Sleazy sponsor? - Posted by Berry

Real Estate Investing
1

Posted by Linda Simms on August 07, 2003 at 16:08:15:

Tell your “Sponsor” Thanks for the R.E. Investment Lesson and you will keep it in mind when you sell one also. Ask him/her if they don’t think they could give you a break since they are your sponsor. If you don’t get the deal you want, walk away!

2

Sleazy sponsor? - Posted by Berry

Posted by Berry on August 07, 2003 at 13:24:52:

Hi,
I am trying to buy a co-op from a sponsor. The sponsor has told me the following:

  1. He gets to keep the 10% down payment if I am denied a mortgage;

  2. I have to pay the maintenance as of Sept. 1st even if the apartment hasn’t closed; and

  3. He is going to raise the asking price by $1,000 since I won’t move in before the closing.

Is this standard practice? Is there anything I can do?

thanks for your help.

3

Re: Sleazy sponsor? - Posted by Brent_IL

Posted by Brent_IL on August 08, 2003 at 22:32:48:

Like Shawn, I?d be ashamed to call this guy my sponsor.

I believe that in the near future there will be a wave of unrealistic offerings because there will be an abundance of stock market refugees who won’t know that the deal is unrealistic.

#2 and #3 are items of negotiation. He can ask for anything and it may be his standard practice to do so. It should be your standard practice to tell him to get lost.

#1 isn’t a down payment if the deal is dependant upon new financing; it’s a 10% earnest money deposit.

Co-ops are complicated the way it is. Since you’re buying the stock, many banks will have additional lending requirements, if they do the loan at all.

4

Run away - Posted by Shawn J. Dostie

Posted by Shawn J. Dostie on August 07, 2003 at 16:01:00:

Unless you are absolutely sure it will close. Even so, it would have to be one whale of a deal or I would tell him to go hang.

Good Luck,
Shawn(OH)