PART III
A 12 STEP PROCESS FOR BUYING AND
RESELLING REAL ESTATE OPTIONS
CHAPTER 9 How to Use the Internet, Property Wanted Ads,
Bird Dogs, Finder's Fees, and Direct Mail to Locate
Properties to Put under Option
The most important advice in this entire chapter. √ How to
locate all of the out of town property owners in your
county. √ How to use a property wanted web page to search
for properties online. √ How to use classified property
wanted ads to find potential option properties. √ Fourteen
questions to ask owners calling about your property wanted
ads. √ How to use bird dogs to find potential option
properties that are not advertised. √ Downloadable Letter
to Vacant Property Owners.
CHAPTER 10 How to Perform Due Diligence on a Potential
Option Property
How to use the Internet to perform due diligence research
on properties. √ Why you should do a Google search of the
property owner's name. √ Where to find the names of all
the property owners in your county. √ Where to search for
property records online. √ What to do when your county's
property records are not available online. √ How to locate
the owners of vacant properties. √ What you must doublecheck
on every potential option property. √ Ten questions
you must ask owners before you ever buy a real estate
option.
CHAPTER 11 How to Thoroughly Inspect a Property before You
Buy an Option to Purchase
How to locate a competent building inspector. √ How to
conduct a thorough property inspection. √ How to inspect
suspicious properties for environmental contamination.
√ Why you must be on the lookout for indoor mold when
inspecting properties √ Thirteen Property Inspection
Checklists.
CHAPTER 12 How to Accurately Estimate a Property's Current
Market Value
The difference between a property's assessed value and its
appraised value. √ The three common methods used by
appraisers to estimate property values. √ How to calculate
a property's capitalization rate. √ How to use gross rent
multipliers to estimate an income property's value.
√ Property Appraisal Report Checklist. √ Monthly Income
and Expense Analysis Worksheet. √ Property Fix-Up
Cost Estimate Worksheet. √ Estoppel Letter to Lenders.
√ Current Market Value Worksheet.
CHAPTER 13 How to Negotiate Low-Cost Options and Below-Market
Purchase Prices with Property Owners
Six basic rules to follow when negotiating with property
owners. √ Thirteen crucial terms that must be negotiated
in every option agreement. √ Five negotiating tools that
you can use to obtain lower prices and better terms. √ Five
FAQs property owners often pose when negotiating real
estate options. √ Why you must negotiate a fixed purchase
price at the time you buy the option. √ What to do when a
property owner rejects your initial offer to buy an option.
CHAPTER 14 How to Prepare Your Option Agreement So That You
Are Fully Protected during the Option Period
The three essential elements of a real estate option
agreement. √ Nineteen clauses that must be included in
your option agreement. √ Why you should hire an
experienced, board certified real estate attorney in good
standing to prepare your option agreement. √ How to find
a board certified real estate attorney in your area. √ Why
all real estate agreements must be properly witnessed.
√ Real Estate Option Agreement.
CHAPTER 15 How to Use Title Insurance to Insure Real Estate Options
Why most title insurers consider real estate options to be
risky. √ What a standard real estate option endorsement
doesn't insure. √ What title insurers look for in a real estate
option agreement. √ Three factors I always consider before
insuring an option. √ Letter to Title Insurers.
CHAPTER 16 Why All Property Title Transfer Documents Must Be
Held in Escrow during the Option Period
Four documents that must be signed by the optionor and
held in escrow during the option period. √ Why a signed
warranty or grant deed is better than a performance
mortgage. √ Why you should record a memorandum of real
estate option agreement.
CHAPTER 17 How to Close on the Purchase of a Real Estate Option
What to do if the optionor refuses to sign all of the
documents at the closing. √ Why it's best to use a boardcertified
real estate attorney to close transactions. √ Joint
Escrow Instructions. √ Memorandum of Real Estate
Option Agreement.
CHAPTER 18 How to Clean Up a Property under Option to Maximize
It's Curb Appeal and Resale Value
How to complete a fast property cleanup on schedule and
within budget. √ How to clean up and secure a vacant
property under option. √ How to find competent
professionals to clean up your properties. √ How to avoid
being ripped off by unscrupulous cleaning contractors.
√ What you need to know about your state's construction
lien law. √ Cleanup Cost Worksheet.
CHAPTER 19 How to Package, Market, and Resell Your Real
Estate Options for Maximum Profit
How to calculate the resale price for a real estate option.
√ How to package properties to fully highlight their best
features and future potential. √ How to overcome the "fearfactor"
that some prospective buyers may have. √ The five
best methods to market properties that you own real estate
options on. √ How to use the Internet to market your
properties globally. √ How to sell your real estate option
agreements. √ How income from the sale of real estate
options is treated for tax purposes. √ Assignment of Real
Estate Option Agreement. √ Notice of Assignment of Real
Estate Option Agreement.
CHAPTER 20 How to Exercise Your Option and Buy the Property
How to exercise your real estate option. √ How to purchase
a property under option. √ Fourteen key provisions that
must be included in your purchase agreement. √ Three
contingency clauses that must be included in your purchase
agreement. √ What you need to know about the Real Estate
Settlement Procedures Act. √ Four things that must be
done in conjunction with the closing. √ Exercise of Real
Estate Option Notification Letter. √ Real Estate Purchase
Agreement. √ Buyer's Closing Checklist.
RESOURCES
Over 100 real estate related web site URLs that all serious
real estate option investors need to have bookmarked on
their personal computer.
ABOUT THE AUTHOR
INDEX