Straight option or contingency clause? Or...? - Posted by SH

Posted by Joe Kaiser on May 08, 1999 at 17:48:57:

My instincts tell me he knows more than he’s telling and if he could get $165k for them, he would. I suspect he’s looking for a soft touch.

Unless there’s something going on that would make him motivated to sell, (and there rarely is with free and clear property), he’s trolling.


Straight option or contingency clause? Or…? - Posted by SH

Posted by SH on May 08, 1999 at 16:29:29:

I have a gentlemen willing to sell 6 rentals he owns for $125,000. Most of the homes are paid for, he’s 71. He says the market value is at least $165,000 for all the homes. I am thinking of making him an offer for a straight option to purchase the homes in 3 months, then selling the each home by assigning the option. Maybe I bitting off more than I can chew but I think I could get around $190,000 for the homes. Should I give some option consideration here and should I have a contingency (weasel) clause that allows me to get out of the deal? Don’t have much experience with this. The homes are a two hour drive from my city (thats an hour down and an hour back). What do some of you pros think?