Catherine Bell explains how real estate purchase options lock in a contract price while you negotiate entitlements to raise the property's value, then sell for profit. It's like buying a car cheap, upgrading it, and flipping it.
Are you in the deal room? There are purchase options. A purchase option gives you control of the property. You can negotiate in that purchase option to do all of the entitlements necessary to raise the value. The purchase option locks you into a contract price they can't change. So basically it's like if you went to a car dealer and you went and bought a Lexus and you said, I want to pay $50,000 for this Lexus. They said, great. You said, okay, then I'm going to have a bunch of add-ons and upgrades added to it. And I'm going to sell it for $100,000 when I'm done. And they were like, yeah, I don't care. And so because again, they got their $50,000, that's what they were happy with, right? And you added some add-ons to it that made it worth $100,000.
