Greetings all! So I'm probably closing today on my first ever investment property. First of all, I'm terrified and ecstatic all at the same time. I'm sure many can relate :) This is a cash offer and the seller wanted a quick close (like, one week). In my original offer I asked for a short due diligence period so I could have an inspection. The seller responded that due diligence does not apply on a cash sale you're going to flip. He told me he'd work with me, but for future reference sellers would "laugh in my face" if I asked for due diligence on this type of property. The only reason we asked for time to do an inspection was due to a strong recommendation from a realtor in my moms office (she's my agent and this is her first deal as well), based on the fact that the seller flat out said due diligence doesn't apply. He felt the seller was likely hiding something. But at the same time, he has no investment experience, so this could be outside what's normal for him.
Just wanted a few opinions from the pros out there on whether you ever have inspections done on homes you will be flipping. Thanks!
Thank you for responding @Jason D. ! I mispoke earlier, we’re closing this Friday and going under contract today. I insisted on due diligence for a home inspection and he capitulated. We have an inspector coming tomorrow.
Are you also doing a title search with title insurance?
@Jason D. everything is closing through a title company and I know they are doing a title search. Not really sure about title insurance.
Whats a home inspection on a property thats going to be flipped tell you? Everything needs to be replaced. I can tell you that for half the cost of an inspection.
I did one such deal, only way you can back out is if the title is not clean. You still do a inspection, but you can not use inspection report to negotiate price or back out.
@Russell Brazil honored just to have a comment from you. I don't think I've seen anyone who is more active on BP. Thanks for the response.
@Marian Smith year I figured he might be worried about that. Inspection was completed today. House is in good shape, but it did bring a few things to our attention. We hadn't had time to check the roof yet (it's functional but at the end of it's life).
@Blake Berry thanks Blake, that was my feeling as well. Give a newbie a break right? Anything to make me feel less freaked out is a good thing, lol. Glad we paid the $275 and are now aware of any and all issues and can be strategic / selective on what to address.
Thanks everyone! Closing in two days. Holy crap.