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Wholesaling

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Sean McCrory
  • Spring, TX
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Wholesaling "pretty" homes to retail end buyers using straight options

Sean McCrory
  • Spring, TX
Posted Mar 28 2015, 00:00

Hello BP,

I have been looking at a bunch of different strategies for getting started and a few have really caught my attention.

I live on the North side of Houston and one of the REI meetup groups that I attend is hosted by a couple that uses a system in which they are basically getting properties under contract using straight options. I really like the way this method sounds and the fact that I am able to use it on higher end homes and/or homes that just don't have enough equity to offer a normal wholesale offer. I have seen a bunch of other people talking about using lease options and sub-2 to accomplish the same goal but I am not really interested in pre-screening tenant buyers and staying on top of the tenant buyer for the length of the option until the eventual purchase of the property.

This couple teaches to file your option with the courthouse once you have a contract signed so that it "clouds" the title. Talking to a few other local investors, they kind of had a negative perception of that idea because they had seen it where the investor can just walk away but the homeowner is stuck with a clouded title and then ends up going into foreclosure. 

My question is... Say I market to expired leads that are "pretty" homes and can get a seller to agree to a straight option deal, how can I show equitable interest if I am not clouding the title? It was my understanding through that couples system my fee or payment would be able to be listed on the final sales agreement and that it wouldn't really be an issue.

I really like the idea of being able to wholesale back to the retail side and was just wondering if there are any people using straight options to do this currently?

I am a newbie still looking for that first deal due to the fact that I have a hard time shutting off the analytical side of my brain which keeps me scared of getting into something that I don't know enough about. Any advice on which way to go is much appreciated. I just liked this idea because I feel that it fits my personality better than most of what I have seen so far.

Thank you in advance for any help that can be provided. This is truly one of the greatest websites of all time and by far the most valuable real estate website.

-Sean McCrory

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