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Still working on DEAL #1

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#1 sarge006



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Posted 08 December 2012 - 12:29 PM

Here goes----- Got an OPTION on an estate sale. Comps out at around 95K. Owner said all he wants out of it is 60K. He gave me a 90 option to do my thing. As of today--I am now marketing it. My question is this, If I am selling it for 69K-- when and how do I get paid?? Do I mention to the buyer he has to buy my position first, than go to closing with the buyer, or do we do all this at closing. What prevents the buyer from waiting till my option period is done--than dealing with the owner??

#2 MichaelC


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Posted 09 December 2012 - 10:36 AM

I wouldn't necessarily look for a buyer as much as I would look for an assignee. In all likelihood it would be a quicker payday. Let's say you find someone willing to give you $5K as an assignment fee. You collect that money now, sign the assignment agreement, and he replaces you in the deal with the homeowner. You're out of the loop with $5K in your pocket. No need to linger and wait for the deal to close. If your numbers are correct you have about $35K equity in the deal. That should be worth something to someone. It's going to hinge on your marketing, sarge.

#3 wildwestinvest!


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Posted 05 January 2013 - 12:28 AM

If you're loud enough in your marketing, and you have a deal, then people are going to feel threatened you'll find another buyer. When working with the buyer, I have, initially, had to suggest a nonrefundableforanyreason deposit. You do hold an asset to buyers, after all.

Did you write you have an option price of 90k on it?

#4 Doug Pretorius (ON)

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Posted 05 January 2013 - 06:29 PM

With that option in place you can also list the property with an agent. I assume at the prices you mentioned this home needs at least some rehab, so look for an agent who has investors in their buyers list in addition to putting it on the MLS.

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