What is the best way to protect yourself and your partners when buying a house to flip? I’m new to real estate investing and flipping and I’m looking for your guidance on the best way to draft an offer. For those flippers and investors out there, what contingencies do you include in your offer to ensure you have a way out without risk of losing your deposit?
Check out this link! https://www.biggerpockets.com/renewsblog/2016/05/01/earnest-money/
I look for houses with good bones that need work. I love dirty houses that reek of pet urine. I'll generally buy a $100K house that needs $20K in work and that owner occupants buyers are afraid of. The roof and HVAC are usually my biggest risk and I self assess those. I make a cash offer, no contingencies, good for 24 hours. I'm amazed at the number of out of state investors that just want to get out and accept my offer. It's not because I'm smarter than they are; it's because you can make money if you take educated risks, self manage and leverage a local trusted team for skilled work.
Sellers aren’t dumb , they know your looking for a potential safe exit strategy by loading the deal with contingencies. The fewer the better in their eyes . Money talks and speed of closing ..that’s a big incentive to the seller . A successful home inspection contingency seems to be a good escape route and it’s legitimate and reasonable