Epic Real Estate

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In this video I'd like to share a strategy that allows you to control a property without actually buying or owning it. It's called an option agreement or option contract. An option is a unilateral agreement for you to buy or sell on or before a specific date at an established price. It can be a great strategy in a number of scenarios, but let's break that down and discuss what it actually means and why it's so good! Options are unilateral agreements meaning it's a one way street. The seller is obligated to sell, but you are not obligated to buy. In other words, there's no risk! Option agreements give you an extended period of time to complete the purchase without stress or pressure. But as a buyer, here's the great part. If things don't pan out as you'd hoped, you can let the option period expire and simply walk away without any repercussions. Let me give you an example. Let's say you need time to get special permits from the city - if you have an option contract you can wait until that permit is in place before going through with the purchase. And if for some reason the permit get's denied, you can walk away from the deal with no penalty!

Timestamps: 1:09 - what are real estate options? 1:28 - optionor vs optionee - who's who? 1:38 - how to ensure your option contract is legally binding 1:46 - benefits of options and when you might want to use them 3:42 - using an option agreement while waiting for funding 4:55 - the options process 5:32 - how much should the option fee be? 6:05 - how to hedge your risk