Comments on: The Real Estate Option Contract…Undressed (Plus Free Download)

By: Jue

Jue — Sun, 07 Mar 2010 06:47:06 +0000

A new concept for me, only heard 'real estate option' last week….. Enjoyed your videos on youtube and thanks for the gifts.

By: Olubiyi Odeinde

Olubiyi Odeinde — Fri, 05 Mar 2010 03:42:17 +0000

Thanks a Million,Was just about considering an option contract when i saw your article and the forms.As an upcoming Real Estate Investor. It did give me a simple explanation of how a simple contract works.

Please keep it coming pal.

By: Imran

Imran — Thu, 04 Feb 2010 16:56:58 +0000

Thanks for taking the time and effort.

NewBie Question: I have a option to purchase aggrement, now I want to list the property on MLS. my question is who is gonig to sign the listing paper Optionor or optionee (me)

Hi, Imran. Thanks for commenting.

If you have a legal option in place, then you have what’s known as “equitable interest” in the property, which gives you the right to market for it’s resale — as long as you don’t actually sell it until after you’ve actually consummated your purchase (even if only moments before). And the right to market the property should also include the right to LIST it in the MLS should you so elect.

So if it were me, I (Optionee) would be the one signing the listing docs. But my standard disclaimer applies here. I’m not an attorney and I don’t play one on TV. I’m not acting as your agent or legal counsel, and you should always consult your own experts before taking any action/inaction based on my opinion here. (There, butt effectively covered.)

Thanks again for posting – hope that helps!

…jp

By: fred unger

fred unger — Tue, 22 Dec 2009 23:04:07 +0000

Thanks for both of these downloads JP and for the opportunity to donate to a very worthy organization.
Fred Unger
God Bless and have a Merrry Christmas and blessed New Year

By: Matthew Dada

Matthew Dada — Fri, 18 Dec 2009 07:42:55 +0000

Ok this is Matthew again, and pardon me if these questions might seem mundane to you but, Im trying to get a good grasp on these contracts as a newby! After finding a end buyer for this property, what contracts are used next to follow up the transaction and which contracts ensure that I the investor get paid for my equitable interest? If you don’t mind just quickly explaining the process after I locate the end buyer and the contracts to use(all the way to closing). I would really appreciate it!

By: Cesar

Cesar — Tue, 15 Dec 2009 03:45:24 +0000

I have a property which is a remodeling project. I placed an add in the paper looking for an investor. luckly I found one but there is just one problem, I’m having trouble closing the deal. The deal is for $20,000 would it be wise to offer him a real estate option contract? Would it make him feel secure? Do you have any suggestions on how to close?
Thank you for your time as well as the info presented at youtube. Fell free to Email me.

My friends call me Cess!
Thanx again!

Hi, Cess – thanks for commenting!

Honestly I don’t have enough information here to advise you. You say you’re having trouble closing the deal…but don’t say why. Is your potential buyer having a hard time getting the cash to close? Financing? Is he feeling insecure about something? If so, what? Have you continued looking for other buyers?

If you can offer some more info, I’ll gladly do my best to toss in my $0.02 for ya

…jp

By: Matthew Dada

Matthew Dada — Thu, 10 Dec 2009 07:13:10 +0000

And what other contracts or documents do I need to have between my seller and I to be covered before I go and market this wholesale deal besides getting the title search done.

By: Matthew Dada

Matthew Dada — Thu, 10 Dec 2009 06:47:10 +0000

Hey just downloaded your 53 real estate contracts! Thanks! I had a couple of questions though if anybody can answer. I am a new investor looking to close my first wholesale deal. I was combing through your wholesale contract and I noticed that you were using a attorney to close. I was wondering since I would be using a title company, would it be necessary to change that in the contract. Also, I did not notice in your contract for a clause protecting me if I did not perform my duties or failed to close within the given time in the contract. For example if I did not find an end buyer, how would I handle that? And thirdly, is it possible to hold off on paying the earnest money til you find an end buyer, and have the earnest money they pay you cover the earnest money for your contract with the seller?

Hi, Matthew – glad you like the free forms!

Regarding using an attorney to close versus a title company, I don’t see it’s a big deal. I’d just fill in the name of the title company. But since they’re Word files feel free to change “attorney” to “title company” or “closing company”.

Regarding clauses to protect you, I usually just rely on my short inspection period. If my “partner” (i.e. potential buyer) doesn’t like the deal, then it didn’t pass inspection. But this isn’t something you want to drag out for long in my opinion. If you’re not pretty certain you can get a buyer and you’re not prepared to close yourself in that case, then I’d suggest using an Option Contract instead of a Purchase Contract.

Regarding Earnest Money, remember I have my attorney holding an earnest money check on my behalf. I don’t give it to the seller directly unless I’m dealing with a listed property (like an REO) in which case you don’t really have much choice. Usually I’ll just put $100 earnest money per property for unlisted deals and have never had a seller balk when I explain I just can’t put up thousands of dollars on every house due to the number of deals I’m involved in. They seem to always understand because I’ve already built rapport with them before that point. Make sense?

…jp

By: Brandon

Brandon — Wed, 09 Dec 2009 19:35:19 +0000

J.P.

I’m about to submit an offer using your very handy option agreement form. I just need a little clarification before I do. Does a Purchase agreement need to accompany the option agreement? Or does the purchase agreement get filled out when I exercise my option?

Thanks,
Brandon

Hi, Brandon! Choice B! Go get ‘em!

…jp

By: David

David — Thu, 12 Nov 2009 12:43:22 +0000

Hi J.P.,
Could not get them to send from your page so I copied sent them via my email. I know I will not get your vids in a nice neat grouping, but I realy wanted to get your info to some people. Thanks for your Testimony and busness model.
David