I need a option contract please

[Don Steebs]

I am in need of an option contract. I would like it to be fairly simple as to not scare sellers away but anything is better than nothing. More contracts are better also so I can choose what will best suit me . Thanks

[Bill Gulley]

Can I get one too?

Actually, this sharing of contracts stuff concerns me, especially with new people in the business. I really do get it, that when you start you are operating on a shoestring budget. I understand too that such folks starting out can't sit down and write a good contract...okay, but;

State laws vary and what flies in Texas may not in Missouri and what does fly in Missouri will absolutely not fly in Texas.

Selecting what you think you need really is not a safe way to operate unless you are an attorney, obviously you are not an attorney or the question would not have been asked. Probably the same with a Realtor, as they have access to contracts and must use standard agreements and forms if the property is listed.

Saying a short contract so as not to scare a seller means you need to work on your presentation to the seller. When a seller sees what all is involved and that all the bases are covered, with a good presentation, will instill confidence that the seller is doing the right thing, for the reasons at hand and with limited risk.

Granted, you probably don't need a forty (or more) page option agreement, but I see people asking for a one page contract. You can barely get the legal and the basic recitals of an option on one page.

Those additional covenants are there for a reason;

what happens if the house burns down? who get's the insurance proceeds?

What happens if the seller dies, if additional liens pop up, if the seller takes bankruptcy, if the city decides to take the property for a parking lot, the list goes on.....

Simple contracts allow simple problems to become costly.

There are investments that every business owner must make in any business venture. A calculator and contracts are investments that every real estate investor needs to make. Get with a local investor and Realtors to get a contract that is approved for your area. Spend one hour with an attorney to simply review what you have and get suggestions.

IMO, passing contracts around from one beginner investor to another is dangerous. Good luck....