Jump to content
The forums have been archived and are now read only. Years of great info saved for your reading pleasure. Thank you! Visit us on Facebook: https://www.facebook.com/NakedInvestor/ ×
The Naked Investor Forums

Recommended Posts

Hey guys, Still attempting to do my first deal. A homeowner saw one of my signs and called me. He has a Duplex that has fire damage. He already got paid from insurance company and only wants about 10K. I have a Realtor who is going to run Comps for me. Looking online its APR is roughly going to be about 195K--but I still have to wait for Realtor to get back to me. I am meeting him Monday morning to look inside. I might have a Contractor interested in buying for himself---my question is this---should I get a Pure Option on this before the Contractor takes a look? SARGE

Share this post


Link to post
Share on other sites

Sarge, better to play it safe and protect your position in the deal. Drop a buck, literally, and get a Pure Option between yourself and the seller, then show the contractor.

Share this post


Link to post
Share on other sites

If you assign the deal, you are paid when you sign the assignment agreement. No need for you to be involved in any part of the deal beyond that.

If you remain in the deal as buyer and then seller, then you're paid when the deal closes.

Share this post


Link to post
Share on other sites

Then I can use a separate assignment agreement to assign the pure option? Thanks for your help Mike. I will let you know when I get my first deal!!

Share this post


Link to post
Share on other sites

Page 1, Paragraph 9 of the Pure Option Agreement gives you the right to assign the deal. You would then use the Assignment of Agreement form to complete the assignment.

Share this post


Link to post
Share on other sites

My assignment fee on this Pure Option is 12K and I have an option to buy for 8K making a total of 20K. Because the assignment fee is 12K--is the owner going to be more comfortable giving me a cashiers check "on the street" or at a title Co.??

Share this post


Link to post
Share on other sites

The owner shouldn't be giving you anything. You're assigning the deal to the assignee, your buyer. He's the one who is paying you.

Share this post


Link to post
Share on other sites

×
×
  • Create New...