Small Commercial Investments – 25 Ways to Make Money With Options

Small commercial business investors frequently do not take advantage of things that the large commercial businesses do. The small investor does not have a team of attorneys and other professionals to alert him of about everything. Much of the time the small commercial property investor has been involved in the residential property area.

Although many of the same principles are the same for both residential and commercial investing there are some very major differences. There are also numerous minor differences that can add up to big problems. A major strategy that is used by large commercial business is options. Options are used in the stock market extensively. Principles that are used in the stock market can be applied to investing in real estate. We will review some ways that options may be used when investing in small commercial real estate ventures.

1. Use option to control the property.
2. Use lease with option to use the property
3. Use option to lock in a specific price and conditions
4. Use options to avoid EPA problems, such as asbestos, radon, lead based paint and more
5. Options may reduce some of the taxes
6. Options may be altered to fit the changes in the political and economic environment.
7. Use options as leverage. Options are free of debt and you have control without the risks of ownership.
8. Use options to reduce your upfront cost
9. Use options instead of rent
10. Use options to control the property but not to own the property
11. When selling – use options to spread out your income for tax purposes
12. Option a pre built building then finalize after completion
13. Option equipment for your business
14. Trade equipment for option
15. Do owner finance as an option
16. Option to lease (different than lease-option)
17. Use options to protect your assets
18. Use short term option instead of a sales contract to give you time to do your due diligence regarding a property.
19. Option mineral, water and other rights
20. Use option to time your 1031 transaction
21. Use options as a tax strategy
22. Rolling options
23. Use options to stretch the profit, as in 121
24. Use options to enhance your financial statement
25. 1031 your option

Options have a very long history of being used in all types of transactions. You can use an option for just about anything you can think of.

It is good practice to define the word “option” means. Many words have more than one meaning. You may have noticed in most government documents there are a list of words with the definition that is to be used for that section of the document. Many people have bought or sold a home using a lease-option agreement. Most of the time there is no separate agreement and no money paid for the option. It could be assumed that the owner will give the renters the first right to buy the house at the end of the lease.

I think it is better to Option a property than to do a ‘subject-to” purchase. This strategy gives you control of the property, while you make the payments. You should also put the signed deed papers with an escrow attorney so when you get ready to buy the house there is no problem with the documents.

Option opportunities are everywhere. Knowing the principles helps you see the numerous possibilities. Find out more. Visit