First Multi Family deal in contract.....but there may be a catch.

[Jon Nichols]

Hi Everyone,

I have been browsing Bigger Pockets for some time now and I would like to think the opportunity on a deal I secured is due to the great group of people here helping each other out with great advice.  With that said I hope I can lean on the community to provide some insight and help with the current deal I'm involved in and the unique situation around it.  

I will say this upfront I'm going to summarize the deal in many areas instead of providing the full story just to cut back on a long read.  Additionally, this is my first multifamily deal.  So I hope that helps explain why I have some of these questions. 

I have secured a $3,000,000 multi-unit property with owner financing with 30% down.

I'm providing the 30% down personally.  We entered escrow last week. 

I will be putting the deal into an LLP. They did not ask for a personal guarantee and I do not see anything in the escrow instructions asking for it.

I was called by the seller's broker today to discuss some other open items and at the end of the conversation she brought up that the sellers would like a credit app. filled out and submitted within 5 days.    So here comes the rub.   

1. The sellers are an older couple and to just to get this deal to this point was amazing.  They went back and forth on demands and wanting to sell and not sell etc.  There were very silly items I gave up just because in their eyes they were important and IF I fought on them it could easily have killed the deal. 

2. I do not have amazing credit.   Which work's great for this seller finance situation but it never came up until we are now in escrow.

My question/concern is if they run my report and do not like that I have a lower score then they find ideal can they cancel the deal? Or is it a moot point because we entered escrow based on the structure agreed? 

Additionally, Reviewing the escrow instructions under where the seller can cancel I do not see anything saying they can Nor do I have to provide a credit report.   Or would it be under some other area?

The only option I read that provides the seller an out is if I do not provide my Ernst money which I'm sending on Tuesday or the 30% downpayment.

Am I missing something? 

Any advice on my options would be greatly appreciated.   FYI I will be sending this same question to my attorney that will be handling the transaction but due to the weekend I might not get a response until Tuesday and I would like to get some feedback before then. 

Best,

Jon