Flipping Your Option

[EQUITY NOTES 0]

Hi All,

 

HAVE A QUESTION ON FLIPPING AN OPTION TO AN INVESTOR

 

How can I protect myself if I have to show property address or show property to an investor?

 

Was worried thinking investior may go around me if he looks at contract and waits until my option runs out and then goes and deals direct with seller .

 

How do you guys, gals handle an option that you will flip to an investor?

 

Thanks in advance for a any info you can provide

 

Tom

[Doug Pretorius (ON) 9]

Don't show them the contract and don't tell them when it expires.

[Jason (AL) 1]

Performance Mortgage

 

 

 

 

 

 

 

 

...me thinks

[JerseyJeff 0]

I doubt the seller is going to sign a performance mortgage for a 60 day option. Besides, if the slick investor plans to wait out the option period and then swoop down on the sellers, the performance mortgage will have expired at the same time of the option.

 

Jeff

[MichaelC 160]

Tom, when dealing with another investor, it can get dicey at times. Many can be sneaky, and may very well try and go behind your back. I have found this the case more so than if dealing with your average buyer. There really isn't any guarantee that an investor won't do just as you fear. In large part it will come down to your gut feel for this person.

On the other hand, if this investor decides to wait out your option, you have a few things you can do. First, don't sit around waiting for something to happen. Be aggressive when marketing your option. That investor isn't the only one interested. Get the word out! While he is waiting out your contract you can go and find yourself another buyer. Or you can always try for an extension of your option if the expiration is nearing. Finally, if the deal is a good one, you can always decide to exercise the option yourself.

[#1investor_cream 5]

Tom, when dealing with another investor, it can get dicey at times. Many can be sneaky, and may very well try and go behind your back. I have found this the case more so than if dealing with your average buyer. There really isn't any guarantee that an investor won't do just as you fear. In large part it will come down to your gut feel for this person.

On the other hand, if this investor decides to wait out your option, you have a few things you can do. First, don't sit around waiting for something to happen. Be aggressive when marketing your option. That investor isn't the only one interested. Get the word out! While he is waiting out your contract you can go and find yourself another buyer. Or you can always try for an extension of your option if the expiration is nearing. Finally, if the deal is a good one, you can always decide to exercise the option yourself.

I AGREE......

[Jason (AL) 1]

I doubt the seller is going to sign a performance mortgage for a 60 day option. Besides, if the slick investor plans to wait out the option period and then swoop down on the sellers, the performance mortgage will have expired at the same time of the option.

 

 

 

Why would you doubt the seller wouldn't sign one?

 

There's nothing "slick" about an investor using one...well, there is. It's a slick way of

getting paid. Not slick in terms of shady or unethical.

 

From what you typed, I believe you're thinking that when the option expires, the Performance

Mortgage will still be held against their property forever.

Not so.

It's only valid with the agreements you and the seller signed.

So when the option expires, so does the Performance Mortgage.

[JerseyJeff 0]

There's nothing "slick" about an investor using one...well, there is. It's a slick way of

getting paid. Not slick in terms of shady or unethical.

I was referring to the investor Tom referred to in his original thread.

 

From what you typed, I believe you're thinking that when the option expires, the Performance

Mortgage will still be held against their property forever.

Not so.

It's only valid with the agreements you and the seller signed.

So when the option expires, so does the Performance Mortgage.

That's what I said..." the performance mortgage will have expired at the same time of the option."

 

Jeff

[Adam King (MI) 1]

Hi All,

 

HAVE A QUESTION ON FLIPPING AN OPTION TO AN INVESTOR

 

How can I protect myself if I have to show property address or show property to an investor?

 

Was worried thinking investior may go around me if he looks at contract and waits until my option runs out and then goes and deals direct with seller .

 

How do you guys, gals handle an option that you will flip to an investor?

 

Thanks in advance for a any info you can provide

 

Tom

 

Too many worries. You have a legally binding contract. If they go behind your back you sue them. If they wait until your option expires and get the deal, good for them they deserve it! You didn't do you part and you have no recourse. However, I have NEVER had another investor see one of my properties and go behind my back. If they're not interested there's a reason. If they are, they get the property right then and there.

Have confidence in you business!!

Regards,

Adam

[Gordon Holtner 0]

Dude

 

I think you have what we all have at one time or another analysis paralysis. Just try it. It's not like school you learn by making mistakes and making corrections. There will be more buyers if I was in the investors place sure I could wait out your option. But I don't know you if you have more buyers. If it is a profitable deal I would rather make it as long as the numbers work out. If it's a good deal why would I wait ?

Gord

[Craig 0]

Just as they all said. Go do your marketing to excerise the option.

 

If not request the extention of the option date at most. If you can't do it in that time you won't anyways. Go to the next one.

 

Thats the great thing about these. Nothing is lost. Its not like you can't make the mortgage payment for the month. Leave that to all the unmotivated sellers to make them motivated.