Weasle Clause On Cash Offer - Posted by Paul_NJ

Posted by Paul_NJ on April 29, 1999 at 14:29:31:

Appreciate your response. Wanted to see what works for others.

Paul

Weasle Clause On Cash Offer - Posted by Paul_NJ

Posted by Paul_NJ on April 29, 1999 at 08:46:44:

Greetings All,

I was wondering what some of you use in your offer contracts for a all cash offer to weasle out if need be. All responses are greatly appreciated!

Good Luck With Your Investing
Paul

Re: Weasle Clause On Cash Offer - Posted by Carmen

Posted by Carmen on April 29, 1999 at 17:46:56:

I am working mainly on rehabs right now. I, too, use only the one clause - Subject to approval of partner. If it’s a really good deal, or a very low offer, I will sometimes qualify it with a set number of days for inspection to make it more palatable (3-5 business days or so). I can usually find out within this time period whether or not I can get the funding. If I can’t get funding commited in 3-5 days - my last resort being hard-money, and they are quick to respond and tell you how much they would lend you - I feel that something’s wrong with the deal, and I go back and re-negotiate ("… the property needs a lot more work than I first believed, so I can actually only offer you this much …"). I also put very little $$ down, and make their keeping the deposit the only recourse, so if for some gosh-forsaken reason I still can’t close, I don’t lose much. (I try not to back out after more than 2 weeks, especially with listed properties - credibility and all, you know).

Re: Weasle Clause On Cash Offer - Posted by Redline

Posted by Redline on April 29, 1999 at 13:23:26:

A popular clause would be an “inspection clause”. Let’s say you give yourself a few days from the signing of the contract for “inspections”. This would also include any of your partners doing inspections and approving the deal. You can always say upon further inspection, the place needs more work than you thought and you want out. If you’re only tying up for a few days there should be no big deal.

RL

Re: Weasle Clause On Cash Offer - Posted by LeBaron (KS)

Posted by LeBaron (KS) on April 29, 1999 at 09:32:52:

Paul, I am from the Ron LeGrand school of REI and he suggest that you use no contingencies. Although I am an avid student of his, I do use one and only one contingency. The contingency I use is “subject to the approval of Buyers partner(s)”. This allows me to submit a certified letter to the seller saying that my partner doesn’t approve of the deal at anytime during the contract and thus I am not in violation of the contract. This is the ONLY contingency I use because the LeGrand way of thinking is that a contract loaded with contingencies just sends up red flags. Hope this helps and like you I am interested in other opinions on this.

LeBaron (KS)

Re: Weasle Clause On Cash Offer - Posted by Paul_NJ

Posted by Paul_NJ on April 29, 1999 at 14:27:24:

Thanks for the comeback on the post! Just wanted to get a idea what others were doing.

Paul