Would love to hear from anyone who has successfully carried out Property Options? Have read a lot about and heard a lot about it but still don't know enough about it.
We are really excited by the concept of Property Options, but still don't know the nuts and bolts.
Are there any successful Property Option people out there that are willing and happy to share their experience and knowledge with us.
Look forward to hearing some positive and helpful feedback.
just been to a few seminars in Perth which explain the property options concept and am blown away by the reasults
would love to know anyone who knows a property lawyer/solicitor who can draw up a property options contract.
any information involving this concept would be much greatly appreciated.look forward to hearing from anyone.
Depends on who you did the 'seminar' with and what promises/claims of results they made. I've been doing options for about 18 months, did the Massland course, and thankfully now have nothing to do with them. Options are NOT easy, they take a long time to learn, longer to do, and require a lot of consistent work. My advice to you based on my personal experience is ask the following questions of teh seminar spruiker in question:
can they prove the claims they're making. Eg: if they say they're worth $500Million get some accountants statements to prove it and make sure they're not just renting somewhere and living upstairs (doesn't sound liek someone worth $500 Million does it?),
if they say they have 100 projects on the go, get them to show you some proof of that and I mean independent proof.
If they say the industry will deal with them and they're all good mates etc, prove it, have one of them provide a letter of reference, and most imortantly,
if they say they have many successful students then ask to speak with one of them. Find out if any of them have actually been paid out more importantly, and what kind of support they get.
Find out if the 'coaches' they say will mentor you through things have actually done any deals themselves and are speaking from experience, and if not, how can they mentor you through anything..
If they use big names as references ask them if those names are contractually bound to their 'system' and if so for how long, see some evidence that its not just "oh well we were in the same room as them once".
My experience has been that there are some out there saying they're a development company who do 'seminars' on teh side, when in reality it's the opposite – they're a seminar company trying to do developments and their primary source of income is upselling you into 'mentoring' programs. I'd ring around the industry, mention the name of the group you're dealing with, and find out what the industry thinks. I've had some very, very interesting conversations over the last year or so. Options themselves are good, but they require a very in depth knowledge of the developing industry, very good contacts and a lot of patience and experience. My advice is tread very carefully, ask a lot of questions, get a LOT of proof that you're not just being seperated from your money and left out to dry.
Best of luck.
Matt007, would be very interested in talking to you privately. Are we allowed to do that with this site.
Pretty sure you can send PM's here..
Matt007 wrote:Depends on who you did the 'seminar' with and what promises/claims of results they made. I've been doing options for about 18 months, did the Massland course, and thankfully now have nothing to do with them. Options are NOT easy, they take a long time to learn, longer to do, and require a lot of consistent work. My advice to you based on my personal experience is ask the following questions of teh seminar spruiker in question:
can they prove the claims they're making. Eg: if they say they're worth $500Million get some accountants statements to prove it and make sure they're not just renting somewhere and living upstairs (doesn't sound liek someone worth $500 Million does it?),
if they say they have 100 projects on the go, get them to show you some proof of that and I mean independent proof.
If they say the industry will deal with them and they're all good mates etc, prove it, have one of them provide a letter of reference, and most imortantly,
if they say they have many successful students then ask to speak with one of them. Find out if any of them have actually been paid out more importantly, and what kind of support they get.
Find out if the 'coaches' they say will mentor you through things have actually done any deals themselves and are speaking from experience, and if not, how can they mentor you through anything..
If they use big names as references ask them if those names are contractually bound to their 'system' and if so for how long, see some evidence that its not just "oh well we were in the same room as them once".
My experience has been that there are some out there saying they're a development company who do 'seminars' on teh side, when in reality it's the opposite – they're a seminar company trying to do developments and their primary source of income is upselling you into 'mentoring' programs. I'd ring around the industry, mention the name of the group you're dealing with, and find out what the industry thinks. I've had some very, very interesting conversations over the last year or so. Options themselves are good, but they require a very in depth knowledge of the developing industry, very good contacts and a lot of patience and experience. My advice is tread very carefully, ask a lot of questions, get a LOT of proof that you're not just being seperated from your money and left out to dry.
Best of luck.
thanks for the advise matt recently i attended a seminar by Carly Crutchfield but one of my friends attended Mark roltons
seminar for Massland but they both simular in there stratagies i will keep an open mind thanks again for the warninghey Matt can't send you e-mail i tryed, Carly Crutchfield's seminar blew me away, didn't think people like Mark Rolton would be fraud but they come across as salespeople when you think about it, but does that mean the stratagies they teach don't work, or is it still possible to acheive those outcomes with property options?
Hi Landguru,
property options are quite a specific strategy and as Matt007 has alluded to they take time and effort. Have a read of the following link also.
https://www.propertyinvesting.com/forums/property-investing/creative-investing/4324169?
With regards the stuff Carly teaches, I have gone thru her home study and the content is outstanding. There are so many strategies discussed with repsect developing (and property options is only one of them……..and lucrative at that, if you get it right).
I'm attending her three day seminar later in the year also. I have had excellent follow up email support with her organisation and if you have any questions with the syllabus or with your own projects, they are only too pleased to help.
Carly Crutchfield is a breath of fresh air and an inspiration to have achieved so much at age 27. There is no veneer or facade to her. She walks her talk.
Hi folks, I can't speak to Carly Crutchfields course as i've never done it, seen it or met her so have no idea, although I do see more positive feedback on her than I do anyone else these days.
Let me be clear, i'm not formally accusing Massland of fraud or anything, I'm simply saying if someone is making extraordinary claims, make sure those claims are real, valid and true. Get proof. dont' get sucked into the NLP marketing techniques and go forking over thousands of dollars. Do your own research in the industry, Ask questions, and do NOT fall into the hype.
Options themselves are indeed a powerful tool, and they CAN work in certain circumstances, but they do take time, effort, and in many cases money to complete. I do also think they require some good background knowledge of the development industry as a whole and that takes time.
Again, i am no tpublicly making any accusations, but let's just say I am very pleased NOT to be associated with Massland, and I have met an ever increasing number of people who feel the same. One can begin to wonder why that is.
If you want to email me, do so at [email protected]
and put property options in the header so I don't spam you!
cheers,
MattHi All,
I was attracted to this topic because I wasted some time over the weekend by watching a DVD of Mark Rolton. He is a good performer on stage, but I have some serious reservations over his knowledge given that he stated, in one example, that you could build commercial premises on residentially zoned land, simply by building apartments on the top floor. This is not correct, there is a very restricted number of commercial premises that can be built on Res 1 zoned land, basically just small convenience stores.
I also have experience with optioning property, it is a good strategy. However, it is very difficult to get vendors to agree to accepting an option, unless you put a substantial amount on the line for the option fee. Even then it is difficult to get someone to accept an offer by way of option. There is no education needed for this either, just a good solicitor to write up the option contract.
Regards
AlistairI agree with APerry, a good solicitor is what you need.
But I am trying to get my head around how you go about selling that property once you have gotten the approval to change what the use is. Whether it be sub-division etc. I am one that would prefer to be able to cut out those that make the promise and haven't actually got the proof of the deal.
Regards
Darryl
Firestorm_st44 wrote:I agree with APerry, a good solicitor is what you need.But I am trying to get my head around how you go about selling that property once you have gotten the approval to change what the use is. Whether it be sub-division etc. I am one that would prefer to be able to cut out those that make the promise and haven't actually got the proof of the deal.
Regards
Darryl
Darryl that there is where some problems arise with the people at a certain company that says its a development company..no one to buy the options and last I heard, no money to do the DAs with. Options do work very well IF you have an end buyer and you know what type of prodcut they're looking for, or you've managed to secure a strategically valuable and important site before one of the larger players can do so. This takes a good contact network amongst mid/large tier developers and smaller boutique builders, as well as local councils, which of course take time to build up along with establishing your bona fides with them etc. You have to know who to contact, and how to sell it to them.
There are groups out there who teach options to 'students' and do JV's for a profit split, and the deal is supposed to be that these groups have the contacts and finances to do the DA and then have the contact network to be able to onsell the option to, and that this contact network have high enough opinion of the group and their product to buy from them. Again, this is where problems can arise ( and have arisen ). To the best of my knowledge anyway, and I can't apply that knowledge to all of the groups out there in this space. generally speaking though, this is my experience and understanding.
Of course I could be wrong and I'm happy to be PROVEN wrong and I make no accusations or allegations…but therein lies my quandry and ongoing beef… proof or the lack of it..
I wouldn't discourage people from learning about options at all, but I would caution anyone considering doing JVs or other legally binding contractual arrangements with any group or individual who can't provide proof of their ability to do what they claim. IF they're legit and so forth, then providing proof should be no issue for them. If they start throwing up excuses and reasons why they can't, well.. you can derive your own opinions on that.
As always, caveat emptor.
Landguru wrote:just been to a few seminars in Perth which explain the property options concept and am blown away by the reasultswould love to know anyone who knows a property lawyer/solicitor who can draw up a property options contract.any information involving this concept would be much greatly appreciated.look forward to hearing from anyone.Robert Balanda is an Options Savvy Solicitor based in Queensland with http://www.mba-lawyers.com.au. He has written “Options Made Simple” and a number of other products which we’ve used and found were a good starting point. You can find out more from his website http://www.clausesmadesimple.com/content.htm
Options are a great way to fast track your wealth creation if you know what you are doing. Having an experienced Property Option Solicitor onboard and a water tight Option Agreement is essential.
However ‘crunching the numbers’ and conducting a proper financial feasibility will be equally as important because you need to make sure your deal stacks up with a development permit approval.
Typically the minimum profit margin a developer will look at is 2O% – 25% but more experienced developers target much higher returns especially in a flat market. We’re currently seeking development approval for a complex of boutique apartments with a much higher return and we’ve ‘crunched the numbers’ on a neighbouring development where we believe the developer’s profit margin will be close to 70%.
Options aren’t easy but with the right knowledge and proper due diligence process they’re not impossible! Experienced developers use Options on a regular basis.
Adrian and Amber Zenere
http://www.RealEstateDevelopmentClub.comGood advice Amber and Adrian.. only my personal opinion but I think a basic foundation knowledge of developing is also a very good place to start from. My experience with options is lol well documented but that said I'm now in partnership with some knowledgeable people for my main project and it's showing me so very much more than what I originally learnt from the 'expert'..
I'll use options again for sure, but need to do some more learning and one or two smaller projects I think before heading back to a project similar to the monster I've created up north!Matt007 wrote:Good advice Amber and Adrian.. only my personal opinion but I think a basic foundation knowledge of developing is also a very good place to start from. My experience with options is lol well documented but that said I'm now in partnership with some knowledgeable people for my main project and it's showing me so very much more than what I originally learnt from the 'expert'.. I'll use options again for sure, but need to do some more learning and one or two smaller projects I think before heading back to a project similar to the monster I've created up north!We always recommend starting out with smaller projects first. If we decide an Option is the best way to proceed to enable us to control a site we would send the Vendor our ‘Letter of Intent To Purchase Under Option’ before we went to the expense of having our solicitor prepare a formal Option Agreement.
This outlines the basic terms upon which we would be prepared to purchase the property. The terms are not complex and we mention in this that we expect additional terms to be incorporated into the Formal Option Agreement.
Infact we just received a ‘Letter of Intent To Purchase Under Option’ today from another developer for one of our development sites. Not going ahead with it though as the offer and terms is not even close to what the development site is worth to us.
Options are one of the most powerful tools available to developers. They give developers the right to control a site during a set period of time, without the obligation of taking ownership, and usually with only a comparably small monetary risk.
Amongst other advantages they can buy time for the developer – to complete their preliminary feasibility and planning to determine the projects financial viability and to even obtain the Development Approval Permit. According to Robert Balanda in “Options Made Simple” they can even be used as an effective tax minimisation strategy.
Simply, an option gives a buyer the right (but not the obligation) to purchase the property for the payment of a fee. The amount of the option fee is negotiated between the two parties and is typically a percentage of the agreed property purchase price.
An option contract also allows the luxury of tying up a property without having to settle on it, which is when your name is revealed in the public record as the buyer of the property.
Walt Disney, for instance, assembled the Florida Walt Disney World site using options as he didn’t want to reveal to the many different property owners that he was the intended purchaser, as they could of held out for a much higher price.
A downside with options is, that the money that is given as the option fee, is usually forfeited if the developer decides not to go ahead and does not purchase the optioned property. On the other hand the significant advantage of options is that the usually small option fee is all that is at risk.
The precise terms and conditions of the Option Agreement will depend on the relative bargaining strength of buyer and seller. While not all sellers will agree to an option contract many will, especially if the terms of the option are not unreasonable.
The option fee can vary from nominal to several thousand of dollars – it will usually be determined by the seller and be dependent on their aggressiveness in selling the property. If they have hopes of a fast sale a substantial fee will usually be requested to compensate them if they should lose a sale to another buyer.
The option agreement is usually attached to the contract of sale. Once the option is exercised a contract of sale becomes into effect. The contract of sale will detail the price and all of the necessary terms and conditions.
Options are only one of the strategies that we use to control a development site.
Adrian and Amber Zenere
http://www.RealEstateDevelopmentClub.comHi Out There,
Can someone PLEASE help my sister and I. We attended one of Mark Roltons one day introduction to his two day seminar and after coming across a few sites and googling him I am now getting a little worried that this is a scam. If it is so easy as he claims I wonder why everyone else isn’t doing it. Has anyone got any solid advice as we signed up for a course in February and I think we may cancel. We live in Melbourne and are both hard-working single mums so to loose $5 would be awful or money better spent on a legitimate course.
Anyone’s advice would be greatly appreciated and many thanks to those who reply..
Need to Know the Truth…
I can be contacted on [email protected]
Muchkin
Many of us do use Options effefectively to buy and sell property however this biggest hudle is finding a Vendor who will accept a strategy without you going to Contract.
Also many States do now charge Stamp Duty on Call Options so you arent savings a great deal there.
Richard Taylor | Australia's leading private lender
Munchkins – I have some experiences with Massland and Mark Rolton. PM me if you like and I can relate my experiences, and this may help you decide whether to cancel or not. I'll leave it with you.
Munchkins,
you may want to read this thread:
https://www.propertyinvesting.com/forums/property-investing/creative-investing/4324169?
Agreed Michael
good one. Munchkin. Most of what I have to say supports what "inthegame" says in the open forum. If you still feel you're unsure after going through the thread Michael has directed you to, PM me if you like.
cheers
Matt
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