Thinking about changing my offer strategy for MLS deals

[Scott Hughes]

So, I imagine I'm having a similar problem I'm finally getting over that a lot of rookies face. That is overcoming the notion that I need to see a piece of property to put an offer in on it. I'm pretty much there, and on board with the idea, seems popular amongst many I've read/talked to. I just wanted some thoughts from the group mind on a couple points.

1. What are the "gotchas" of doing this. And by the same token, advantages?

2. Since these are on-market deals I'm talking about, and will likely involve my buyers agent, what are some points to make with her I can use to overcome what I'm sure will be seen as some kind of cognitave dissonance, since typically it would be unheard of to offer a house sight unseen (in normal circumstances, with a standard buyer).

(At this point I feel compelled to ask that you don't point out that I need to be shopping "off-market" deals. I know, and I am, but that topic is a whole 'nother Oprah.)

3. If you do this, how do you handle (i.e., what do you write into the offer) for Due Diligence and Earnest ($ and time). Also, what extra contingencies may be good ideas to include.

Thanks in advance! 

SDH

[Aaron W.]

@Scott Hughes I've purchased most of my smaller residential multifamily portfolio sight unseen; however, I did have trustworthy agents or property managers walk the properties and take photos or video for me.  I still have properties I've never seen. You have to make sure to be clear on your standards and what they should be looking for.

I will always have a due diligence contingency to ensure I can look over rent rolls, financials, and conduct inspections.  The inspections will depend on the type of property and location.  Earnest money is standard but give yourself a couple extra days in case you have to mail the check vs wiring the funds. Also stipulate that the due diligence contingency period should not start until you receive all due diligence items to review.

Best of luck!