Buyers refusing to show proof of rental income

5 Replies

My first deal....fourplex. FHA. Under contract.

Deal will cashflow $50/unit. Rents can be increased probably 100-125 per unit.

This is acceptable to me.

However, buyers refuse to show any proof of income and DD period is over tomorrow. I offered a 12K discount based on the rents shown on older year leases now month to month today once they came back with the refusal to prove income, stating they comingle funds and don't want me seeing personal funds. I feel this is BS and they are hiding something from me. It is very easy to show this proof.

Also, a few days ago all of a sudden they give notice to a tenant for non payment. So I was lied to at the beginning when the agent told my agent that everyone was up to date.

I also offered instead of 12K discount for them to pay 6K in closing. So they are refusing to negotiate any further and are wanting me to cancel the contract and they will sell to someone else. I said no.

I have to make a decision by tomorrow whether or not I am going to walk or buy.

I am wondering if they are hiding other not paid to date tenants and I am going to be stuck with other evictions.

If everyone is month to month tell them to deliver all units vacant. You are better off getting started with a clean slate anyway.

Originally posted by @Andrew B. :

If everyone is month to month tell them to deliver all units vacant. You are better off getting started with a clean slate anyway.

Not a bad idea, except I don't know if they can get that done before closing in 3 weeks...without cash for keys.

Hi there, sounds like they are hiding something for sure. if you really want it just do an analysis on the worst case scenario and see if you can deal with it. if it's too much for you then it might be best to walk away. By the sounds of it you will have to evic for sure and maybe other problems too. anyway best luck
Originally posted by @Mike Bisson :
Hi there,

sounds like they are hiding something for sure. if you really want it just do an analysis on the worst case scenario and see if you can deal with it. if it's too much for you then it might be best to walk away. By the sounds of it you will have to evic for sure and maybe other problems too.

anyway best luck

 Thanks Mike, you regrounded me actually.

another vote for andrew's suvgestion, ask for extension and deliver all units vacant.

Typical seller shenanigans, i like to call this market "turd flush time" cause most of the stuff out there are the poor performers, junk, that others need to get rid of!