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 vacant for long periods of time is simply that no one in that particular real estate market has been able to come up with a profitable use for the property. And I attribute this to a general lack of vision, creativity, and foresight on the part of most so-called real estate professionals. The fact of the matter is that many of the people involved in real estate today are afflicted with a bad case of tunnel vision, which prevents them from seeing beyond the borders of their own local real estate market. And for whatever reason, they have not been able to apply the marketing concept of buy locally but sell nationally and globally to their real estate investment business. Granted, residential real estate may pretty much be a highly localized business, but that does not mean that the marketing of commercial and industrial real estate should be restricted to the local marketplace. And this is exactly why you must expand your real estate market horizons so that you are able to think outside your local real estate market. To illustrate my point, I recently advised an option investor in Raleigh, North Carolina, who was trying to find a buyer for an option he held on a vacant piece of commercial property, which had been previously used to store replacement parts for large pieces of farm equipment. He had exhausted his list of prospective buyers in the Greater Raleigh Area and did not know which way to turn. I had him e-mail me photos of the interior of the building so that I could see how the interior was laid out. I was especially interested in the distance between support columns and the height of the overhead doors. These two factors are critical to prospective buyers who are looking for a building that can accommodate large trucks or heavy earth-moving equipment, which needs a lot of room to maneuver around inside. It turned out that the building was configured to house big trucks and tractors. Next, I had the investor do a Google search on the Internet to obtain the names and e-mail addresses of everyone within a 500-mile radius of Raleigh who was in any way connected with earth-moving equipment, semi-tractors, and heavy-duty farm equipment. He came up with 50 names and e-mailed each one a property fact sheet, which included photographs of both the exterior and interior of the building. Two months later he resold his option for a $30,000 profit to a company headquartered in Georgia that refurbished earth-moving equipment throughout the Carolinas.
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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’.