Lessons learned from a challenging deal...
Lessons learned from a challenging deal... With the hope to help you in future acquisitions as well
One of our biggest lessons in a recent transaction is to always have your own representation on apartment blocks. Furthermore, we’ve experienced this on multiple occasions but after some setbacks, we have learned our lesson. If a realtor attempts to rewrite your conditions or terms, refuse, if a realtor wants ambiguous terms and/or conditions without explicitly written and diligent requirements, requests, and outlined conditions, once again, refuse to sign any agreement.
Through this recent transaction, we had a realtor who had verbally made statements and with trust, we confidently took his word. He did not maintain his word and it caused a bunch of challenges and extra headaches and hoops we had to jump through. Thankfully, we managed.
Verify all of the information provided by realtors, including expenses, bills, etc. in this transaction, and also found multiple examples of misrepresentations regarding utilities and rents.
Furthermore, on apartment blocks where there are substantial numbers, capital requirements and therefore risk, we have found through experience limited joint representation has always worked as a realtor representing the seller and not have our own interests as a buyer being maintained. We highly recommend bringing in your own representation, if the listing agent is not willing to pay a portion of his commission to your representation, work out a side deal with your representation and pay them a fee for representing you throughout the transaction.
