REO repairs before closing ?

[Tony Cai]

Hi everyone, my name is Tony Cai, I am from Memphis, TN. I am just starting out in real estate investing. Anyways, I found a REO property in my neighborhood and put an offer in yesterday(6/18/15). I have seen the property inside and out, repairs are minor EXCEPT the leaky roof. There is a piece of tarp on the roof, not sure if roof can be repaired or new roof is needed. Funding for the repairs is not an issue, I am more concerned about the repair process. Let's say the bank accepts my offer, but technically the property is still NOT mine until we have signed the contract on the closing date, correct? Which means I am doing repairs on a property that technically not belong to me? But if I don't do it, then I am assuming the loan will not be approved.

I am sure I am not the first one asking about this question. Can someone walk me through the whole repair process, I mean, If the bank accepts my offer, when to start the repairs, how much time do I have to make repairs(assuming 30 calendar days for closing)?

Also, can the property to be appraised as is(with leaky roof)? As long as the appraised value is higher than the loan value? Or it needs to be fixed before an appraiser comes out? 

Any advise would be greatly appreciated!

[Curt Davis]

you can not make any repairs to the home before you own it and when the bank appraiser comes in to inspect the home will fail.  Most banks sell homes as-is and won't make even minor repairs.  This is where cash or hard money comes into play.  I am surprised the bank is working with you assuming your doing bank financing.  You or your agent needs to call the listing agent and ask if it's possible to negotiate repairs. Good luck