Beneficial Brokers, LLC is in the business of helping home SELLERS and BUYERS.  As you read
through this page, it might seem like the home seller is the main emphasis.  But, on the contrary,
an interest exists as well to assist the home buyer.

Legally speaking, an option provides a potential buyer of property EXTRA TIME to make a pur-
chase decision.  When an option is carried out properly, this individual pays the seller or owner
for an "option" on the property.  During this process, the option sets a price at which the buyer
can purchase the property in question.  The buyer pays for the right to buy property, but has no
obligation to follow through and buy it.  In addition, the option will expire after a specified period
of time if NOT executed. 

Unlike stock options, which can be risky, a real estate option is less volatile and offers the following
advantages:

A real estate option allows me, an investor, to control YOUR home without owning it.  An
owner-occupied property works BEST in this scenario.
***Statistically speaking, "Most homeowners are NOT trained to sell their home and often, as a
result, do not sell it within a reasonable period of time."  As an example, a FSBO (For Sale By Owner)
might not use the best marketing strategies when selling a home.

When an option is carried out properly, an investor like myself can get a real estate option
on a property, market it, and cash out in 30 to 45 days.  This obviously is GREAT for you, the home
buyer, for the faster I sell a house, the faster I can offer it to YOU.  Would you agree?

In any city, a large number of homeowners exist who GLADLY would let an investor "option"
their house, especially if I know how to sell it quickly.  And AGAIN, this is where you the home buyer
come in to play.  If I have a prospective buyer waiting for a house to purchase, then this whole pro-
cess becomes easier for BOTH you and me.  Would you agree with me?

to the top

This advantage applies to both the investor AND the home buyer.  If I set up a 90-day option on
a $100,000 house for $10, and I can't sell this house, then I have lost $10 and some sweat equity.  How-
ever, with every house that I option, I am updating my database to better meet the needs of my buyers,
including YOU.

Real estate options are very flexible with single residential homes being the most common to
offer an option on.

An option is used to connect a property with buyers who will put it to its highest use, meaning
that they also will place a higher value on it.  As an investor, I could "tie up" a property with an option
for one year or more and then search for a house buyer to sell my option to.  

(Source:  http://tinyurl.com/2wmc9lk)
(Source:  http://tinyurl.com/2ub9aj5)
 
The ideal candidate for an option is a homeowner who doesn't want to move out of the house,
but can NOT afford it.

to the top

Here is an example:

Joe, a homeowner, currently is paying $2,700 per month on two mortgages on a $500,000 house.  One
is for $300,000 and the other is an equity line of credit for $60,000.  Joe is chronically running about
$300 short each month and has been using his line of credit to make up the shortfall.  He is making only
minimum payments on his credit cards and is accruing almost 30% interest on the unpaid balances.  He
is sinking fast and doesn't know what to do.

An investor like myself might have a solution.  I might offer to make up Joe's $300 payment shortfall until
he sells his house, or for five years maximum,  in return for a 5-year option to buy.  Your option contains
a formula that divides all of Joe's equity 50/50 anytime in the next five years that he sells his house.  In the
worst case, I will pay out $18,000 over five years to get half of Joe's current equity, or $70,000.  
[$500,000 value - ($300,000 + $60,000 = debt) = $140,000 / 2]
If he sells his house sooner, then I will get the same profit but will pay out LESS.  If the house appreciates
at 5% per year, then I would be adding a little over $1000 per month in equity at a cost of $300.  

Do you think that sophisticated owners and hard-bitten builders would be wise to my strategy and turn
me down?  To see why they might agree, please think about the following.  The previously mentioned
owner has a major investment with no way out other than to go deeper and deeper into debt with no real
hope that things will improve in the near future.  At some point, this owner will reach his / her debt limit
and lose the home and equity.  More than anybody else, THE OWNER KNOWS IT.

(Source:  Jackie Lange, 11/13/2009)

Doug Iles
The Beneficial Broker
c/o Beneficial Brokers, LLC
http://www.creativehomesellerstrategies.com
http://www.creativehomesellerstrategies.com/HomeSellerindex.html
http://www.creativehomesellerstrategies.com/Commercialindex.html
http://www.creativehomesellerstrategies.com/HighestBidderSale.html#T
http://www.creativehomesellerstrategies.com/ResidentialIndex.html
26 Gibson Avenue
Mansfield, OH  44907-1316
Business email:  askyourquestion@creativehomesellerstrategies.com
Home email:  diles1@neo.rr.com
Other email:  douglas.iles@huntington.com
TOLL-FREE business phone:  1-877-972-3847 or 1-877-97ADVISE 
Choose Option 1 to leave a message for Doug Iles
Choose Option 2 to request a 24 x 7 fax-on-demand company brochure
Choose Option 3 to request a 24 x 7 fax-on-demand owner financing brochure
Choose Option 4 to request a 24 x 7 fax-on-demand partial purchase brochure
Choose Option 5 to request a 24 x 7 fax-on-demand simultaneous close brochure
Choose Option 100 to listen to a foreclosure hotline recording
Choose Option 200 to learn about the Instant Equity Exchange program
TOLL-FREE business fax:  1-877-972-3847 
Home phone @ 419-775-5349
Cell phone @ 419-545-4446

to the top