Sellers Agent is Pushing Residential Contract for 6-Plex?

[George White]

Hey Fellow BP'ers - I need some advice here... I have an off market 6 plex deal in which the owners and I have come to an agreement through LOI on purchase price. Initially, they didnt want to use agents but now they have pulled in an agent that is a friend of theirs and said this agent will do the paperwork. He sent over a residential contract agreement(Better Homes and Gardens Residential Contract) and asked for information such as lender preapproval, and other financing information. I got on the phone with the agent and he says the property is 6 units and less so it is a residential property(BIG RED FLAG!). He also asked me to provide lender information, financing information, and preapproval status. I have spoken to a local bank about this opportunity but not to hone in financing with actual numbers yet.

As I understand it, I didnt need to provide all of this financing information up front since there is no "preapproval" for commercial properties. I stated in the initial LOI with the sellers that there would be a 40 day due diligence period, and a 40 day Financing period to begin after the due diligence period.

Can anyone shed some light on what I should do here? I have some residential REI property but this is my first commercial property purchase.

He just emailed me again asking when he should hear from me again. I am a little confused about what to do here. Any guidance would be greatly appreciated.