Real Estate Investing – Using Options to Purchase Property | Real estate

Did you know that by using real estate options you can legally take control of valuable properties to generate quick income with only a small amount of money. Learning to understand and use this valuable technique can be extremely valuable to the success of a new or seasoned real estate investor.In order to take full advantage of this great technique, you only need to understand how the technique works and become familiar with, and follow, your local state laws. Having learned how to use this technique and the law, you will soon be on your way to a great return on your investing efforts.Here are some very important questions concerning real estate options…What is a real estate option? Is that the same as a Lease Option? I thought real estate options were illegal! What are the steps in a real estate option transaction? And – How are options used to purchase real estate at discounted prices?What is a real estate option?A real estate option is a unilateral agreement:Between an optionor (The Seller) and an optionee (The Buyer, for the rest of this article I will refer to them only as the Buyer and Seller)Binding only on the SellerWhere the exclusive, unrestricted, and irrevocable option to purchase is exchanged with the Buyer for valuable considerationThe purchase of the option does not impose any obligation upon the Buyer to exercise the option and or purchase the propertyHowever, the Seller is bound by the agreement to sell the property at the agreed price to the Buyer should the Buyer choose to purchase the property within the option time periodThe elements that must be spelled out in an option agreement are:o Price (consideration) to be paid for the optiono Time-when will the option start and when will it expireo Strike Price-the mutually agreed purchase price or property during the option periodo Other terms and conditions of the option agreementIs a real estate option the same as a Lease Option?Yes and No! The option part of a lease option agreement could be exactly the same as the option agreement we are discussing but the lease option includes a lease for the property.
I thought real estate options were illegal!Real Estate Options of some kind are legal in most free countries in the world. It is the lease part that may cause some legal problems in certain American States. In order to avoid any problems, be sure to consult with a real estate attorney before entering into any real estate agreement.
What are the steps in a real estate option transaction?Here is a step by step overview of an option transaction:1. The Buyer and the Seller enter into an agreementAnd the Buyer pays an option consideration to the Seller The Seller grants the Buyer the exclusive, unrestricted, and irrevocable option to purchase property at a fixed purchase price
during a specified period of time.2. The Buyer eitherSets up a closing and purchases the real estate during the option perio sells the option to another investor or Lets the option expire by not purchasing the property during the option period
How are options used to purchase real estate at discounted prices?Investors may use options to gain control of a property for short time. During that time, the investor can seek out another buyer to sell to for a higher price than the option amount. The profit is the amount of difference in the amount of the option and the sale price.But a more creative use of an option would be to locate a seller having a hard time selling their property. Then convince that seller to sell you an option to purchase but with the right to sublease it immediately. The investor may then rent out the property on a rent to own agreement. This will allow the investor to generate some income while helping their renter get into the position to purchase the property from them at a substantial profit.Options are a great way to tie up property for a small amount of money. Some of the benefits of using options to purchase property are:Saving the closing costs of purchasing and selling the propertySaving the holding costs involved in purchasing a propertySaving the maintenance and many other holding costs of owning a propertySaving time by avoiding the loan process–setting up and going to closingsPutting time to use on more productive efforts like finding more optionsOne other thing to keep in mind is that a real estate option will expire when a Buyer fails to exercise the real estate option within the option period of the agreement. At that point the Buyer will not only lose their control of the property but also their original option payment.

Choosing an NMLS Mortgage License Education Course Provider | Education

Every Mortgage Loan Originator licensed in the United States must complete Pre-License Education in order to obtain a license and Continuing Education each year in order to renew the license. There is a federal mandate that each state require at least 20 hours of Pre-License Education and at least 8 hours of Continuing Education each year after the license is approved. And many states have decided to require additional “state-specific” Pre-License and Continuing Education on top of the federal mandated minimum requirement. If a Loan Originator obtains licenses in many states, there could be a lot of Continuing Education required each year, which brings us to our main topic. How do you choose a Mortgage License Education Course Provider that can make this process as simple and painless as possible?Availability of Courses – Each Mortgage License Education Course Provider must get their courses approved through the NMLS (Nationwide Mortgage Licensing System). Some Course Providers only get the main 20 hour Pre-License Education and 8 hour Continuing Education, so if you are licensed in any states that require state-specific education, you’ll have to do that part with another Course Provider. Most Course Providers only get some of the state-specific education approved for the larger states, because it is very time consuming to get approved and maintain if they don’t have enough customers taking the courses. Very few Course Providers get the state-specific Mortgage License Education Courses approved by the NMLS in every state that requires it. If licensed in many states, it is best to find one of these few Course Providers that offer all courses.Course Formats – The Course Providers are able to provide Pre-License Education in 3 formats: Classroom, Webinar, and Online Instructor-Led. Classroom is a live course in-person. Webinar is a live course via a webinar online. And Online Instructor-Led, which is by far the most popular, is an online course at your own pace with a small amount of instructor involvement to meet the NMLS requirement that there be interaction between the student and the instructor. Due to the instructor interaction, the Online Instructor-Led courses must be done within a certain window of time. Usually 2 days for a few hour course up to 12 days for a 20 hour course. For the Continuing Education, Course Providers are able to offer all of the same course formats as the Pre-License Education plus an Online Self-Study format. The Online Self-Study format is virtually identical to the Online Instructor-Led format, except that there is no window of time that the course must be completed in and there is no instructor interaction. For most people, the Online Self-Study format would be the best option for the Continuing Education. Not all Course Providers offer all Course Formats, so you will want to find a Course Provider that offers the formats you prefer.Technology Platforms – Specifically for the most popular Course Formats, Online Instructor-Led for the Pre-License Education and Online Self-Study for the Continuing Education, the technology platform of the Mortgage License Education Course Provider is critical to making the process smooth. The NMLS has specific guidelines on how the Education Course must operate regarding timing of the course, instructor interaction, timing out after a certain period of inactivity, verifying that the person taking the course is the actual Loan Originator, etc. However, the Course Providers have a lot of flexibility in making the compliance with these requirements as painless as possible. There is a huge difference between Course Providers so you may even want to ask to test their systems out before purchasing courses, especially if you are licensed in a lot of states or are making the decision of what Course Provider to use for many Loan Originators.Customer Service – In my experience, this is by far the most important factor. Issues will come up such as courses not reporting to the NMLS properly, course windows ending before the course is completed and the need to reschedule, questions about what Mortgage License Education Courses are required for a new license or continuing education to renew your Loan Originator Licenses, or even just issues navigating their website. When these issues come up, you want to have someone at their office that always answers the phone during normal business hours so you can quickly resolve these issues. I have found that not all Education Course Providers have the same excellent customer service that you would expect. This is critical. If you start finding that the responses from customer service are slow or inadequate, then it is probably time to start looking for a new NMLS Mortgage License Education Course Provider.

How to Protect Your Livestock | livestock

Even ‘seasoned veteran’ farmers are sometimes shocked at the scale of livestock theft they suddenly encounter.One recent theft involved over 700 sheep from a farm, though incredibly the culprits were tracked down and arrested. Much of the flock was returned to the rightful owner.However, much theft of this nature is never resolved and the losses and stresses can be huge for the farmer concerned. So, here are a few tips about how you can help reduce your risks.

Where livestock is inside, make sure your premises are protected with locks and alarms. CCTV and PIR sensors are now very affordable and should also be considered.

There are various forms of animal tagging and identification systems – the specifics may vary depending upon which country and/or state you’re in. Make sure you use them and also consider other non-removable ways of marking your animals to make them easily identifiable. That in itself won’t stop the theft physically but it might deter some thieves who want ‘quick disposal’ afterwards and a limited chance of identification of the animals concerned.

When livestock is outside, don’t make it easy for thieves by leaving things that could be used to help the loading of animals (e.g. loading ramps or some forms of agricultural machinery ) near your perimeters at night. Keep that sort of equipment somewhere central under lock-and-key instead.

If the animals concerned are particularly valuable, prime breeding stock might be an example, then you might wish to consider hidden trackers. These can be almost undetectable and if acted upon promptly by the authorities, the result can be the fast arrest of the thieves.

Work with your neighbours and other farmers in the area to form mutual support groups. Take notes of vehicles and registrations that appear to be strange to the area and ‘hanging around’ for no obvious reason. Contact the police sooner rather than later. They’ll go and check things out and if all is legitimate then fine. If not, it’s a theft prevented. In passing, most police services would far rather prevent crime than detect it after the event, so they won’t worry about the time invested in this sort of prevention.

If you don’t already, keep a dog on your property. OK, it’s perhaps not a viable deterrent for your fields a long way away from your home base but it will be a powerful deterrent to thieves looking to pick up some of your animals that are being held locally. Most livestock thieves REALLY detest dogs.

Don’t travel around your land to a set routine. Surprisingly, many thefts happen not in the dead of night but during broad daylight. If you have a certain routine which means you’re never in XYZ location until late in the evening, then thieves can get to know that and consider the rest of the day to be safe from your arrival. So, deliberately vary your schedule as much as possible.
There is, of course, no sure-fire way to guarantee the safety of your stock but some of the above steps might help.