Terms for Cash deals

[Andy Welmers]

I am putting in my first offer on an investment property. (in Ontario, Canada) I think the numbers work well, however it will be a major renovation. (I'll put the numbers and property up if I am successful on the offer).

I am looking at terms for the home, which I should include on the contract.

This is something I am thinking of taking on myself, but would be willing to assign the contract to an other party or to partner with them to do the deal.

where is - as is,

for $200k, Cash,

30 day closing,

14 day due diligence,

contingent on inspection,

with a clause that I would be able to assign the contract to an other party,

minimum of 3 additional visits outside the due diligence timeframe,

Anything else I should be including? anything to be aware of specific to Ontario?

Thanks, Andy

[Andy Welmers]

@Matt GeertsThe seller is motivated, as there was fire damage to the home, and it has not been fixed at all (insurance?). They had a previous offer accepted, which fell through due to financing. The lot is in highly sought after neighbourhood, and would do well for either a gut and fix, or an infill. I know this can be a huge job to tackle, and my mind is not fully aware of all the possibilities (125/120 corner lot).

Exit strategy is wholesale or flip. I would love to find a partner to help with the financing, as I am quite willing to do a lot of the work myself, to learn the process. Otherwise, I am looking at finding private lenders or hard money, or flip to an other investor or small developer in the area.

I figure, I might as well jump in with both feet and try to find the deals, run the numbers to make sure I am finding something reasonable, vet the deals through the community, and see what I can do to build up the business. If I get the deal accepted, pull in some contractors to get better numbers. I wanted at least to have some action, instead of sitting on the sidelines wishing and wanting.

Even if the deal is not accepted, it sets me up for a better position for the next one. I know what steps to take, generally what to do, and a few what not to do's