Want To Do Straight Options, Please Help
I'm not completely new to real estate, but I've been out of the game for various reasons for a long time.
I've just started my marketing, and a couple of quick opportunities came about, both of which are fairly high dollar. My mentor is not due back for a couple of days and I want to tie these up if I can, or if they seem workable.
I have spent time checking the comps on the first one carefully, and am in the process of doing the same for the second.
#1: The seller owes $570,000 and wants to pocket $100,000 (which, of course means his price would be $670,000). He told me there were some comps for about $800,000 and he was right. He has indicated the house is in nice condition, and I have set a tentative time to meet with him.
He and his wife are still living in the house.
#2: A lady called me who wants to sell two new houses that she apparently owns, which are also occupied, and also in the $600,000 range.
My feelings are that I would like to do some simple straight options on these first couple of deals. I want to see if I can market them intensively to find a buyer for each. On deal one, I might offer an option price of close to what he's asking, since it appears to be well under market and things are going up rapidly here.
Like I say, I want to feel comfortable (just getting back into it)with what I'm doing. Please tell me if the option route seems feasible, but also please give any and all suggestions. Thanks.
Why dont you just simply tie-up the first deal on a 60-day escrow. Open escrow as an "Assignment" and then start looking for your new buyer. Once you find your new buyer, you can collect your fee and "Assign" your escrow!
Once the property is tied up, you could put an ad in the paper or start calling some of the "WeBuyHouses" ads in the newspaper and find another investor to flip it to.
Best Riches,
Jeff Adam
[addsig]
Rambler,
On the home with the 570 loan, what is your exit strategy. I was thinking that i would option no more than 620 and try to get 700.
I hope everything works out with these deals.
Good luck,
Murphy[ Edited by Murphyj2000 on Date 07/07/2004 ]