Why Real Estate Options are Less Risky and Profitable

Last, one of the things that I like most about real estate options is that I can use them to provide just-in-time (JIT) property. Just-in-time inventory management refers to the practice of ordering an inventory of parts or raw materials on an as needed basis, versus maintaining a large on-hand inventory. The automotive industry in [...]

In the first, I gave you the lowdown on why most of the property-flipping strategies being taught today are too expensive and hard to implement. Now, I tell you why real estate options are less risky, more profitable, and easier to use than 99 percent of all the property-flipping strategies being peddled today. I also [...]

Another popular property-flipping strategy that is being taught today is concurrent closings, which are better known as simultaneous closings, double closings, and double escrows. Under a typical concurrent closing scenario, Buyer A signs a purchase agreement to buy a property from Seller B; in the meantime, Buyer A turns around and signs a purchase agreement [...]

The main reason I cannot get excited about the property-flipping strategies that are being taught today is that they are way too expensive. There are six costs involved in flipping a property that eat up profits just like a Florida sinkhole sucks up fill dirt: Acquisition costs. Transaction costs. Closing costs. Repair costs. Holding costs. [...]

To read most of the property-flipping books, you would think that flipping a piece of property is as easy as changing clothes. I hate to be a spoil sport, but in reality nothing could be further from the truth. The fact of the matter is that most authors fail to point out the potential deal-killing [...]

Nowadays, because of the media and the hullabaloo surrounding the action taken by HUD, just about every property-flipping transaction is put under the microscope by lenders and title and escrow agents before they will agree 5 to finance and close the deal. The reason for this intense scrutiny is that lenders and title and escrow [...]

The U.S. Department of Housing and Urban Renewal (HUD) defines  predatory property flipping as: “the practice whereby a property recently acquired is resold for a considerable profit with an artificially inflated value, often abetted by a lender ’s collusion with the appraiser.” And on June 2, 2003, HUD imposed a rule that places time restrictions [...]

Before I go any further, you first need to know what the term property flipping means. Property flipping is generally defined within the real estate investment industry as: “the process of buying a property and quickly reselling it for a profit.” Today, thanks in large part to news reports by the media, the term property [...]