All Forum Posts by: Andrew Brewer

There is no provision about assigning the contract within the purchase agreement and no mention of assigning the contract. The buyer is listed as I've stated. I do this so that if I close I can assign the purchase to a separate business entity(usually an LLC) that I form at COE.

Of course I will notify the broker about my intentions, I'm just trying to gather some information first. I do have a lawyer that I consult with when needed

the buyer is listed as "Andrew Brewer and/or assigns" which to my understanding means I can assign the contract to another person or entity. 

What do you mean by "disclosed and documented" ? I haven't informed the broker of my intentions yet and only just came to this decision last night. I plan on doing everything openly and above board, I'm just trying to get some info on the process before presenting the plan to them. 

I'm wondering if anyone has any advice on wholesaling a property from a broker. 

I have never wholesaled before.

To my knowledge, typically wholesalers hold a contract from the owner of a property and try to sell that contract and have a certain period of time in which to do so. At the moment I am under contract for a commercial property that I got through a listing from a broker. There is nothing wrong with the property, but through my due diligence i've discovered it just isn't exactly what I'm looking for right now. I was thinking of wholesaling the contract to another interested party. I was able to secure the property at a great deal, so even with adding on a wholesaling fee it would still be a solid buy. 

How would I go about structuring this? How do I wholesaling a deal from a brokerage vs a direct-from-owner deal?
I have 30 days left on my due diligence period and then a 30 day financing period after that. 

I'm negotiating a contract on a MHP right now and the seller is offering seller financing but he wants to add in a personal guarantee clause, essentially making the seller financing into recourse debt. I've always heard that seller-financing is non-recourse and I'm wondering if it makes sense to proceed. The seller is a mom and pop

I understand the sellers concerns because since its a MHP, if I move all the homes out or lose all the tenants then the property loses its value and if I default the seller would be screwed.

On the other hand, while I don't plan on defaulting, I don't want to sign into something stupid. Does anyone have any advice on this?

the carve outs for fraud or a major performance dip were not mentioned in my conversation but that makes it much more understandable if that is the case, at least there is some protection for the investors in the case of a gross misrepresentation by the seller which would be the real fear for me. 

The guy I was talking to is a big name guy with a great reputation, but I just had to double check this because it seemed so insane that any savvy buyer would agree to this with 100k on the line. 

A majority of this syndicators deals are 10 million+ on market deals so maybe @Brian Burke is right there

I was talking to an established syndicator today about the market for large multi-family properties today and he said that its become standard practice in todays market for earnest money to go hard on Day 1 after a PSA is signed. 

The inspection period or financing period where you should be able to walk and get your earnest money back if something is wrong with the property or you discover the seller is cooking the books doesn't really hold any weight anymore. Furthermore he said that there are some sellers out there that put up properties knowing this is an issue just to try to sucker people out of earnest money.

Has anyone else encountered this in todays market? This seems crazy and stupid and it makes me wonder why anyone would agree to this?

@Brian Burkeundefined

@Joe Fairlessundefined

@Omar Khanundefined

@Todd Dexheimerundefined

@Michael Swanundefined

@Jay Hinrichsundefined

I am negotiating to purchase a MHP in Northeastern Oklahoma. A provision in the contract states that buyer will pay for title insurance and a title insurance survey. I've never encountered a title insurance survey provision before, although i've only ever bought/sold residential homes. I've heard that sometimes ALTA surveys can be close to 20k.

Is an expensive survey like this necessary for a commercial purchase like this? Is there a specific type of survey I should be looking for. I won't be looking to mine or extract natural resources, nor will I be trying to redevelop the land. 

Is it reasonable for the buyer to be responsible for the entire cost or should this be a seller cost or a split cost?