How do you SELL a house you have an option on when someone is living in it???
Can you auction off a house you bought an option on???
Thanks REI people…
hey Trouchoice,
Can u explain what exactly u posted here… Explain what u really want to do!!
MONEY!!
Technically, no. You have an OPTION to buy but you don’t yet own the house. You can sell your option, or you can exercise it and then resell the house.
However, in practice it’s hard to distingish the difference between selling the house and selling the option.
An OPTION is a contract to purchase as per terms enclosed in said contract. As was mentioned, you could transfer the option to another party, providing there is no term against doing that in the option itself. If you own the asset and option is on, you may be able to sell the asset proving you disclose to the buying party the details of the option and that the terms in the option allow it.
For example, you own an asset that is optioned with a $150k buy price. You decide that you need to sell. The asset might be worth millions but it is only worth $150k because of the option. So a potential buyer would obviously buy for less than 150k if at all because they are forced to sell at 150k when the option is exercised, which could be 10 seconds after the asset changes hands. This is why it would be nearly impossible. You would need a solid spread between the asking price and option price to have a shot at roping in buyers.
But do some research if there is an option on an asset you own. I have not went to law school yet and am just shooting from the hip.
A good way to make money is to obtain options on assets that are favorable and sell the option OR sell the asset via an intent to purchase type contract then buy the property yourself and then sell it to the buyer OR option something you think can be rented/leased out. Find the tenant or business and then exercise the option.
For example, you think a piece of land you saw is a great deal. It is worth an estimated $50k and rising, but is selling for $40k. However, you don’t want to own it and can’t afford to be stuck with it. You approach the owner and option it for $x. You then go out and find a buyer at say $46k. You sell him the option for $6,000. You are done and have 6k. That buyer then goes and buys the land for 40k. Just a simple little example and I am rambling on.
Not to sidetrack this thread but I am trying to understand this.
Pretty much similiar to a wholesale?