How To Use Real Estate Options Contract To Make Money


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.

What Is a Real Estate Options Contract


A real estate option contract gives a potential buyer the exclusive right – but not the obligation – to buy a property or piece of land at a future date at a predetermined price.

How Does an Option Contract Work in Real Estate


A real estate option contract works similarly to a stock options contract and has three components 1. Premium 2. Sale Price 3. Duration of the contract

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.

Real Estate Options Contract Premium

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