Using an Option Contract?

Question

Can someone tell me or show me how to use an "Option Contract"  to get properties under contract?

Jim Sharp · Answer

Draft by design, not by default!

Breau Williamson · Answer

Thanks man. I appreciate the advice.

Brice C. · Answer

generic.....yuck
Contracts are very important and you should learn about all of the different clauses that can be put into one.
If there is something your trying to say or accomplish just write it in plain english what you mean....it avoids confusion. Just be very careful of the wording that it will only be interpreted the way you mean it to be. Run your contract clauses by as many people as you can to be sure what your trying to say is clear.

Optionor agrees to sell right to buy ....property for ...$...to be excercised on or before .......date
if optionee fails to exercise option liability and all recourse shall be limited to option consideration only.
thats a great clause to have in there.

I usually have 15 clauses in my options.
16 if i need to give right of refusal and i write out the right of refusal so the seller will understand it for what it is.....avoid confusion if things are simple.

KISS

Breau Williamson · Answer

Hey guys, Im new to REI, and my question is not how to use the option contracts, but where to find them. Do I need to consult an attorney, or is there a generic form that I can use? Thanks

Jason Hanson · Answer

You simply have the seller sign an option agreement. Try to get as much time as possible...so if you have a 45 day option for $100,000 and you find someone to buy the property for $110,000 you make the $10,000 (obviously it's more detailed than this, but you get the basics).

Carey Harris · Answer

I have an option to purchase contract if that is what your stating,,let me know and i'll send one your way.

Terry Royce · Answer

can you recommend one?

Jeff Fairchild · Answer

There are lots of books out there about real estate options.

Terry Royce · Answer

i did my last deal like that. I usually put a "right of first refusal" if the owner has a competing offer. I use this when the owner is not willing to sign a purchase agreement w/o a large deposit.

Jessica Brovitch · Answer

I am curious also....