I once made $1,840 selling a 10 day option I bought giving me the rights to buy a mortgage at a discounted price, the optioned mortgage was in default. I gave the TD (like a mortgage -- Deed of Trust) lien holder a $1 option premium and a promise that I could move that note.
When you option personal property you are acting as a principal and always have the right to sell your personal property -- the option. Not legal advice check on your local laws.
I sold the note to a lawyer/investor -- the note was a second TD for about $75K face value
I optioned the note at around a 33% discount.
Nice turn in 2 days -- I was partners with a California CFL lender and had a book of real estate and Trust Deed investors in Los Angeles at the time 1980s.
It's a treacherous business but has its high points.
