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Updated over 10 years ago on . Most recent reply

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180
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Roger Vi
  • Investor
  • Everett, WA
76
Votes |
180
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Experienced multi-family buyers! Does this seem odd?

Roger Vi
  • Investor
  • Everett, WA
Posted
I'm closing on my first 4plex currently and seller brought up some last minute news and now escrow wants more money. Deal closes on the 7th. Before closing I asked where the current month's rental income would go (tenants pay rent on 1st according to lease). My agent says escrow will pro rate the currents month rent and give me my fair share for the month. This morning I signed and gave them a cashiers check for the amount they asked for. On the settlement statement, they credited me my share of this months rent and all the numbers looked fine to me. They say keys will be ready tomorrow once seller signs. I get a call later and escrow says they will need more money to close. Their reason was that 2 of the units pay rent on the 15th so they need me to pay more and then I will receive a full months rent on the 15th. I am supposed to take possession of the property on the 7th. This and the amounts they ask for seem off to me and I want to see if anyone here can confirm they're off or tell me why they are accurate. Rents are 655, 670, 700, 715 = $2740 Original amount I was credited for this month's rent = $2161.97 Escrow says seller never collected 655 + 670 = $1325 Escrow is asking me to pay $1306.85 Escrow says the two units pay rent on the 15th so I will get a this months entire rent for these 2 on the 15th ($1325, 8 days after closing). I feel like if rent is paid on the 15th, it is for the 15th to next months 14th. Originally I was only credited $1045.48 for these two, now they want $1306 back. Am I missing something or is the seller collecting rent for the first week I own the 4plex?

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Wayne Brooks#1 Foreclosures Contributor
  • Real Estate Professional
  • West Palm Beach, FL
13,508
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23,418
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Wayne Brooks#1 Foreclosures Contributor
  • Real Estate Professional
  • West Palm Beach, FL
Replied

Of course, the key to the calculation is: are the tenants who pay on the 15th, paying rent for the 15th thru the following 14th OR are they paying rent late for the 1st thru the 31st?

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