Posted by mike ia on September 02, 2009 at 22:45:39:
Thanks for all your input Natalie…Still working this deal…Trying to
find 50 k spreads investors for you… Thanks again for reviewing my
deals, I posted another update of this deal above…Whats up with the
“Comp Killer”…I saw that post…Kind of funny but not you know…
mikeia
Follow up on RE DEAL??Is this normal? How to fix? - Posted by mike
Posted by mike on August 25, 2009 at 23:05:08:
Here is the deal from our previous post on “Need Help to Structure this Deal
Fast”…I used a one page purchase contract with the seller…I feel 95
percent confident he wants to sell for our agreed price but his sister is
getting cold feet. I think reluctant to her this deal will get done…But…
Here is the question…The property is in probate…And the court has to
approve the sale of the property and he has a lawyer handling this for him.
He explained he wanted the lawyer to look over my contract…I told him no
problem, but I would guess the lawyer would probably not like it, because I
don’t make the contract 4 pages long with all the blah blah in it.
Lawyer looked at the contract and doesent like my “right to assign the
contract” clause I put in the purchase agreement.
Deal should hopefully be under contract fairly quickly with his sisters
approval… What do you do when lawyers get involved with your contracts… I
will probably tell the seller I need my terms to keep the deal alive, but my
plan is to wholesale it.
Should I (A) Let him take that clause out, and just perform a double closing
instead of assignment of our contract…Which I think would work just fine?
Should I (B)Tell the lawyer to fly a kite…
I am thinking this lawyer will want him to have me get a commitment from a
bank…or proof of funds to keep the deal going, which I can probably get
done, and if I have to purchase the property, thats fine…I just dont know
how this scenario will play out…Thoughts anyone???
Lawyers are always the deal killer I deal with…Has anyone experienced a
similar situation?
Mike
fix? - Posted by Nike
Posted by Nike on August 27, 2009 at 08:45:01:
Take out the clause and resubmit the agreement. Do not allow the seller to crossout and intial. You can then assign to a third-party.
Re: Follow up on RE DEAL??Is … - Posted by Frank Chin
Posted by Frank Chin on August 27, 2009 at 03:04:25:
Mike:
I think the better approach is to find out what’s bothering the lawyer.
I look at my parents. now elderly, who owns property, and often gets unsolicited offers to buy. I hate to see a buyer fast talk my dad into signing some deal telling him his family and lawyer’s advice and concern is totally unfounded.
I’ve done a deal via an assignment where the buyer’s lawyer expressed some hesitation. I think most people would agree a “newbie” invester can come in, tie up a property with an assignment, noodle around with it or months, then drop it like a rock if the market tanks further. Meanwhile, the sellers, thinking their property is in good hands, would be left in a lurch.
If you have the ability to close as you say, as I did on my deal, the buyer’s attorney wanted the assurance that I CAN CLOSE in a particular time frame if I cannot find a buyer, and he wanted to see the proof of funds to assure himself that my deal is not all BS. This would take care of the concern as the property would be sold “regardless”.
I wouldn’t tell the lawyer to fly a kite, as that does not sound like a businessman talking, but a naive dealmaker. I told the lawyer that the price I’m offering is for doing it via an assignment, as its less costly and efficient, and I have to offer much less if I have to do it in a more inefficient manner.
You have to speak the language of the deal.
Re: Follow up on RE DEAL?? - Posted by Dave T
Posted by Dave T on August 26, 2009 at 20:26:58:
As a general rule, contracts are assignable unless the language of the contract specifically prohibits assignment.
I hope you made you offer in the name of “Mike and/or assignees”. If you have to remove the assignment clause, your contract is still assignable provided there is no language in your contract specifically prohibiting it.
Re: Is this normal? How to fix? - Posted by Jack-E
Posted by Jack-E on August 26, 2009 at 17:09:02:
Anytime I have a seller or a buyer say they want their lawyer or inspector or what ever to look at the paper work or property, I usually tell them OK thats fine, but we both know that it is their duty to find something wrong with it or they would not feel they have charged you for nothing. That being the case and knowing this,we ofcourse may or may not agree and we reserve the right to lower or increase our price as appropriate. I find they then think twice before doing it and some do and some don’t. Either way I have nothing to loose and usually get it the way it is.
Re: Follow up on RE DEAL??? - Posted by StevenS(CPA)
Posted by StevenS(CPA) on August 26, 2009 at 11:18:16:
I’ve dealt with this a number of times. Lawyers have to look like they’re doing something for their client. The assignment is low hanging fruit that only benefits you and not the Seller.
Stick to your guns and tell him the assignment has to stay in or there’s no deal. As a compromise you can give the Seller first right of refusal if you choose to assign the deal to someone else. But that’s as far as I would go.
A lot of people consider their lawyers recommendations as doctrine from God, but lawyers are just people like everyone else. If it’s not illegal then its negotiable. Everything is negotiable and if its not in your best interest you should walk away.
Bottom line, get the best deal you can get and if its not good enough then walk away. But stick to your gun on the assignment.
How about… - Posted by Rick, the Probate Guy
Posted by Rick, the Probate Guy on August 25, 2009 at 23:58:01:
…handling one of these ways:
Make your right to assign a separate document; or
Indicate in your agreement that buyer’s vesting to be determined prior to close of escrow.
I’m all for making things complicated, but this part doesn’t have to be. Maybe next time.
Re: fix? - Posted by mike
Posted by mike on September 02, 2009 at 22:35:45:
Good Point, why does it matter…I would agree with Natalie …very
clever…
Thanks again for responding to my post…Mike ia
VERY clever - Posted by Natalie-VA
Posted by Natalie-VA on August 27, 2009 at 08:56:03:
I like it.
–Natalie
Re: Follow up on RE DEAL??Is … - Posted by mike
Posted by mike on September 02, 2009 at 22:43:10:
I agree Frank…Thanks again for your help in reviewing me deal…
Mike ia
Re: Follow up on RE DEAL?? - Posted by mike ia
Posted by mike ia on September 02, 2009 at 22:42:02:
Thanks Dave T, the offer is in a corporate name, I am still working this
deal, and I pretty much got all the terms I want…I think…I posted a
new post as an update above…Thanks again for helping me and taking
the time to review my deal…
mike ia
Re: Is this normal? How to fix? - Posted by mike ia
Posted by mike ia on September 02, 2009 at 22:37:55:
Thanks so much for responding to my posts…I am still working this
deal and am supposed to sign this contract tomorrow and we kept the
assignment clause…My new post is above…
thanks again for taking the time to help me with my endeavors.
Mike ia
Re: Follow up on RE DEAL??? - Posted by mikeia
Posted by mikeia on September 02, 2009 at 22:33:35:
Thanks for the response…I am still dealing with this property and I
am going to sign the contract tomorrow…I posted a new
post…Thanks again for responding to my posts. I just need people
like you who are professional to help me through the hiccups in this
transaction
thanks again
mike ia
Re: How about… - Posted by mike
Posted by mike on September 02, 2009 at 22:39:54:
Rick…
Again you are true genius…I just wanted to thank you and everyone
else again for taking the time to respond to my posts, and help me
with my endeavors…I posted an update above…The lawyer is fine with
the assignment but I have other issues now…Thanks again for helping
me Rick…
mike ia
fix? - Posted by Nike
Posted by Nike on September 03, 2009 at 06:23:19:
If you merely cross-out and initial then the right to assign is expressly prohibited. Remove the clause then the prohibition is gone—then you can assign to a third-party.