similar condition that have sold in the past six months, within a two-mile radius of the [...]