All Forum Posts by: Michael Franklin

My agent provided copies of the estoppel to their agent before the contract was even signed. It is a very simple, straightforward document(from the BP file library). The seller and agent both signed the contract with the estoppel contingency in place but the agent is refusing after the fact. I am not moving forward with this deal without every document they agreed to in my contract. If they had issue with something, why did they sign the contract?

I honestly feel like the agent is trying to push me around since she has 30 years of experience and this is my first deal. But thanks to BiggerPockets, and many great people like those who have posted here already, I feel I'm more prepared than a lot of first time buyers. 

I know I still have much to learn, and that's why I continue to read the blogs, listen to podcasts, and routinely pick up the recommended books.

Thank you all for taking the time to respond. 

There has been some great insight here that I will try to incorporate moving forward. 

Thank you all for the input.

I had provided the estoppel to my agent to pass along a while back. It's straightforward and I don't see how or why there would be an issue with it. The only personal information is the tenants name. We've personally walked through each unit and spoke to the tenants, but I didn't want to solicit them to sign something without the owner present and knowing. It's just the agent who is telling me they don't have to provide it until closing.

I'm leaning towards walking away from this one. I wasn't particularly pleased with some of the things we found during the walk through either, and the lack of transparency here is not very comforting.

Here is the agreement I use.

I read that exact article when researching this.

Also, I pulled my estoppel directly from BP. The only personal information is the name of the tenant(s) occupying each unit.

Thanks for the feedback.

Hey folks.

I'm under contract on a 4-plex and one of my contengencies is the review and approval of lease and estoppel agreements for all tenants within three weeks of contract acceptance. My issue is that the seller's agent is refusing to have them complete the estoppel or provide the rent roll, saying the tenant names are confidential information and no investor would disclose them to a potential buyer until the day of closing.(they accepted and signed the contract with this condition, by the way)

She said she's worked in the area for 30 years and I need to have a higher level of trust with what the seller is claiming for rents/deposits/appliances/etc. She's suggesting that my requests are unreasonable, and gave me a typed sheet they made that lists some expenses and the rental rates.(unverified to this point)

Now, the articles I've read on BP recommend getting this and other financial information early in the due diligence process to verify as much as possible before spending money on the inspection and appraisal. 

Am I off base here?

Thanks in advance for any guidance.

Mike

Thank you all for the warm welcome!

I'm new to this gig, but if you aren't forming a separate entity, I would at least hold the security deposit in a separate account. As for the rest of it, it's your money.

I am not affiliated with Capital One, but I like the 360 savings account for my personal use and I'm planning to use it for my rental properties. You can create numerous sub accounts for the deposit, vacancy, m&r, CapEx, PM, etc, all under one main account. Helps you to easily see what you have set aside for each fund.

Hope this helps,

-Mike

Thanks, Henry. I will keep that in mind moving forward.

-Mike

Zach,

I think that's a great point. With the potential for the ARM to hit 10+% (with 6/2 caps) at year 7(worst case), the cash flow could almost completely dry up.

I'm going to try to line out alternative financing as Jason suggested, but I'm leaning towards the higher down payment to lock in 30yr fixed financing if I only have these options to choose from.

Thanks for the input,

Mike