In practice, if the terms of the option are well negotiated and the property is properly valued, one of Tim`s students could sell or award the option very quickly, often in as much as three to five days. You can assign your option agreement to the next guy and let him get into your shoes. Or you can exercise your option by entering into a sales contract and then awarding yourself your contract as a new buyer. Suppose that in this case you are the “intermediary” between the optionor and the final buyer. This is actually an extremely simple agreement, and one that experienced wholesalers are increasingly using to open doors to new profits by returning the stock of other wholesalers into deals. THANK YOU for posting this very valuable information. This was a very recent contribution, as I was making the leap into birddogging/real estate research and wasn`t clear about what the transaction chain and paperwork would be like in the backend. I wanted to see if someone could solve some of the questions I had. If I borrowed your first proposed method and simply assigned the option agreement and let it into my shoes, would the end buyer and the optionor for whom I marketed this agreement simply work together on the agreement to conclude the agreement? Would the Birddog tax appear somewhere on the HUD if I walked this road? It would seem that this is only a number of closing costs, given that this is a direct allocation of the option? What if the optionor offered me a referral fee to find a buyer, as well as the referral fee that the end buyer and I had agreed to? Is it legal (2) to charge referral fee rates if, on the basis of this option contract, I could be the principal in this case? And then, how would it reflect on the HUD if it is legal? I love the options. It`s great for quick flips.
I`ll make you a better one. Has anyone ever heard of a non-exclusive call option? I changed it to “seller can cancel…” So that I can award this agreement. Without doing so, I should first inform the seller of my intention to exercise the option, and then I should write another contract….