A REAL ESTATE OPTION IS A PIECE OF PAPER that allows you to control a property--such as a building, a piece of land, a hotel, motel, etc.--without owning it. And an option can cost a little as zero dollars, or up to several hundred dollars. Let's see how you might use an option--based on a real-life property:

1. A Beginning Wealth Builder in a residental area took an option on 33 single-family homes in the month of September.

2. The option cost nothing--that is, zero dollars--and ran for 120 days through the option period.

3. At the end of the 120-day option period this Beginning Wealth Builder would have to buy these 33 homes for a total cost of $796,000, or lose his option opportunity.

4. Using creative advertising and sales methods, this Beginning Wealth Builder has been able to sell 15 of the houses for $748,000. His cost for these 15 is $392,000, giving him a profit of $748,000 - $392,000 = $356,000 before expenses. The other 18 homes he's selling for $565,000; his cost for these = $404,000; profit before expenses = $161,000. Total profit before expenses = $517,000. Even with several thousand in expenses his profit is still significant and gives a nice year's income.

HOW COULD ANYONE MAKE THIS MUCH PROFIT in this a short time, you ask. The answer is easy to give, and it has several parts. This Beginning Wealth Builder:

* Knows the area these homes are located in because he has carefully studied values and sales in this location for a long time.

* Offered buyers good value for the price they paid, making this a win-win sale for the buyers and the seller--plus the issuer of the option.

* Arranged the financing so the buyers could get mortgages that are affordable and allow them to earn money from the homes they bought.

* Held to his asking price even though buyers tried to "knock him down" in price to get a better deal.

IF THIS TYPE OF REAL ESTATE INVESTING INTERESTS YOU then you should give it some thought and:

1. Read a typical option; learn what's in it. Get another version of the basic option if the one you read does not appeal to you.

2. Look around your area to see what kinds of properties are in demand which you can take an option on and re-sell at a profit. REMEMBER: NO LICENSE OF ANY KIND IS NEEDED TO DEAL OPTIONS.

SO IF YOU'D LIKE TO HAVE THE POTENTIAL of earning some $500,000 in less than six months, consider real estate options. They do work for Beginning Wealth Builder's!