Contract and contingency language

[Ellyse Jacobs]

My partner and I are working with a Realtor who has helped us locate a bank owned single family home in a good neighborhood that we are looking to flip. The house is generally in good shape with mostly aesthetic updates needed. I estimate the ARV to be $180k based on a good collection of comps, I'm using $172k in my calculations as I want to price it more competitively. We have determined our maximum purchase price to be $115,000, and we plan on asking $100,000 as an initial offer. Our plan is to borrow a majority of the money from a private lender and make a cash offer.

My questions is regarding contingencies in our offer.  We want to be sure we have sufficient options for backing out if necessary.  I have reviewed the Realtor's offer language and noted it has a back-out contingency based on dissatisfied inspection and on failure to obtain financing approval.  Being that we are looking to make a cash offer, the financing opt out is irrelevant.  In your opinion, is the option contingent on inspection sufficient or do you recommend adding some additional contingency language?  Perhaps contingent on partner approval or something similar?  If so, does anyone have an example of this type of language?    I greatly appreciate your help and any thoughts you might have.