Hi have anyone ever made money useing the option to purchase contract. if so how do you approach and waht to say to the owner. I’m new at useing the option and the re-assign to a buyer, how do I go about doing this thanks.
HOW TO USE THE OPTION TO PURCHASE THE CORRECT WAY TO MAKE TOP DOLLARS?
Place the home under contract with out clauses. Place the property for sale. Do an open close and lower your profit expectations. Quick turn around this way.
No need to tell the owner anything, just have the out in the contract.
Thank you for the info. Have you ever use the option and made money?
I have listing of many abandoned houses and the owner info here in Boston. I never flipped a wholesale are ever done an option before, all I ever done was bird dog for investors. I’m sick and tired of making other rich. Can you tell me more on how to to the deal correctly thanks
Just get the name on the contract! Be sure to put (SUBJECT TO PARTNERS APPROVIAL) then contract your buyers! If you can turn the contract in a couple of days (GREAT) if not go to the owner and tell him your partner was not aggreable to the terms. Try to get a better price! If you can`t say thank you, and you will keep trying to find the owner a buyer! There is not a set price on your profit. The price of the deal should help to formulate a price. Most buyers in my area would like to get in at 65% of the taxable value,before rehab.
Absolutely I have used the option AND made $.
A quick walk through on the mechanics
The way I work it is:
I place a house under contract with Dan. It has little to no earnest money down, for say… 45 days.
I then place my signs, clean the house up a bit. (Haul away trash, sweep floor, clean the yard)
Then I have a buyer (Sam)
Sam places $1000 earnest money down. My title co (Marge) then does all the title research, etc. And sets the closing.
We meet with Sam; he pays what I sold the house for. Paying for closing, etc. at 1:00 pm
at 2:00 pm, we meet with Don (seller). Marge has made a check out to don using Sam’s $. She then gives it to Don and we say good bye.
2:30 Marge then hands me a check for the difference of what I paid Don and what Sam paid me and I head for the bank.
When the property is recorded, there is a warranty deed from Don to me and then from me to Sam. Therefore I have taken title to the property.
Does this make sense?
Hi and yes it does make sense. I would like to thank each and everyone for their support in helping me understand how to use the option. You guys are great.
How much earnest money sure I put up? Again thanks you all
Reime I’m sorry, you said a $1,000 dollars. I’m just so excited to learn what I have been missing for all these years working as a bird dog “WOW” Thanks all
As little as possible ;D but you know that.
I have put down from zero to $200 depending on the property and the sellers.
A person that I have worked with in the past, always seems to pay more than I do. I am more of a people person and " like the gal next door" so I end up getting away with about $50
I am very new to this and need a lot of explanations.
Could someone tell me more about the Option to Purchase and
how write such contract.
Again thanks all. When I make my first deal, I will let the post knows thanks.
If anyone else has any other info please let me know.
Bob The Bird dog
Too Much information;
I never talk about earnest money!!! First,know what you are going to pay. You find out what the tax value is.
Then you find 65% of that value.
Look at the amount of rehab.
Add rehab to the65% of tax value.
Insert your fee.
If your total is more than the tax value,(WALK AWAY)!!
If you have money to spare,contact a buyer and offer the deal!
If your buyer doesn`t like the deal,he will tell you why!
Just be sure and install the phrase (Subject to (PARTNERS APPROVAL)!
Hi Joehagon thanks for your info on helping me. You all have been so wonderful in helping me understand how to make some quick cash.
Can you explain what you mean about tax value?
Oh by the way, I asked Reime about the option fee, how much to put down not you, I’m sorry for the mis-understanding. Thanks
That is the joy of CREI there is so many ways to do things…
I am sure you will find some free e-books that can help you as well. Try this link
Reime, thank you for the link. I just have to go out and do my thang. I know how to find the properties, I just hate the word NO! I know I want get all the properties, I just hate no! Do you know what I mean? I hate turn down’s.
But again thanks so much for your support