All Topics / Creative Investing / Put and Call options

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  • Profile photo of wealth4life.comwealth4life.com
    Member
    @wealth4life.com
    Join Date: 2003
    Post Count: 1,248

    Is there any other people out there that are doing these deals?

    We have just entered into another agreement with a six month window, we have done several of these deals before and if you know what you are doing there are good profits to be made.

    D

    Profile photo of XeniaXenia
    Member
    @xenia
    Join Date: 2002
    Post Count: 1,231

    Hi Wealth,

    I have used call options to buy and sell properties and use them combined with a lease to increase cash flow for clients that we manage properties for.
    I don’t like to combine them with a put option because I like the buyer to have the discretion of buying or not. A put option will force the purchaser to buy so would limit our negotiations for a higher puchase price!!

    I have also purchased properties by taking out a call option. Most investors understand the concept of trading time value for money and we usually offer a higher than asking price for the “right” to buy. Again, put opions will not benefit the negotiation.

    How do you use them?

    Investment Property Management
    http://www.adprop.com.au

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024

    We use them all the time when buying a development site as it gives you the option of deciding which entity to be able to buy the property in and also can easily be flipped if you decide not to proceed.

    In Qld there is no stamp duty on an option contract so it makes flipping easier.

    Cheers

    Richard Taylor
    Residential & Commercial Finance Broker
    100% Finance on selected properties in the USA.
    Email us to be added to our mailing list.
    [email protected]
    Ph: 07-3720 1888

    Richard Taylor | Australia's leading private lender

    Profile photo of rickottonrickotton
    Participant
    @rickotton
    Join Date: 2002
    Post Count: 24

    The power of these are amazing they come in a variety that is proving to be very popular …
    To use these strategies to assume home loans and buy into big properties for pennies. Only today one of my students bought a 1.5mil property tennis court and pool for the cost of next months mortgage payment and a organized a car to be left in the driveway…
    These transactions are the way of the future for now with the market the way it is
    http://www.rickotton.com

    Profile photo of XeniaXenia
    Member
    @xenia
    Join Date: 2002
    Post Count: 1,231

    Good on you Rick and Richard, you’ve both been long term mentors of mine [biggrin]

    Thanks again

    Investment Property Management
    http://www.adprop.com.au

Viewing 5 posts - 1 through 5 (of 5 total)

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