What is the difference between straight/naked options and wholesailing? Is my understanding correct that both can be assigned?
This has been answered dozens of times but, an option is a one-way contract binding only on the seller to transfer property at a set price good for a set period of time…
This means that you pay the seller an option price (determined between you) but for this example let’s say $100 and for that price, for instance, you negotiate the sale price at $100K for a period of 60 days. During that period, you can exercise your option and purchase for $100K or you can let your option lapse and lose you option money (the $100). So, as you can see, the contract binds the seller but you can let your option lapse and hte seller cannot force you to purchase.
A wholesale means that you contract to buy the property at a low price then turn around and sell it for a higher price, leaving the end-buyer enough “room” in the deal to make some money also…
Keith
Thanks, of course if I had LOOKED and read more closely I would have saw the search bar above.
Can you assign your option to someone, or would you have to sign a contract at that point with the seller?
Does the option prevent another buyer from signing a contract, or does an option just lock the price?
Sorry I am confused.