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All Forum Posts by: Annie Li

Annie Li has started 16 posts and replied 78 times.

Post: URGENT QUESTION:Seller Clause "Deliver Keys 3 Days after Closing"

Annie LiPosted
  • Rental Property Investor
  • La Puente, CA
  • Posts 87
  • Votes 20

I walked away...

Post: URGENT QUESTION:Seller Clause "Deliver Keys 3 Days after Closing"

Annie LiPosted
  • Rental Property Investor
  • La Puente, CA
  • Posts 87
  • Votes 20

I still want to close the deal, so I offered to pay seller $500 on moving and storage costs so property can be vacant on closing day. Agent put “deliver keys on next day of recording” which she explained to be the same as “deliver keys on closing day” because closing occurred on next day of recording. It’s a little strange that she changed the wording from “closing” to “recording” in counter offer, I hope it’s true that “next day of recording” is equivalent to “same day of closing” in California. 

I chose to use dual agent because seller’s agent is much more motivated to work with me to get the deal than using my own agent. I feel even though I have my own agent, his/her ultimate goal is to get commission which has no difference than the goal of seller’s agent. Furthermore, seller’s agent is usually offering rebate to buyer when being dual agent.

Post: URGENT QUESTION:Seller Clause "Deliver Keys 3 Days after Closing"

Annie LiPosted
  • Rental Property Investor
  • La Puente, CA
  • Posts 87
  • Votes 20

Wow! BP is truly an amazing community.  I'm surprised and touched by so many warm and helpful responses. 

I'm still negotiating with seller, they basically declined on anything I proposed like escrow hold, daily rent, etc. and my agent (she is also the seller's agent) is not trying to negotiate for me, she just said she couldn't force seller to do this, and "Believe you are in good hands and everything will be set up to deliver keys as on contract. They are very reliable people and everyone here will do their best always acting in good faith" after I explained to her that it's under nobody's control if seller can't close on the other property as planned for any reason.

Even my agent's manager is not understanding the risks for me and said it's completely normal that seller does something like this and there is nothing to worry about.

I will update later if contract is signed or falls through. 

Post: URGENT QUESTION:Seller Clause "Deliver Keys 3 Days after Closing"

Annie LiPosted
  • Rental Property Investor
  • La Puente, CA
  • Posts 87
  • Votes 20

Thanks to everyone for your prompt and insightful input.  

Seller needs funds to buy another property to move into, that's why they can only vacant property after closing day. I don't really have a choice here because I'm in Los Angeles County where seller usually has more privilege than buyer. 

Also, property is sold as is, so it makes no difference if I find mold or damaged walls when vacant that were covered by furniture on closing day. 

I took everyone's advice and asked agent to add below clauses:

1. $10k to be held by escrow until property is vacant to cover possible eviction, cleaning or damages caused by moving;  

2. Seller is responsible for taxes, insurance & utilities until property is vacant; 

3. Seller shall pay $200/day after 3rd day of closing if property is not vacant by then; 

4. After 10th day, eviction will be filed if property is not vacant by then.      

I hope I didn't miss anything. Again, thank you all very much for your kind help.

Post: URGENT QUESTION:Seller Clause "Deliver Keys 3 Days after Closing"

Annie LiPosted
  • Rental Property Investor
  • La Puente, CA
  • Posts 87
  • Votes 20

Hello everyone,

I'm negotiating a sale contract with seller, they asked to deliver keys 3 days after closing, all items will be removed by then. Is there any risk to me if I agree?  Appreciate your input very much!

Post: Is PM Responsible for Bursting Pipes?

Annie LiPosted
  • Rental Property Investor
  • La Puente, CA
  • Posts 87
  • Votes 20

@Chris K. Thanks for the tips.  I will be cautious about these risks and try to resolve this matter with PM peacefully.

Post: Is PM Responsible for Bursting Pipes?

Annie LiPosted
  • Rental Property Investor
  • La Puente, CA
  • Posts 87
  • Votes 20

@Matt R. I'm a cash flow investor but will consider appreciation at a later time.  Good luck in CA!

@Amy A. That's what I think too, so I plan to deduct half of the plumbing repair cost in my final payment to PM, and I don't think he will bother to sue me for $250 which he may probably lose anyway.  The repair cost is low because water was off until after we turned on heat, so it didn't cause too much of water damage.  This property has been rented out to a great rent to own tenant so I'm sure they will take care of the remaining issues if there are any.    

Post: Is PM Responsible for Bursting Pipes?

Annie LiPosted
  • Rental Property Investor
  • La Puente, CA
  • Posts 87
  • Votes 20

@Patti Robertson That's true but this is not the case with my property.  I don't buy houses that are too old so I won't get surprises all year long. :)

@Colin B. Yes I have a formal PM agreement and just as you anticipated, below is what's in the agreement:
"(a) Manager shall exercise due care in the performance of its duties hereunder. However, Manager and its corporate officers, employees and subcontractors assume no responsibility in connection with the performance of Manager's duties hereunder for actions taken in good faith.

(b) Manager shall indemnify, defend and hold harmless Owner and its directors, officers and employees from and against any and all claims, actions, suits, proceedings, losses, costs, expenses and attorneys' fees to the extent resulting directly from the negligence, willful misconduct or fraud by Manager or its employees in the performance of Manager's duties hereunder."
As previously mentioned, this is about whether I will deduct my final payment to PM for partial of the plumbing repair cost, so it's more like whether PM should fight for it, not me.

Post: Is PM Responsible for Bursting Pipes?

Annie LiPosted
  • Rental Property Investor
  • La Puente, CA
  • Posts 87
  • Votes 20

@Account Closed CA is not just tenant friendly, its return is just too low.  You can use the same amount of money that you buy in CA to buy in Indy, and your total rent income is at least doubled.  Furthermore, even if I can evict tenants in 6 weeks, if the rent is $2000/month, that's $3k rent loss immediately.  While in Indy, the monthly rent is half of it and you can get tenant out in 3 weeks easily, and this rent amount is not for a low end property, so as long as you do good screening, your chance of eviction is not bigger than CA.  In regards to pex plumbing, I fixed the frozen pipes this time using pex pipes, now since I'm only buying newer houses, and I'll choose the revert bill back option as Cary and Billy suggested, I think I'll have better luck on frozen pipes in the future. 

Post: Is PM Responsible for Bursting Pipes?

Annie LiPosted
  • Rental Property Investor
  • La Puente, CA
  • Posts 87
  • Votes 20

@Cary P. @Billy Smith Great suggestion!  I didn't know I have this option so I'll call the utility companies on Monday to set it up.  Thanks for sharing.

@Ray Lai Thanks for the warm words.  Some people have privately messaged me to ask for the name of the PM company, I have no problem sharing this info.  2016 is my first year to try real estate investment; I'm proud of what I've accomplished so far - bought 6 rentals, 4 of them with complete interior rehabs, 2 filled with great rent to own tenants, and most importantly, gained tons of knowledge and experience.  Because I bought all my properties at great price and I tried to be hands on afterwards, my returns aren't too bad in spite of working with those PMs.    

@Michael Noto @Robert Herrera My PM and I have mutually agreed to terminate our PM contract before the pipe incident happened (see my reply to Zach and Andraw yesterday).