Making offers on high-demand properties

[Edouard Pierre]

I think it's safe to say most investors get frustrated with loosing out on properties when "highest and best" situations occur. I know that in residential real estate transactions/offers, the buyers are able to put in offers similar to this:

"My client is offering $290,000 with 20% down, however he is also including an escalation clause and will pay $1,000 over the highest offer up to $300,000"

Do any of you use this same tactic? I would assume it's a legitimate way to offer on properties, but is it possible to do so with REO properties?

Thank you!