Business formation

2 Replies

I'm trying to go in on a deal with a real estate agent in another state. He has a client that wants to sell an investment property town home as quickly as possible. Based on zillow prices we have an accepted offer at 75 ltv. He is trying to move the deal as quickly as possible and I want to have a company formed first. Which is the better way to proceed?
If he's the real estate agent in the state of the property and it's his client why is he (and also you) relying on zillow for valuation? Something seems amiss. You also mention you've accepted a deal at 75% LTV, LTV of what? Zillows price? Zillow isn't a reliable source for values. Zillow's values attempt to deliver market value. That being the case how's is the a good deal, and why is a quick closing needed? If you want substantive feedback on whether this is a fair deal you should provide economic details. As for buying together. You can create an Llc to buy the property together or form a joint venture agreement if you're comfortable taking title as individuals vesting as tenants in common.

I second everything @Christopher Telles says. I realize that this wasn't what you were asking, but best way to proceed (based on the information you provided) is to pull the plug on the "deal" and get back to research. Relying on Zillow for pricing is just one of many red flags here. Do you have a previous relationship with this realtor? Why does the seller care about LTV? It should only matter to the seller if LTV is 0% and you can close immediately. I have other concerns but I'll stop there for now. For your sake, I'd like you to explain more about the deal before you write any checks.

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