Placing purchase offers

[Nader Hachem]

Hey BP,

One of the things i came across while reading Brandon Turners- the book on rental property investing- says “analyze 60 houses a month, make offers on 6, have 1 agreed upon”. Not sure how this process works. If I was to make offers on 6 and somehow all 6 get accepted, am I obliged to purchase all 6? Are offers legal binding contracts to purchasing the property if accepted by seller? Or is there an option to back out?

Thanks!

[Chris Mason]

Originally posted by @Nader Hachem:

Hey BP,

One of the things i came across while reading Brandon Turners- the book on rental property investing- says “analyze 60 houses a month, make offers on 6, have 1 agreed upon”. Not sure how this process works. If I was to make offers on 6 and somehow all 6 get accepted, am I obliged to purchase all 6? Are offers legal binding contracts to purchasing the property if accepted by seller? Or is there an option to back out?

Thanks!

 If the listing agents catch wind you are doing this, all 6 listing agents will throw your offers in the trash.

But, anyways, typically the purchase contract will have an inspection contingency, wherein if you do not like the inspection results, you can back out within a certain number of days. What exactly you'd need to "not like" is generally understood to be ridiculously broad in scope, which is exactly why the 6 listings agents would all throw your offer in the trash if they knew you were doing this.

Fortunately, or unfortunately, that book and ones like it have gained an incredibly wide readership, now there's however many hundreds of thousands of people near me with "California Money" doing stuff like that, I'm not in your neck of the woods but I can't imagine that listing agents aren't attuned to this sort of shotgun strategy by now.