All Forum Posts by: Ryan Franklin

Great...thanks for the answer @Jonathan Twombly!

So I have a property under contract. Inspection report (and walkthrough of all units) led to discovery of some serious items that need to be addressed. Seller's agent is expecting to renegotiate, but what is the proper way to do this? Is this a simple email of a new price with an explanation as to why the new number? Or do I this through some more official way (like the LOI or PA, etc)?

Thanks, @Jillian Sidoti! I've calmed down a bit, but it's definitely an experience!

Hi @Jaquetta T Ragland - I actually didn't end up getting a buyer's agent - only a lawyer. After discussing it with some guys with considerable experience, they told me I'm already past the point that a buyer's agent is good for...so I should save the money =]

@Stephen Watt - I just started the process with the lender, so I don't have exact numbers yet. But he's saying I should expect something in the neighborhood of 20-25% down, 5 year loan with a 15 year amortization. It's not great terms, but it's difficult to find a lender willing to do a commercial loan for such a small amount (I got the property under contract for $272,000). Earnest money is $5k. I offered $2k, but the seller agreed to my terms so long as I put up 5k for the earnest money...seemed like a reasonable request!

@Jose Garcia - Thanks man! Here's a challenge for you...DON'T wait to come back from your cruise! Give it a shot - try to get one of the buildings under contract before you go on your cruise. I bet you can do it. Contact the seller's agent, get the basic info on the buildings, do a quick analysis/underwrite of the two buildings, find a price point that makes sense, and make an offer! It doesn't have to be an official offer. Just shoot the agent an email saying something like 

"After running some basic numbers, based on [enter a couple reasons here] I'm looking at around $XXX for the property. What are your thoughts on the motivation level of your seller?" 

You can do all of this in under an hour. And you've officially started the negotiating process. Worst case, the seller's agent doesn't respond...and you move on to the next deal. But at least you started the process. Best case, you wake one morning on your cruise to an acceptance of your offer!

Awesome...thanks @Michael Le - that was actually completely different than what I was thinking!

@Jeff Greenberg - What does the term "funds going hard" mean? I can gather enough from the context to make a solid guess, but better if I just ask!

@Jeff Greenberg - That's a great clause! I will definitely include that.

@Bruce Petersen - Thanks Bruce! Please know there was never a chance I was doing this without at least an RE attorney - I just didn't know at which point I in the process I would be needing one, and if this was more of a Buyer's agent duty (looking over the PSA). It sounds like I don't need a buyer's agent and should get the RE attorney ASAP. Doing it now!