sarge006 1 Report post Posted January 5, 2013 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
MichaelC 160 Report post Posted January 5, 2013 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
sarge006 1 Report post Posted January 5, 2013 Thanks Mike. One other question--how would the final transfer of funds go at the end? Share this post Link to post Share on other sites
MichaelC 160 Report post Posted January 5, 2013 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
sarge006 1 Report post Posted January 5, 2013 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
MichaelC 160 Report post Posted January 5, 2013 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
sarge006 1 Report post Posted January 5, 2013 Mike, Thankyou so much for your patience!! Share this post Link to post Share on other sites
sarge006 1 Report post Posted February 13, 2013 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
MichaelC 160 Report post Posted February 13, 2013 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
sarge006 1 Report post Posted February 13, 2013 I meant to say is the buyer going to feel 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
MichaelC 160 Report post Posted February 13, 2013 That's up to the buyer, I suppose. But preferably direct to you. Share this post Link to post Share on other sites
lhenley 8 Report post Posted February 13, 2013 Cash is King, no matter where it's paid. Lynn (FL) Share this post Link to post Share on other sites