Need 1.75M tomorrow to keep my Deal

[David Walkotten]

What would you do... I have had a 40-unit multi family purchase tied up in a purchase agreement since February 9 of this year. It is being financed thru Freddie Mac and we have had a ton of hiccups with property condition (Including ceilings collapsing) but are now through all the hiccups. Brand new city certs on all 4 bldgs. The seller has signed 4 addendums for additional time. I get their concern. This will literally close in 13 days and the Seller will not sign an addendum past 8/30. Small chance if I pay an additional 50,000 he will extend it. I’m paying 2.1M currently. What should I do? My investor/partner is putting up 400k but I don’t think has another 1.75M to bridge it. Who knows if we could even close the deal tomorrow... Advice?

[Justin Fraser]

@Sunny Shakhawala thanks for the tag!

@David Walkotten this is probably too late since you posted this yesterday. It sounds like your Freddie Mac loan is for $1.75M and you need another 13 days for the loan to close, but the seller won't give you another extension? My guess is the seller has another offer on the table or is just simply fed up with all the extensions and doesn't believe you will close in another 13 days. You'll need to convince the seller that you absolutely will close. I expect you are far less likely to get $1.75M today, than you are to get 15 more days on your contract.

I think your best course of action is to do a few things, starting with communication to the seller via email or even get on the phone with them if possible.

• Offer to let them put it "back on the market" including allowing showings, but your contract will still be valid for another 15 days. This way they aren't losing any time with putting the property back on the market if your financing falls through.
• Show the seller the letter from the bank with the closing date and that all contingencies have been removed. This will give them confidence the bank is almost ready to go.
• As others have suggested, offer another 1-2% increase in purchase price as a show of good faith that you believe this is a good deal.

Please let us know how this turns out!