Posted by Jim IL on April 15, 1999 at 15:08:52:

I usually include in my contracts, “subject to Buyers partners approval and inspection.” This is a good “weasel” clause, allowing you to back out if something goes arry.
Also, include a section that allows you access to the home for inspections, estimates and showing to prospective tenants and buyers.
As for the foundation, I am not well versed enough to advise you on that.
Honestly, your offer sounds low enough to compensate for that.

If the RE agent insists on using thier contract, go ahead, just include your own addendums and/or riders.

Frankly though, using your own contract is better.
Some REO sellers can be difficult when you use addendums and special requests, so be careful there. I try to avoid that by including my extra requirements deep within the contract. I do not hide them, I just do not point them out, at least until after it is signed and I need to use them.

As for the sign, well, I have seen that discussed here several times. Personally I have not had a problem with that. My buyers usually do not care if there is a RE sign or not.
If they would, I’d not violate the Realtors. I would simply schedule my showings and show up early. Then temporarily remove the sign, and replace it after showing.
Since my contract states I have the right to reasonably access the home, I will not have the RE agent there. And if they insist, I’d try to get them to rethink it, through negotiation. Which honestly, if they heard, “I won’t close until I have a buyer”, they should be a little more receptive.

good luck, and I’m sure some of the more experienced investors here will also have advice.

Jim IL


Posted by Robjan on April 15, 1999 at 10:05:19:

We want to make our first flip offer. Property is listed by an agent and owned by a mortgage company in California. ARV we figured to be 80,000. They are asking $55,900. We figured repairs to be $25,000 which includes a large fudge factor due to the fact that we don’t know what it would cost to repair the foundation. Our offer will be $26,000. The property is listed with a RE Agent and owned by a mortgage company in California. We have 3 questions.

  1. The foundation is an air/crawlspace. looks as though it needs alot of work. Is this worth pursuing?
  2. If they accept the offer and we advertise for a re-habber the agents sign will still be up on the property. Does this create a conflict when a re-habber looks at the property?
  3. When the realtor uses their Purchase Agreement what provisions should we insure are stated in there?