How I made Money with Real Estate Options

by Colin Kumar
(Auckland, New Zealand)

Exercising real estate options is an excellent way of creating long term wealth if you have very little money to start with.

I had no knowledge regarding real estate options when I started investing. I drifted into it accidentally without realizing what I was doing.

I paid booking amount of $120 for two lots of land outside Delhi in 1972. About 6 months later I was informed by the developer that the land had been taken over by the Government for developing an industrial township. The developer filed a law suit against the Government seeking compensation on behalf of the society of land owners.

As years rolled on I completely forgot about the lots I had booked. Sporadically I received intimation from the developer about the progress of the case. At times I did not even bother to open the letters as I thought it was a lost case.

After 10 years (in early eighties) I received communication from the developer that we had won the case and the Government had decided to allot land to our society within the new industrial development.

I was not sure as to what this meant and decided to visit the area which I had never seen. The jungle area had been transformed by the Government into a thriving township and as a result the land prices in the area had soared.

Several real agents contacted me if I was prepared to sell my lots and to my surprise I was being offered a premium of $12,000 for my two lots. This may sound very little now but it was great money at the time. It was a hundred fold return on my $120 investment.

I learnt my first big lesson in real estate. It is not how much property you own that makes you rich but how much property you control and for how long and with what little investment from your pocket.

There are numerous methods and strategies you can use for controlling real estate assets with using very little of your own money.

A little understanding on how to exercise real estate options can make you exceedingly rich.