I am a new investor who is interested in getting property under contract and assigning them to other investors via “flex option agreement”. I recently download an agreement from a Google search that has an option period of 14-days. That seems somewhat short to me. How long do you all recommend for a normal option period? What has worked best for you all?
First, simplify matters for your own sake. Flex Option Agreement sounds nice and fancy, but it’s probably some BS guru’s attempt at selling you some overpriced crap.
What you are asking about is a Pure Option Agreement. Nothing more, nothing less. It gives you the right but not the obligation to purchase a property for an agreed to price during an agreed to time period. 14 days is ridiculous, unless you know for sure the property is such a hot commodity that you can sell it that quickly. Realistically, you’ll need a minimum of 30 days, and more than likely double or triple that.
Also, stay away from generic contracts downloaded off the internet. They’re free for a reason. . .they’re worthless.
The longer the better. Essentially they’ll be marketing your house at their own expense and not even taking it off the market. Give them as long as they want. I agree with AJ, I’d go 30+ days out at a minimum.
I get alot of messages from other wholesalers wanting to put “flex options” on my wholesale deals… these things seem extremely unenforceable.
What’s the difference between a flex option and a option?
essentially nothing, just as AJ said. it’s just an option with a little bit of additional language that specifies it is not exclusive. on its own it really isn’t very enforceable actually…all it effectively says is if they bring you a buyer and you go forward with them the other wholesaler will get a small cut and you will proceed with the real applicable paperwork as necessary.
[quote author=phatman5 link=topic=48919.msg240738#msg240738 date=1298394093. . .What’s the difference between a flex option and a option?
[/quote]
Nothing, except the price of the “course” some scam artist is trying to sell you.
An option is an option, and they’ve been around since Jurassic Park, or when Betty White was a child, whichever is older.