What's a creative, effective way to work the following scenario? Multi-family home is under contract and after inspections is coming back with several big-ticket items that will need to be addressed in the first five years. Seller knows there are issues that he will have to fix, but we'd rather rely on trusted people we have relationships with to insure the work is done well instead of asking him to fix things (bc there are signs of very bad, recent work on the home). One suggestion was to take out a HELOC for repair, but is there a way to go back to seller and ask him to give us an allowance for these things? Any help is appreciated, this is our first deal.
It's fairly common for a seller to leave money in an escrow account for repairs after closing. Usually, a title company or attorney will hold and release the funds at the appropriate time.
Thank you. But what if we’re talking 30-40k potentially? I don’t want to come out of pocket if possible and he’s aware of major repairs that are needed. Given that we’re set to close in a few weeks, is there any way to structure the financing so that he’s having to allow for fixes of that magnitude?