Selling On Optoin
Hello,
What is the safest way to sell on a optoin? I am working with a homeowner and he agreed to spilt his equity with me.
If I place the property under contract with a optoin to purchase. How can I get the deal closed?
I know you can do a double closing but is there any other means of closing the deal? How can I protect myself from the owner ?
Thanks!
Thanks for the reply but what if the seller sees you are making a good chunk of change and gets disapointed. How can you make sure you get paid?
Here is how you going to do that:
Find the property current market value. Discount for repair. Determine the current quit then agree in writing to split it when you sell the house. for example, if the equity is 20K, you'll create a second note on the property in the name of the seller (yes on his own house), which will be cashed in the time of the closing or if you come in position to save some extra money, you can re negotiate with the seller to sell you the not on discount before is due. In any case you are big time winner because in the end you are not going to lose half of the equity but rather only $10K, as pre agreement on the day of sell.
Remember, always write the number rather then general terms like "half" or "spilt".
Good luck !
Alex.
This is a good post, if I understand you correctly you create another lean on the property. What if you can't sell for that amount? If the note you create is in the sellers name, how do you get paid?
Cajun,
I'll be glad to clarify the above:
When the time come for property to be sold, bank or whoever is holding the first will be paid out for the escrow. Right? You know that! The second lien or not or TD, which is held by the original owner (your seller) of the house will be paid in that time AS WELL unless you managed to short that lien earlier, in the way I described above.
Alex
I understand about the seller being paid but I am not understanding how I am getting paid from a second in the seller's name?