All Forum Posts by: Pat Zorne

in this case the buyer is telling the seller this with the intention that the seller must be able to prove the number that he is posting. In this case the buyer is also asking the seller to guarantee the rents which I think means that if the properties are not fully rented the seller must make up the difference at escrow.

It is on the purchase of some multi-family units that were listed on a commercial site which under performa showed the NOI that is being asked for

When a contract says that the buyer is purchasing the property at a minimum NOI of a certain amount per year as if the properties where fully rented what does this mean for the seller?

When you purchase rental properties where they have tenants who gets the rent for the month of April if the closing happens of the 5th of April? Also if the offer calls for a guarantee of rents at closing what does that mean?

There is an easy way to find the owner. Go buy a generic for sale sign and put in the yard with your phone number on it. Most likely one of the neighbors actually knows the owner or the owner might drive by and see the sign. He will be a little upset that someone is trying to sell his house and he will call you. At this point tell him you were just trying to get in touch with him and that you are an investor and would like to help him get rid of his headaches with the property by buying it form him. All it costs you is the price of the sign.

Check into a commercial policy and ask for an umbrella policy to cover all your properties and you should even be able to include your personal residence with it. I have been told that this is much cheaper and you can get better coverage. Call a local insurance broker and ask him

There are plenty of people charging to do this but the person that developed it is from Australia and he has a book out now that you can purchase. The name of the book is "How to own your own home sooner" and the author is Harj Gill. There are banks here that are familiar with what needs to be done. I know somebody who is doing it and he says it works great.

If you are in a market where houses can sell by themselves then a flat fee may be a good thing but you need to understand that when you represent yourself and the buyer is represented by a licensed Real Estate Agent he will have the upper hand in negotiations. Remember that the buyer's agent is more trained and knowledgeable than you and if he wants to he could take advantage of you for the buyer and you may not even know it is happening. There are a lot of places in a contract where he can work things that will benefit the buyer more than you. You could pay more in the long run. The other advice about faxing your listing to area Real Estate agents will most probably end up in the trash or lead them to persue you to try and get your listing ususally with the come on that they have plenty of buyers and if they can get an exclusive agreement to list your house they will get it sold. You get what you pay for

I have a client who is purchasing a commercial property valued at 3,000,000 for 1,500,000. The seller is willing to raise the price to 1,800,000 and credit the buyer back 300,000 at close of escrow so that the buyer will have money for reserves and whatever. The buyer is getting either a hard money loan for the full amount or a 95% LTV type loan. Would this be considered mortgage fraud if the lender did not know about the credit?

I have the opportunity to purchase a number of single family homes as a package deal. They are being sold at 50% of appraised value according to L/A. The appraised value is just over $5,000,000 and he is selling them for $2,500,000. He is also showing a NOI of $350K/yr. My question is: Is there anyone who would finance this deal under this scenario-- Purchase the homes with a hard money loan of $3,000,000 which would help cover acquisition costs and any repairs that might be immediately necessary. He states that they are 85% occupied on long term leases. Then after the property is acquired and rented out 100% to get a more conventional loan.