All Topics / Creative Investing / Property Options

Viewing 11 posts - 1 through 11 (of 11 total)
  • Profile photo of andrew671andrew671
    Participant
    @andrew671
    Join Date: 2013
    Post Count: 1

    Hey there everyone.

    Was hoping to get some advice on everyone's thoughts on property options. I have been presented with what seems like an incredible opportunity I just have little experience in this area. The offer is to purchase an option on residential land in Western Australia for $21,000 with up to 100% return on each right to help with the formation stage of a property trust secured against a stapled security listing on the ASX.

    HAs anyone heard anything similar to this or had experience in opportunities similar to this?

    Thankyou so much for your time.

    Kindly

    Andrew

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

    Hi Andrew

    Don't tell me this incredible opportunity has been presented to you by a firm that tele-marketed you telling you had to act quick before all of the options were sold, promised the world, showed you some nice graphs etc.

    Seems too good to be true doesn't it….. well the good news is it is.

    I have used Call Options on many a development deal and Yes they can work well but do a forum search on the subject and you will see these firms are cropping all over the Country offering the same thing.

    They may their money today and you sit and wait for 8-10 years on a whim and a prayer.

    There are better things to invest in.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of RedwoodRedwood
    Participant
    @redwood
    Join Date: 2013
    Post Count: 340

    Agree with Richard, sounds to good to be true…

    Land options are standard and can be good, however, please perform diligence on the developer as well as the area as there will be a period of time before you see your return

    Redwood | REDWOOD | SMSF | PROPERTY | FINANCE
    http://redwoodadvisory.com.au
    Email Me | Phone Me

    SMSF - PROPERTY INVESTMENT - WEALTH CREATION AND FINANCE SOLUTIONS

    Profile photo of Jimmy86Jimmy86
    Participant
    @jimmy86
    Join Date: 2013
    Post Count: 46

    It's funny how 'they know' they will get you a 100% return… 

    Letter to Santa:

    Please give me the Crystal Ball this company has so I can know what returns I will get in the future.

    … sorry already getting smashed with xmas music in the shops…. im already loosing it.

    Personally I would only invest if i knew the area like the back of my hand. It's funny they are marketing to you (I assume your not in WA) for property in WA. Just something to think about. 

    Jimmy86 | Future Assist SMSF Specialists - Bris | Melb | Syd
    http://www.futureassist.com.au/setupansmsf
    Phone Me

    Self-managed super specialist administrators and advisers

    Profile photo of Ryan McLeanRyan McLean
    Participant
    @ryan-mclean
    Join Date: 2010
    Post Count: 547

    If you organised the deal and analyses the returns yourself then that is probably the only case where this may be a good investment.

    If the company is paying sales people to sell this to you the chances are that they have already taken all of the cream off the deal for themselves. Meaning its probably too good to be true.

    I have seen many people break even or lose money after being promised certain rates of growth or return.

    Do the research yourself. Don't rely on a salespersons words

    Ryan McLean | On Property
    http://onproperty.com.au
    Email Me

    Profile photo of Danielle.AllanDanielle.Allan
    Member
    @danielle.allan
    Join Date: 2010
    Post Count: 8

    You just need to be prepared to lose the 21k if it all stuffs up. If its legit then it could return well. But if property falls in a hole and the development falls over you have nothing.

    Danielle

    Profile photo of carllarzcarllarz
    Participant
    @carllarz
    Join Date: 2014
    Post Count: 10

    Great response from Danielle.

    If this was really from a telemarketing style promotion, i would say dont even bother.. if it was presented through someone you know or someone reputable. I would agree with Danielle, if you have 21k to throw away, why not ?!

    For most people however, 21k is not worth a huge risk, when you CAN make good money with 21K over time.

    Profile photo of New Age PropertyNew Age Property
    Participant
    @new-age-property
    Join Date: 2014
    Post Count: 15

    On a side note to this thread, Richard, how do you find people who are willing to enter option deals with you?

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

    Work very closely with a number of development orientated real estate agents.

    Cheers

    Yours In Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of New Age PropertyNew Age Property
    Participant
    @new-age-property
    Join Date: 2014
    Post Count: 15

    Thanks Richard, I'll up on that idea.

    Profile photo of House Buyer SolutionsHouse Buyer Solutions
    Member
    @house-buyer-solutions
    Join Date: 2013
    Post Count: 6

    Great info on this thread!

    Andrew if your looking to get in this game and are willing to take risk thats all well and good. Just be sure to do your due-diligence to make sure its good to go

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