The option contract is fast becoming one of the best ways investors are using to mitigate their risks during a trendy economic cycle.  With home values being in constant flux, it is prudent to utilize caution and the proper investment vehicles to obtain wealth.

A real estate option contract is unilateral.  Meaning, only one side has the legal obligation to perform.  It allows buyer to aquire the rights to a property, that they can decide to sell, rent, bring in partners, etc, all within a given time frame.

I’ve heard it said that an equitable interest is created by the signing of the option contract.  This is technically not correct.  The equitable interest doesn’t really start until the signing of the purchase and sale agreement is finalized.  At that point, a true legal equitable interest exists.  However, yes, in the case of an Option Contract, you do have a LOT of resources available that othewise were not there.

More on Options to come…

Your friend and mentor,

Brandon

Filed under: Flipping Houses

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