Investor · Germantown, TN · Member since 2015 · 86 posts · 26 votes
Fellow BPers, could you please advice on the close of a multi-family deal? Is there any difference between regular SFH and the MF? In my specific deal, I have 30 days to close and I don't have a broker/agent on my end. Seller is owner/broker. This is a cash deal so no bank involved. Do I need a lawyer to do contract review? Property is in TN. My first time to buy MF. Welcome any comments/lead to previous relevant threads. Detailed step-by-step play highly appreciated.
Current status: LOI and Purchase & Sale Agreement agreed upon and signed by both parties. Inspection within 15 days of contract date. Close within 15 days post inspection expiration.
Investor · Anaheim, CA · Member since 2014 · 242 posts · 81 votes
10y
I've closed deals without an broker, but since your starting it acceptable and probable recommended that you have a RE attorney review the contract. The same attorney can guide you on the process to close as it will be specific to what you contractually signed.
Investor · Germantown, TN · Member since 2015 · 86 posts · 26 votes
10y
Omar Ruiz
Thanks Omar. Can you explain a bit more on the process? When do I need to engage a RE attorney to review contract? I already signed the contract. Is there a final review prior to close? Thx.
Realtor/Investor · San Diego, CA · Member since 2015 · 133 posts · 73 votes
10y
have an attorney review your contract! You should have an inspection contingency period to make sure you are comfortable with the property. that is your time to do your do diligence and get the property inspections. 30 days for a commercial deal will be incredably hard to close on time if you are getting a loan. Make sure you get the trailing 12 and confirm their NOI. Try for 2 years. Get the leases currently in place. Confirm the deposits transfer to you and how much. Talk to the property managers/ tenants if youd like to find out every in and out about this property and how much money is needed for repairs.Sounds like a big real estate deal. Congrats. Best of luck...
Investor · Anaheim, CA · Member since 2014 · 242 posts · 81 votes
10y
I agree with other comments; if you're in middle of duediligence period, now would be the time to have an attorney review the contract. Once the duediligence period ends your earnest money goes hard. If you decide to back out or find something to renegotiate on, your earnest money will not get refunded after this period ends.
Investor · Germantown, TN · Member since 2015 · 86 posts · 26 votes
10y
Brent Boltz , Omar Ruiz
Thanks. Yes, still in diligence and have the inspection contingency in place. Seller will provide tenants estoppel at close along with all leases and deposits. LTM received on consolidated level. Will line up an attorney review post inspection. This is a cash deal, no loan/bank so 30 days should work unless there is some lengthy process in MF deals I'm not aware of. I naively assume the closing process is almost same as normal residential deal. But let me know if I may miss anything. Thanks again for the comments. Keep them coming.