Replace Option Choice in the Buy Sell Agreement and eSign it in minutes

Aug 6th, 2022
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How to Replace Option Choice in the Buy Sell Agreement

5 out of 5
27 votes

yeah what i would need to do with you is is do you know what an option agreement is if youre into wholesaling real estate and you find a motivated seller whos willing to sell his property at a discount you really need to know when its better to use an option agreement instead of a purchase agreement on this video im going to break it down for you and even show you a real live example of me on the phone with a seller all of that and more coming up this video is brought to you by flipster the nations number one real estate software with tools for finding funding and flipping houses check it out now at getflipster.com if youre new here im jerry norton i went from dead broke to millionaire flipping houses and after doing a thousand deals i created this channel to help you master the art of wholesaling and flipping real estate so you can live your dream life be sure to subscribe and click the bell icon to get notified when new videos are released as you know once you agree on a price

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A buy-sell agreement consists of three common elements: a triggering event, a valuation method and a funding strategy.
The three categories are cross-purchase agreements, entity purchase agreements, and hybrid agreements. They are defined by the relationship between a corporation (or other business entity) and its owners who are subject to the buy-sell agreements.
Life insurance proceeds provide liquidity for ordinary living expenses and estate tax liability. Buy-sell agreements can be structured under various forms, including 1) entity redemption, 2) cross purchase, 3) cross endorsement, 4) wait-and-see and 5) a one-way agreement.
Common Buy-Sell Agreement Mistakes Not coordinating with the other parties. Failing to select the proper buy-sell agreement. Inadequately identifying triggering events. Not accounting for provisions once the event triggers.
The four types of buy sell agreements are: Cross-purchase agreement. Entity purchase agreement. Wait-and-See. Business-continuation general partnership.
Life insurance proceeds provide liquidity for ordinary living expenses and estate tax liability. Buy-sell agreements can be structured under various forms, including 1) entity redemption, 2) cross purchase, 3) cross endorsement, 4) wait-and-see and 5) a one-way agreement.
3 Main Types of Buy-Sell Agreements 1) The entity-purchase agreement. 2) Cross-purchase agreement. 3) The wait-and-see agreement.
The following pieces of information should be spelled out in a buy and sell agreement: a list of triggering buyout events, including death, permanent disability, bankruptcy or retirement, etc. a list of partners or owners involved and their current equity stakes. a recent valuation of the companys overall equity.

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