Today's Typical Contract Terms
It's different for every deal but here are some different scenarios. Overall, the standard today, in May of 2022, is a 30-day inspection period and then closing 30 days later. That can be longer if you're buying a portfolio in the same market, you could probably get a 45-day due diligence and then close 30 days later or close 45 days later perhaps if the portfolio is spread out in more than one market. If you're buying a portfolio in three or four different cities two hours apart, you might be able to get 60 days, maybe. But really, it's competition-driven. Your broker is going to give you feedback if they've already gotten several offers and you turn in a 60-day due diligence on a spread out portfolio across many cities where everyone else is between 30 and 45 days; if they're even a remotely good broker, they're going to let you know. Now if you're less than 30 days, obviously that's going to make it better for you. But let’s say you know you don’t usually don't get loan approval for 45 days, and that's actually true for most folks, but nowadays I’m not seeing many offers contingent on financing at all. Almost every winning buyer I see today has no financing contingency. The reason most do it is that they have a very good relationship with a number of lenders who are very comfortable with the way each other underwrites and closes.
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