All Forum Posts by: Katrina Dividina

Hi, we already submitted an offer letter today for a 4-plex asking price $310k (2beds 1 bath) and we are the 1st one to offer them after the previous buyer's financing fell through, the seller agent sounds promising. 2/4 tenant contracts are inconsistent with dates and the seller said that he lives in 1 of the unit which is not consistent with contract dates. I asked my agent to have the tenants fill up an Estoppel Letter. What else do I have to do to make sure we will not be dealing with inherited possible evictions or tenant issues? My husband is a handyman and can handle technical issues but we are scared of dealing with inherited tenant issues. It's our first time in multifamily. I have 2 SFH rentals never had major problems on it. Thank you for your response.

Hi,

I am looking for a good real estate agent that can help me buy a triplex/fourplex in Albuquerque area. I currently own 2 single family rental homes and planning to expand my portfolio to small multifamilies.

Thank You.

*****UPDATE******
So I signed the closing documents at 3:30pm on June 30th and I called title company very early morning the next day and they havnt sent it yet to recording. I told them to delay the recording as I've talked to an attorney, and the title company attorney agreed with me too. So everyone's money (seller and buyer agents and the title company) got put on hold and that made them work hard to get the seller out of the house without me doing anything and feeling relieved.
So that day, July 1st, the seller left the house and after we do a final walkthrough the next day, I gave the title company a go signal that I am comfortable in recording now.

I would like to thank all of you guys who gave me advices and shared your thoughts and experiences. Without posting this here in biggerpocket forum, I will be in a very hot mess. 
Now we got the house and changed the locks asap and slowly furnishing it.

Thank you so much biggerpockets community!

Originally posted by @Bill B.:

I bet you $1,000 if you asked about a “post-closing agreement” before closing the seller’s agent woulda been super helpful. The same as I believe they will suddenly become helpful again if they don’t get their commission check tomorrow. 

May try to get your realtor’s broker or even the seller’s agent’s broker involved. Someone who can make decisions and get things done. 

If the title company won’t do holdbacks then you come up with a new agreement. The seller credits you $10,000 at closing, you get the cash and agree to bonus her $500 for every day she’s out of the property 20 days after she’s supposed to be out. So if she’s out on time she gets the $10,000. If she’s 10 days late she gets $5,000. 20 days late and you keep the $10,000 and head to eviction/squatter/whatever she is, court. 

But again, none of this is supposed to be your job, this is part of the “service” you get for paying 4-6% of the sales price. 

 This is very interesting. But knowing that the seller doesnt even want to pay the refundable $1000 security deposit and is uncooperative. She wont agree with $10,000 credit. Its just better to hold the closing until she leaves. Let her be pissed.
she even said she doesnt care if the house will go foreclosure she wont pay $1000 security deposit. Thats weird. 

Originally posted by @Bill B.:

Let us know what happens. The seller’s realtor should be working hard as the go between. Maybe they think it will close and they will get paid and walk away. But if you can stop the closing they might suddenly become interested in helping you since they won’t get paid until then. 

The couple times I had a seller hold over saying they needed a week or two, I had the title company hold onto $20,000 and a daily rent that escalated quickly after the day they said they would be out. You need a GIANT carrot and a BA stick to get some people moving. You’re already taking chances there’s damage you couldn’t see or damage that will be done during their move out. 

Because this seller is uncooperative I would never close until they are out without at least a $10,000 price discount. 

So talking about the seller's agent, thats another thing. She told the seller that she is now out of the equation since this is "post closing agreement" it will be just between the seller and the buyer now. So shes out! She asked my agent to take her name and company out of the post agreement contract. I dont know. So my agent is talking directly to the seller and is also very pissed that she is uncooperative.

I talked to the title company's escrow officer. They said they dont do escrow holdbacks (which is as advised by my lawyer), i have to get a 3rd party escrow company. My agent told me that title company's that doesnt do escrow holdbacks anymore. I only asked my title company, I didnt checked on other title companies about this. Is that really a thing now?

Originally posted by @John Teachout:

I thought the closing already happened. If it hasn't, don't close. You have a valid reason to delay it and don't be pressed into doing something that's going to hurt you. Based on the seller's unwillingness to leave, I would insist the property MUST be vacant before the closing happens. People will be upset with this decision but you're the one holding the bag if you close and she doesn't leave. And this does happen.

I signed the paperworks at 330pm and the recording will be tomorrow.  I already texted my loan officer and she said they already funded it this noon. I have to call title company early tomorrow to delay closing and the bank with redate it once im ready.
Thank you so much for your reply. I truly appreciate it.

Originally posted by @Joe S.:

Originally posted by @Katrina Dividina:

Originally posted by @Theresa Harris:

Then delay the closing until July 3 and make sure you do a walk through to make sure she is out.  Call you lawyer and bank and tell them not to transfer the money.  Your lawyer should have said something after you did the walk through and she said she wasn't moving until at lest July 3.

Thank you theresa. I will call title company and bank early tom. =s  I know its going to be a hot mess thats why I consult with a lawyer.  But then I feel we need to close. I am time pressured by agent and title company

 

The title company and the realtor are not the ones that’s going to have to deal with the mess though. Sure they’ll pressure you to close So they can get paid, but you’ll be left holding the bag.

I totally agree Joe S. I know that since we went at the final walkthrough. I keep telling my agent its not gonna be there problem. I think he is trying his best anyway its his job. I am thankful I posted here. It validated that I am not wrong if I delay the closing. Cause I really feel I am an inconvenience to everyone involved. =s

Originally posted by @Dustin Allen:

@Katrina Dividina

That’s dumb on the seller’s part. I would delay closing then. I would still consult with the attorney again tomorrow AM to go over options.

Best of Luck!

I dont know whats going on with the seller, We are giving her the right as a tenant, she didnt sign so It will make her a squatter if every the closing went thru. But then I will still have to deal with legalities to get her out if she didnt fulfill that 07/03 timeline. Better to delay closing. Thank you so much for all your replies this really validate that I am not being demanding to the seller. Thats how she made me feel. And title company and my agent time pressure me for closing. I know its not gonna be there problem afterwards.

Originally posted by @Dustin Allen:

@Katrina Dividina

Do you have an agent working this for you? If so, ask if they have any legal consultation service as part of their risk management program.

You might not want to close without an agreement in place regarding the lease back. If there is no additional agreement, your purchase agreement should stipulate the property is delivered vacant upon closing. If that’s the case, you may be able to sue for specific performance instead of an eviction if they don’t leave. I have no idea which is faster or appropriate in your state.

I am not an attorney and you would do well to speak with one about your options as soon as possible. This is obviously going to be a problem one way or another.

Thank You Dustin, I asked my agent and he said they dont have a lawyer but referred me to some available in the area, I had a phone consultation and he gave me suggestions on what to write in the post closing agreement and thats what the agent did. But the seller doesnt even want to sign it. Doesnt want to pay for $1000 refundable security deposit and a 10 day rent free post closing. =c

Originally posted by @Theresa Harris:

Then delay the closing until July 3 and make sure you do a walk through to make sure she is out.  Call you lawyer and bank and tell them not to transfer the money.  Your lawyer should have said something after you did the walk through and she said she wasn't moving until at lest July 3.

Thank you theresa. I will call title company and bank early tom. =s  I know its going to be a hot mess thats why I consult with a lawyer.  But then I feel we need to close. I am time pressured by agent and title company