Who’s is bigger? Let's talk about your dream deal come true!

Investor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes

Remember that deal that made you pop bottles in Vegas and buy that $13,500 Submariner from the Rolex shop on 5th Ave?

Well, I bet you didn’t make more than I did! Check out my DREAM property deal here.

So if you like comparing who’s is bigger and you're not afraid of the IRS knocking on your door, post a comment below with some pictures of your dream deal and how much money you made.

Who’s is bigger?

Podcast Guest on Show #89

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Stan SearcyPro Member
Real Estate Investor · Evansville, IN · Member since 2016 · 16 posts · 6 votes
9y
Aloha from Kona,
12 years ago I was in a rapidly appreciating market (20-25%/year) and found a condo for rent at $1100/month. Paid $5,000 for the right to rent it for 800/month with an option to purchase within 18 months for 165,000 (5,000 option money to apply to the purchase price) Fourteen months later I sold the OPTION for $105,000 and the option buyer bought the property. So I saved $300/month for 14 months ($4200, almost all of the upfront option money) and cleared $105,000 (cash). I did have to correct the title company three times on their paper work because they kept drawing the paperwork up as if I was exercising the option and then selling the property that same day for the total price. Not what I intended because that would have generated a one day (short term) profit of 105.000 rather than a long term capital gains tax of a great deal less.
Why did the seller of the property do this deal? Because she used my handwritten paperwork to do the exact same thing with another property in the same complex for a much lower strike price. Everybody wins or I don't play. (Unless we're talking about basketball)
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Engelo RumoraBusiness Member
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Investor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
9y
Originally posted by @Stan Searcy:

Aloha from Kona,
12 years ago I was in a rapidly appreciating market (20-25%/year) and found a condo for rent at $1100/month. Paid $5,000 for the right to rent it for 800/month with an option to purchase within 18 months for 165,000 (5,000 option money to apply to the purchase price) Fourteen months later I sold the OPTION for $105,000 and the option buyer bought the property. So I saved $300/month for 14 months ($4200, almost all of the upfront option money) and cleared $105,000 (cash). I did have to correct the title company three times on their paper work because they kept drawing the paperwork up as if I was exercising the option and then selling the property that same day for the total price. Not what I intended because that would have generated a one day (short term) profit of 105.000 rather than a long term capital gains tax of a great deal less.
Why did the seller of the property do this deal? Because she used my handwritten paperwork to do the exact same thing with another property in the same complex for a much lower strike price. Everybody wins or I don't play. (Unless we're talking about basketball)
Wow mate,
What a screamer deal.
How did you come across such knowledge that enabled you ti implement such a complex strategy?
I'm sure a ton of folks on the forum would love to know how to use options to make deals happen :)
Thanks
Podcast Guest on Show #89
Oz Realty4.5369 Reviews
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