Newbie Question; The Sequel!!
Morning Gang!!
I am curious as to what an "option" is. I have found this in various posts (ie. "secure the option", or "get the option" and don't know exactly what is being discussed.
An option is basically what is says it is. You find a piece of property you think you might want to buy yourself, or you have an investor to flip too. An option is putting the seller under contract to purchase a property at a certain agreed upon price for a period of time to be set by you. Once you have the option to purchase they can't legally sell to anyone else until that time is up. Hope this explains it better............
Furthermore you aren't obligated to purchase the property if you sign an option. Make sure you put protective clauses in an option though that says upon secured financing or inspection......blah blah blah you can think of more along the same line.
In otherwords You have the "option" to go to Mac Dolalds for lunch. The friend that gave you this option cannot eat untill you make a descision. If you exercise your "option" then you both have to goto Mac Donalds. If you do not exercise your "option" then you are both free to do whatever you want for lunch with no penaltys.
Hungry?
Okay, just so that I'm clear on this, I find a seller and convince him/her/it to sign a contract to sell only to me or my interest and I shop the option around to other investors. If I can't find an investor in a stated amount of time, both of us can walk away from the contract. If I can find an investor, the investor buys the property and pays my fee. Wouldn't I need a real estate license for this or is there a general criteria that would have to be met for me to skip this? And what if the seller has already signed a contract with a realtor or should I avoid those properties? You guys ROCK!!
What criteria should I use to determine "consideration" for the seller?
Can we agree to go to Carl's Junior instead? The table cloths better.
Do they have Carl's Jr. in Plano?
They have them in California, but I dont remember the table cloth!?