Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated 6 months ago,

User Stats

2
Posts
0
Votes
Luke Spencer
0
Votes |
2
Posts

Property under contract in a precarious situation

Luke Spencer
Posted

Hello, this is my first post so bear with me it might be long! I started my real estate investing journey this year with the private purchase of a off market house that went awesome.

I then found a interesting triplex/warehouse property, went and looked at it with the listing realtor, crunched the numbers and decided that it made financial sense. I was told the warehouse was under lease until july  of 2025, on a 18 month lease for $40,000, but the seller was keeping all the proceeds. The 3 tenants, all 2/1 property, had leases of 800/700/700, he said they were raising all rents to 800 as leases came due. One lease is the owners brother which becomes important later on. We agreed on a purchase price of 105,000, got all agreements signed, but no mention of rent increase, or warehouse money in the agreements (shame on me, shame on them).

The leases came due between me viewing the property 6/1 and accepted purchase agreement 6/26, I saw the updated leases when the lender was wanting them, and noticed the brothers lease stayed at 700 while the other was bumped to $800. I mentioned it to the realtor and was basically told he did it behind his back and had no idea. 

Fast forward to yesterday(appraisals are done, waiting on underwriting) after a text from the realtor about signing a document that says I'm okay with him representing me and the seller, I called him and brought up the fact that I'd looked over the purchase agreement and the rental agreement and nothing was stated about the rent increase, but it was clearly stated that ALL rental income even prepaid rents (the warehouse was paid in full up front) would be prorated to the buyer (roughly 2200/month)

I'm at a crossroads on what to do, part of me wants to just ask for earnest money and appraisal fees back and walk away, but the cashflow of $2300 (current rents not counting warehouse) on a $105,000 property just seems to appealing to walk away from, what do the more experienced investors than myself think

Loading replies...