All Forum Posts by: Account Closed

@Mindy Jensen I am the buyer

Currently trying to close deal for a fitness center (will be completed in Spring 2019) that is not yet in the market. Agent brought it to us as he thought it was a good deal and that we could get it secured before others knew of it.

After agreeing on price with buyer, we asked for an LOI. We were presented with an LOI that was severely lacking in features in terms of buyer's contingencies, rent/CAM abatement credits, etc. Even though agent said to sign it, we insisted to change it to include the terms we wanted and the LOI was finally changed, both parties signed.

We then waited for a PSA. Two weeks later (LOI said we'd get a PSA in 5 days), the PSA we received is a generic cut/paste which is also severely lacking in terms and is quite literally missing all the exhibits/supplementary info such as engineering/soil tests, tenant/landlord lease, architectural map of the property, etc. It also doesn't reflect the terms we agreed on in the LOI.

WHAT IS GOING ON HERE?!? 

Research shows that both the developer and the agent have been in the business for a long time and have done millions in deals, so why the lack of professionalism?? (Unless this is normal behavior and I'm just overreacting)

My dad thinks they changed their mind and that they want to take it to market to see if they can get a higher price. If that's the case, why not just tell us instead of having us go through all this?

Thanks for the info Joel! 

It's slated to open in January. Due diligence takes us past completion date so either way it would be done before close of escrow.

We do have the developer responsible for a handful of things post closing (rent/CAM abatement for example) as well as an attorney looking through things. I was just curious about this one issue. We did manage to get the Certificate of Occupancy as an item under Buyer's Contingencies today so that is good, we're not okay with just signing anything without asking questions and getting them to agree to our terms.

Thanks Nathan. I figured if they're an established developer working with a national fitness chain, everything would be done above board as you say, but I guess there's always the possibility of that not being the case. 

Currently trying to close a deal on a fitness center that's still being developed here in California. 

Seller can guarantee the Certificate of Occupancy upon close of the escrow but when I requested that we include the Certificate of Occupancy as part of the materials provided in the Buyer's Contingencies to be reviewed prior to closing escrow (along with the lease, environmental reports, etc.), the agent said the seller will not accept this.

I'm confused as to why the seller wouldn't agree to this. If the seller can "guarantee" the Certificate of Occupancy, why wouldn't they be okay to include it with the other materials they're providing as part of the Buyer's Contingency? Why are they eager to close before providing a Certificate of Occupancy?

**This is a large developer and the tenant is a national fitness chain.

I have a jacuzzi tub and shower in the master bedroom of one of my SFH rentals. I forgot to check the jacuzzi tub before renting it out recently and now the new tenant is asking me to repair the the tub (the shower works).

My question is, should I make the repair? I had my handyman take a look at it and he said either the motor needs replacing or the digital control unit needs replacing but it's beyond his handy abilities so I don't know how much this would cost me. The shower is fully operational so they still have a means to bathe. 

Thoughts?

My parents made a fortune off of RE investing in Bakersfield when the recession hit. We were getting homes in the best parts of Bakersfield for under $100k and they now have more than doubled in value. I have a few homes there as well.

Stay away from the East side of Bakersfield, only invest in the West as it's much more developed and the demographics are much better. The Southwest is great for SFH.

Only problem with Bakersfield, in my experience, is that it takes a while to find a good tenant. I currently have a very nice home for rent in the Southwest and it's been vacant for a while. I've received dozens of calls and inquiries, but thus far they all have either had a very low income (rent would be over 50% of their net income) or they have a criminal background. Once you find a good tenant though, they usually stay for a long time, so it takes patience and good screening.

@Dennis M. You make some great points, thank you!

I'm currently collecting rental applications for a SFH I have up for rent and an individual and her family are interested in renting my property.

The wife checks out but her husband has a litany of criminal charges: hit and runs, DUI, etc. from not too long ago.

Is this a legitimate reason to deny them? 

@Jamie Engledow Haha you're much more observant than I! I'll make an effort next time I visit both stores and see if I notice the differences.