I have been an agent for 5 years and an investor for 7 and I've never heard of a flex option. Can you tell me how he used the verbage? Or maybe it's something he came up with. Please let me know.
__________________
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
I believe a flex option agreement can be used if a seller doesn't want his/her property locked up. But it still gives the wholesaler the option to find a buyer before the seller does.
The contract may state...
- Seller understands that Buyer’s intention is to find an End-Buyer and assign this Option Agreement to that End-Buyer for a fee (paid by the End-Buyer).
- Seller understands that Buyer is acting as a principle in the transaction and is not working as a licensed real estate broker representing anyone in the transaction.
- Upon Buyer’s decision to exercise this option, both parties agree to move forward with the necessary standard purchase and sales agreement.
- Seller may cancel this agreement at any time if they find their own buyer or tenant or decide not to sell.
-
I've never heard of this type of an option either, thanks for the post guys. If it is in fact an option that turns out to be identified as an ARM, "buyer beware" would probably fit here. I suggest you make sure that you have legal representation go over all your paperwork and you have a good understanding before signing. No disrespect intended but look at what got our nation here in the first place....ARM's.
lbrown
But it's NOT a legal term. The ability (but not the requirement) to buy a property in this case is simply called an "option." If that ability stands on its own (meaning that's all there is to the agreement), it's AKA a "straight option." To be able to purchase a property before anyone else does lock it up legally (no way around it) -- this is called "first right of refusal." If this is in place and seller finds a buyer before you do, Seller is required to inform you and give you the opportunity FIRST to either exercise your option and buy the property, or refuse, releasing the seller from their obligation to sell to you. Don't stress so much on what lawyers call the term. Focus on the terms of the agreement, avoid ARM's like the plague, and always have your lawyer look it over before you sign it. Hope this helped...
__________________
Paul: "I must not fear. Fear is the mind-killer. Fear is the little-death that brings total obliteration. I will face my fear. I will permit it to pass over me and through me. And when my fear is gone I will turn and face fear's path, and only I will remain."
Duke Leto: "I'll miss the sea, but a person needs new experiences. They jar something deep inside, allowing him to grow. Without change something sleeps inside us, and seldom awakens. The sleeper must awaken." - "Dune."
Offline
I have been an agent for 5 years and an investor for 7 and I've never heard of a flex option. Can you tell me how he used the verbage? Or maybe it's something he came up with. Please let me know.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125
I believe a flex option agreement can be used if a seller doesn't want his/her property locked up. But it still gives the wholesaler the option to find a buyer before the seller does.
The contract may state...
- Seller understands that Buyer’s intention is to find an End-Buyer and assign this Option Agreement to that End-Buyer for a fee (paid by the End-Buyer).
- Seller understands that Buyer is acting as a principle in the transaction and is not working as a licensed real estate broker representing anyone in the transaction.
- Upon Buyer’s decision to exercise this option, both parties agree to move forward with the necessary standard purchase and sales agreement.
- Seller may cancel this agreement at any time if they find their own buyer or tenant or decide not to sell.
-
I've never heard of this type of an option either, thanks for the post guys. If it is in fact an option that turns out to be identified as an ARM, "buyer beware" would probably fit here. I suggest you make sure that you have legal representation go over all your paperwork and you have a good understanding before signing. No disrespect intended but look at what got our nation here in the first place....ARM's.
lbrown
But it's NOT a legal term. The ability (but not the requirement) to buy a property in this case is simply called an "option." If that ability stands on its own (meaning that's all there is to the agreement), it's AKA a "straight option." To be able to purchase a property before anyone else does lock it up legally (no way around it) -- this is called "first right of refusal." If this is in place and seller finds a buyer before you do, Seller is required to inform you and give you the opportunity FIRST to either exercise your option and buy the property, or refuse, releasing the seller from their obligation to sell to you. Don't stress so much on what lawyers call the term. Focus on the terms of the agreement, avoid ARM's like the plague, and always have your lawyer look it over before you sign it. Hope this helped...
Paul: "I must not fear. Fear is the mind-killer. Fear is the little-death that brings total obliteration. I will face my fear. I will permit it to pass over me and through me. And when my fear is gone I will turn and face fear's path, and only I will remain."
Duke Leto: "I'll miss the sea, but a person needs new experiences. They jar something deep inside, allowing him to grow. Without change something sleeps inside us, and seldom awakens. The sleeper must awaken." - "Dune."