All Forum Posts by: Chan K.

Hi BPer, 

Can you recommend any lender that can help me with the following seller finance structure?

The seller is willing to hold back 10-15% to help me out with the down payment. The property composes of two buildings, and each building is a 4-family. I guess the scenario below is based on commercial lending with 25% down payment requirement. This way the loan will be combine, and I don't have to close twice.

- The bank will have to finance 75-80% (first position)

- The seller will hold back (or lend me) 10-15% (second position)

- I will put down the 10%

Let me know if you know of any bank that is willing to execute such finance structure. 

Thanks,

-Chan-

@Monica Kovalsky Try wikipedia.com or/and city-data.com.

Yes, correct - there is no transparency whatsoever in this deal, in which scared me. The deal is not awesome, but it is good and cash flow assuming that everything is as mentioned by the agent and seller - which I doubt.

First of all, I just want to be protected against the lead paint liability that is why I request that I request seller has his tenants sign the "tenant lead disclosure" prior to closing if the tenants continue the tenancy.  

The ironic part is that the attorney who I hired to represent me indirectly advice me to have the tenants sign the lead disclosure after closing - wow. At the end, he came up with a clause 

"The Tenants hereby waives any claim that it may now have against the Landlord for all items and issues including, but not limited to, lead paint, asbestos, construction-releated issues, and this waiver shall survive the closing and expressly runs in favor of [NAME OF BUYER]"

I am a bit confuse about this clause. Does the clause meant, the waive will honor even after the closing for the inherited tenants or waive up to closing only? If it is waived up to closing, then it is more like protecting the seller more than me. The tenants still can sue me after the closing right?

You are right, I might end up walking into a tenant from hell here as he won't show any proof / track record showing the tenant have been paying. I also just take his word for it that all tenants are in good standing. 

@Steve Olafson Thanks Steven, I will talk to my attorney to have him talk to the seller about the "estoppels" and lead paint disclosure. Currently, we are anticipating signing the P&S. I also ask my attorney to put a clause in there stating that if the seller breaks any clause and back out not to provide those reasonable information, the seller will be responsible for paying all the incur fee up to that point.

I guess, ideally he can just refuse to give them to me at the end and knowing that I am in for more than $5k already with the attorney fee, home inspection, appraisal fee, bank fee, ... So he will assume that I have to close as I am committed 

@Andrea M. seller will give security deposit at closing if he collects any. Since, he is not sharing any information, we don't know if security deposit is even in place. 

@David Krulac I am OK with getting all the lease document, SSN ... at the closing, but there will be none. At and after closing, I will walk from that meeting paying off the house, getting all the trouble if any with only knowing THE NAME OF TENANT.

@Roy N. I am completely agreed and aligned with you.

@Steve Olafson I am not looking to change any agreement at taking over. I just need to see what it looks like and what is in place or what is required to be signed in addition as there is lead paint.

@Chris Kennedy Awesome recommendation and guidance. I will have them sign the estoppel, in which contains all the information you point out. 

@Derreck Wells It is confirmed during the home inspection and briefly mentioned during the showing. 

My conclusion is that the information I request is reasonable. I could anticipate lawsuit if no lead paint disclosure is in place for the tenant yet at taking over. 

Thank you everyone for a really great input. 

Also, with the current situation, at or after closing THE ONLY INFORMATION I WILL HAVE FROM SELLER IS "TENANT NAME" for each unit. The seller refuse to share any information whatsoever. I don't know if tenant sign any rental/lease agreement, and have any security deposit .... etc. The attorney word was written - security deposit be transferred to me if there is any being collected by current seller. With this clause, I don't even know if any security deposit is in place. 

I just want to clarify where I am at with the closing process. I submitted the "offer contract", underwent "home inspection" - failed, and seller agrees to fix some stuffs, found the property to be lead paint (seller is not willing to share any information - I don't know if tenant signs any lead paint disclosure)

Hi BPer,

I am in the process of closing a 6-Unit multifamily. 

I would like to seek your opinion on the following scenario:

The seller won't share any tenant information with me, except the name of each tenant for all 6-Unit. 

I have an attorney who is representing me. I provide the documents to collect each tenant information, such as legal full name, SSN, Job, emergency number, work, number of people living in the unit, and criminal background question. In addition, I provide rent rule for each tenant to sign. I also give a lead disclosure for each tenant to sign. Ironically, my attorney who is representing me does not know what I am trying to accomplish. I told him that my intention is the collect tenant information, provide rent rule, and lead disclosure as the seller will not share anything with me. 

Are these information reasonable to request and disclose from each tenant prior to closing?

The units have lead paint, what if I took over and the tenants start suing me of lead condition in the next day - you know what I meant. 

How can I take over the building and only know the tenant name of each unit? This is a commercial building for god sake.  

What if I have to evict someone immediately and tenant refuse to give me their information, who do I know to evict?

What if tenants refuse to sign a new rule? Then would not it better to have the current owner evicts them prior to closing.

Please provide me of your thought ...

Dear BP Landlords,

I own some multifamily RE. I have some trouble lately, where my tenants don't turn off the light in the common area in the hallway or basemen after they stop using it. 

Do you ever run into this problem? If so, can you share your solution with me? I am envisioning some switch or light control that would time out if it is on more than certain xx minutes. Do you know of any product?

Thank you ahead.

-Chan-

@Doug Landry Did you ever find any commercial lender who can offer 80% LTV with 30 years amortization at 5-10 fixed rate adjustment?

@Joshua Dorkin Thank you for your help. I really appreciate it. My messaging is working. 

The site is growing so big and so fast. I can already sense some technical challenge here based on @Travis Hamilton comment. I completely aligned with @Travis Hamilton regarding grouping the paid client and service personnel. 

@Joshua Dorkin Another feature you might consider integrating into your page is an instant messaging as well as live web conferencing. These feature alone will increase tremendous traffic.