Rock Bottom Blueprint’s High End Home Blueprint

The debate continues among those in the Real Estate Arena.  Which asset class is the best to go after?  Dean Graziosi of Rock Bottom Blueprint likes foreclosures of any kind.  Many say short sales right now because the market is upside down.  Then others say to go after REO’s because short sales are a headache and just take way to long.  Then we have those that say to go after probate homes because it is an untapped market that very few investors go after.  Others say to go after the high-end homes for all of the above reasons and more.  Not only can you enter a market that is not saturated with competition, but you can enter a market that will give you a bigger bang for your buck.  And after all, aren’t we all about working smarter, and not harder?

So I see all sides of the debate, and honestly, all I can say is this:  You can make a great living doing any of the above strategies.  Just pick one, learn it, and go at it with everything that you have and you will be successful.  Remember, as a good friend of mine Dutch Mendenhall says, “Ignorance on fire is greater than knowledge on ice.”  Essentially, it doesn’t how much you know, because if you don’t apply it, you will never be successful.  And that is the truth.

So let’s get back to the point of this article.  We need to give you the Rock Bottom Blueprint to investing in High End Homes, or at least one strategy in it.  So what is the best way to control a high end home as an investor to limit your liability?  You need to purchase it with an option contract.

An option contract allows you to control the property with a small deposit.  This option contract will also give you the right to buy for a specified period of time.  So essentially we are really looking at an Option to Buy.  We like to set out our option contracts for at least 6 months but that is dependent on the owner and their willingness to cooperate.  We use the option contract because it gives us what’s called an equitable interest in the property which legally allows us to market the property without ever owning it.  Don’t get equitable interest mistaken with legal interest as that is retained by the owner.  When the option has been executed, the owner cannot sell that property from out under you without you releasing the contract.  So you essentially have 6 months or so to market and find a buyer to either pay more and buy the house from you, called a “double close,” or a wholesaler who will pay you a sum to take over your contract, an “assignment.”  Either way, the profits on high-end homes are double and sometimes even triple or more than those on regular homes.

If this seems a bit confusing for some of you right now, then go to Rock Bottom Blueprint to receive our bonus, the “Rock Bottom High End Blueprint” where we explain this and a whole lot more in detail.

Thanks again for joining us,

Randy Rider

Rock Bottom Blueprint’s High End Home Blueprint