All Forum Posts by: Larry Apple

Thank you, Seth for the insight! I agree that I definitely don't want to be "that guy", as I was fully committed and willing at the price we had agreed upon.

I do love the property and location though, and would love to actually own it, but that price makes 0 sense. Should I present my concerns to the broker and see if the seller would consider a new price, and if not, no problem we can go our separate ways on this? 

In the future, I will definitely request all documents prior to a PSA as you suggested. Thank you so much for that.

Thanks, Ryan. I have a feasibility period of 30 days that allows me to terminate the contract within 30 days for any reason (minus $500.00 from my earnest money)

My question is, do I go back to the broker and inform him of my reservations, and offer another price that I would close at? Should I do this immediately prior to sending the earnest money, or should I send the earnest money, wait a couple of weeks and then do it? I know the seller is eager to close.

Hey guys. I am super excited to be part of this community, and wish everyone tons of success!

On to my question-  so I just purchased my first multi family property, it is a 16 unit property located in Texas. We just went under contract, and I was super excited to have gotten the deal based on the offering brochure.  The PSA has been signed literally days ago, and I have yet to wire the earnest money. 

They just sent me all financials, as they wouldn’t release it until after the contract was signed. However, after reviewing the P&Ls for 2016-2018, it seems that this property doesn’t even cover the debt! They were saying this propert was a 7%cap rate, but now it seems they may have been referring to the 2018forma only. But even so, 2018 is projected to be way less than the 7% cap rate.

What do I do in this situation? As if I continue forward with my current price under contract, I will be losing money year after year. Thank you so much for all your time, it really means more than you all know.