my first deal - Posted by Johnny

Posted by Kate (VA) on December 15, 2000 at 14:52:34:

I believe that means ‘In my humble opinion’. Correct me if I am wrong, Brent.


my first deal - Posted by Johnny

Posted by Johnny on December 15, 2000 at 24:44:42:

My neighbor who recently moved to another state has a vacant home beside mine.He wants out of it. He has stated that he wishes he could sell it or that someone could sell it for him.Well,after hearing that, I decided to get on the internet and see if I could find some info on how to buy this home and resell it.Thats how I ended up here.I am a commodity investor and use options only.Are options on real estate like commodities?Meaning,could I get a 3 month option on this house,which I’m sure I could do,sell it for more than the owner wants and make a profit?Would this be the best way to handle this perticular deal?He owns the house outright and the taxes are all caught up.With an option would I be permitted to do improvements on the house for a higher retail or would something have to be stated on the option contract to do this?I am all new to this,if any body could help me out I would greatly appreciate it.

Re: my first deal - Posted by Brent_IL

Posted by Brent_IL on December 15, 2000 at 02:30:37:

Real estate options are similar, but you get to pick the strike date.

One suggestion is to use a purchase contract with a contingency clause. You?re the buyer. This contract can give you the right to make improvements before you close. Remember, however, that all improvements you do make stay with the property if you don?t close. The fix-up money is gone.

I?ve used this approach with both an extended, and a buyer-delayed closing date, so that I wouldn?t have to pay the seller anything until after repairs were made, and I had a new buyer. The repairs I make are minor and usually take less than a month.

IMHO, this is easier than trying to revise the option contracts. Another benefit is that at closing, neither the original seller, nor your buyer, will see any paperwork which might disclose your profit. This might not be the case if an option were assigned.

Re: my first deal - Posted by Robert

Posted by Robert on December 15, 2000 at 01:01:18:

Resell it at a higher price using your own owner financing. Or lease option it out.

Re: my first deal - Posted by Ingrid

Posted by Ingrid on December 15, 2000 at 12:32:45:

Brent I feel so foolish for asking this question. Say what is the meaning of “IMHO”?

Re: my first deal - Posted by Brent_IL

Posted by Brent_IL on December 16, 2000 at 02:52:19:

Kate’s right. The thing is that many of us who use this expression aren’t all that humble. :smiley: