Re: Another one for the L/O pros… - Posted by B.L.Renfrow
Posted by B.L.Renfrow on May 16, 2000 at 21:45:59:
Regarding an escape clause: you CAN, but I don’t think it’s a great idea. It puts you in a weaker negotiating position, if the seller isn’t convinced you are willing and able to perform. Look at it from the seller’s perspective: if they agree to such an escape clause, they are risking taking the property off the market for a significant period of time, while whatever problems prompted them to consider a L/O to you in the first place are continuing…with NO assurance you will do anything. Would you go for that? Not me.
A better plan is to KNOW going into a deal that you can find a T/Ber. How do you do this? By doing research, knowing the market rents for similar properties, then structuring your deal with the seller so you have room to make a profit. You determine market rents by reading the classifieds and calling landlords.
In most cases, I will try to get the seller to agree to 90 days before the first payment is due. I explain that I don’t want to put just anyone in their home; it takes time to find and qualify a T/Ber. They usually appreciate this point once they hear the explanation. To be honest, few will go the whole 90 days, but 60 is pretty common.
As for giving the seller a check up front, if you don’t have the funds, just don’t do this! Nothing wrong with the idea, but I very seldom give sellers any money until the first payment is due.
BTW, regarding your post above, about problems accessing public records. Another approach you might take is to call the local government reporter at the newspaper and just ask him or her what the law is in your area. Government reporters are always very knowledgeable about what records are public and which are not. It won’t cost you anything, as an attorney would, and if the office is breaking the law, could be an interesting news story!