Real Estate Flipping Houses Tip: $1 Lot Option?

This video features JP Moses of http://REITips.com/ along with Real Estate Investor Steve Cook of http://FlippingHomes.com and offers you a quick “on the fly” tip about the lot option on this particular “haunted house” rehab project. This lot option was purchased for only $1. How would you like to get your hands on a valuable opportunity such as that? I know that I would! Even the “$1 Value Menu” at your local McDonald’s is fading away quickly and will soon no longer probably be available. Which would you rather purchase for a $1, a fattening McDonald’s hamburger, or a fat-cash opportunity to purchase some valuable land?

The property was purchased back in April 2005 for $200,000, was renovated, then sold later, with the kicker that the back portion of the property would be optioned back to Steve for only $1. If Steve decides to engage his option then this property could be sold to one of the adjoining neighbors for around $30-40,000. Or he could retain the lot and assemble the adjacent properties as well, thus making his lot and the others more valuable.

At the time of purchase, this was one of the ugliest houses on the block. Then Steve did a successful job at renovating the property, where he then sold it to a law firm for $375,000. I hope that you paid attention to this video as it gives you great advice on the importance of Creative Deal Structuring.

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