I ou need to know right from the get-go that, as a real estate option investor, you are not going to have option property deals served up to you on a silver platter by eager sellers and real estate brokers. In this business, the most profitable option deals are usually the ones that investors create from scratch by identifying an unfulfilled need in their local real estate market and putting a property under option, which best fills the need, and then reselling the option to a buyer, who has a use for the property. And unlike conventional real estate transactions, which usually involve properties that have been heavily advertised over a period of time, the most profitable types of properties to buy options on are not generally advertised as being for sale. Instead, they are bought through what is known in the real estate trade as an unsolicited offer to purchase. The best types of option properties are not for sale or listed with real estate brokers because they are vacant and in a dirty, neglected, rundown condition. The problem with properties that are in what most people consider to be an unmarketable condition is that they are hard to sell and even harder to finance. In most cases, property owners do not have the time and money to put their property into a marketable condition. But even if an owner did want to get his or her property in tiptop shape, it would be next to impossible to get a lender to finance the fix-up on reasonable terms. And unless a buyer has deep pockets or a sugar daddy willing to cosign the loan, conventional lenders generally shy away from financing the purchase of vacant, run-down, non-income-producing properties. The only sources of loans to finance the purchase of vacant properties in a dilapidated condition are hard money lenders, who usually charge outrageous loan fees and the maximum interest rate allowed by law. The fact of the matter is that vacant properties in dire need of repairs that most lenders are unwilling to finance are not exactly the type of properties that most real estate brokers are looking to list for sale. Nowadays, most brokers will not touch a property like that with a 10-foot pole. They are looking for the easy-to-sell properties in turnkey condition that appeal to most prospective buyers.
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Discover the Jealously Guarded Insights of Real Estate Tycoons and Hot Dealers! Back in the days of the wild, Wild West, when easterners traveled across this vast country looking for opportunity in the newly opened territories, they were often referred to as a ‘tenderfoot’.