Exit Strategy

[Terry Royce]

I know alot of people use financing as their exit clause. However, I have been using this clause:
"Due Diligence: Buyer has right to conduct any and all due diligence and inspections necessary prior to closing." or ill put 10 business days as a timeline.

Is this a solid clause? I have another investor who is ok with inspections but wants a 1k deposit. I have no prob putting up the deposit, as long as i can protect my interests a little.

Thoughts?

[Jesse Ramirez]

Anything in real estate is negotiable.

A due diligence or satisfactory inspection clause will do just fine.

If you're worried about losing your earnest money if you back out, simply add a clause stating that 95% of earnest money is refundable if one of your out clauses is used. This will make your offer a bit less competitive, but if you're the only one working a contract on that property, what does it matter?

Jesse