Put and Call options

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

wealth4life.com
Member
@wealth4life.com
Join Date: 2003
Post Count: 1,248
September 6, 2006 - 1:19 am
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
Xenia
Member
@xenia
Join Date: 2002
Post Count: 1,231
September 6, 2006 - 1:47 am
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
Richard Taylor
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@qlds007
Join Date: 2003
Post Count: 12,024
September 6, 2006 - 4:22 am
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
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rickotton
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@rickotton
Join Date: 2002
Post Count: 24
September 11, 2006 - 11:51 am
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
Xenia
Member
@xenia
Join Date: 2002
Post Count: 1,231
September 11, 2006 - 12:37 pm
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