So Friday I was supposed to close on the house…
All day Thursday, the title company was pressing me to hurry up and send the funds
I’m like nahhh…hold tight!
(Sidebar: We have been under contract on this house for a few months due to title company issues and Covid so I reviewed and verified the tenant info and property condition like 90 days ago.)
Fast forward till now and we are finally ready to close, so I make arrangements to go see the property and ensure the tenants are still paying and intend to stay. Mind you the seller is from Sweden, so her representative meets me at the property to walk me through.
I get to the house and immediately noticed the screen door was off of the hinges..I wasn’t expecting to see that…I am under the impression that everything was updated and ready to go on this cash flowing duplex.
Long story short, the property was not in the agreed-upon condition and I discovered a few tenant issues that the seller had not initially disclosed.
Basically there were issues AKA we are not closing today…
So now I have to work with the sellers rep to renegotiate the deal based upon the new information.
For me this is a double close so I have someone who I plan to resell the property to, but I can’t in good conscience knowingly pass along these issues to my buyer.
This is the part the gurus dont post about on IG…putting deals back together when they fall apart, and trust me they do fall apart!!!
This will be my Monday morning project…oh great LOL
Soooooooooooo…What Would You Do?
Here are my thoughts….
A.) Reduce the offer by $15K, close on the property and just keep it myself.
B.) Reduce the offer, put $7k-$10k off my own money into the property to make the necessary updates and then list it for retail.
C. Cancel the deal.
Leave a comment and let me know how you would handle this…if I use your idea I’ll send you a love offering… 🙂