RE: I need help on Repair Credit...

10 Replies

Hi,

I am having a little issue understanding 'Repair Credits' when doing a multifamily deal.

Is the repair credit subtracted from the asking price? and you state to the seller that my offer price is based from the repairs I see each unit and common areas need.

or 

Is it something you ask for during the LOI phase, and you get a check at closing from the seller.

If someone could explain how this works, I will be much grateful.

Thanks in advance

You're not getting a check, if you're successful you negotiate a lower purchase price.

Your question is a bit hard to follow. ts not technically a price reduction. It's reflected on the HUD and reduces the amount due from the buyer but not the purchase price of the property. We ask for repair credits during our due diligence period as needed.

@Elio. Thank you for responding.

I understand now.

I fixed mines within 6 month it went up 75-100 points 

Let me know if you need help

Elana L. How did you do that?

@Elana wrong repair credit you are talking about. However, I would like to know how you did that. I will colleague request so you can message me.

You can either request a reduction in sale price or repair credit like Elio explained.  We also prefer the credit at that will not lower the purchase price and the lender (usually) will continue to lend on the initial purchase price.  

How did you do that Elana L. ?

In my experience, I have received reductions in down payments needed or price reductions, but never a check.

I'll tell you how to 'repair your credit' - pay your bills.  Paying some scammy company will only make you more broke. Peace!

Originally posted by @Chris Urso :

You can either request a reduction in sale price or repair credit like Elio explained.  We also prefer the credit at that will not lower the purchase price and the lender (usually) will continue to lend on the initial purchase price.  

@Chris Urso - How do you structure the credit that will not lower the purchase price? Thanks for your response.

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