We Have Officially Purchased Rental Property #3
As Ice Cube said
Today Was a Good Day
I thought we were going to get this deal done before our Europe vacation, but the sellers lawyer was moving at a snails pace. So, I said sorry guys we are closing when I get back.
Then the deal almost didn’t happen! Why? Well we… The seller and I began to bicker over a 1k repair that needed to be done.
We finally came to an agreement, which amounted to me saying I will walk unless you play my way. He caved like a cheap Walmart picnic table.
Then something else happened….
Now, this is an all cash deal and for the life of me the seller’s lawyer didn’t understand that, in cash deals there is no credits after closing, but reduction in purchase prices.
Seller’s Lawyer says
Our client offered a $1000 credit for repairs, keeping the purchase price at $30000. Can we close it under those terms?
I say to my lawyer
I don’t get it.
This is a cash deal, why are they offering a credit instead of a deduction from the purchase price. Is their attorney aware of this or am I missing something?
My lawyer says to me
That was my thought and what I had sent her this morning. It makes no sense to give the credit. Just waiting to hear back
We literally had to convince the sellers attorney to reduce the purchase price.. this took 24 hours..
Thankfully, the seller’s lawyer caught on. Here is the closing Statement
PURCHASE PRICE $29,000.00
City or Village Tax $1438.54 38 days 149.77
County and Town Tax $804.91 222 days @2.21 490.62
TOTAL AMOUNT DUE SELLER $29,640.39
CREDITS TO PURCHASER
Amount Paid Down $
TOTAL CREDIT TO PURCHASER $
Balance due on closing $29,640.39
Record Deed 185.00
Attorney Fees 350.00
Title Insurance 303.00
Wire Fee 25.00
NET DUE FROM BUYER $30,503.39
I will talk about rents and actually repair costs as we move along, this blog post is getting long already. In closing, my lawyer worked for 30 days on this for a grand total of $350 bucks. She’s a rockstar, I need to buy her lunch one day.
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