I know ‘it depends’ but trying to get an idea on timing.
30 lots
mom n pop seller
Do you take holidays into consideration? (Would you say ‘business days’?)
Thank you
I know ‘it depends’ but trying to get an idea on timing.
30 lots
mom n pop seller
Do you take holidays into consideration? (Would you say ‘business days’?)
Thank you
30 day inspection + 30 days to close.
Depends on the state laws too. If the seller has to give the tenants notice of the sale and an opportunity to counter offer then it could be 60-120 days to close.
We usually assume 90-120 days but like Mike O said we operate in states with notice laws. 60 would be OK but you’re going to have to pay for the appraisal prior to finishing DD (can be 4 to 8 weeks sometimes more depending on where it is)
Thanks Mike. Seller has a broker so he should be able to tell me.
Park is in IN.
Thank you for the heads-up re:short timeframe and appraisal.
I go with a 30-day inspection, 60 days after inspections to close.
Here’s why. I want to do my physical inspection, books, and records before I spend $5000 on an appraisal and give the bank a hefty deposit to move forward with the loan. On a Fannie Mae deal, you could see a $+25,000 initial deposit to start the lending process.
The 30-day inspection period begins when the Seller provides all requested items.
IE 2-year tax returns, 2-years PL, etc.
“30-day Inspection period begins when buyer delivers written confirmation that all Seller’s Disclosures are received; the seller has 7 days to provide seller disclosures.”
This prevents the Seller from “finding” stuff on day 29.
Thank you for this insight, lots of little things I hadn’t thought about.