wholesale question

when u plan on wholesaling a property from a seller, do you use an option to purchase contract or a purchase and sales agreement?

Typically, an “option to purchase contract” is used with a lease purchase agreement. You’d use a contract, which is what you may be calling a purchase agreement. It’s just a regular real estate purchase contract with an option period stated.

So when its time to sign the contract do i use an option to purchase real estate and give the seller the option money, or do i use a Standard Sales and Purchase agreement and give the seller consideration money.

Well, I need to clarify. Options are typically used in commercial real estate or with leases that have the option to purchase. I’ve worked mostly with purchase contracts.

  1. If you don’t want to be obligated to buy the property, use an option. Use an option contract to just put an option to buy on the home and give yourself ample time (recommended 90 days) to find a buyer. Most “gurus” say you should pay $10 or as little as possible and make sure the option is assignable. Downside: the seller may not like the fact that the home isn’t “sold” yet.

  2. If you’re confident in the deal, use a purchase contract, which means you’re obligated to buy the property, but it’s subject to your contingency clause. Use “Contract contingent upon buyer’s inspection approval and clear title before closing.”

what state are you in?

I live in Marietta, Ga and I have doing a lot of reading and a lot of research and I am confident I will have my first deal in the next 2 months. this website has really helped me a lot, I have had so many opportunities in the past to wholesale houses, but I didn’t want to jump into it 'till I understood everything about wholesaling and after wholesaling I plan on leaning towards lease/options and mobile homes(deals on wheel they always say).
$thanks for the reply DeeinAustin$