What About 'straight' Options With No Lease?
Is anyone out there optioning property, without a lease, and flipping them?
For instance, I found a house for sale that has a motivated seller and about $10,000 equity.
He does NOT want to work a lease option, but prefers to sell out-right.
My credit resources are tapped and I can't do a straight cas deal here.
However, he would consider a $1000 option, for thirty days, which would lock in the sales price and allow me to market the house and flip for any price I can get.
I assume this is a type of wholesaling deal, but I wanted to post here for obvious reaons.
Anyone ever work one of these?
-JQ
Sounds like an "Option to Purchase"
Where you would get a non-exclusive option to Buy the property at pre-disclosed price. But the seller has the right to market the property too.
However I would never put $1000 down on an option. More like $10 for option consideration.
I hope this helps.[ Edited by kmaples on Date 12/12/2003 ]
There is a difference between exclusive option, for which I'd pay $10, and non-exclusive, for which I'd pay $0.
Why pay money when the guy could sell it tomorrow? The beauty of non-exclusive is that you are trying to help the guy out, and if you get a valid purchase and sale in front of him before he can get one WITH the option already in place, he is legally bound to honor the contract. Great stuff, Dave
For $1000 this option had better be an exclusive option.
Better yet use plan (B) and take a non-exclusive option for 90 days and pay this man $10.
Even better yet tell this man to have a nice day and when he gets in touch with reality to call you. You have nothing here to wholesale. Don't know what the price of the house is ,but $10k will almost be all consummed by new financing. This is strictly a retail transaction-and a marginal one at that.
No, this is an exclusive option, meaning he has to take it off the market until my option expires.
Thus, the higher consideration.
I agree that a non-exclusive option should be for as little as possible but in this instance, I feel the consideration is fair.
sammyvegas:
Just read your post.
I agree, the profit margin is small and probably not worth the option price.
Thnx,
JQ
I know a guy here that does the option quite often.. says he has never paid more than a dollar. Its in the way he sells it....
"tired of dealing with realtors? want me to work night and day to sell your house for you? ill do it for free... just sign here"
Your option period seems very short. I have had escrows run much longer. If you acquiring yourself first and then reselling you might consider a straight purchase with a 30 day escrow. If you need to find a buyer and close in 30 days you are going to be very busy.