First Right of Refusal Clause, Option Agreement in Negotiating
Thank you BiggerPockets,
Live in Bellingham WA and am a RE Broker aspiring to become a passive note investor for multiple income streams. I am learning to broker notes right now. Have a few questions regarding document prep on note transactions.
1. Would this be appropriate wording for a first right of refusal on a Deed of Trust seller-finance transaction?: "The trustor grants to the beneficiary (me - note holder) an irrevocable option to purchase the property, including all contents except for personal property (chattel), for the sum of ONE DOLLAR ($1.00) upon being offered for sale or upon the death of trustor (borrower's/buyer's name)"
2. Should the words "First Right of Refusal" be written in the Deed of Trust and in the Purchase and Sale Agreement?
OPTIONS:
3. When I find a note deal to purchase or broker how elaborate (details and expiration time) should the Option be to take care of the due diligence process? - Searching/marketing locally and with Self-Directed IRA and LLC money, so I am thinking that 30 day Option would be sufficient to research and negotiate price and terms.
4. How much consideration (money) should I offer as an option?
Thank you in advance. Suggestions are always welcome and appreciated.