Offer structure on potential rehab.

[Lee S.]

I'm walking through my first potential rehab property tomorrow with a contractor.  If the numbers fit, I'm not sure how I can structure the contract so I'm not out a bunch of money If I'm unable to secure enough funding.  I do have 60% of the asking price in cash myself, will need to find the rest.  I plan to offer no where near asking, price is significantly over priced and it's not fanciable due to it's condition.

I need to be able to put it under contract so I can then take the contract to lenders and/or a few potential private investors without costing myself thousands if I can't figure out an avenue to get it done.  This is in California so it's not a 10k house!  Any help/ideas would be appreciated.  Thanks.

[Patrick Connell]

First, why can't you get financing on it, just because of a pest report? Second, why would you take it to a lender if it's not lendable? Private money OK, but going to a lender on something that won't pass appraisal criteria is a waste of everyone's time.

If it's a cash only MLS property, any have decent agent will require you to submit proof of funds with your offer. They aren't going to let you go under contract and then find financing.