Golflover 0 Report post Posted March 13, 2006 Im really leaning more towards doing the auction with homes. Ive read the 5 day home sale and its interesting and i know that Jonathon does this and its a great dealing power to sellers that want to cash out. I have a seller thats willing to do a CA, but from what the comps say, if i could sell it at an auction for the comp price, i could net $9k. If i went CA route, i may only get $3 to $5k Which would be better to have signed, a CA agreement or a Pure option agreement? Share this post Link to post Share on other sites
JerseyJeff 0 Report post Posted March 13, 2006 I would sign whichever gave me the best chance to close the deal and get paid. Jeff Share this post Link to post Share on other sites
Golflover 0 Report post Posted March 13, 2006 But thats the problem. What if i sign it as a CA and realize i should have signed a pure option or vise versa? I realize you learn from making mistakes, but im ready to make money and minimize my mistakes. Share this post Link to post Share on other sites
Gordon Holtner 0 Report post Posted March 14, 2006 Golfover Personally I would go with the CA and do the auction a downpayment auction to max your profit. It would give you the experience of doing both. Gord Share this post Link to post Share on other sites
Golflover 0 Report post Posted March 14, 2006 Thank Gordo, But what exactly is a downpayment auction? I know i will learn more with experience, but this guy is a builder and i think we can partner many more deals together, especially if i can get him his asking price. Share this post Link to post Share on other sites
Adam King (MI) 1 Report post Posted March 14, 2006 Golflover,Keep things simple. I use my straight option with a clause that gives me the ability to turn it into a lease with option. Simple and straight forward. 1. Cash clause2. LO term clause3. Fully assignable Done. The world is your oyster. Share this post Link to post Share on other sites
Golflover 0 Report post Posted March 14, 2006 Adam, A straight option is the same as a pure option correct? How would i add a clause to a contract like MC's? Share this post Link to post Share on other sites
MichaelC 160 Report post Posted March 15, 2006 Golflover, keep the big picture in view, also. This is a builder, you mentioned. Doing what's right by him, too, will go a long way towards getting additional deals from him. Find out what he wants to do, and his time frame for getting it done. Share this post Link to post Share on other sites
Gordon Holtner 0 Report post Posted March 15, 2006 Golfover A downpayment auction is basically an assignment fee auction. You do everything the same as a regular auction you just show it to potential tenant/buyers and assign the contract to the person with the highest assignment money. Gord Share this post Link to post Share on other sites
Adam King (MI) 1 Report post Posted March 15, 2006 Golflover, keep the big picture in view, also. This is a builder, you mentioned. Doing what's right by him, too, will go a long way towards getting additional deals from him. Find out what he wants to do, and his time frame for getting it done. This is the most sense out of the entire thread. What we don't understand is what the seller has in mind. This is information that we rarely try to get. Think about this? I negotiate almost all of my deals before sale price is even mentioned. Really roll that one over... I have four properties under contract right now with builders. There is over $400K in equity if I exercise my option. When you can listen to a seller the solution will follow. If you don't have the solution you can get it from the board. But at least you'll have a reason to start looking. Very powerful stuff!Kudos MC,Adam Share this post Link to post Share on other sites
