Emailed

[Jonathan RexfordFL 8]

Had a question from board emailed. Thought I would post it here,

 

"Hi Jonathan, I have read your posts over and over on buying on an option. One question, if you have time to reply is: Do you tell the seller at the time of contract that you intend to flip the option? Your reply would be much appreciated Thanks, ____________"

 

What I rarely do is FLIP an option. Flipping an option to me is an assignment of that agreement. What I do is tell the seller that I will buy the house at the same time that I close with my buyer. Plain and simple. I do not use the word option in discussion. The option is just paperwork based on terms discussed.

[Rich08 0]

Had a question from board emailed. Thought I would post it here,

 

"Hi Jonathan, I have read your posts over and over on buying on an option. One question, if you have time to reply is: Do you tell the seller at the time of contract that you intend to flip the option? Your reply would be much appreciated Thanks, ____________"

 

What I rarely do is FLIP an option. Flipping an option to me is an assignment of that agreement. What I do is tell the seller that I will buy the house at the same time that I close with my buyer. Plain and simple. I do not use the word option in discussion. The option is just paperwork based on terms discussed.

 

But that is not exactly what you actually do is it? That sounds like a double close. Are you not the one that likes to get paid for releasing the seller from the option agreement at closing?

[Jonathan RexfordFL 8]

I get released from option its not assignment and its not double close. I am never on title.

 

Think about it for a second. An option is a personal property that is sold. I am not selling my option or assigning it. See the difference?

[Doug Pretorius (ON) 9]

Very cool Jonathan. Correct me if I'm wrong, but you could do that from either side of the deal, i.e. you can get paid to cancel an option you've signed with the seller and/or an option you signed with the buyer.

[Rich08 0]

I get released from option its not assignment and its not double close. I am never on title.

 

Think about it for a second. An option is a personal property that is sold. I am not selling my option or assigning it. See the difference?

 

That is actually my point. It sounds like to me that you are telling the seller, "What I do is tell the seller that I will buy the house at the same time that I close with my buyer". That sounds like it would be a double close. But what you are actually doing is getting a release from the option. It sounds, on the surface at least, that what you are telling the seller and what you are actually doing are 2 different things. Though I could certainly be wrong. I have been a few times before.

 

Btw, I don't mean this to sound critical, just trying to understand. I have been doing a lot of options lately, and have been using the technique and form that I got from you on this board. I am very appreciative for all the info i have gotten on here on this topic, especially from you and Adam.

[Doug Pretorius (ON) 9]

Rich, trying to explain anything to sellers is a waste of time in my experience. I was considering posting a new thread about this, but I think now might be the right moment.

 

First, I email blast every ad in the real estate for sale section of my choosen craigslist city.

Second, a certain percentage of sellers (and sometimes agents) respond.

Third, 90%+ of respondees say: "Thanks so much, anything I can do to help?" BUT some say: "How does that work?." To which I never respond because I've tried and it gets me nowhere.

 

I also don't re-email anyone. There's no need for one (because I get such a high positive response) but also I figure there's no good reason to bug them, if they don't want help that's fine.

[Rich08 0]

Rich, trying to explain anything to sellers is a waste of time in my experience. I was considering posting a new thread about this, but I think now might be the right moment.

 

First, I email blast every ad in the real estate for sale section of my choosen craigslist city.

Second, a certain percentage of sellers (and sometimes agents) respond.

Third, 90%+ of respondees say: "Thanks so much, anything I can do to help?" BUT some say: "How does that work?." To which I never respond because I've tried and it gets me nowhere.

 

I also don't re-email anyone. There's no need for one (because I get such a high positive response) but also I figure there's no good reason to bug them, if they don't want help that's fine.

 

Doug,

 

But that is what you put in your advertising. That is different than what you tell the seller your intentions are when you are signing a contract.

 

Also Doug, what are you emailing to these people on Craigslist? If I remember correctly, you are looking for CA's or was it SLO's? And what type of response are you getting?

 

Thanks

[Jonathan RexfordFL 8]

Doug, you could do it from both sides....didn't think about that. Rich, I can see that if I call it black it maybe blue. Its just a description of words based on the NET results.

 

It is two different things as both can be done. If I have to do a double close I can. But the best of both worlds is just to step out and let them close together.

 

I am not flipping and I am not assigning. Man I see a whole new course out there.....lol

[MichaelC 160]

I am not flipping and I am not assigning. Man I see a whole new course out there.....lol

Need a ghost writer?

[Jonathan RexfordFL 8]

At the way I write I am afraid I will become a ghost before someone even reads it.

[MichaelC 160]

At the way I write I am afraid I will become a ghost before someone even reads it.

[Brian - L.V. 0]

Rich, I can see that if I call it black it maybe blue. Its just a description of words based on the NET results.

 

It is two different things as both can be done. If I have to do a double close I can. But the best of both worlds is just to step out and let them close together.

Essentially just keeping it simple as not to confuse the seller. If we started talking about doing assignments to buyers and collecting option cancelation fees, it would probably kill more deals than anything. Plus, I doubt a seller is going to have a big issue with closing directly with our buyers since all they really care is that their house gets purchased.

[Doug Pretorius (ON) 9]

Also Doug, what are you emailing to these people on Craigslist? If I remember correctly, you are looking for CA's or was it SLO's? And what type of response are you getting?

Rich, I tell them that I'm a real estate consultant for a private lender and investment company and that i have qualified buyers looking for nice homes in their area. That's all I need to say to get the deal.

 

These are pure options. And I'm getting a 10-15% response (depending on the city) and 90% of those sign up.

[Jason (AL) 1]

Jonathan,

 

The way you do these type deals....

the same could be done with a Performance Mortgage, right?

Rather than selling your option or double closing, you're just

stepping aside and letting your buyer and seller close together.

You avoid seasoning issues and profit as a lien holder.

Is this pretty much how you operate? ...just a little variation

in paperwork, the results and M.O. are the same...

 

Speaking of courses....

I've only found one that resembles this type of deal

making and "transactioneering":

John Alexander's Inverse Purchase program.

Anyone have any experience with this?

I mean, with all the info Jonathan has shared here with us,

no one needs to pay nearly $2k to learn this.

It's all been given to us for free.

[Rich08 0]

These are pure options. And I'm getting a 10-15% response (depending on the city) and 90% of those sign up.

 

 

Doug,

 

I like that approach. What kind of message are you sending in your initial email to get that kind of response.

 

Jonathan,

 

Thanks for the clarification. I looked back at some of your other posts on this very topic, and it makes more sense now.