Posted by M.Osterman on January 07, 2003 at 16:02:08:
Josh,
Good to see were rowing the same boat. I was just about to go make offers and backed out when the RE agent told me about this.
What I’m doing instead. I have found a RE agent who is also an investor. She is walking me through this process as I write.
What I’m doing is one of two things.
Add a note to the offer stating that “Earnest money to be deposited upon acceptance”
Make a copy of the check (only one for 1k), add it in to the offer. This will show that there is earnest money with the title company.
I’m making my first of many offers this week. This way I don’t tie up $100k in earnest money.
I am begining to search for properties to flip. I have determined by reading several articles that one of the best ways of finding distressed or vacant properties would be to work with a real estate agent. However, I am not clear on a couple of points regarding making offers that I would like to be sure of before I meet with an agent.
What do I include in the contract/offer that would give me a back door out if it turns out that I offer too much to make a profit after flipping it. Should I include a “contingent uppon inspection” clause?
What is the easiest way to secure the offer? Do I have to get a certified check for $1000 every time I make an offer?
Other than those two issues I am ready to begin making offers and looking for motivated sellers. If anyone has an opinion on those two points or a method of working that they find simple please let me know.
First, let me say, do not make an offer if you do not plan to close on it, or in other words make sure your offer will work before you make it. With that said, you will probably want to make the offer contingent on financing, because most banks will not accept an inspection contingency.