First Deal... Almost

[Simon Cox]

Hi everyone!

I took (tried to take) my first plunge into the investing game earlier this month and decided to make an offer on a 23-unit apartment complex just outside of DFW. Things were going great and I was standing to make 18-20% COC if everything played out. Turns out things didn't play out! Here's what happened:

I needed to extend the closing date out 3 weeks per the lender's request. My attorney suggested extending the feasibility period along with it. As consideration to extend the date, I offered another $2500 in option money (originally $2500) to the seller. I know now this was probably a bad idea. However, the seller said he would extend the closing only 2 weeks, no feasibility extension and the option money was to be paid cash outside of the title company not to be applied to purchase price upon closing. My agent and I thought this was strange and so did a good friend of mine who told me I needed to play a little harder. I responded with a best and final offer consisting of the same terms as well as a reduction in price for items found in the inspection. I was pretty sure the seller would reject it (which he did) but I was advised to give it a shot since I was not going to agree to his terms anyway. 

I learned a lot during this process and have taken notes on things I won't be doing again! I'm bummed the deal didn't go through but I know there will always be another one. I'm extremely thankful for all the folks here on BP that walked me through all my dumb questions throughout the process of searching, analyzing and negotiating. 

Thanks everyone, here's to bigger and better deals!

Any thoughts or questions about the deal are more than welcome.