The beauty of real estate purchase agreements! #shorts #wholesale #business #realestate

Name: The beauty of real estate purchase agreements! #shorts #wholesale #business #realestate
Uploaded: 2023-06-01T17:21:20+00:00
Duration: 29 s
Channel: Tyson Smith
Description: In this short video, real‑estate investor Tyson Smith explains the power of the inspection period clause in purchase agreements. He notes that during…

1 Jun 2023 · 0 min

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In this short video, real‑estate investor Tyson Smith explains the power of the inspection period clause in purchase agreements. He notes that during this negotiable window the buyer can exit the contract for any reason, allowing the investor to back out or renegotiate if a deal falls through or fails underwriting. Smith emphasizes that to protect against this risk he always makes low offers, ensuring the price he can close at is comfortably below the seller’s asking price, which gives him flexibility to cancel or request a price reduction without jeopardizing profitability.

In real estate purchase agreements, there's a beautiful thing called an inspection period. For a negotiable amount of time, we have an inspection period as the buyer. And during that time, we can back out of the contract for any reason whatsoever. If you found a deal and you were unable to find a buyer, you just call up the seller and say, "Hey, sorry, property didn't meet our final underwriting guidelines. We gotta cancel." Or, "We gotta reduce the price to here," whatever it may be. Now, obviously, we do not wanna do that. We always want to— that's why when I'm giving offers, they have to be low, 'cause I know that that's what I can close 'em at.