Length of contingency period

[Carlos Gamero]

If a buyer makes an offer to purchase and the offer is accepted by the seller, what is the typical length of the period to examine rent rolls, do inspections, examine current leases, examine operating expenses, etc.? 10 days, 15, 30? I am looking at 2-unit and 4-unit buildings. Thank you.

[Oren K.]

Depending on how experienced you are and financing, it is not uncommon that the inspection / DD period is 45 - 60 calender (sometimes business) day.

Looking at the rent roll / examining leases is fairly quick but arranging inspections, appraisals, arranging financing can take quite a bit of time. Remember, good people who know what they are doing are in demand and you have to work to their schedule as well as your need.

So if you have done several of these before and you are 100% certain regarding the physical state of the property and you are putting cash down, it can be as quick as your lawyer can file the paper work. Otherwise, plan on taking minimum 30 days and if you are new to going through the process, I would urge more time.

There is nothing like making an uninformed decision under time pressure to put yourself in a hole you can't dig your way out of.

Good luck.