All Forum Posts by: John Bowen

Yes, It is all set up as long as it appraises. Should not be a problem, getting a pretty good deal. We work with this bank often.

Finally got it under contract. 7.5% EM, 60 day due dilligence period. No finance contingency. Courtesy closing in my area. Had to use their contract. Marked up everything we did not like and it went back and forth a couple of weeks. Ended up more or less dealing with the assett manager's council directly to get it worked out. Kind of funny all the brokers, assett managers, bankers, and stuff CC'd on emails with very little input from them.
Start ordering appraisals, inspections and such tomorrow.

A DUNS number is also required if you are going to bid on jobs for the Federal Government. They put out for bids on commercial spaces and living quarters from time to time.

Dealing with one now. Bank owned REO commercial complex in Texas. Owned by a big bank holding securities from another in trust with an asset managment company that had hired a local property managment company to run it. Sent a letter of intent, they agreed to the offer and sent this twisted contract with everything based out of Maryland and DC. It would not fly so we sent one on Texas association of Realtors standard form. It's their contract or nothing. So we have been told to mark up what we don't like on their contract and send it back. It has been 60 days since we sent the offer and we still don't have a contract even though we agree on the price.
Big bank toxic mortgage items can take a while to get done.

Well the assett management company rejected the standard Texas Association of Realtors commercial contract we sent in. They still want a large earnest money deposit held by a title company in DC with some impossible closing terms. I want to buy, they want to sell, we agree on the price, just contract BS getting in the way. Several items in their contract our bank has already said no to. Guess my attorney and theirs need to chat and bill a bunch hours to come up with something that works.

Prosperity Bank has been very good to work with for us.
I do everything by email with a guy at the Bay City branch and drop stuff off at the Webster branch near my office. Takes a while on the first loan. After that it goes pretty quick if you have your stuff together.

Last year we made an offer on a badly damaged hurricane house.
(3 years since the storm.) It needed everything after having 3 ft of sea water in it and going through the storm. Wiring, sheet rock, flooring, cabinets, roof, A/C, everything but the ceiling and studs.
The math worked out pretty good on the deal with the offer.
The night before closing we do a drive by and there is a big sign out front with a notice the city is having a hearing about demolishing the place. I call the city building official the next morning. He explains if there is an approved repair plan the hearing will recommend repair instead of demolition.
As we already had a plan I emailed it to him. We had to make a few changes to stay under the FEMA 50% damage rule or we would have to elevate it. Took out landscape and a few other things and he said perfect. As soon as you own the house we can appprove.
I called the asset managment company in India for the bank in Florida that had the VA forclosue. Explained the deal to them with the city and told them we are reducing the offer by 30%. They tell me no way.I said ok I will watch the bulldozers when they come. 1 week before the hearing their American woman problem solver gets on the phone and gets the info. She calls the city, then calls back and offers a 15% reduction. Nope. She says ok we will do the 30%, close tomorrow. (it was a cash deal.)
Got it done on schedule and budget. Rented out right away to really good tenants. Ended up with a house that appraised at $135,000 for $100,000. Refianced for $90,000. Cash flowing well with only $10K of our money in it.

Counter. I am willing to go up with it as long as I feel good about it. The contract in whole was very favorable for the seller.

Working with Real Estate attorney on it now. Multiple problems with contract. Seller wants to close by mail with a title company in DC. Weird deed set up, very high insurance requirements and such.
Several deals in it our lender won't approve and such. Lawyer rewriting contract to work in Texas with a title company that has an office here and such. Bring EM down to 5% or so. Bunch of changes.
We will see how it goes.

30 day due diligence then it becomes non-refundable. Pretty open during the diligence period for rejection. 30 days after diligence to close with 2, 30 day extension options with an additional $5K deposit. Financing is close to done. Dealing with an out of state assett management company for a large bank. Took a long time for "ownership" to decide if they wanted to sell and they accepted our first offer.