Property Options

[boods99]

Hey there everyone...
Just wondering if anyone out there has had any dealings with property options, and if they were easy to set up/manage? I understand how they work in the stock market world, but not sure about property. Are they a widely accepted strategy by both vendors and purchasers? Any help or information would be greatly appreciated.

 

[Aaron Sice]

Hi there.

I have just started into Property Options myself.

I'm working with a great bloke called Michael Tse - I'm kinda using him for tips and techniques for getting started.

 

[boods99]

Thanks for your reply, Aaron...
Im especially interested to hear of any successsful deals you may already of had or know of that have happened?
Its a very hard subject to get any solid information on without spending thousands on a course wich may or may not be of any help. Ive seen a DVD in API by a property lawyer by the name of Robert Balanda? I was going to buy it but am wondering if, because he is based in Qld, the laws may be slightly different over here in WA, therefore rendering the DVD useless.
I am keen to get in contact with you for a chat about these things, possibly in the new year, coz its crazy at work at the moment! How did you come accross Michael Tse, is he from this board? Is he experienced in property options in WA?
Cheers mate...
Matt

 

[JoannaK]

there was a really good discussion about options some time ago. try doing a search on P & C Options, and that should locate the thread for you.

 

[Aaron Sice]

Michael Tse is a very experienced property options writer.

he has this incredible excel spreadsheet that you input all figures into and it works out profits, holding costs ec etc.

 

[JIT]

Dangerous Options

Interesting article called 'Dangerous Options'!:

http://www.acleardirection.com.au/dangerous_options___eureka_report_article

 

[s_t]

Anybody selling an option to buy a 1mil house in 3 years for $500 (as in the article) would have to be nuts!!!

btw, what would the price typically be with those figures? Never had anything to do with options on property, but I'd be guessing an absolute miniumum of 10% (ie. 100k), probably a fair bit more, for the option (in Brisbane).

 

[boods99]

The article is a good read...it is not needed to pay up to ten thousand dollars to learn how they work. I went to a stock options course about five years ago and got sucked into paying $5000 for the privelige...it turns out I could have got the same information from books/ASX website etc...what they were trying to flog was a system, that may or may not work. Im not sure if any of the 2 hundred or so people who attended actually made any money out of it...I would like to hear if anyone has make money out of property options. The article makes a few very important points. I know for one that if I had a system that made me millions, I wouln'nt be holding courses, teaching others my secrets and practically adding all of these people as my "competition"

 

[Aaron Sice]

i work with developers every day that make HUGE profits out of proerty options.

trick is to have your exit strategy (a buyer) first.

 

[Qlds007]

s_t

I may well agree with you but I have just finished an project with a value of $1.5M in Brisbane Northern Suburbs which we bought and subsequently flipped using a Call Option where we paid the Bowls Club $1000 non refundable and took 14 months to get through.

P & C's in Brissie are more common than you think.

 

[eKwatee]

I have a client that trades in property options regularily and Blue Card! is right when he says you need your buyer first. My client has a large and active database of buyers and keeps up to date with whos buying what and where, he also attends council meetings and follows proposed zoning changes and changes to urban boundries etc... He also does alot of work hitting the pavement and doorknocking in the areas of proposed changes to zonings etc.... offering what would be slightly above market conditions for the curent zoning but knowng what price his buyers would pay after DA. He is successful at property options because he works hard at them. The buyers of his options are normally medium to large developers who are short in their land banks.

 

[redwing]

Got my interest, Property Options seem to be the rage of late with ad's in API for a while now (see www.sop.com.au )

I saw this post on PI.COM as well, should be an interesting thread here as I'd be keen to hear more about it Paul

$50 MILLION worth of Property, No Deposit, No Loans?

Hi all,

My partner and I have been doing options deals successfully for over 2 years now and we are starting to expand as there is only so much 2 people can do. We attended a seminar in Brisbane in 05 and have developed a business model over this time that has massively added to what we learnt originally. Up to now we have only paid $1 option fee for each of our deals. Our system has allowed us to sign up Fifty Million worth of property under option contracts without any deposits or loans.

We are based in Sydney and would like to expand to Queensland and other states. We have trained 4 people here in Sydney and 2 in Queensland but we will need a few more. We are certainly open to expanding into other states in the near future. We work on profit sharing from 25% to 50% depending on the deal. We have an engineer with 20 years experience in the development industry to do the DA's at our expense.

What we found is that doing a seminar is great, but you need ongoing support and training. so we provide training, ongoing phone support and monthly group meetings, access to property software and our own online 5 minute feasibility software to quickly work out the price of any type of land. We do this because we know what its like to walk out of a seminar and have no support.

Paul King

Hi Dave,

I'm not into making comparisons with what others are doing and I'm sure Mark Rolton has a great system.

However, we actually offer 25% to 50% for locating the deal, and we do the DA at our expense and expertise. 25% if we do the DA and if its a flip 50%. We believe in the "win win philosophy".
Profit margins can vary, it could be under or over a million, were not too fussy.

Turn around times are variable as you would probably know DA's can take some time as there can be all sorts of hold ups with the council etc. But we have a very experienced and respected engineer (over 20 years) doing our DA's. Flips of course can be quick

We do provide software to locate properties for our students, but best of all we have our own online feasability software (that cost a fortune to develop) that allows you to enter a few details and it quickly gives you a maximum price you can offer for the property, including a mix of different types e.g. residential, commercial, industrial etc. We believe in simplifying all the processes.
Most importantly, we provide ongoing support, we have all been to seminars and walked out and over a period of time, lost our motivation. We provide monthly group meetings, we can go with students to appointments and provide phone and email support.

We are not recruiting to make money as it is really insignificant compared to what you can make with deals, but there is a cost of $110 per week for a year for all of the above. The software we provide alone would cost this much. We charge this to cover our costs and to get the right people that will make a commitment. If someone is not willing to pay this small sum weekly then they haven't got the right mindset.
If you want any more info, or want to attend the information evening (this is free) you can call me on 0403223569 any day except Mon, Tues, Wed.

I hope this answers all your questions

Paul King

We are having an information session on the 16th February in Sydney with a training session the next day for those coming from interstate, but there are limited places. We are not going to take on a whole bunch of people, but where looking to take on a few people with the right mindset in a few different states.

 

[redwing]

Here's some more info from www.sop.com.au which should contribute to the thread as well (I'm reviewing it now)

Blue Cards comment would be a "must" wouldn't it..

Are you sick and tired of never ending mortgage repayments, interest rate rises, tenants from hell, and the ongoing commitment that regular property investing requires…

Would you like to discover a simple step-by-step system that will allow you to buy multi-million dollar properties with less risk & less money upfront than regular property investing?
If your answer is a resounding 'YES' you must read on…

You would be aware that most real estate investment methods require you to draw on a lot of your own money, time and effort, often with great risk. However, through The Science of Property Options seminars and workshops you will learn the strategy of "Property Options”. This is like being able to put a property on 'Lay-by" for up to 2 years or more. What’s more is that once you have an option over the property you are able to on-sell the option or ‘assign’ the option without having to settle on the property.

At a glance it may seem complicated, but it's actually easier than buying the property outright… less paperwork, no finance applications, no inspections, no agents and less risk!
The secret of using options to purchase properties is in the word ‘option" itself. Basically, you can put an option on any property whether it be a single house for $200,000 or a large development site for $20 million and you don’t need a great deal of money to do this. This is because an option contract gives you the right to purchase a property but not the obligation. In other words, once you sign the contract you don’t HAVE to buy, you have an option to buy.
Let’s say that you put an option contract on a site with development potential. You now have the option period to do all your investigations and lodge a Development Application (DA) if possible and the best part is you haven’t risked very much… maybe a small deposit, some legal fees and town planner costs. However, once your DA is approved the property’s value may have just doubled and you can now on-sell your option contract for a profit or you can settle on the property and go ahead with the development yourself or with an investment partner.

This strategy allows the mum and dad investor to benefit from the development industry without requiring large sums of money to compete with the big boys.

Options essentially create massive leverage for you as the buyer as you have most of the benefits of ownership without the pitfalls such as mortgage payments etc.

There is a system for utilizing call option deeds in the market place now which is used by both experienced and inexperienced investors alike. To find out more information about this exciting, low risk, high profit strategy you must attend our 3 hour seminar called "How To Control Multi Million Dollar Properties With Minimal Outlay!”

Here’s exactly what you’ll discover by attending…

How to buy multi-million dollar properties without requiring large sums of money or bank loans to finance the deals
How you can increase a property’s value, in many cases by more than 100%
A simple 5-Step process for doing a ‘Property Option’ deal
How to discover, in less than 15 minutes, if the property you’re looking at has development potential
How to on-sell a property without ever owning it and make a profit
Your presenter for the evening is a developer himself who uses call options in the marketplace everyday to acquire potential development sites. He will share with you his own unique strategy that has enabled him to personally bought over 150 million dollars worth of property deals in just over 3 years using call option contracts.

This could be the only chance you’ll have to learn this closely guarded system as the presenter does not regularly share his knowledge openly. You will be amazed at his unique and simple 5 Step Strategy.

Your investment for this event is only $47 (or 2 tickets for $57) however the value on the information you’ll learn is priceless. You owe it to yourself and your family to find about the world of property options so book in now...

WHAT IS A "CALL OPTION DEED"

A Call Option Deed is simply an agreement between the property owner and buyer (that's you). It gives you the right to buy the property (but only if you choose) for a certain amount on or before a certain date in the future, by only using a relatively small deposit.

Therefore in short, you take control of the property from the seller, but you don't own the property. Not owning means you DON'T have to deal with tenants, termites, repairs, maintenance or any other ownership hassles. It also means NO mortgage payments, NO loan applications, and NO credit risk for you.

WHY ENTER INTO SUCH CONTRACTS?

Now that you have control of the property, it means you can benefit from any increase in its value. You still don't have to buy the actual property as you can on sell the property when the value has risen prior to settlement. The technical term for this is assigning the option and the profit you receive is known as your assignment fee.

HOW DO YOU ADD VALUE TO PROPERTIES UNDER OPTION?

You can add value to the property by lodging a DA Application to the Council and gaining approval for further lots or by altering the primary use of the land eg. Converting a residential site into a retirement village site.

HOW DO YOU FIND PROPERTIES, GAIN THE KNOWLEDGE AND DRAMATICALLY INCREASE THE VALUE OF THE PROPERTY?

The answer is simple. We have done the hard work for you and have condensed the whole process into a very simple 5 Step System which we explain in detail at our 3 hour seminar.

IS IT FOR YOU?

If you can say yes to any of the below then it's for you:

I am new to the Real Estate Market and I want to learn how to get into the development industry using as little money as possible.
I'd love to invest in Real Estate, but have no credit at all and can't get a loan.
I have purchased Real Estate before, and am really tired of the "Landlord Trap".
I have no knowledge on how to buy development sites, or determining if they have the potential to add value.
I am an experienced developer, but have not bought many properties under option.
I am in a small business.
I have an open heart and mind, and I am looking for a new experience, and am willing to be amazed.
I am fairly experienced with Real Estate investing and have made a few really good sales. I'd love to build my portfolio without risking large sums of money.
If you checked any of the areas above, you need to take a look at one of our workshops.

Q. What is a real estate option?
A: A real estate option is simply an agreement between the property owner and buyer. It gives buyer the right to buy and settle the property (but only if they choose) on or before a designated future sate. Plus, the buyer can on sell the option at anytime prior to settlement.

Q. What is a land Subdivision feasibility?
A: Land subdivision feasibility looks at a block of land and determines if it is possible to make money by subdividing it. Certain factors must be included when finding this out, including land size, purchase amount etc.. Our software that automatically calculates this for you, is called "1 Minute Feasibility" as it only takes 1 minute to calculate the feasibility.

Q. What is a DA?
A: A DA stands for ‘Development Approval’. When you put a development application into council and you receive approval this is known as getting a DA on the property. This is the process to go through in order to add massive value to the property. For example if a property is currently on one title you can apply to council to break the block up into multiple titles eg 20 seperate titles and therefore you have added value to that property.

Q. I don't have any experience in property options. Is this too advanced for me?
A: Absolutely not! In fact, we find that those with no experience do far better than those with some experience. That's usually because it's easier to learn something if you aren't confusing it with other information.

We have trained everyone from housewives and doctors to teenagers and retirees, property investors, taxi drivers...

Remember too that there is a 100% Money Back Guarantee On The Spot without asking any questions if you are not totally confident that you can immediately apply your new skills safely and profitably.

Q. How much money does it take to get started?
A: You can start with as little as $5,000, however, we recommend that you start with $30,000. If you are absolutely committed to making this work it is irrelevant how much money you have in the bank. Most self made millionaires in the world had no money when they first started their business or investing career however they knew how to use Other People’s Money to get where they need to go. Remember you can always do business deals with other people you know or meet at one of our courses whereby someone puts in the money to get started and the other does the work involved.

Q. Does this system work everywhere in Australia and overseas?
A: Yes, call options deeds can be used throughout all states of Australia and most other countries around the world. At the end of the day a call option deed is simply a signed written agreement between a buyer & a seller which means it is a legal document throughout the majority of the world.

 

[redsquash]

It's true that there has been a lot of negative publicity about options in the last few years, by my partner and I have been doing options for several years now and have never paid more than $1 for any of them.


Paul King

For the option of a dollar, or less ,what is the value of the property .
How long does the option last
Can you give 5 examples.

Why would someone be bound to not sell a property to another prospective buyer for the price of a dollar?

 

[mikey investor]

5 minute feasibility software

Any chance of sharing the 5 minute feasibility software with your fellow forum members?
I'd be keen to play with it here in Melbourne and see what my properties are worth!