All Forum Posts by: Account Closed

I would not have the book keeper comparing the actual cash amount to a written figure on the envelope, I would have them compare the actual cash to the receipt log, because the receipt in your tenant's pocket is all that matters in a potential dispute.

I would do a BP search on "new landlord" if I were you.  Then just read and learn.  There's a lot more that you need to know besides what to put in the contract

If you are doing any business with a real estate agent in your other dealings, they should be able to get you a Missouri Association of Realtors sales contract.

Sometimes, the seller will push for 15 days, not wanting to take the property off of the market for an entire month, only to have to start back at square one.  In that case, the onus is on him/her to provide all of the paper documentation requested in that tight 15 day period.  It's plenty of time for you to do your inspections.  Remember, you want to see actual bills for the past 12 months of all utilities and expenses.

You need to see at least one "representative" unit to help decide if you want to pursue this property.  The less you see, the greater the chance of you backing out of the deal due to disappointing findings during your due diligence.

Mark, think of the LOI as an informal way of negotiating with the seller, outside of the formal, regulated maybe even expensive process of writing and rewriting an actual sales contract. If done properly, the sales contract is a one time snap. As far as the due diligence and the earnest money, see my reply to your 8 unit analysis post . The earnest money should be fully refundable if you pass on the property based on that contract contingency. At least that's how I do it.

What do you mean "you can't see the property until it's under contract"...that's absurd.  You should be able to see the property grounds, walk all of the common areas, and see at least one unit before making an offer.  Then, the contract needs to be contingent on a 30 day due diligence period where you get to perform "any and all due diligence necessary" to accept the property.  This will  include access to all expense records, tax returns to verify income and expenses, walk thru of every unit AND  I do interviews with tenants to get some real world info on the place ("ANY and ALL due diligence..."  The seller may not like it, but at this point you have it under contract, you have the control, and he did sign off on that contingency....

...check with the zoning office that the building is zoned for the number of units that the seller is claiming on their proforma