Am I doing the right thing? HELP!! - Posted by Carlo

Real Estate Investing Real Estate Financing
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Posted by Carlo on January 14, 2003 at 20:43:22:

Jasonrei,

Thanks for the advice. The owner has already relocated but does visit the property once in a blue moon. Just curious if you would do anything else different with this deal. Lease/option? Owner financing?

Carlo

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Am I doing the right thing? HELP!! - Posted by Carlo

Posted by Carlo on January 14, 2003 at 17:50:20:

I am dealing with a seller who has been trying to sell his home for a year now. He had it listed with an agent for $850,000, but no solid offers ever came. I was lucky enough to get a hold of him before he re-listed with the agent. In talking to him, he says that he will go as low as $700,000 for his home. To make the long story short, my offer to him was that I would purchase his home for $650,000 within the next 30 days. I would then option it for $750,000 to a qulified buyer. I see no problem in doing this since the market I am targeting could easily afford such a purchase. If I am unable to option his home in the next 30 days, he could then re-list with the agent, and I would walk away. He is willing to work with me on these terms pending that we agree on a purchase price. My question is: Would this be the best way to approach this deal or do you see another way of doing it without any risk to me or the seller? My plan is to get in and get out as quickly as posssible. Any comments would be helpful. Thanks much!!

Carlo

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Re: Am I doing the right thing? HELP!! - Posted by Jasonrei

Posted by Jasonrei on January 14, 2003 at 20:19:32:

  1. Check the title, make sure it’s clean.
  2. Enter into an option agreement w/ the seller, and record the option or a notice that you have an option.
  3. Make sure you give yourself enough time to find the ultimate buyer.
  4. Make sure you are specific in your agreement w/ the seller. Say you find a buyer in the next 30 days, but it will take him 45 days to close. Will the seller go for that? What if your agreement is a closing in 45 days, and it drags on for another 5 days? Will the seller be able to cut you out? Say you find someone interested in buying. You show him the house, he wants it for $750k but wants to think about it. He drives by later to take a look, bumps into the seller, and works out a deal to buy it directly from him for $720k if he will just wait until your option expires before making a written offer.
    Maybe these things will make you think about other ways someone might try to cheat you out of this deal.