There are several paths to get started in real estate investing. However, lesser-known real estate option contracts might give you additional flexibility and opportunities to meet your financial goals.
Real estate options contracts can give potential buyers flexibility – but not the obligation – to buy a property at a specified price. They are preferred by many real estate professionals who want to buy a property at a fixed price but aren’t yet willing to make a 100% commitment.
After entering into a real estate options contract, a seller may not sell the property to anyone else during the contract period. As such, a contract may place a seller at a handicap when selling a property. However, this exclusivity isn’t for free.