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Updated over 3 years ago, 04/13/2021
Super strange situation. Please advise!
Hey everyone,
After picking up my first door, I decided to go big and try and take down 8 more doors in a single portfolio acquisition. The deal looks right, but we are running into some frustrating road blocks.
I found the deal through a wholesaler, who has been representing the seller and graciously agreed to seller finance 15% of the deal. Recently I have been trying to line up a time to send my property inspector in to assess the property as I am investing out of state. My Inspector was unable to get in touch with anyone to set up a time for his visit, wholesaler included.
Come to find out that the current Property Manager is demanding 3% of the sale price as a fee, before he will allow our inspector in to the properties. Apparently the seller has a clause included in his contract that the PM must be the sellers agent in the event that the seller wants to sell the home.
Has anyone encountered this before? And does anyone know if that is even legal? The properties are in Indiana.
I don't want to go through the PM simply because I don't want to lose the 15% of the deal the wholesaler was willing to finance for us. He has also done a lot of work to get this deal done and I wouldn't feel right about cutting him out in the 11th hour.
Worst case scenario, the seller would be the one to eat the 3% fee the PM is charging right?
Looking forward to hearing from this wonderful community, thanks for the help!