Put an option on a property, showed it, and they want it, when do I get paid for the option? Whats the best way to go about it?
Simplest and quickest is to just assign it to the buyer for whatever amount your spread is. You get the cash and the buyer takes over your option. There are many ways to handle these things but most of the time if there are not other problems, and you have not indicated any, this is the way I do it. I’m in and I’m out quickly.
Thats exactly what I ended up doing. Thx for the reply, I knew the answer but for some reason I think because this is my first real legit deal, after years of fear, procrastination and all the other things, it just went poof, right out of my brain, I ended up calling the buyer earlier and telling him that as soon as the title search comes back and they for sure want it, theyll cut me a check and get the option and the assignment… Thanks again!
Wholesaling - assignment of contract…
The way I see it done most often, and have been on both sides of this several times, plus think it makes the most sense, is you draw up an assignment of contract with a stated fee, time for closing, etc. However, the actual paying of the fee happens at closing. Reason for this is, if something happens and there is no closing - title issues that can’t be resolved, seller backs out, etc., and the fee has already been paid, now there can be a mess (who is responsible for what, does the fee get returned or not, and what if it should be, but fee collector already spent the money?). IMHO, the assignment fee being paid at closing is usually the best way to keep it simple. Hope the input helps.
Best wishes,
Chris in FL
P.S. - If you are wholesaling, collecting the fee, and your concern is getting paid fast, the answer most wholesalers use is, they only deal with serious, cash buyers who can close quickly.