When you’re new to real estate investing, there are many different variables that make submitting bids and purchasing a house a bit intimidating.
When you mix in the fact that you need to put down a deposit (earnest money deposit), this makes the process even more anxiety filled. However, two protections that are often included in all sales contract, even when the property is sold “As Is,” are the home inspection and financing contingency.
This video post will go into more detail on how these are structured for most home purchases, and how you will use them when purchasing a new rental property.
Please note: Always make sure to ask your real estate agent about these contingencies. There may be caveats to using them that might be different per city, state, and locality, and stricter rules than others on how to use contingencies to get your earnest money deposit back legally and per the terms of the contract.
With that, let’s get into it!
Note By BiggerPockets: These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.