I don’t see any problem with it besides the fact that your profit would be a little on the low side. Even Ron Legrand says you should not get involved with Optioning a house in the manner you intend to unless there is at least a $20,000.00 profit built in.
If you think you can sell it quick, i suppose you have nothing to lose, I just would be wary of putting too much money or time into marketing it for such a small potential profit, and that’s if you sell it before the agent does. If you had a little more leeway with the price, you would be able to sell it quicker.
Any problems with LeGrand straight option?? - Posted by mattc
Posted by mattc on September 22, 2003 at 15:38:13:
OK, I have been talking with a nice lady
who wants to sell a 5 year old home.
Appraised value - 275K
On market with realtor for - 265K
Will sell to me for - 255K
She is willing to give me an option to buy this for
255K. I have read the Fast Cash LeGrand book, and
have Bronchick’s L/O course. I was originally going
to do a L/O, but she doesn’t want to do this.
Anyway - any problem if I get this option ($ 10.00 cost
to me only…), and then market to other investors - or
a retail buyer? for say 263K - getting an 8K assignment
fee or promissory note?
Legrand has this method in his book, and another poster
on his site has done this in Michigan. Sounds OK to me,
as I am the principal, and can either buy it myself,
do so with a partner, or assign the option to an end
buyer - investor or retail buyer.
I will back out of the transaction if she finds another buyer.
Now - I’m reading some concerns today about “Net Listings” etc.
Just want to get expert’s take here before I proceed in then
next 1-2 days. Don’t want to run afoul of anyone, and
I am getting contradictory info here.