I apologize if you thought I was criticizing you

Hi. First,I definitely want to apologize if I gave the impression I was criticizing you.
Your points may be very valid in your example.
I am exclusively in single family real estate. My clients all fall in the "motivated seller" category. Many have had their homes listed for 6 months to a year and the agents have not done the job for one reason or another. That's another discussion.
Maybe I am misspeaking when I say that I am optioning a property for $100. Let's say a property has a value of $100,000; I may option that property for maybe $85,000 and give the seller $100 as option consideration. If I exercise the option in the period then I pay $85,000 for that property.
Options are only 1 technique I use and when I make offers to sellers, I usually make 3 different offers and allow them to pick which is right for them. Some sellers will just give me the deed to the property, others who may not be quite as motivated will choose the option in order for me to use my "marketing expertise". I do a lot of different things that RE agents and spend real $ on marketing.
So, to answer your question (finally), these sellers have already had their property on the market for a long tiome with no results.
My point in this whole discussion is to point out that the risks are much higher with finder's fees (legalities) and the rewards are lower than optioning.
If someone were to consider doing this, I'd recommend they get some knowledge. I believe Jim Straw, who has the finders course, also has an options course. I can't speak for the quality of it since I haven't seen it.> Couple other quick points. Sellers put all their eggs in 1 basket all the time. They accept offers from buyers, tie up their properties for 30-60 days to have the deal fall through or the buyer can't get the financing.
In conclusion, I don't disagree with your concept, but, I'll bet some of those properties can be optioned for $100. Depends on the motivation of the sellers.

Hi Larry,

> I definately wasn't calling this a scam! No way. I'm the last person that
> would dismiss ANY business as a scam.

> When I was talking about options, I meant to make it clear that I have
> absolutely no experience in that area and only have very limited knowledge
> of how that whole business works. So my understanding of the field leaves
> MUCH to be desired!

> Maybe you can make it a bit clearer for me.. why would an option to buy
> only cost you $100? Doesn't the option give you exclusive rights to the
> property for X number of days/months? If so, why would the owner let the
> property sit on the market for that long for a measly $100?

> The way I thought it worked is like this.. lets say I see an apartment
> complex that's been on the market for a few months with no serious takers
> at a list price of $500k. Now, lets say that I know several investors who
> live out of state that would consider this place a steal at $500k.
> Wouldn't I buy an option to buy at, I dunno, $450k, then collect the
> difference at closing?

> Now, if I wanted the option for 3 months, wouldn't it cost several
> thousand dollars? Isn't the seller placing all his eggs in your basket
> when he sells this option to you?