Newb Dealer Question
Im talking to a real estate agent and she said she could give me a contract for a REO with the option clause and i can weasel out if i dislike the house.
my question is, when i have that contract, during the incpection period, is that the time where i would find other investors for a flip? thank you
Any time you get a property under contract, you always need a clause to allow you to get out. There are courses out there that will tell you to put in at least 10. Most of those offers go into the trash. A very simple clause is to say sale subject to a 14 day walkthrough period. This gives you time to have an inspection done, market to other investors you may flip to , or whatever. The bottom line is that if you can't find someone to flip to in 14 days or something else is not right, yuou just have to exercise your clause.
This is very simple straight forward and is much better than dragging out a deal for 30-40 days and then dumping the deal. This could put the seller in a bad position and won't help your reputation as an investor. I hope this helps!
On a REO the only escape clause they will normally allow is due to a bad inspection report (subjective).
I would start finding investors before you even look at properties. Get a feel for what they want. What area, price range, condition, % of ARV, how fast they can close, hard money borrower or cash in bank and many other questions. Try not to be blunk but find out if they are real. Ask how many deals they have done and what experience they have had.
Good LUCK and Thank You
Hope this helps some
Ted Jr