Dec 8, 2017
Here is a “real” REAL ESTATE NIGHTMARE SCENARIO. You find the
perfect apartment building; and then after negotiating with the
seller and the seller’s broker…you are awarded the transaction. You
put the property under contract and begin your physical due
diligence. Everything is thumbs up and now you spend thousands of
dollars on the lenders third parties. (appraisal, engineer, Phase 1
reports and legal) The loan is approved and you have raised all the
equity from your investors. The loan documents are at the title
company waiting for you to sign and close on the transaction.
Everything is ready to go…BUT…on the day you are going to sign….you
get a panicked call from the title company saying that the seller
cannot sell property due to their LOAN LOCK OUT PERIOD. What? What
is a loan lock out period and why is that preventing me from buying
this property? Why was that not disclosed before you spent
thousands in pursuit costs? Yikes!! Dustin Lapacka tells us that
story and then reflects on his new apartment purchase in Arizona
that did close. Dustin successfully purchased a 70 unit building
that was built in 1985. We appreciate Dustin sharing his story, so
we can all learn.
To contact Dustin Lapacka: LapackaREI@yahoo.com
To contact James Eng: JEng@oldcapitallending.com
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