I have a possible opportunity to get a long term (maybe 25 years) option on a house that will most certainly appreciate over that time. I’m just not sure I can get the seller to sign a Deed of Trust to secure it. I’m in NYS. Looking to pay 10k for the option. Would you do that without the Deed of Trust? Good deal or bad deal.
Appreciate your opinions on this, planning on having this conversation with the Seller end of this week, Sunday the latest.
Sholom, an option is only as valuable as what secures it to the property.
No, I will not and would not do a long-term Option if the property owner isn’t willing to secure the Option to the Optioned property using a Mortgage or Deed of Trust.
Look at it another way – and yes, we know an Option is NOT a loan – but what IF you were to be making a $10,000 loan to this homeowner, but the owner refused to secure the note to the property. Would you still make the loan…an Unsecured loan…to someone you don’t know?