All Forum Posts by: Stacy Steven Smith

Thanks, Bill, for the excellent info. I've checked out a Californian specific contract (that's my region) and will do more research on contracts as you suggest. I already see many differences from the simplistic national version sample I had.

I hope to be a knowledgeable veteran investor like you, one day and will definitely remember to give back by sharing wisdom as you and many other investors do on a daily basis on biggerpockets.com. Thanks again for you input!

Thanks for the replies, guys,... I probably didn't explain my premise right, so I'll take another crack at it.

The Option to Purchase seems pretty straight forward to me in that I will pay some monetary consideration to the seller for the right to purchase the property for X amount of dollars within X number of days. I can then exercise the option within that stated X number of days for the price indicated. I would include an assignment clause so that I could sell that assignment to another party who would then close on the deal.

What I'm having trouble wrapping my head around is that the Option to Purchase Agreement example I've seen doesn't seem to specify enough of the basic details and terms of the purchase, so it would appear that a separate Sales contract also needs to be signed. Most purchase contracts would have time frames included within them such as inspection periods allowed, closing deadline, etc. These would start from when the contract commences. I was wondering if it was common to put in language that the commencement start date began once the separate Option to Purchase agreement was exercised.

Based on the responses, it looks like the Option Agreement must commonly contain the basics for the Sales contract details as well. Otherwise,... I would think that exercising the option for the specified price within the allotted time of the option would not even allow for the assignee to get an appraisal of the property?

My thanks in advance for any info you can share as the courses I've taken thus far, while very good, have limited information on the precise contractual process of Wholesaling.

I'm not sure if I just posted this question at the worst possible time and it got burried, or I'm way off base, but if anyone has some input, I'd love to hear your impressions. It looks like my post has 77 views already, so there appears to be some interest in the question.

Any help would be greatly appreciated.

Please forgive my newbie question regarding wholesaling,... but is it possible, or common, to put in your sales contract that it commences upon the excercising of the seperate Option contract? The Option to Purchase will of course have an expiration period, and thus if never excercised, should you not be able to find a buyer, the sales contract would be void.

I had assumed this is how it would work, but after seeing some comments on this forum,..I'm not so sure I've got it right. Any observations would be greatly appreciated.

Here's the recap of all of S&P's European downgrades today:

France and Austria down one notch, stripping both of their coveted triple-A ratings.

Downgraded by TWO notches are Italy, Spain, Portugal and Cyprus.

Only Germany and Slovakia were given stable outlooks while all the others received negative outlooks.

The S&P said it was taking the actions "because Europe's leaders had failed at recent meetings to take decisive steps to solve the region's debt crisis."

If Europe continues to have troubles, they may very easily affect our fragile economy, and let us not forget that our own debt is a 100% of our GDP. Having wealth in real assets like Real Estate, might very well be a God send for many in this kind of economic environment. Here's hoping for common sense in our leadership. We really need it right now.

Many great iPhone apps have been mentioned already, but I'll add the following:

Income Property Evaluator (IPV) - Quick calculator for income properties.

Rent.com App, for finding comprable rents in a given area.

Mortgage App for calculating on the run.