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  • #2331

    Troy
    Participant
    Post count: 31

    Hello everyone,

    I have a couple questions below on “closing” an Option deal.

    The example discussed on the course (section 8.3) describes a self managed double close on an option to purchase deal, where Steve “sold” the property and collected the $15,000 from the end-buyer prior to closing with the seller. Then he sent a notary to the Seller with the deed to be signed along with the $4500 Option Purchase Price to the Seller, and then when he received all the signed documents back from the seller, he quickly recorded the deeds (in sequential order) to complete the transaction and kept the difference as profit – Nice! @admin @jilldewit

    So, my questions about the closing the option deal are:

    1. How do you get the end-buyer to send you $15,000 without you actually owning the property? Do you go ahead and sign a Purchase Agreement with the end-buyer disclosing your current Option Agreement with the seller, before the end-buyer sends the money?

    These administrative closing details of this fast moving deal where not immediately obvious to me in the video, so any additional input/advice on best practices to closing the deal here would be greatly appreciated.

    Anybody else with questions/experience with Option deals, please share….

    Thanks, Troy

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  • Jill DeWit
    Participant
    Post count: 439
    ProAdvancedStaffPrincipal

    @troy

    First of all, always be up front and honest about the things, “if asked”. In this situation, the end buyer never asked and based on the signed agreement with seller, I was marketing online with all my other properties as normal. Before I accepted payment I made a quick call to seller to confirm everything, then I pulled the trigger. Super easy. Everyone happy!

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