I heard Marco Kolaski speak in Atlanta, and the way he sold houses was with an option. He use the option to buy himself enough time to exercise an auction.
Buying with option is one of the more simple arcahic ways of tying up a property while you explore or search for a buyer. But this form is used in many business deals and is very common.
The first one I did was to hold a car wanted to buy from a friend. I gave him $10 as consideration and he gave me an option for ten days.
Mostly it is no longer in heavy common use for straight purchase as we have in this great State of California, Escrows.
I open an escrow make a small deposit and inform them that I will deposit the balance in 60 days and close. I also give myself a few escape clauses. such as: This offer subject to an inspection by my contractor and my acceptance of his report. This offer subject to me being able to obtain a loan suitable for my needs and desires. blah blah.
With this sort of vehicle a simple option is seldom used.
Now when it comes to land purchase now thats a different story. I paid a fee of $5,000 to obtain a 90 day option to buy five acres of the crummiest land you ever saw. Most necessary for future water storage etc. etc. etc. I then explored the needs for such storage and my buyer came forward and bought from me. I put him in an escrow of purchase and then firmed up my land purchase and stuck it in the escrow. It closed.
Is the original question focused on using options or more about how to use an auction to sell a property? If you want to know about auctions do you mean one where you organize multiple buyers to bid at once or a more formal process where you get an auction company to run a formal auction?
Yes John. I was talking about your second suggestion. Marco uses a formal approach with his auction. However, he also has multiple homebuyers at the auction.
and how would you rate them?
I heard Marco Kolaski speak in Atlanta, and the way he sold houses was with an option. He use the option to buy himself enough time to exercise an auction.
Buying with option is one of the more simple arcahic ways of tying up a property while you explore or search for a buyer. But this form is used in many business deals and is very common.
The first one I did was to hold a car wanted to buy from a friend. I gave him $10 as consideration and he gave me an option for ten days.
Mostly it is no longer in heavy common use for straight purchase as we have in this great State of California, Escrows.
I open an escrow make a small deposit and inform them that I will deposit the balance in 60 days and close. I also give myself a few escape clauses. such as: This offer subject to an inspection by my contractor and my acceptance of his report. This offer subject to me being able to obtain a loan suitable for my needs and desires. blah blah.
With this sort of vehicle a simple option is seldom used.
Now when it comes to land purchase now thats a different story. I paid a fee of $5,000 to obtain a 90 day option to buy five acres of the crummiest land you ever saw. Most necessary for future water storage etc. etc. etc. I then explored the needs for such storage and my buyer came forward and bought from me. I put him in an escrow of purchase and then firmed up my land purchase and stuck it in the escrow. It closed.
Cheers Lucius
Is the original question focused on using options or more about how to use an auction to sell a property? If you want to know about auctions do you mean one where you organize multiple buyers to bid at once or a more formal process where you get an auction company to run a formal auction?
John
[addsig]
Yes John. I was talking about your second suggestion. Marco uses a formal approach with his auction. However, he also has multiple homebuyers at the auction.
Murphy
With the formal auction, do i have to obtain private money? And if so, when do i repay the money?
Murphy[ Edited by Murphyj2000 on Date 07/05/2004 ]