Making a Real Estate Purchase
Offer on Rental Property

After you've found a property that meets all your criteria, then it's time to make a real estate purchase offer on the property. This is the moment you've been patiently waiting for - the part where the stage-curtain opens and the show begins! But, don't freeze in your tracks from stage fright - take that all-important first step and make your offer on the property.

Let's investigate the basic steps involved with how to make a real estate purchase offer…

Making a Purchase Offer on Rental Property

There are certain steps that should be followed when making a purchase offer on rental property. We'll highlight them as follows…

• Make your purchase offer to the seller (or seller's agent) in writing instead of verbal. Verbal offers concerning the purchase and sale of real estate are non-binding and irrelevant. Have an attorney review your offer before presenting it.

• Include an "earnest money" deposit with your offer in the amount of 1-3% of the purchase price. This deposit proves you're a serious buyer and should be held by a neutral 3rd party in a trust account. Later, it will be applied towards the purchase price of the property.

• To protect yourself, include some contingencies in your offer. These typically include a financing contingency (to nullify the sale if you can't obtain a mortgage), an inspection contingency (to make the offer null and void if major problems are found that the seller cannot fix), and a time limit for the seller to accept your offer.

  You can also include a lease and security deposit verification contingency that will make the offer null and void at the buyer's request if any of the rent levels, lease terms and security deposit information has been misrepresented by the seller (or seller's agent).

So, that's the basics of presenting a purchase offer to buy real estate. If you've completed your "due-diligence" on the property (i.e., run all the numbers, inspections, comparable analysis, etc.) and find it to be a great investment, then step to the plate and make your offer!

For more in-depth information about making a real estate purchase offer, please visit The Landlord's Library book collection. It's the ultimate, one-stop source for practical, comprehensive information on the entire subject of residential landlording.

Return from Making a Real Estate Purchase Offer to
Buying Investment Property