Hi everybody,
I have a situation that I am trying to understand. Just made an offer on the property,
and got a call from my agent that the sellers will not counter offer because the offer was
made under LLC name (on the contract) I don’t know why would that matter.
Any feedback very much appreciated.
You need to send your agent out to ask the same question of the sellers and their agent. It doesn’t make a difference if it’s an LLC or not. Remember that your agent is your representative. Make him work for the money - it’s not a free ride (this does not mean abuse him/her!).
Was your offer so low/ridiculous that perhaps it offended them?
Keith
If you have a financing contingiency, the seller doesn’t believe you can get a mortgage in the name of your LLC.
I don’t really blame him. My rule of thumb when selling is to not waste my time on any “buyers” who don’t actually have any money. Did you outline in your offer where the LLC was getting the money from?
Shouldn’t make a difference if they believe that you are really going to close on the property.
What is your intent?
And/or did you include some kind of prequal/preapproval/proof of funds letter in your offer for the seller to see?
Chris
The offer wasn’t really that low. Home needs some curb appeal and some TLC.
My offer was 40K below what they were asking. My financing contingency was 45 days, total
60 days to close. The contract is assignable.
Thank you
I have a pre-approval in my own name that will soon be 90 days old. Considering resent changes I’d like to get a new one. I’d like to hold on to this property as long as I can, but if not I will wholesale it.
This has happened to us before. The seller in our case just didn’t like investors scooping up his run-down shack to renovate and flip (although, we weren’t going to flip it, just rent it out). Unfortunately, not signing a counter offer is the same as saying no and the seller has the right to do that for any reason.
Right away the problem is that your LLC doesn’t have pre-approval by itself or with you. If you can get the lender to add your LLC to the pre-approv letter, that should suffice. Also, you can “add” you name to the offer, right next to the LLC and just remove yourself during escrow under explicit “vesting instructions” to the title company. That should satisfy the seller according to the request your agent gave.
Note: Lenders are VERY different these days. Make sure your lender will even allow you to hold title under your LLC. Get that in writing. Otherwise, you may be required by the lender to hold title in the exact same way you hold the mortgage.