Wholesaling
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated over 3 years ago,
purchase option situation
This is in California. I (through my corporation) have a purchase option for a commercial property, for $2m. It expires in 2023. The agreement says that I (my corporation) has to be the one that exercises the purchase option. The agreement also says we can't assign it to anyone else. We recently got a BOV / appraisal saying it is valued at about $5m. My company/employees are tenants, and we've worked hard to get more tenants into the building and have done well filling it out. We're not able to get financing to purchase the property ourselves, but I would like to flip it asap, if there is a way. What are my choices at this point? We have put about $500,000 of renovations into the property, to make it usable initially.
I came across these two posts, image attached. I was thinking that their insight, one of them, might be the right direction for my situation. But neither also seems like a possibility for me, because first: how can I sell the rights of a contract, if the contract (purchase option) says only my corporation is allowed to exercise the option. And second: my company is not in a situation to get any transactional lending. Back when I entered this agreement, I had hoped that our company would have better financials at this point, but that hasn't happened, so it would be impossible for us to get financing even to flip this thing. Any thoughts or guidance would be extremely appreciated. (Sorry, I am completely new at this. All I knew was I had a growing thriving company years back, I saw amazing uninhabitable property, I wanted to buy it but couldn't --- someone else came along and could buy it but only if I renovated it--and I in turn made sure to get a purchase option).