To Become Wealthy: Contract Details Part VI

I am going to become wealthy. I have a plan and I am going to show the world how I make money as I make money. My main objective is to make passive income thru the acquisition of real estate all over the country. All of my failures and all of my triumphs are going to be out in the open for everyone to see.

Leases: This item is sort of obvious also. It simple states that all leases must be in full effect t while under contract and that the seller can not enter into new contracts without our consent. It is a little bit of protection from mean and vindictive types of sellers. The seller also must disclose any conditions that may lead a tenent to be able to terminate their lease, or any concessions, bonuses or free rents. Any advance payments also need to be disclosed.

Estoppel Certificates: I went over this briefly before, because we received several of these certificates from the seller. I have figured it out, and basically these certificates are from the tenents to certify the basics of the lease, amount owed, amount of security deposit, any offsets and the expiration date of the lease.

The next section of the contract names the different brokers involved in the sale, and the amounts that they wish to receive at the time of closing. Our realtor wants 3%. Ultimately it is up to the seller to negotiate this fee because they end up paying it out of the purchase price. I think our realtor deserves the 3%. She has been working very hard for us.

To Become Wealthy: Dallas Property Update

The inspection was done today for the 15-unit apartment building that we are current under contract to buy. Our realtor was there for the entire thing and seemed pleased. She did mention a few things that needed work to be done to them, but she saw that as a plus, as additional bargaining power. In any real estate transaction anything that we can get to come off of the price is good news to me.

We have also been receiving a lot of paperwork from the seller. I received a copy of one of the leases today, and some estoppel certificates. Before last week I had never heard of the word estoppel and I will admit that I am still not entire sure of what it means. The certificates appear to be some sort of agreement with the renters to continue with the same leases under the new buyer as they did with the seller.

I have also learned that they are in the process of evicting 3 tenants. I have mixed feelings about this. Of course I do not want tenants in the building that are not paying rent, and I am glad that the evictions are not costing me anything. But it does make me wonder what types of tenants the other people are, and what sort will be attracted to live in this area. I have also learned that one of the tenants is Section 8. That I am happy about.