Steve Cook Flipping - Posted by PhillyReinvestor

Posted by js-Indianapolis on September 24, 2002 at 05:53:55:

WARNING-Newbie who thinks he knows it all is about to answer a legal question. Feel free to flog me. I’m 99% sure I’m right though.

A standard purchase agreement would be considered a bilateral agreement. That means both parties are obligated to perform. In it’s simplest form, they’re obligated to sell, you’re obligated to buy.

An option gives you simply that, the option to buy, for a stated period. You have the right to buy at $X for X amount of time. It’s a unilateral agreement, in which only the seller is bound to sell it to you at that price. If you don’t excercise your option at the end of your X amount of time, you’re not obligated.

Anyone care to disagree? I’m not a newbie to learning, just havn’t completed my first deal yet. I figured I’d make that clear before I go acting like I’m Bill Bronchick.

Mr Bronchick, care to critique?

Steve Cook Flipping - Posted by PhillyReinvestor

Posted by PhillyReinvestor on September 23, 2002 at 10:35:04:

I’m a newbie looking to become a successful flipper.

I just read 2 articles here wherein Steve Cook’s describe how at times he will make offers via his realtor on properties he has not even inspected! Can some1 explain to me how any1 can make an intelligent offer with the intent to flip it to another investor if one has not taken the time to see the property first???
I’d like to know how to go about doing this with a realtor if this approach really works.

I would think a realtor would reject making such an offer assuming that an investor who has not even come out and seen a property can in no way be making a serious offer on a property that would be worth a realtors time presenting. Can some1 please enloghten me on all this.

Newbie Flipper,

Re: Steve Cook Flipping - Posted by SCook85

Posted by SCook85 on September 23, 2002 at 19:33:16:

Steph has been doing her homework. She has read my courses, articles and posts on newsgroup. I do not advise beginners to make site unseen offers. You need to be very intimate with the neighborhoods that you are working and have a good feel for what it costs to totlally fix a run down home in those neighborhoods. I buy homes site unseen all the time, and I probably always will. The more I do this, the lazier I get when it comes to looking at homes. I have literally bought and sold homes that I have never seen.

Happy Investing,


Re: Steve Cook Flipping - Posted by tampasteph

Posted by tampasteph on September 23, 2002 at 15:10:52:

Experienced investors who know their markets very well can make sight unseen offers with much more accuracy than someone who is just starting out. Steve does not recommend in his course or on his website that a beginner should make offers without fist going to look at the property, checking comps, and getting to know the market well.
After a couple hundred deals, I would guess it becomes much easier to determine what numbers will work for you without having to go check out each and every property
I’m a couple hundred deals shy of that myself, but I’ll let ya know when I get there. :0)


Re: Steve Cook Flipping - Posted by Houserookie

Posted by Houserookie on September 23, 2002 at 11:44:07:

Fax or send an option to purchase contract instead of an offer to purchase.

Between the origination and the option expiration date you can decide whether or not to execute a purchase contract.


Re: Steve Cook Flipping - Posted by Tim Fierro (Tacoma, WA)

Posted by Tim Fierro (Tacoma, WA) on September 23, 2002 at 11:15:58:

If you saw a property listed with an agent for $75k and you know the market in that area is more like $120k, would you send an offer over right away? Would you put in subject to an internal inspection? There are ways to get in, and ways to get out. Are they legally binding contracts, or letters of intent? I have blown off LOIs from buyers and suggested they send in purchase documents instead.

Yes, it can be done and it will depend on the variables in the deal.

Option - Posted by Vlad

Posted by Vlad on September 23, 2002 at 21:19:23:

It’s kinda off subject, but could you explain how the option works? How is it different from an offer itself? And what is an exclusive option?