On an option to purchase form that I found free on the web, it has as one of its clauses: 9. Assignment. Optionee shall NOT be permitted the right of assignment of this option."
Isn’t that exactly what I would want to do? Or do I actually exercise the option and then resell to end buyer?
Is this restriction commonplace and is it easily reversible?
So, really, with options, I’m investing in the option, not the house, right?
If you’re serious about investing in real estate with options, please buy a course with some decent contracts!
That non-assignment clause was put in to protect the seller. Yes it’s common with options when on the selling side (but not the buying side) and yes you can simply remove it.
But please, before you get yourself hurt with bad contracts, just spend the $100 to get a course with good ones :banghead
Or better yet…
Spend the $$$ on a local attorney that will be handling your CLOSINGS FOR YOU!!!
An option contract…Written by a local attorney should run you about $300…Make copies of it and use it OVER and OVER!!
And you ALWAYS want an assignment clause in there…
You can put almost ANYTHING in an option agreement as long as BOTH parties agree and it doesn’t break any laws.
Better? I haven’t met any lawyers who could write a contract that’s as investor-friendly as those found in any of the good courses. It’s not that they CAN’T, it’s just that they don’t specialize in contracts for creative investing.
Then you need to find a BETTER attorney…
The PROBLEM with buying a “COURSE” and using it for your LEGALLY BINDING CONTRACTS is…
The “COURSE” you purchased, that was written in one State, may have clauses in it that are ILLEGAL in the State you do business in. I GUARANTEE you that in the front pages of that “COARSE” are countless LEGAL DISCLAIMERS telling the BUYER to check your local laws and obtain PROFESSIONAL ADVICE!!!
Want to GUESS exactly WHEN you’ll find out those contracts are ILLEGAL or worthless???
When the OTHER SIDES A T T O R N E Y notifies you!!!
Or when ANOTHER BUYER wants to pay them MORE for the property than your option agreement states!!! Guess how I know this???..Lucky for ME, I have a very good attorney who simply notified the SELLER that legal action WOULD BE taken IMMEDIATELY to block any sale if she did not honor our option agreement…the deal got done because she knew I wouldn’t hesitate to enforce that agreement IN COURT with LEGAL COUNCIL!!
Don’t screw around with this…GET GOOD LEGAL ADVICE…It’s CHEAP INSURANCE…
When dealing with a new lawyer remember these rules…ALWAYS ask up front HOW MUCH??? Some lawyers love to PRETEND no one talks NUMBERS…They just BILL YOU for time…That’s UTTER BULLSH*T…An attorney’s LIFE revolves around numbers.
Getting an investor friendly, LEGAL option contract written or even REVIEWED for you by an attorney should cost more than $500.
If you insist on “buying a coarse” and using those contracts…Just make sure you have YOUR LAWYER review them first. Either way your paying a LAWYER!
But honestly…
If you plan on investing in real estate, you better get a GOOD LAWYER…Mine has saved me COUNTLESS headaches by catching small items BEFORE they became BIG PROBLEMS! I buy a LOT of property and he has cleaned up DOZENS of titles for me BEFORE I closed on a property.
Making sure small details are FIXED prior to closing means when the BANKS get involved, after you’ve dumped tens of thousands into a project, you don’t have a problem at the last minute with your BUYERS FINANCING.
Good luck getting the company that published your “COARSE” to provide you with acceptable legal advice about a TITLE problem or defending the wording in your option agreement to your buyers bank!!!
THINK about it.
Buy a GOOD course and subscribe to a pre-paid legal service, about $25/mth. They don’t go to bat for you but tell you what lawyer to get.