Your opinion please...

[investinAK]

Hello everybody,

I have a question for you all that has spawned from my other thread "property in Florida." I am simply curious, is there much to be said for optioning a home for say 15-20% below FMV, and then trying to sell it for say 5% or so below FMV? This seems like a fairly logical way to make a few bucks, but would much value the opinion of one (or more) that is more experienced than I. Thanks everybody!

[Dan Auito]

Hello everybody,

I have a question for you all that has spawned from my other thread "property in Florida." I am simply curious, is there much to be said for optioning a home for say 15-20% below FMV, and then trying to sell it for say 5% or so below FMV? This seems like a fairly logical way to make a few bucks, but would much value the opinion of one (or more) that is more experienced than I. Thanks everybody!

Absolutely Ryan, 5% of a $100,000 is still $5,000 so if you can get an option for even 85% (15% off) of value and assign it to an owner occupant for $90,000-$95,000 everyone wins.

Your trick is to find those deals, get the option with right of assignment signed and have a buyer ready, willing and able.

I'll admit I have only done a few lease options as I have always done more conventional straight sales and made anywhere from $30,000-$50,000 on them, the money is just better for me going that route.

I put the bug in Biker Jims ear to come over and elaborate on this with his extensive knowledge in this arena, John Michael I'm sure could fill in very well too. But Jim in this case is the specialist!

[investinAK]

I'll admit I have only done a few lease options as I have always done more conventional straight sales and made anywhere from $30,000-$50,000 on them, the money is just better for me going that route.

I plan to go the more conventional route, as soon as I build a decent working capital, pay off all my debts, and start rebuilding my credit score. As soon as I get a few bucks to play with, I mainly plan on rehabbing, as well as buying rentals to hold! (I honestly CANNOT wait for this! :)) But in the meantime, I would like to use all quick turn real estate tools that I can! :) Thanks always for you advice Dan! :)

[REIaddicted]

I plan to go the more conventional route, as soon as I build a decent working capital, pay off all my debts, and start rebuilding my credit score. As soon as I get a few bucks to play with, I mainly plan on rehabbing, as well as buying rentals to hold! (I honestly CANNOT wait for this! :)) But in the meantime, I would like to use all quick turn real estate tools that I can! :) Thanks always for you advice Dan! :)

Ryan,
Walking away with that 5% profit, is a win-win for everyone involved. Not every deal has to be a home run. A base hit can be just as satisfying. A bunt can help the whole team and place a little something in your pocket :SM144:

I would not sneeze at $5000, I would just add it to my working capitol. I think the average deal can bring in $ 8,000 - $15,000 profit. ( these are easier to find) than the home runs while flipping homes.

Lisa