|
Are you actually looking at properties that are listed on the MLS? How are you determining what repairs are needed and how much they are going to cost? Have you had experience in this area? This is actally what I tried to do many years ago when I first started looking at real estate investing. I missed a TON of things that need to be worked on. I made offers of way more than I should have as well. A real estate agent can tell you what the property would be worth if it was all fixed up, but most wouldn't be able to help you determine how much repairs are going to cost. When I first started out and found that I was making some pretty big mistakes, I brought along a contractor to inspect the place with me. I told him I wanted to know what needed to be repaired and how much it would cost. This gave me an education on what to look for. That said, here's the answers to your questions- 1. Adding contingencies to agreements almost always makes a seller stop and think about whether he wants to accept your offer or not. They want a certain sale, not the hope that it will eventually meet all your requirements and you'll eventually purchase. However, you can certainly add this contingency if you want. 2. I am ALWAYS upfront with a seller, letting them know that I am not looking at the house to move into myself! I tell them that I am an investor who intends to resell the property. In fact, I just did that today on a property I just went to inspect. The seller's daughter asked if I was looking at the place for myself and I said no and explained what I do. When I sign up a purchase agreement, I tell the seller that since I resell these properties, I often have buyers lined up before I even close. I want to make sure that I have the ability to show the property to these buyers BEFORE I close. I tell them that I'm not going to be like a realtor and bring a whole bunch of people through their house. I may bring in a partner to inspect the house or a buyer that I may be reselling the house to. This does a couple of things. First, obviously it addresses the issue you are worried about. Secondly, it allows me to show the property before I close. Third, it lets the seller know not to discuss price or terms with the people that I bring by. 3. To cancel the contract, you should be able to simply let him know that it did not meet with your contingencies. However, this also depends if you are going through a realtor. If you are, you would have to ask them. Also, you would want to check into LOCAL laws and what they say about cancelling a contract like this. I hope that helps a bit. Let me know if I can help any further. Matt Bowman
Related link: www.REItoolbox.com
| 
