I am about to put in an offer for an REO that has been on the market for a while and is in great shape. I have a exit clause…use a quit claim and flip to my investor. I will pay cash and then resell it 3 hours later to my investor. But do I put in an offer that will allow me not to screw myself?
- All cash, close in 21 days
- Deposit wil be given 3 days after offer is accepted, will be refunded in 5 days if I decide not to close
- My lawyer conducts the closing ( Need this in offer because of the flash funding requirements that the same lawyer conducts both back to back closings.)
But this property is being sold “as-is” with no representations so there is no inspection of 7-10 days allowed. If I want to inspect the property I have to do it now. All disclosures…What does that mean?
What should be my exit strategy if I want to back out of the deal? I know my exit strategy to sell it though.The agent will give me the lock box code once its under contract only.
I think you are getting things confused a bit.
If you are paying cash and then selling to your buyer 3 hours later, then there is no need for a quit claim deed. You would just do a double close.
All REOs are sold As-Is. That doesn’t mean that you can’t put an inspection contingency in your offer. Unless it specifically states in the listing that the inspections have to be done prior to making your offer, you should be OK.
As far as the earnest deposit is concerned, most of the banks are going to want the deposit as soon as the contracts are signed. I just got one accepted yesterday, and have to have everything signed and back to the listing agent along with a 2k deposit in certified funds within 24 hours or the deal is dead.
You can use any contingency you want if you plan on backing out of the deal, but keep in mind that the banks like to see nice, clean, offers with no contingencies, so adding them will decrease your chance of getting an acceptance. You will also ruin your reputation and credibility with the agent if you start backing out of deals left and right.