Criteria for an OPTION - Posted by Gary-NJ

Real Estate Investing
1

Posted by Steve on June 14, 2006 at 12:31:44:

You have to give option consideration or the agreement isn’t legal. You want it to be legal just in case you have problems with the seller.

But I only give $10 to $100.

2

Criteria for an OPTION - Posted by Gary-NJ

Posted by Gary-NJ on June 13, 2006 at 13:36:48:

Greetings. I am pursuing a deal in which the seller is semi-motivated. She wants out but she is not going for my offer. Here’s the numbers: the ARV is $325K. Repairs should be about $20K. Going by those numbers my maximum allowable offer is about $207K. She’s not going for that.

Which brings us to options. She states that she may be interested in an offer in the $240K range. I was thinking this might be a good candidate for an option. Put the property under an option to buy contract and do a round robin style auction. I figure its worth pursuing. I have nothing to lose but the option money and cost of marketing.

Any opinions?

Thanks.
Gary

3

Re: Criteria for an OPTION - Posted by BTI

Posted by BTI on June 14, 2006 at 11:37:40:

Gary

Maybe she is motivated, you don’t give us a clue as to the existing liens on the property, maybe she owes $240k. Do you give ball scores the same way, eg the score is six to whatever?

BTI

4

Re: Criteria for an OPTION - Posted by Natalie-VA

Posted by Natalie-VA on June 14, 2006 at 09:15:02:

I would put it under contract for 240k and sell the contract to another investor for 10k. Those numbers work for me.

–Natalie

5

Re: Criteria for an OPTION - Posted by Steve nc

Posted by Steve nc on June 13, 2006 at 20:51:39:

Sure options work great. Take control and sell to an investor as a fixer, collect your fee and your out. I wouldn’t volanteer option consideration to the seller either. I mean why? Your doing them a favor.
Steve nc

6

Criteria for an OPTION - Posted by Steve

Posted by Steve on June 13, 2006 at 19:17:44:

I love options because of what you said… You don’t have much to lose.

I have taught people to buy based on days on market. That should determine what you are able to sell it for.

But I don’t option houses that need work, especially now that the market is slowing. You are just setting yourself up to lose your marketing money. That could work in a hot market and I’ve done it.

If you get the owner to do the repairs $240-$260K sounds like a good price.

Steve
http://www.60daycash.com