Non-Exclusive Option/Flex Option
If I use a flex option contract to sell another investor's property, find a buyer and assign the option. How do I get paid?
As soon as I assign, or at closing?
Most Popular Reply
Hello everyone, i'm new to the site so please excuse me if i answer something you may have answered months ago. In my deals as a flex option wholesaler, i collect my fee from the buyer and assign my rights to my agreed upon sale price to the end buyer for my fee. Example.
I flex optioned another wholesalers deal, he wanted 25,000 for the home,I simply marketed it for 35,000,the flex option stated the purchase price of $25,000. The buyer wanted to buy,I sold him my contract for $10,000 I Then Connected him to My Wholesaler Who Sold Him His Contract For The Original $25,000 They Closed And I Got My Cashiers Check From The Buyer At The Time Of Our Option Transfer.
Now While At This Point I Could Have Takin My Money And Walked Away And Forgot About The Whole Deal,My Practice Is To Stay In Contact With Both Parties Till They Close. My Reasoning Is, If I Sell My Contract To A Buyer For $10,000 And For Whatever Reason The Seller Or Contract Holder Does Not Perform, I Do Not Want My Buyer To Be Out Of His $10,000 With Nothing To Show For It. I Simply Cash My Check And Hold It Till I'm Sure They Closed The Deal, Only Then Will I Count The Money As My Own, It's A Good Practice To Do This As You Will Gain The Respect And Trust Of Your Buyers. And If You Just Take The Money And Run, And Said Seller Does Not Perform, It Will Most Likely Be The Last deal You Will Ever Get.