All Forum Posts by: Christina L.

@Nghi Le Thanks for posting this question. I am in the same situation as you. I'm currently in escrow on a 55-unit deal. Since I wanted to lock up the property and figure out the details later, the LOI was made in my own name (and by the way, I didn't need/use an attorney to draft the LOI). I'm happy to say the offer was accepted, and with a financing contingency at that. My time frames are similar to yours: 60 days due diligence with another 30 days to close, but for another $30,000 of earnest funds, we can extend the closing for another 30 days.

Back to making the offer in my own name: since three of us are buying it together, I'm currently working on setting up the LLC that will ultimately purchase the property. Since we just opened escrow 10 days ago, I have time to finalize the LLC paperwork prior to COE. My understanding is even though the purchase contract bears my personal name, the title company can draft paperwork that will allow the deal to be closed in the LLC given I will be reflected as a partner in that LLC. All of that said, like you I'm newer to apartment investing so this will be a learning experience for me.

I was in a corporate, management consulting career for 15 years. The stress, excessive travel and 60+ hour work weeks made me made me hungry for a better life for me and my family. So I started searching for something more and didn't give up until two years later when I eventually discovered the world of real estate investing. My husband has a stable, W2 job so that allowed me to leave the corporate world fairly recently to pursue REI full-time. It's been a long, slow and, at times, painful road but it's finally starting to pay off. The goal is to cultivate what we've started with REI so he can have the freedom to leave his corporate job in the near future as well.

@Ari T. good question. The COE is in August simply because the seller isn't able to sell the property until then. The wholesaler did say that in situations where the COE is sooner, he collects his assignment fee at COE vs. in advance as he's requesting in this case. The deal is a good one but collecting an assignment fee - and it's a hefty one - almost two months in advance of COE makes me want to take a pass on this one. 

I’m an investor doing quite a few fix and flip projects in the Phoenix, Arizona area and I’m running into a situation I’ve never before experienced on wholesale deal. The COE date isn’t until August, yet the wholesaler wants his assignment fee to be paid out now, well in advance of the actual close date. The assignment fee would be paid to the title company who would then pay the wholesaler as opposed to me paying him directly. Has anyone ever done this before? It seems like a risky proposition if the seller decides last minute to back out of the contract. I realize there is legal recourse should that happen but still, I’m not sure I want to go down this path. Any advice would be appreciated!

@Radhika M. I don’t fix n flip but I do project manage the cap ex work/renovations on apartment complexes. I think it’s about a) how you carry yourself and b) taking the time to find the right contractors before you ever get started. Be appreciative of and collaborate with your contractors, but be absolutely clear about your (high) expectations. Require regular status meetings - I hold mine once or twice weekly depending on the scope of the project - where they come prepared to give you an update on work performed to date, as well as where things are at from a budget and timing perspective. Note here: I actually request their calendar/action plan in writing and we go over it together at each status meeting. If anything is falling behind, I’m clear that I need to be alerted immediately rather than being told at the next status meeting. In cases where issues like that pop up - and they always do - ask that your contractor explain how it happened, as well as offer some solutions to get back on track. It’s helpful to have one lead contractor who is accountable to you, and that person be the one who oversees the rest of the construction crew. Interview contractors first to make sure they will (happily) agree to this type of arrangement before hiring them. Hope this helps. Best to you! 

Agreed @Gino Barbaro. We're taking the approach to outsource where it makes sense so we can focus on growing our business vs. handling all the minutia. 

@Gino Barbaro - thank you for the input. I added Coin Mach to my list and just submitted a request to them for a quote. We're leaning toward a service vs. having our crews handle the laundry. True we give up a portion of the profits, but from what I've found so far, it'll save time and money in the end to bring in a service. 

@Oren K. - thank you for this great information. Yes, this absolutely helps. I'll be working on researching terms with vendors this week and next so this is perfect timing. Auto renewal is something I will definitely include as part of the research. Mac-Grey is another national provider I'm familiar with so I'm planning to get a quote from them as well.

@Gino Barbaro - great to know, thanks. I assume that was for a bulk contract vs. access only? The access only service also requires a multi year contract (in exchange for work they're performing at the property), so just clarifying.