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Seller Shenigans, how do you prevent them? | International Residential Real Estate Investors Association
Saturday September 23rd 2017

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Seller Shenigans, how do you prevent them?

I’ve seen residents move out enmasse.  Sellers often will stop qualifying prospects to keep units rented.  And, even worse can occur.

Step 1 – have a rock solid contract with strong representations and warranties. Include penalties for damages, changes in maintenance, changes is resident base, and changes in occupancy.
Step 2 – track the project, the competing properties, and other seller properties for large changes in occupancy.
Step 3 – collect weekly rent rolls from the property, monthly income statements, and monthly bank deposits.
Step 4 – don’t close until all required closing documents are delivered and verified as expected.
Step 5 – immediately post closing audit all items including resident records, facility, unit, and grounds condition.
Step 6 – note all discrepancy to counsel and sellers counsel with assessment of potential issues within the first 30 days.

Over the coming weeks and months, I’ll be adding templates for the sales contract.  More information about due diligence and pre closing activities.

However, failing to attend to this area can have a crushing negative impact on any potential investment.

The Real Estate Investor

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  1. [New blog]: Seller Shenigans, how do you prevent them? http://bit.ly/aTkyP7

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