Using a non exclusive option, is a great way to start doing deals if you are nervous about signing a purchase\u00a0 and sale contract, or the owner would still like to sell it himself. BUT it can also be used to pick up more deals that so close to the number you need to be at to make a profit .<\/p>\n
Suppose the seller is willing to take what he owes, but what he owes is $5,000 more than what you wanted to spend.\u00a0 I would suggest that you still get it put it in your pipeline using the non exclusive option.<\/p>\n
Example:<\/p>\n
The seller owes $35,000\u00a0 They will take what they owe on the house, $35,000.\u00a0 But, when you do the numbers, the offer calculator says you should offer $30,000.<\/p>\n
So, you go back and try to squeeze every penny out that you can to get to their existing loan amount. You change the repairs from $10,000 to $7,500 in the hopes that a rehabber can either do it for that amount, or that he won\u2019t notice. And, you change the calculation from ARV x .55, to .60. Because, there may be a buyer out there that will just pay a little more. And guess what?<\/p>\n
You\u2019re still short\u2026<\/strong><\/p>\n It\u2019s not the end of the road, you can do one of two things.<\/p>\n 1. You could put a contract to purchase on it, in the hopes you can sell it. This allows you to market the house at the same time it does not commit you to buying the house. If you do find a buyer,\u00a0 the seller has to sell it to you. If you don’t you simply cancel your option. Its a no?strings?attached contract, and it works Great<\/p>\n Here\u2019s the conversation:<\/strong> Then, you get the non-exclusive option contract signed for $35,000.\u00a0 This contract is assignable, just like your Purcahse and Sale agreement..<\/p>\n And, you begin marketing it like you would if you had it under a PSA. Mark it up $10k and get the word out.\u00a0 You never know? And, if the seller finds a buyer first, you tear it up and wish him luck, mentioning that if the buyer fails to close, to make sure he calls you.<\/p>\n Grab the Form HERE<\/a><\/p>\n GO TO NEXT CHAPTER HERE<\/a><\/p>\n \n","protected":false},"excerpt":{"rendered":" Using a non exclusive option, is a great way to start doing deals if you are nervous about signing a purchase\u00a0 and sale contract, or the owner would still like to sell it himself. BUT it can also be used to pick up more deals that so close to the number you need to be … Continue reading How, Why and When to Use a Non-Exlusive Option Contract<\/span>
\n2. Use a non-exclusive option contract.<\/p>\n
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\nMr. Seller, I am afraid that I won\u2019t be able to purchase your home. The numbers just don\u2019t come out right for me. However, I have many property?buyers in this area, who may want to buy your home. So, what I\u2019d like to do is to get a contract signed, which says that my intention is to locate a buyer for you, but which is also non?binding, should you find a buyer on your own. Does that sound good? <\/em><\/p>\n