I am making the switch over from residential to commercial and have taken a few classes. I had someone ask if a property was optionable and am not sure what is meant by that, when I asked them they said something along the lines of 3 months for $12,000. I am confused about this and any insight would be great.

Thanks

TALK TO YOUR BROKER

What they might be talking about is to lock up a property for 3 month sputting down a 12,000 refundable or non-refundable earnest money deposit,you can also put int he contract right to continue marketing,extensions,subject to a 1031 exchange etc,etc.

What some agents and devlopers do is lock a property with an option contract then find a buyer to purchase the property for a higher price.Example I put a 2 acre parcel under contract for an option for 400,000 then I assign my interests to someone else for a total of 700k and make 300k.

It's really impossible to know what they meant without bieng there.

good luck Residential is NOTHING like commercial!