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A question I get asked often is how much should an option consideration be.
Jack Miller always put up $100 in cash tht went to the seller at signing the contract. He explained that he was putting his money where his mouth was. He’d always ask the sellers, how many real estate agents are willing to pay you $100 for a listing agreement. Of course, the answer was none.
This made sellers have instant confidence in his ability to perform the terms of the option contract.
For wholesale flips, I rarely put up more than $10 option consideration.
But for more expensive highest bidder sale type options I have put up as much as $100 too.
Unlike a 6 month listing agreement, you are only asking the seller to tie up their property for a 30 day option usually. So it is an easy sell. The $ option consideration is sometimes what it takes to seal the deal.
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