What Hurdles Did you Face during Your First Deal

[Alexander Alguire]

I'm curious as to what obstacles you faced going through your first deal? How did you handle them? Did they set you back or did you press through with flying colors?

[Jeff B.]

We offered under  a 1031 and the buyer signed a "Cooperation" agreement for same.  V E R Y late in the process, there were all kinds of new demands, including $x thousand for a silent partner.

We were within 4 weeks of the 180days closing and this T*R* was attempting to extort more cash or fail my 1031.  My exquisite wife found the seller from which our seller bought the propert - - OUCH, what an earful.  We gave the contact info for the Escrow agent and suggested that a claim be made to get paid at COE.  Our seller had defrauded his purchase in the same manner, extorting some 40K as a second and destroyed their 1031.

I send a nasty gram to the seller, his agent and my agent of the consequence of failing to close one time:

• suite for specific performance (aka complete the transaction)
• all tax liabilities attached to the 1031 would be sought as damages - - and that was 128k!!!
• I would file with the Calif board of RE to take the licenses of both brokers as being complicit in the fraud.

After 4hrs of two lawyers from both agencies in the sellers home, the sale was consummated.

The escrow agent ask "Why didn't you just walk away?"  I replied, the 1031 was just to heavy to ignore.

Moral: Know your rights and act BEFORE time becomes your enemy.