Say a brother and sister acquired a house through an estate appraised at 1,000,000. They don't want it but they would like to have some cash.
They had it on the market for some time now but nobody ever closes on the deal. Tax time is coming up and niether one of them wants this thing anymore. They call you on one of your ads, you go over there, and they just want to sell it. They don't want to L/O it, no seller finance, nothing, they just want to get rid of the thing.
You offer to option their house for $600K. They agree and the terms are as follows:
They keep the house on the market
You have the option to buy it at $600K
You have 60 days to excercise your option.
You run an ad in the paper,
Desperate, must sell.
Appraised at $1.1 M and I need out fast.
Help me. Must pay doctor bills soon.
or something clever like that (Oh I can hear the "your running a false ad" comments coming.....marketing people, just marketing) Someone calls, offers you $725K and you exercise your option at $600K if they haven't already sold the property.
Advantage:
You somewhat tie up properties at discounted prices.
If you can find buyers, you can make some quick cash.
No money is required.
Your not obligated to anything
.
.
.
Disadvantage:
They can sell at anytime
You may have wasted some money if you didn't find a buyer
All the other issues associted with cash buyers.
So what you explained there is a straight option then? Ok, I like that as well... Have you had any good experiences with that? And is it a simple contract for something like that? Thanks ...
I don't do them, they are like a last resort thing if I really wanted the house and they came down real low and needed out. I focus on getting the deed for many reasons. If I can't get the deed, I don't want it. I'm not a L/O person nor a option person. And yes, there is a simple form/contract you sign with the seller.
Yes, if any one can inform us, that would be swell. I have never heard of just straight but am interesed...
Say a brother and sister acquired a house through an estate appraised at 1,000,000. They don't want it but they would like to have some cash.
They had it on the market for some time now but nobody ever closes on the deal. Tax time is coming up and niether one of them wants this thing anymore. They call you on one of your ads, you go over there, and they just want to sell it. They don't want to L/O it, no seller finance, nothing, they just want to get rid of the thing.
You offer to option their house for $600K. They agree and the terms are as follows:
They keep the house on the market
You have the option to buy it at $600K
You have 60 days to excercise your option.
You run an ad in the paper,
Desperate, must sell.
Appraised at $1.1 M and I need out fast.
Help me. Must pay doctor bills soon.
or something clever like that (Oh I can hear the "your running a false ad" comments coming.....marketing people, just marketing) Someone calls, offers you $725K and you exercise your option at $600K if they haven't already sold the property.
Advantage:
You somewhat tie up properties at discounted prices.
If you can find buyers, you can make some quick cash.
No money is required.
Your not obligated to anything
.
.
.
Disadvantage:
They can sell at anytime
You may have wasted some money if you didn't find a buyer
All the other issues associted with cash buyers.
So what you explained there is a straight option then? Ok, I like that as well... Have you had any good experiences with that? And is it a simple contract for something like that? Thanks ...
I don't do them, they are like a last resort thing if I really wanted the house and they came down real low and needed out. I focus on getting the deed for many reasons. If I can't get the deed, I don't want it. I'm not a L/O person nor a option person. And yes, there is a simple form/contract you sign with the seller.
Ron LeGrand has a great course on this.