By Mark Rolton
Options are a lay-buy over a property.
People often ask me to give them a simple explanation of what a property option is. Well, the simplest I can give you is it´s a lay-buy over a property.
If you and I went down the street and put a lay-by on a tent at Target for example, you and I realise that we need to put a small amount of money down up front and we wouldn´t have to pay the balance of the lay-by for some time.
The same thing goes in terms of an option. You and I put down a $1,000 deposit now and we control an asset for 24 to 36 months. This is what our friends, moguls like Robert Kyosaki, Sir John Templeton and Donald Trump, understand that they can control a property instead of paying for it. That´s far more intelligent. In essence, what these men understand is that time is far more valuable than money.
Anyone who is serious about making significant money out of real estate should consider options. You don´t have to be terribly savvy or knowledgeable but if you understand the concept of time meaning more than money, you have already grasped the first step of options.
The type of person that wouldn´t do options in property is someone that is not terribly serious, someone that is very complacent and quite happy with where they are at financially. That would be the only type of person that shouldn´t go ahead and do one of our programs.
When you think about it, the key qualities that come with a person who makes good profits out of options, is someone that is quite tenacious. By tenacious I mean someone who is serious or that is committed to going above and beyond where they are in terms of making money at the moment.
You might find yourself quite disgruntled. The qualities that I see in our graduates are people that are either forward thinking, that choose to think outside the box and the people that are quite diligent in their research, someone that is actually quite good at finding the necessary answers.
It´s also worth understanding that people can think that options must be a developer´s game or someone that is very qualified – the big boys, so to speak. People seem to think that the big companies must be the only people that use options.
The truth is quite contrary to that; there are many people in Australia who understand options.
In fact, large companies often find it difficult to deal with the councils. One of the key processes that is used to add massive value to a property is to go out and get a development approval from council.
The key to working with the councils is seeing what they are trying to achieve and help them fulfil those particular needs.
Large companies can have great challenges working with councils because they feel that they are the only people that matter in the equation.
The world of options is rich, exciting and potentially very lucrative. Be sure to get the best training and always be prepared to learn. In future thinkbig columns will give examples of options at work.
