NEED HELP FAST

General Real Estate Investing
1

I HAVE MY FIRST OPTION DEAL LET ME KNOW IF I DID THIS RIGHT, I TOLD A LADY THAT I DIDNT WANT TO BUY THE PROPERTY BUT I COULD FIND SOMONE FOR HER AND I TOLD HER I WOULD MAKE SOME MONEY OFF THE DEAL AND SHE IS OK WITH THAT, THIS IS WHAT I DID: I SENT HER A MEMORENDUM OF OPTION FOR HER TO SIGN AND GET NOTORIZED AND ALSO I SENT HER A PURCHASE AND SALE CONTRACT FOR THE PURCHASE AMOUNT AND THE CLOSING IN 60DAYS. IS THIS RIGHT SO FAR?

NOW WHEN I FIND MY BUYER TO BUY FOR MORE THAN WHAT MY CONTRACT SAYS DO I JUST ASSIGN THIS OVER OR DOES MY BUYER SIGN A CONTRACT WITH ME TO BUY AT A HIGHER PRICE?

2

This is how I do it-

  1. Get an option with seller.
  2. Get a purchase agreement with buyer.
  3. Get a purchase agreement with seller.
  4. File a memorandum.
  5. Give the two purchase agreements to the title company to create a new agreement between buyer and seller.
  6. Get paid when the loan gets funded. Done.

Nice and simple. No double closings. No assignments.

Good Luck.

3
  1. is this option the “memorandum of option” that is recorded at the court house?
4

no. It is an option to purchase. You don’t need to file anything until you have a buyer.

5

A memorandum of option of simply a recordable form that says that you DO have an option to purchase the property. If you don’t have an option agreement then you can’t legally file the form.

Also, you either have an option to buy or you have a purchase and sell contract. An option gives you that, an option to buy or not. A P&S agreement means that you ARE buying.

Raj