Can anyone tell me what "Petemfa" is suggesting here with this "option,"

S4111 · July 31, 2007, 2:08pm

Look below for the bold lettering. That’s where I’m a bit confused. I assume that the option he speaks of buys him the ability to sell the house over a 60-day period. But, what type of option is this exactly?

petemfa post:7:

Let me give you an example… You find a home in the country that some old lady has owned for 60 years. (don’t tell me they aren’t out there, I buy at least 6 a year from these people) It needs work, for what ever reason she doesn’t want to deal with a realtor. (that’s the case in EVERY ONE I’ve done) She wants $175K for the house AS IS.

You then do your home work. find out what you can BLOW IT OUT FOR. This isn’t going to be “Flip this House” This is going to be a FIRE SALE because you have no money, no experience and no TIME.
You write a straight option on this house. Let’s say Fire sale pricing is $220,000. that price should be UNHEARD of. A give away!! She signs the option agreement, you pay her $1000 for 60 days, and then you ADVERTISE that bad boy. Tell her you’ll be bringing some investors by to look at it on Sat. and Sunday. And when your buyers call you tell them this…

Listen, I don’t have time to screw around here. If your not coming here with a check and a pen, DON’T COME. BUYERS LOVE IT!!! It’s sounds insane but I’m telling you, the harder you make it, the MORE they’ll want it. Add to that the FIRESALE pricing and YOU just created DEMAND!! Get the top 3 or 4 going at each other and tell them “first one at my attorneys office Monday morning with a $10K cashiers check deposit, gets the house!!!”

FIRST ONE DONE!!! You just put $45K in the bank, How long would it take you to save that amount???

Then you won’t be asking about HOW TO BUY without money, because YOU"LL have it!!!

Here’s the whole post for those who may be interested: http://www.reiclub.com/forums/index.php/topic,30108.0.html

This type of plan intrigues me as I know there’s a multitude of these older folks with lots of little issues with their home that would love to just get out and into a smaller condo/townehouse/apt.

But, since I’m a noob, I dont understand exactly what type of option Pete’s talking about here. Can anyone explain?

TIA,
Chris

Rich_in_CT · July 31, 2007, 3:32pm

He’s posted a bunch on these recently, read through these posts and let us know if you have any more questions.

http://www.reiclub.com/forums/index.php/topic,26434.0.html

http://www.reiclub.com/forums/index.php/topic,14245.0.html

http://www.reiclub.com/forums/index.php/topic,25760.0.html

S4111 · July 31, 2007, 6:36pm

Well that basically told me exactly what I was looking for. I was LOL’ing when reading the 3rd link when those guys kept on asking those questions of Pete. I thought it was going to go on forever.

Thanks for the heads-up Rich…
I appreciate it.