Does anybody know how to work a straight option?

General Real Estate Investing
1

I got another call from one of my mailers today. It is the owner of a home in Cupertino, CA. It is an affluent area of Silicon Valley, and homes are still selling for more than asking price. A realistic comp for this home is between $860,000-$900,000. It was recently remodelled, and has permits to be scraped and rebuilt a newer home. That seems to be the trend in the older areas of Cupertino. They scrape the old home (most built in the 60’s), and build a new home. If rebuilt, it could pull upwards of $1.4.

The lady was willing to let me have it for $850,000. Not really a deal, but if I could get her to agree to an option for around $825,000, I think I could sell it FSBO relatively quickly and make an easy profit.

What all is involved with an option??? Contracts used, fees I may have to cover at close, etc?

2

Controlling a property via Pure Option is simple, really. I use a Pure Option Agreement, and negotiate the best price for an agreed to period of time. The key, then, becomes marketing for a buyer. But in the market you describe, it seems to be the difficult part is finding the deal. And you’ve already got that done.

3

What are your plans with the option? Are you going to double close or assign the option?