All Forum Posts by: Minh Le

Thank you @Costin I.!

Hi all, 

I am turning my attention to larger deals, as I have come into contact with a group with Bigger Pockets (pun intended), and we have decided to look into apartment properties, preferably with value-add opportunities; unless a turnkey property shows up with amazing numbers, then we would consider it as well. 

I am really excited to begin this venture, but prior to jumping into the deals, I'm fairly certain that we need to address all the legal issues, i.e. LLC formation, operating agreement, tax-planning, SEC regulations, and so forth...Is there a comprehensive attorney in Texas, with plenty of multi-family investing experience, who can guide us throughout the phases of a transaction? I want to provide assurance for my investors every step of the way, and let them know that they are protected.

Thank you in advance for your advice and referrals.

Minh 

Whoa @Mike Cumbie, I appreciate your input, but you're comparing apples to oranges. Yes, I work effortlessly to meet my deadlines in my job, but I've also come to understand that closing delays happens in Real Estate. I understood the contract that I was entering in, and I also understand that there are a lot of moving pieces in play, of which I am unable to control; hence delay in closing happens. Let's not get it twisted to say that I did not try to close on time as I followed up with the mortgage broker constantly, and provided documentations as requested quickly. For the most part, it was out of my hand. You used the term "refuse" like I asked the Lender to delay the closing process on purpose.

You seem to be well-versed in the Real Estate business. In the years that you represented Buyers, are you saying that every one of your buyers know exactly which lender they are doing business with and know exactly how their lending process is going to play out? And in instances where closing gets delayed due to the lender, do you force the Buyers to pay a per diem to the Seller? If so, are you acting in your Buyers' best interest by do so?

I commented that Seller was unprofessional, because it was exactly that. How would you react if I say, "Mike, you're poking the bear. Don't be playing with fire, because you are going to get burned". Are you going to roll over and say "Sorry, Master Bear"? Mind you, the Seller was an agent/investor himself, so that is definitely not how you interact with other agents.

I could have easily agreed to the per diem in the beginning, but at the time, the concept was foreign to me and I objected based on my own experiences and my colleagues' experiences with closing delays. During the week of the original close date, I spoke with the Seller to provide updates and communicated the delay, due to Lender still going through the underwriting process. That was when Seller asked for the per diem, and when I challenged him, he started threatening me by saying things like, "You do not want to play with fire, or you'll get burned", and "Don't poke the bear". I found it very unprofessional, so of course I did not agree to Seller's terms.

We are all in this Real Estate business together, and there is no reason to treat each other unprofessionally. We should help each other to achieve that common goal. When Seller's assistant reached out to me, he commented that they have other offers that were higher, but they cannot move forward because they were "stuck" with my contract; thus confirming that Sellers are unable able to take on another contract, if the current contract has not be resolved, at least in Texas.

Hi all,

Just wanted to provide an update. We closed last Friday as communicated and promised to the Seller.

@Rob D. I am an agent and represented myself in the deal. As mentioned previously, I have come to learn that closing delays are not uncommon in the world of Real Estate, especially with retail buying involving a lender. I was shocked when my brokers (been with two different brokerages) mentioned this, because in my corporate job deadlines are deadlines; I can't call my Finance Committee and ask them to push back a meeting because I do not have the presentation prepared.

This per diem concept was news to me, as I haven't experienced it previously in other transactions that had minor delays. Usually if there is a delay, it gets communicated between agents, and most of the time we do not even draw up another amendment to extend the closing date, unless the buyer's lender is asking for it. Per diem seems to be unique in transactions involving investors, as they want to cover their holding costs. I understand that, but my closing was delayed by one week, and it was communicated by me and the mortgage broker, multiple times that we will close at the specified date; yet the Seller still would not relent on the per diem. I understand imposing it beyond that point if I still was not able to close as communicated. I even drew up an amendment, stating that I will pay a higher per diem rate than what was asked, dating back to the original close date, and Seller refused.

We did not have a formal signed amendment to extend the close date prior to going into closing. I went to the Title Company and closed as scheduled, holding up my end of the bargain. Seller opted to close remotely, which was also something new to me, and he did not sign initially. In the end, Seller's assistant called me up on the last hour before COB, and we came to an agreement with me paying a small amount, in good faith, and to have Seller execute the closing docs and also sign off on the amendment to show the extended close date. This coincidentally became the final piece that the Lender had requested after I have already closed on my end.

 I guess the better question would be, would any Title Company be able to close on the new offer while my current Escrow/contract is not yet closed? From researching, all signs point to "no", so I wanted to get confirmation from people who have had this experience.

@Jason Hirko definitely will be closing tomorrow, and that has been communicated ad nauseum to the Seller, yet Seller still insisted on the per diem; and at this point, it would only delay closing, which is counterproductive to what we're trying to achieve.

But my original question is, would Seller be able to take on another contract, if the current contract/escrow is not closed?

Thank you @Jason Hirko and @Mike Cumbie for chiming in. As I've come to learn, in the world of real estate, closing delays does happen quite a bit. This was one week, and while I understand investors have holding costs and so forth, one week's worth of closing cost shouldn't make or break the Seller. This is actually the first time I have came across a Seller having issues with a delay in closing, and wanting to impose a per diem for each day past the original close date.

And what would that do? Wouldn't it just come back to me anyways in the form of an earnest payment credited to the purchase of the property?

Regarding the lost of earnest money, as I've understand, in order for the money to be released from Escrow, I would have to sign off on it as well. Otherwise, it would just sit in Escrow.

Hi all,

I have everything in place to close on a property purchase, however, Seller is wanting to take on another contract, because closing was delayed by a week, and we did not have an amendment to officially extend the close date. Is that possible?

The delay was out of my hands, as Lender did not get back to me until recently; and I have provided everything that they asked for, every step of the way, in a timely fashion.

Regards,

Minh

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