All Forum Posts by: Gary Dale McKee

UPDATE:   I renogiated the terms of the deal and got the seller to agree to a traditional deal. $1,500 earnest money, held by a 3rd party. I'm pretty pumped about my first deal and wanna thank everyone for their input.  

@David Dachtera,  think you are right.  But he forgot to take into account this awesome site and you awesome, knowledge, helpful folks.

This is what the contract says about the Non-Refundable Down Payment;  The Non-Refundable Down Payment in the amount of 10% shall apply towards Buyers purchase price or closing cost.  If buyer fails to fulfill his obligation under this real estate contract or buyer fails to close this transaction, the down payment is not refundable to the buyer unless failure to close is exclusively the fault of the seller of if seller cannot deliver marketable title to the property.  Buyer warrants, represents and acknowledges the check tendered will be honored upon presentation to buyers bank, and presentation to buyers bank. Buyer understands that failure to tender down payment as required by paragraph 6 shall constitute a breach of this real estate contract.  Down payment is tendered by buyers in form of check. If down payment is tendered by check, it will be made to selling firm.  

I am purchasing directly from the seller.  What I gather out of the contract is if I do anything wrong he gets to keep the 10%.  The only way I would get my money back would be if he doesn't want to sell for some reason.

This just caught me off guard and wanna make sure this is a legit way to do the deal.  I have an attorney looking over the contract to make sure it is what it says it is.

I have a duplex that I am trying to buy for $125,000.  I will be using traditional financing for the purchase.  The seller wants me to give him 10% down and sign a contract. This is the first time I have run into a deal like this.  Is this a common practice or should I run like crazy.

So much great information, I haven't even thought of a real estate attorney but will definitely take your advice on that, @Karen Schimpf.  I am going to ask if they would be willing to owner finance the down payment.  My banker is on board as long as the numbers work.  I have asked for the rent roll and the other information you mentioned but they still haven't gotten me the info. 

They stay there part time. They have a home a couple hours away. They have taken amazing care of the property. The two properties are in a great location also. This is my first serious negotiation and my first real deal.  I think it could be a great investment and don't wanna screw it up if it turns out to be. 

I have a pair of 24 unit, 2 bd 1 bath apartments found. The sellers are an elderly couple in poor health and have conveyed to me how badly they need to sell the property. It is to much for them to take care of anymore.  I have been talking with them for about a month now and they still haven't given me a solid asking price or any of the information I need to see if the property is gonna be a good deal. 

What should my next move be? 

Thanks

The 10-year is just for conservative numbers, I can go longer if I need to.  The bank I am using is a small town bank and is ok with me putting 10% down.  The median market value of the property is $88,000 so, I am thinking it is a good deal.