Can anyone tell me if there is a difference between wholesaling and utilizing real estate options to buy real estate. I’m a newbie and just a little confused. Don’t you assign the property to an investor?
Sorry for the silly question. Can anyone shed some light on this.
The big difference is with a contract you are agreeing to buy the property. With an option, you have the right, but don’t have to buy it. You can assign both to an investor, but in a case where the seller changes their mind about your purchase price an option may be harder to enforce than a contract.
Where can I find a Purchase Option Contract?
I was actually interested in just an option contract vs. a lease option. In the past I have used the state (TREC) purchase and sale form with the termination clause. However I would rather have a simple contract that grants the option to purchase.
With a Pure Option, you are locking in a set purchase price for an agreed to period of time. During that time, you have the option but not the requirement or obligation to purchase said property. If you elect not to exercise your option to buy, it simply expires worthless. It is a risk free transaction for you.
I am greatful for all the responses. A few other questions, what if my intention is to simply assign the contract to an interested rehabber/fixer/buyer, which contract should I use. Also, is there a difference between lease option and purchase option?
It looks like the form Mdhaas provided is for lease option. Doesn’t that require me to start making monthly payments to the seller until I decide to exercise my option to purchase the property?
My other question is, I have been browsing through this website and it is great! So much information and I stumbled upon Vena Jones-Cox’s Real Estate Goddess Guide to Wholesaling Real Estate course. Is anyone familiar with her course? The course is $599. I understand that I should educate myself and investing in education is always a good thing. No disrespect intended to Vena, but is it worh buying her course? Has anyone bought her course? I also intend on attending Real Estate Club meetings in my area to network with other investors.
Again, thanks for all the responses.
I am greatful for all the responses. A few other questions, what if my intention is to simply assign the contract to an interested rehabber/fixer/buyer, which contract should I use.As long as the contract you are using specifies that you may assign it, you're fine in that regard.
It looks like the form Mdhaas provided is for lease option. Doesn't that require me to start making monthly payments to the seller until I decide to exercise my option to purchase the property?I haven't seen the contract, obviously. But, yes, a lease with an option is just that: a lease that requires you, (or someone), to make monthly payments to the landlord as with any lease agreement. A Pure Option, on the other hand, does not require monthly payments. As stated earlier, it is simply an agreement between parties giving an option to purchase a property at an agreed to price within an agreed to time frame.
Regarding the course you mentioned, I can’t say anything about it from personal experience since I have never read it. As with all purchases, be a smart consumer and do your homework. Check out The Naked Investor for info on options and lease options.