who want to be millionaire and make money with real estate options_27

_{One of the main reasons real estate options appeal to so many people is that you}

_{do not need a six-figure income, a hefty bank account, an 850 FICO score. The}

_{the popular credit scoring model named FICO, and a lifetime employment}

_{contract in order to become an option investor. The fact of the matter is}

_{that buyers of options usually face very little financial scrutiny. For example,}

_{when buying an option, you almost always avoid having to pass any of the financial}

_{tests—income, debt, and credit scoring—that are such an integral part of the}

_{buying process. This is mainly because many property owners involved in an option}

_{transaction seem to focus only on the amount of the option fee they will receive}

_{from the deal and pay scant attention to the party buying the option. The}

_{only financial test that most people must pass when buying a real estate option is}

_{having the cash necessary to pay the option consideration fee. The amount of}

_{money that you will need to do your first option deal depends on what segment}

_{of your local real estate market you target. For example, my target market in}

_{Hillsborough County, Florida, is commercial properties up to $500,000 in value.}

_{Please keep in mind that a commercial property that sells for $500,000 in Tampa}

_{would cost double that amount in the Northeast and triple that price in California.}

_{And depending on the property's condition and the owner 's circumstances,}

_{it usually costs me between $5,000 and $15,000 to buy a six-month to one-year}

_{option. My only out-of-pocket expenses are the costs of cleaning up and marketing}

_{the property, which typically run between $2,500 and $4,500 per deal. How}

_{much startup capital you will need to get into the option business pretty much}

_{depends on your local real estate market and the price of the properties you pursue.}

_{I know an investor in Phoenix, Arizona, who paid only $500 for a six-month}

_{option on a vacant single-family house, which belonged to an absentee owner residing}

_{in Riverside, California. And just 30 days later, she f lipped her option to}

_{an investor from Los Angeles for a nice $10,000 profit. Next, she invested $1,500}

_{of her profits into a one-year option on a run-down duplex, which she resold 90}

_{days later for a $12,000 profit. On her first two deals, she leveraged $2,000 into a}

_{$22,000 profit without ever having to buy any property. As far as raising startup}

_{capital to get your business off the ground, your best bets are:}

_{1. Fixed-rate, low-interest lines of unsecured credit.}

_{2. Home equity loans.}