I am trying to learn the different methods to use on the sellers. Which method works best? Lease option, pure option, subject to or contract for deed/land contract? I heard sellers do not like lease options because it is an unilateral agreement.
Can someone describe how a pure option works?
There isn't a "best method" in my opinion. The method or investing strategy that works best is the one that you understand fully and is also the solution to the sellers problem. You are like a repair man and the methods you use are your tools you use to fix up deals. If the seller has a nail problem that needs the cash hammer, you're not gonna use the lease option screwdriver. Did I lose anyone in that weird analogy? lol
A pure option is exactly what you think. An option to purchase. I think of it like a shorter, weaker, less wordier P&S agreement that doesn't have to tie up the property but gives you control at a locked in price. This is primarily used in cash deals and the seller wants to retain the ability to market their property and sell it to someone else if you take too long or fall through on your agreement to buy.
Did you know a Pure Option is Unilateral as well in most cases? The famous clause most investors use as a selling feature to get control of a property from a seller fearing you tying it up pretty much says, "If I don't bring the money, you don't have to sell to me and while this is under option you can still market the property and even sell it to someone else".
That sounds unilateral to me, and in my experience, unsophisticated sellers don't care about stuff being unilateral, because 8 outta 10 sellers won't even know what that means lol. So don't worry about that, Most sellers just wanna know if what you offer solves their problem or gives the price they want.
Just my 2cents.
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