All Forum Posts by: Chan K.

@Mike Hurney Hi Mike, I did ask the buyer agent to speak directly to seller agent and seller, but that is not allowed. Seller hired an attorney to represent him. The only concern I have also is that why does seller attorney talking to the lender attorney as the lender attorney does not represent me. Lender attorney is only representing lender interest. Having the lender attorney coming through like this does not help the situation as he made everything worse. He is pretty much agreeing with everything seller attorney and without my discussion.

Mike, I will PM you the Broker. 

I do agree that with the current heat/situation, buyer agent can sabotage the deal as everything is so in the dark. Is there a way I can directly talk to seller?

Let's say, if I don't sign on the 3/28, then I propose a new date to the seller and sign off. How do I know or can tell if the buyer agent or seller agent present this to the seller? I won't be able to find this out until I take him to court suing for my deposit back.

Thanks,

-Chan-

@Ned Carey Hi Ned, the new request closing date by seller is 3/28, in which is moved from 3/21 due to fire alarm failure. So, my counter closing date is 4/1 (if seller can collect all the rents for April which  are to be prepaid at closing). If they don't, then move it to 4/8 or whenever enough time for them to collect rent for April. 

The buyer agent seems to indirectly confuse for a bit that it is lender attorney who agrees with the closing date (at least that what I understand between emails going back/forth). Lender attorney does not play a role on this. The only thing he cares about is if he has enough time to execute his paperwork from lender end, and his calendar is clear on the day I propose. 

@Russell Brazil Hi Russell, the delay is triggered by seller as he failed the fire alarm test at the last minute (procrastination, I guess), and unable to meet the closing date. It sounds like the seller can refuse to sign off to release the deposits, in which I might need to take him to court. I already paid for the home inspection and the appraisal.  

By the way, thank you for all this confirmation. This is how I understand as well. 

I don't know why people on my end (buyer agent / lender attorney) works so hard trying to have me sign the extension date request by the seller that I am not happy with. It almost feels like they are not looking after my interest. 

@Russell Brazil Hi Russell, if both seller/buyer could not come up with an agreeable date, can the seller keep my two deposits? Also, do I need to pay closing cost or portion of the closing cost at this stage?

As far as I am concern, I am in the dark. Seller just came around and said that they could not close on 3/21 and want to move an extension closing date to 3/28 due to fire alarm failure. 

At this point, it does not matter to me if the deal is alive or dead. 

@Michael Worley Hi Mike, can you PM me if you have any recommendation of the non-recourse lenders that are willing to do 80% LTV? So far, I have been doing commercial loan 5 years adjust / 25 years balloon. The term is working for me now with small multi-family and 1.5 Rule, but it does not work with larger building (or anything that is 1% Rule). Yes, it would be nice to get the 30 years fixed rate on the big building once it is stabilize.

@Keith Pentz

Is this deal still available? 

I am an active multi-family investor. 

Please add me to your list when you have any multi-family deal in Worcester MA / Leominster MA.

Thanks,

-Chan-

Hi BP,

I would like to confirm that if it is still buyer agent job to help negotiate the closing date after the P&S?

So, the fire alarm test for my new purchase failed, and seller needs time to address it. Seller wants to close at the end of March, but I want to close early April.

I told my buyer agent to bring this new closing date request to seller agent, but he told me that it is my lender attorney to negotiate this new closing date. I disagree with this though. It is still buyer agent job??

I think that lender attorney is only required that I give him enough time to do his paperwork and I that my new closing date fits his calendar. 

I closed on a few properties in the past, and I never had this problem. I always give a closing date and seller/lender attorney work to align it. 

What is your thought on this?

@Account Closed

If you are buying under an LLC, you might want to forget about conventional financing loan. You can establish the LLC prior or during closing cycle (recommend during closing process according to some of the podcasts from Brandon). Normally, you can get a recourse financing with 20-25% down payment (75-80% LTV) for investment purchases under an LLC. Absolutely, the bank will require you to personally guarantee the loan as agreed by Michael. I think for non-recourse loan, you don't have to personally guarantee the loan, but you need a substantial down >50%. Bank usually will calculate your cash flow and DSCR to determine if the investment is sustainable. I agree that if you buy under your name, then later move into an LLC, it might trigger the due clause. Keep in mind that in some states, you need to hire an attorney to represent you at the court for the eviction if your house is under an LLC.

The other topic about S-Corp or series LLC are for asset protection only. I recommend having LLC and larger liability insurance as you don't know how much the LLC would protect you from the lawsuit.

From my understanding, if you got sued from outside an LLC, they can't go after asset within an LLC. If you got sued inside an LLC, they can go after anything that is not LLC like your bank account, personal house, auto ..... etc.

Note, you are required to refile LLC annual, and this an expensive expenses.

Hi BP Community, 

So, I am in the process of closing on a multi-family. I was supposed to close on the house sometime in mid-March. Due to fire alarm test failure by the fire department, seller asked that I close on the last week of March as he needs time for his electrician to correct the issue.

For multifamily, I hate the idea of closing at the end of the month. I always want to close on the first week of the month. This way, seller would prepaid all the rents for April, and it gives me time to settle and get everything setup with the tenant. 

The lender attorney would tell me that I push out the closing date too far (closing on the first week of April), and he still wants me to close at the end of the month. I already explained to him my reason, and it looks like he is not on my side. 

I thought as buyer, I can request to close whenever I want. (What is your opinion?)

I am in the process of just telling the attorney/seller agent that I want to close on the first week of April. If seller still wants to close at the end March and does not want to wait until April, then let's walk. FYI: I am not too thrill about the deal. It sat on the market for a  long time, and I am paying market rate ...

So, my questions:

Do I need to pay for closing cost or portion of closing if I walk before the closing occurred?

Will I be able to get my deposits back?

Feel free to give me your opinion or experience. 

Thanks,

-Chan-

@Lisa Casey

I have not read all the comments, but I scanned through the email quickly. 

This is another reason why I only do TAW. You should check your landlord/tenant rule. In MA, there is no grace period, when tenants don't pay on the day it is due, a 14-day notice can be sent out the next day (if you choose to). This can only allow to occur 2/year. The third time, a rent is not paid on the due date, you can trigger an eviction immediately.

Your unit looks good from the pictures. Talk to the tenant that the unit was shown at the time as is, and no written agreement that anything will be addressed upon move in, unless new obvious failure occurred like heat/plumbing issue ... etc. I think without proper inspection, it is not easy to determine that if the unit is inhabitable. To properly determine that, a board of health will be involved, in which you should not anticipate.  

You can counter offer a new proposal in person that anything discrete like fixing hole in the ceiling will be fixed (you have to fix it anyway even with a new tenant ..), and anything else "is as". They may choose to break the lease and move on if they don't like. Tell them that if you make the fix (minimal), payment will be due exactly on the due date. 

The tenants don't sound like a professional. They just want to prove that they are aware of the law, they are going to use it, and that is their leverage to the discount negotiation.

They are looking to negotiate and work with you. Clearly there are minor cosmetic problems that they think you should look into. They sound frugal or financially distress as they think about heat and air conditioning performance. 

Knowing that the husband does not have a job for so long, they are trying to renegotiate for 30% discount. Another option is, you can accept the 30% discount and ride it out until the end of the lease with an addendum of all acceptable as-is condition until the end of the lease. At the end, you should not renew the lease. 

In general, I don't want to keep any tenant that is too intelligent and understand rules that can put fear on landlord ... etc. I think by presenting them with an eviction after the email is considered retaliation. At this point, if it is going to hit the court, I would hire an attorney. 

This is not any legal advise. It is a perception ...