Ways to secure a property if you need to wait 6 months to buy?

2 Replies

How would you secure a property if, you found an excellent deal that has been on the market for  55 days. You  would like to purchase it but, you either need a few more points on your credit score so you have to wait a couple of months. Or you need 6 months in order to secure the down payment money? What would you do?

Make an offer with a closing date that's in 6 months, pending financing, and appraisal. Unless your offer is well below theirs listing asking price, it's not a excellent deal.. If it's the listing price that makes it a great deal, many investors with cash offers have passed on it for some reason. There are no properties that just fall through the cracks. Good luck!

6 month’s is a long time. Levi T definitely has the right answer...but if you must go forward and try, the document is called an OPTION TO PURCHASE. Get an attorney to draft one for you (and maybe negotiate it too, depending on your level of comfort or savvy).

Odds are good that the Owner won’t bite; you’ll likely need to pay a significant, non-refundable deposit with this document. If you have access to the Owner or his/her Agent, then it may be worth the inquiry: “what would it take to ask you to hold this for me until late spring?” Followed quickly by “you don’t want to have to sell it over the winter anyway, do you??”

— you then become responsible for that purchase in the spring: what if something happens and you can’t buy...or don’t feel like it... or find an even better asset prior? The seller will need to consider contingencies for all of these scenarios and you’ll be obligated to them. Hopefully by now, you understand why an attorney’s input here is so important: both parties are at risk, and for a long time, considering the market today.

My thoughts are that no SIMPLE arm’s-length property is worth this, neither from your point of view nor the owner’s... but you’re the master of your world. On the other hand, if it’s a family member or someone that you already have a decent relationship with, then it may be worth a shot.

Tell us more of the details, and maybe more people can help.
Good luck!
Steve

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