LOCKING UP THE DEAL
LOCKING UP THE DEAL
1. IF YOU ARE AN INVESTOR DON'T CALL THE LISTING AGENT DIRECTLY UNLESS YOU KNOW THEM OR WANT TO GET TO KNOW THEM.
Read this heading several times. Memorize it. Every investor thinks that he can move things along by calling the listing broker. There is some logic to this since the listing broker probably realizes that he stands to get both sides of the commission. Unfortunately: (1) many listing brokers are very good at getting listings (which is where the real money is anyway) and don't want to waste their time on marginally qualified buyers; (2) most investors immediately present themselves as bottom fishers who are going to put in a low (read nuisance) offer. If a co-broker calls there is some chance that the listing broker will think it probable that the co-broker has qualified the buyer. The co-broker will most likely be more able to arrange a quick showing of the property with a minimum of formailities AND ALSO IS LIKELY TO KNNOW OF OTHER LISTINGS THAT MAY BE BETTER ANYWAY.
2. IF YOU ARE A BROKER AND YOU ARE WORKING ON A FSBO OR SOMETHING TRYING TO GET A LISTING IS NOT ALWAYS THE BEST WAY TO GO.
Present yourself as a principal and make an immediate offer to purchase with whatever contingencies you require. Get the seller's signature on something that looks like a P+S and get that signature notarized and RECORD THE P+S IN THE REGISTRY!!!!!!. NOW YOU HAVE A GOOD LOCK ON THE DEAL rather than just a weak listing agreement.
3. BE PREPARED TO MAKE A CASH OFFER!!!!
This means having a source of funds available to fund an immediate closing. Bank statement is best of course, but failing that documentation that the funds are readily available from the sale of securities or borrowing on other property,
4. IF YOU CANNOT MAKE A CASH OFFER MAKE AN OFFER WITH LIMITED CONTINGENCIES.
Most importantly establish that you have the down payment readily available. A copy of a bank statement or at. the very least a letter from a lender showing that they are immediately prepared to advance the down payment secured by another property,
5. DON'T FORGET TO EXPLORE THE POSSIBILITY OF SELLER FINANCING.
A lot of sellers would be just as happy to keep their money invested for a while
6. BE PREPARED TO WORK WITH A SELLER ON A 1031 EXCHANGE.
Many seller's will not sell without a1031 exchange being in place. This is a complicaton and slows the deal down but may be the price of doing the deal. Properly done there is no risk to the buyer
Most importantly, at least for me, keep in mind that we will often loan the 20% or 25% down payment quickly to a buyer who owns other investment property,
FOR NON BANKABLE COMMERCIAL PURPOSE MORTGAGES--- firsts, seconds, multiple pieces of collateral, life estates, remainder or partial interests, bad titles.....
PL Goduti
781 608 7306