Posted by Michael on October 16, 2001 at 16:34:38:
Sell the option! If you are looking to flip this deal, you do not need to take possesion until the end of the option period. Meanwhile you can find a buyer that is willing to pay the market price. You then sell the option for the difference. The closing of this transaction can happen at the same time. By having the option you have successfully tied up the property, Now go sell it!
I have a straight option of a SFR in an expensive area. The owner must simply sell to get out from under the payments. He’s unable to be creative or flexible with the terms, but he did give me an option price about $60K to $70K below a normal retail sale. (The house is in the $800K range, BTW).
There is no risk, of course, in this deal. But, I’m wondering how to best market this for a quick profit. Standard sales approach? Sell the option? Etc…