All Forum Posts by: Alex Grosvenor

I'm interested in people's replies to your question Alex. I'm surprised sellers in Dallas don't like option periods! Maybe I'm mistaken, but wouldn't every prudent deal have an option period so you can get the home inspected?

I figured option periods were very standard especially coming off of the MLS because of the fact that if a normal homebuyer was to buy the property they would have to do their due diligence before closing on the property. With the amount of cash buyers in the DFW area I guess I'm assuming too much about the market. Just trying to get some information about how to make my offer more powerful.

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Originally posted by @Rod Hanks:

@Alex Grosvenor

If you buy retail deals off the mls option periods are common. But if you are buying wholesale deals from other investors or directly from homeowners you probably won’t get a option because there are too many investors that offer cash with no inspection contingencies. You can’t around it unless you are the only one with an offer on the table but that’s very unlikely with the competition in DFW.

I thought option periods were quite common from the MLS as well, however, I guess the problem is that the competition is crazy around the DFW area. I've made multiple offers and I'm going to continue to make multiple offers. I guess I just didn't know how competitive this market actually is.

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Originally posted by @Bruce Lynn:

Every deal is different. I do plenty with option periods. I would say that is more the norm than not, but maybe it depends on the deals you're going after. Wholesalers don't like option periods, they like cash. How do you know the offer that got accepted did not have option period? That's unusual that you would know much about the offer that did get accepted. Sometimes we can find sales price or find if it was cash or financed...but option periods don't always get reported. I guess if it goes straight from Active to Pending in MLS then you can assume there was no option, but that's not 100% true.

You just have to determine a way to make your offers stronger....more earnest, more option, faster option, higher price, offer to pay title, eliminate the home warranty and there's a whole host of other things you can do to make your offers look better. When I first started 10 days was normal option period or at least not unusual...then it moved to 7 as the market got stronger, now not unusual to see 3 and 5 or 0. Zero can be tough, but 3 is possible and 5 is certainly doable.

Be creative....to match the market.

The realtor was very transparent in telling me that their were offers with no option periods and that the seller does not want option periods. I don't know what their offer price was of course. I do know that even though I keep offering more earnest money and I had a higher offer on multiple different properties, the deal still goes to the person without an offer period (Or so I'm told).

As for wholesalers I don't even work with them because of all of the competition and the fact that they don't do option periods. Eventually I will move away from option periods, but for now it is a necessary safety precaution.

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Also looking for Real Estate Investing groups in the area!!!!

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Hey everybody!

My wife and I are starting Real Estate in Dallas and are complete rookies. We are looking for every single advantage we can get from what are closing cost usually, the best agents in the area, and even to the best contractors in the area.

We are diving in head first but with caution as every offer we are making requires a 7 day option period so we can be as safe as possible while starting out. I've found people HATE option periods in Dallas. Even if I have the highest offer they still go with the next best and with no option period.

Does anyone have any tips on how to get around this problem to make people feel more comfortable with this option period?

Any other advice on the Dallas market and the area would also be greatly appreciated!

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All Forum Posts by: Alex Grosvenor

Alex Grosvenor has started 2 posts and replied 136 times.

Post: Fix and Flip Dallas Texas

Post: Looking for Information on the Dallas area!

Post: Looking for Information on the Dallas area!

Post: Looking for Information on the Dallas area!

Post: Looking for Information on the Dallas area!

Post: Looking for Information on the Dallas area!