OfflineCan someone explain to me in "laymen" terms what is a "flex-option" and how does the "option" work? Thanks!
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Flex-Option...
Posted on: Thu, 03/19/2009 - 04:33
Can someone explain to me in "laymen" terms what is a "flex-option" and how does the "option" work? Thanks!
A flex option is an option where the seller is allowed to keep marketing their property and you are allowed to try to flip it at the same time. If you find a buyer to close the transaction you get paid. If the seller finds a buyer then depending on the agreement, you are usually offered a last opportunity to complete the transaction. Some require you to match the other offer, some let you execute at your original strike price. It just depends on what you negotiate.
The idea is that it allows you to pay a very low option price with a very low sale price while giving the seller the ability to get a higher price if they can.
Hope this helps you!
God bless you,
Psalms 118:23 "This is the LORD's doing; it is marvelous in our eyes."