Make Thousands With One Sentence!

-Minimize your risk and those dreaded “worst-case” scenarios.

By Scott Rister
Author and “real-world” investor
just like yourself.

Sometimes you can't see the forest for the trees, and so maybe your approach in Real Estate needs some “outside the box” thinking.

• Have you ever:
• Not made an offer because you didn't know the total repairs needed on the property?
• Just didn't feel comfortable with your knowledge of property values to make an offer?
• Didn't know 100% for sure if you could close on the deal if your offer is accepted?

If so, then it's time to take a more open approach with OPTIONS! Now, Options are not anything new to creative Real Estate, but the way you should be using them may be new to you. We TRULY are only limited by our imagination in creative Real Estate.

One thing I have learned and that was pounded into my head through the school of hard knocks is now my favorite motto:

Am I prepared legally and financially to handle the absolutely worst-case scenario on this deal if my offer is accepted?

If the answer to the above posed question is “no”, then I either don't do the deal or change my offer. I only want deals that are no-brainer and can't lose. In fact I would rather do one great deal, versus ten marginal deals, if my “worst-case” scenario would have a possibility of happening.

So, here we are to my entire point and teaching of what I feel is absolutely necessary if you want to become a truly successful creative Real Estate investor; You definitely MUST use Options when they are needed to minimize your risk and those dreaded “worst-case” scenarios that eventually happen to us all.

There is one sentence you can use in your contract that can turn an ordinary “Offer To Purchase” into a straight option minimizing your risk:

Seller grants buyer exclusive 30 day (60,90) option to purchase property at said price and terms.

If I feel a deal is marginal at best but still think there may be a possible opportunity then I will use my Option clause on any offer I make. For example, I may be concerned about the length of time it will take me to find a qualified tenant/buyer or if there is enough equity in the property to wholesale it. In fact for all those wholesaling properties I feel this is an absolute must clause that you must utilize.

If I can take another section in here that in wholesaling using total Options is critical. Many of those wholesaling properties simply are cash strapped, which means you really have to utilize Options just like I have outlined here for you since you aren't in a strong financial position to buy/hold properties.

I'm simply NOT going to get stuck with a deal that doesn't lead me to profits and cash flow… and neither should you! If the deal doesn't make total financial sense minimizing your risks, then put a total limit on your risk with a straight Option on your offer.

Now, don't let your fear and even lack of knowledge limit your ability to make significant wealth in Real Estate. Good hunting as luck has absolutely nothing to do with it!