All Forum Posts by: Brian Tome

I have a private money lender who has offered to fund my deal and wants me to draft the contract.  I am looking for a sample contract that is fair to both parties to use as a starting point to draft one specific to our deal.  Can anyone recommend a site or provide a sample contract?

Thanks!

That is not a bad idea Joe!  Of course, it will only work for as long as the Statute of Limitations on a Breach of Contract claim in the properties locations jurisdiction.  But that is likely 2-3 years.

Nat,

It may not be what you want to hear, but the closing attorney is correct.  She would have an ethical conflict (as defined by law) in presenting your interests adverse to the seller.  That might seem unfair to you, but it serves a legitimate purpose and means she is a person of integrity.  You should think more of her for taking that position, not less.

As for the lawsuit, I litigate regularly in 4 states.  If $2000 is all you stand to recover, you are probably throwing good money after bad.  It will cost you more in the long run and be more headache than it is worth.  A local attorney will probably charge you more than $2000 just to read the contract, talk to you about the deal, and draft a demand letter.  Also, you should always keep in mind that regardless of what a contract says, courts like to take the middle road.  Your contract may say "prevailing parties legal fees paid by other party" or something of that kind, but in the unlikely event the court awards legal fees, it will almost certainly reduce the amount they make the other party reimburse you.  Plus, your money is tied up without interest (barring pre-judgment interest award) while you are litigating the issue.

Plus, suing will make the seller angry and she could bad mouth you to others, effecting your ability to get future deals.  The last thing any investor wants is a bad reputation (deserved or not). 

Unless there is a lot more money in the deal ($100K +) and your contract allows specific performance remedies, I would write it off as a business loss and move on to the next deal.  I know that sucks, but that is the unfortunate reality of litigation.  You don't get the justice you deserve, you get the justice you can afford.

Best wishes,

Brian

Friends,

I am preparing to send out my first round of yellow letters, but I want to be prepared with an outline for fielding phone calls and determining good leads from bad. I don't mind spending a little time talking to people and trying to assist them with their transaction whether I can be a part of it or not, but I would like to minimize the time I spend visiting properties if I can rule them out by asking the right questions.

I am pretty familiar with the deal analyzers and recognize the effects of the various criteria, but I would like to develop a script that elicits that information without sounding cold and formulaic.

Any guidance you can provide would be greatly appreciated.

Best regards,

Brian

Friends,

I am preparing to send out my first round of yellow letters, but I want to be prepared with an outline for fielding phone calls and determining good leads from bad.  I don't mind spending a little time talking to people and trying to assist them with their transaction whether I can be a part of it or not, but I would like to minimize the time I spend visiting properties if I can rule them out by asking the right questions. 

I am pretty familiar with the deal analyzers and recognize the effects of the various criteria, but I would like to develop a script that elicits that information without sounding cold and formulaic. 

Any guidance you can provide would be greatly appreciated.

Best regards,

Brian

Also, drywall did not traditionally contain asbestos, but many joint compounds contained small amounts of a chrysotile variety of asbestos.  If all the drywall was installed at the same time, it makes sense that the joint compound was the same brand/manufacturer.  Therefore, finding asbestos in one joint probably means there is asbestos in them all, but finding the joints to test isn't always easy, especially if the drywallers did a good job.

Popcorn ceilings on the other hand are easily tested and more likely to be installed at different time periods, depending on renovation history.

That might help you to understand why they tested each ceiling but only once for the walls.

Bill,

Sounds like a contract issue to me.  I would think that the presence of asbestos containing materials in the home constitutes a sufficient defect to rescind the contract, so if you don't work with them to remediate those materials, they can probably back out of the contract fairly easily.  Obviously if they are getting a really great deal on the land they may not choose to do that. 

As a compromise, you might suggest that the estimate seems high and request two more bids (one from a company selected by you and one from a company agreed upon by both parties).  If they are splitting the costs with you, it is in everyone's best interest to get the lowest price.

Either way, the presence of asbestos containing materials will constitute a defect you will need to disclose to future buyers if you can't work with the current buyers to make the deal happen.

Best of luck!

Mike,

Comfort Masters is a great bet for the North end of the Eastern Shore (Cecil and Kent County).  It is basically a two or three man shop that does outstanding residential and small commercial work.  I don't know how far they would be willing to travel, but the owner's name is Jimmy and his cell is 443-309-0366.

*Disclaimer - He is my brother, but I hire him to do my work because there is no one better in our area. 

Mindy may be on to something here.  If this is college student housing, check a few things.  Are they growing (as asked above)?  Is someone close by using an extension cord and an external outlet to pirate electricity?  Is one of your tenants sleeping with a window open, leaving the window open while they smoke, etc.?

Not too many electrical use issues spring up as a matter of maintenance problems.  Most often a significant change in the bill is the result of a significant change in usage habits.  Bottom line is, check the condition of your equipment and then tell them to be careful about their use.

John,

If the tenant has a good job, I would not discount a debt action/wage attachment.  I am three checks away from collecting the full debt (more than $5000.00) on behalf of one of my clients.  It has taken a couple of years to find her, find her employer, and attach her wages, but the whole time the debt was accumulating 10% post judgment interest.

The debt action for past due rent is similar to the eviction process, so Mike can help you there too.

Good luck!