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joshril

Non exclusive Option

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I have a deal working where the homeowner has another person working a lease-option coop deal with her. She wants to work with me, but wants us to compete to find a T/B. Not saying I am even going to get involved in this, but if I did, could I have her sign a non-exclusive option to give me the ability to market the property? Does anyone have a contract like this? Does a non-exclusive option require monetary consideration?

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Too many cooks spoil the broth. She has one "investor" working her deal and she's probably doing so herself. Now she's asking you to pile on? No, thank you. Don't waste your time, Joshua, and don't allow homeowners to take control of the deal. That's your job.

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Too many cooks spoil the broth. She has one "investor" working her deal and she's probably doing so herself. Now she's asking you to pile on? No, thank you. Don't waste your time, Joshua, and don't allow homeowners to take control of the deal. That's your job.

 

I agree with this. If I run into a situation where someone is hesitant to get "locked in", how restrictive is the short offer? Does the short offer allow me to start marketing?

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The aim of the Short Offer is to give the homeowner the highlights of what you're offering. If they agree to that, then you get them to sign off on the full agreement. Until they sign that full agreement you probably don't have a legally binding deal. Can you start marketing immediately? Sure. Online ads are free and if the deal were to fall apart, you may have still found a solid t/b prospect in the meantime, so I wouldn't worry about that.

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Here's another angle on it.

If there's another investor spoiling the pot, (As MC says, but I'm sure he meant to say Gonja :closedeyes: ), then I would try to find out what they are doing, if they need help (which they most likely are new) and get them to work FOR you. You can offer the ability to show them a new way of doing LOs (CAs) and get their seller leads. I started this way and did almost 50 deals my first year. Make what's against you FOR YOU.

 

And yes, there are two ways to make an option legal. One, put down a dollar. Two, promise to pay later/rent etc. Go with option one, it's cheaper.

 

Also, without fail WITHOUT FAIL make sure you're non-exclusive agreement states that it is STILL non-circumventable by your efforts! In other words, make sure that if you bring someone through YOUR efforts, that the agreement becomes binding and fully exclusive. This way if "Gonja" boy/girl tries screwing you out of your harvest, you'll have means to at least make some idle threats.

My two cents,

Adam

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Oops, just read that he said spoil the broth. Whatever, I'm sure he meant Gonja... :closedeyes:
Indeed. Here I am enjoying my morning fix before heading out to the beach for Coronas. . .

 

post-1-1236777693.jpg

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Here's another angle on it.

If there's another investor spoiling the pot, (As MC says, but I'm sure he meant to say Gonja :closedeyes: ), then I would try to find out what they are doing, if they need help (which they most likely are new) and get them to work FOR you. You can offer the ability to show them a new way of doing LOs (CAs) and get their seller leads. I started this way and did almost 50 deals my first year. Make what's against you FOR YOU.

 

And yes, there are two ways to make an option legal. One, put down a dollar. Two, promise to pay later/rent etc. Go with option one, it's cheaper.

 

Also, without fail WITHOUT FAIL make sure you're non-exclusive agreement states that it is STILL non-circumventable by your efforts! In other words, make sure that if you bring someone through YOUR efforts, that the agreement becomes binding and fully exclusive. This way if "Gonja" boy/girl tries screwing you out of your harvest, you'll have means to at least make some idle threats.

My two cents,

Adam

 

Where might I find a good non-exclusive options contract with a non-circumvent clause?

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Where might I find a good non-exclusive options contract with a non-circumvent clause?

 

Here's a sample clause. You can use this with MC's agreement. Just replace the exclusive agreement etc and GET PPL!

________

P. NON-EXCLUSIVE:

If Seller should sell, lease or assign their interest of the property secured by this option during the Option term to any other person or party that is not directly linked or in relation to YOU (Optionee), this contract shall become void upon written proof of that transaction therefore relieving the seller

, ____________ (Optionor) from any further involvement of this contract. If said property is sold, leased or assigned by seller to anyone directly related, or brought forth by Optionee or Optionee’s efforts in securing their own interest in this transaction, such person shall be furnished with the copies of this Agreement and shall agree in writing to be fully bound by the terms with regard to the Buyer’s rights under this Agreement therefore making this agreement fully exclusive on the Optionee’s behalf.

________

 

PPS This is not legal, financial or emotional advice...

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Where might I find a good non-exclusive options contract with a non-circumvent clause?

 

Here's a sample clause. You can use this with MC's agreement. Just replace the exclusive agreement etc and GET PPL!

________

P. NON-EXCLUSIVE:

If Seller should sell, lease or assign their interest of the property secured by this option during the Option term to any other person or party that is not directly linked or in relation to YOU (Optionee), this contract shall become void upon written proof of that transaction therefore relieving the seller

, ____________ (Optionor) from any further involvement of this contract. If said property is sold, leased or assigned by seller to anyone directly related, or brought forth by Optionee or Optionee’s efforts in securing their own interest in this transaction, such person shall be furnished with the copies of this Agreement and shall agree in writing to be fully bound by the terms with regard to the Buyer’s rights under this Agreement therefore making this agreement fully exclusive on the Optionee’s behalf.

________

 

PPS This is not legal, financial or emotional advice...

 

Thanks! Will PPL review any document?

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Thanks! Will PPL review any document?

Yes,

Go sign up!

www.prepaidlegal.com/hub/adamking32

Don't think about it, do it! They'll look at them tomorrow and you'll be good to go!

Adam

 

One last PPL question... will they advise on state specifics when it comes to docs?

 

Thanks again!

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Thanks! Will PPL review any document?

Yes,

Go sign up!

www.prepaidlegal.com/hub/adamking32

Don't think about it, do it! They'll look at them tomorrow and you'll be good to go!

Adam

 

One last PPL question... will they advise on state specifics when it comes to docs?

 

Thanks again!

 

Yes, they will be in your state. PPL is not the lawyer, they work with lawyer's in your state specifically.

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Thanks! Will PPL review any document?

Yes,

Go sign up!

www.prepaidlegal.com/hub/adamking32

Don't think about it, do it! They'll look at them tomorrow and you'll be good to go!

Adam

 

One last PPL question... will they advise on state specifics when it comes to docs?

 

Thanks again!

 

Yes, they will be in your state. PPL is not the lawyer, they work with lawyer's in your state specifically.

 

What if you are working in multiple states? Do they have a plan for that?

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Too many cooks spoil the broth. She has one "investor" working her deal and she's probably doing so herself. Now she's asking you to pile on? No, thank you. Don't waste your time, Joshua, and don't allow homeowners to take control of the deal. That's your job.

Can I hear an amen? :angry: An investor friends says that this fits his RLH formula...run like h*%l!! :huh:

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