Posted by Bill H on December 03, 2008 at 10:56:12:
Every commercial deal that I have ever done or seen has all the legal and legitimate conditions for purchase such as Rental Rolls, Financing Terms, Estoppel Agreements, etc. NONE have the weasel clauses of “I have to talk with my partner…My Lawyer’s brother-in-law…etc” NONE of these will pass muster with any legitimate commercial contract.
We made a very low ball offer on a building and got told, “Bill, we have just as much interest in selling it for that price as you have in paying us $100,000 more than we are asking.” In other words…NONE.
Make legititmate meaningful offers, fullfill them and GROW in the industry.
Thanks Bill H. for the info and I can understand your thinking…but, to the best of my knowledge, very large commericial real estate corporations use “Letters of Intent” to take a “look-see” at apartment complexes before they offer a purchase contract. Why put earnest money up and in jeopardy of loosing it if you don’t have the data yet for analysis to see if you even want to purchase the property??? This makes good sense to me, does it make sense to you?? Does anyone else have an opinion or am I all “wet???”
Thanks for your help, JM
Posted by RE Guy on December 02, 2008 at 10:13:04:
Why won’t the seller give you access to their records & financial data? This is very basic stuff if you’re selling an apt complext. To me this raises a red flag about the seller and I’d be very careful.
Then go as previously suggested. Contract with weasle clauses that include review of financial date is subject to your approval within ten days. Buyer must furnish in three days. Keep deposit as low as possible and let your broker hold, or in absence say deposit will be made upon review of financials.