Buying Cash, things to do before submitting serious offer.

[Michael Weis]

When buying a distressed property for cash, what are some things you absolutely want to do prior to making a serious offer? Is the inspection necessary or would you be better off using the money you would give a licensed inspector to your GC to do a solid walk through with you? Is the pre renovation appraisal necessary? What things no kidding need to be done and what can wait until after renovations to either A) sell for profit B) rent for cash flow C) refinance to purchase next property?

[Ryan Murdock]

@Michael Weis A lot of it has to do with the environment in which you are making the offer. If this is an off market deal or something that has been languishing on MLS for ages you can write just about anything you want for contingencies.

However, if this is a hot new MLS listing and you include an inspection period you will likely be blown out of the water by other cash buyers who will take it "as-is" with no inspections.

In cases like this I always run through the property first and do my own quick inspection (bring along someone more qualified than you if you are not comfortable assessing it yourself) and then write my offer with "no inspections" since I've really already done them. I usually check with code enforcement prior to submitting an offer as well just to see what kind of dirt they can dig up for me and to make sure it's legally zoned for whatever my intended use is.