Got an Option - Now What?

[antaynguy]

Hi everyone,

It`s been a while but I finally got a option to purchase from a distress seller 30-40K under market.

It`s a 1100+sf bungalow, 3up,2dn,2.5ba,double detach garage in Marlborough park. Appraised in Jan at 310,000 as is.

Any suggestions of what to do next would be appreciated.

My thoughts:

1) sell the property at 275,000 includes my option fee.
2) find a money JV partner to qualify and buy the property and lease to own and split the profit.
3) Assign the contract, I think this is the same thing as (1).

Any other suggestions would appreciated

Thanks in advance!!

 

[DavidMacDonald]

Hey Antay,

Congrats on the Option!

Why don`t you 7-day sale it? The upfront marketing costs aren`t too bad, and judging by your margin, you could make a nice profit!

If you did the sale, and found out that you didn`t get what you wanted for the property, you could always stick with your original plan and hold onto it. The bids are non-binding agreements so you don`t have to sell to the highest bidder if it`s not a high enough offer.

Dave

 

[antaynguy]

QUOTE (DavidMacDonald @ Feb 24 2010, 01:28 PM) Hey Antay,

Congrats on the Option!

Why don`t you 7-day sale it? The upfront marketing costs aren`t too bad, and judging by your margin, you could make a nice profit!

If you did the sale, and found out that you didn`t get what you wanted for the property, you could always stick with your original plan and hold onto it. The bids are non-binding agreements so you don`t have to sell to the highest bidder if it`s not a high enough offer.

Dave

Thanks for your suggestion!! I have never done this 7-day sale before. Where do you typically post the ads for them? I am thinking of bandit signs and kijiji. Any other places that would help?

 

[CarrieKoch]

QUOTE (antay @ Feb 25 2010, 06:02 PM) Thanks for your suggestion!! I have never done this 7-day sale before. Where do you typically post the ads for them? I am thinking of bandit signs and kijiji. Any other places that would help?

Hey Antay,

I`m working on an option now. I`m wondering...what did you use for your legal paperwork on the option and did you find a lawyer to work with you on the agreement (meaning did you get a lawyer on board as soon as you found the seller)? I`m wondering if I should get a lawyer now or when I have found my buyer?

 

[antaynguy]

QUOTE (CarrieKoch @ Feb 25 2010, 09:46 PM) Hey Antay,

I`m working on an option now. I`m wondering...what did you use for your legal paperwork on the option and did you find a lawyer to work with you on the agreement (meaning did you get a lawyer on board as soon as you found the seller)? I`m wondering if I should get a lawyer now or when I have found my buyer?

Hi,

It was such a rush situation that I did not get the lawyer involved. I used the Option agreement that comes with the Lease Option contract. Not sure if that is the right one as my mentor did not have the Canadian forms. I would defer this question to Barry McGuire.

Cheers!

Antay

 

[TerryKruse]

QUOTE (DavidMacDonald @ Feb 24 2010, 01:28 PM) Hey Antay,

Congrats on the Option!

Why don`t you 7-day sale it? The upfront marketing costs aren`t too bad, and judging by your margin, you could make a nice profit!

If you did the sale, and found out that you didn`t get what you wanted for the property, you could always stick with your original plan and hold onto it. The bids are non-binding agreements so you don`t have to sell to the highest bidder if it`s not a high enough offer.

Dave


After I did my Round Robin sale, I found a book on the process: How to Sell Your Home in 5 days by Bill Effros. I bought it online from Amazon. It was first printed in 1993 but has some updates. I am pretty sure the RLG organization took his information from this book.

This home sounds like it would be affordable for a Lease Option client though. That is what I would look at. The beauty of the option is that you can look for a tenant buyer with few expenses up front. You can also get additional tenant buyers lined up for future properties with the same advertising.

Cheers, Terry Kruse

 

[BarryMcGuire]

Hi Antay. Where/when should you get the lawyer involved? You know, it`s different for every situation. Especially when you`re starting out, creative real estate by its very nature is not a cookie-cutter operation. I think you educate yourself as much as you can, pick a strategy and then get out there and try and implement the strategy. If you need to chat with your lawyer as you are considering what strategy to use and what documents to use, then by all means do so. In your case you now have a signed option. Your issue is how to turn that into cash and you are considering your alternatives. My suggestion is that once you have an alternative figured out, run through the exact details of how you will implement the alternative. If you want assistance, you have to be able to describe your exit strategy in detail. Then, give me or other legal counsel a call and discuss it. That would be a good time for a lawyer to have input.
cheers

Barry