In the last post on House #8 I covered how I came to find House #8. Now that I had done a “good enough” inspection of the house I came up my initial price that I wanted to pay for it considering the repairs that it needed, how much I could resell it for and how much profit I wanted to get out of the deal.
I say “good enough” inspection because I would be doing a more thorough inspection later during the “due diligence” period. This is something that I put into all of my offers where basically I get a couple of days (I typically ask for 3-5) where I can back out of the contract for practically any reason I can come up with, if I want to.
The due diligence period allows me to:
- Bring in an inspector and/or general contractor to make sure there are no serious problems with the house that I might have missed
- Double check my estimates from my first assessment to make sure the repairs and work I calculated are correct
- Have time to bring in contractors to quote major items of work if I am unsure what they will cost