<Steve> 82 Report post Posted September 11, 2012 MC- I have been negotiating with a seller to do a SLO. The seller has issues with Paragraph 23. Remedies Upon Default where it protects me from all damages the seller may claim. I told him sorry it stays, but he wants to exclude Paragraph 6. Damages, to the property, and Paragraph 8. Lawful Use. Someone told him a landlord/tenant story about a meth lab that contaminated the house. Anyway, this is a sweet house in a great area with much profit potential. The seller is overly kind but smart, and was referred to me from a current SLO I am doing with another seller. He just wants some protection too. Do you think I am putting myself at to much risk excluding paragraphs 6 & 7 from my protections of paragraph 23.? Thank you! Share this post Link to post Share on other sites
MichaelC 160 Report post Posted September 11, 2012 Too much risk? No. But some additional risk? Yes.That parapgraph serves the purpose of limiting your liability in the event you default to whatever monies you have already paid the homeowner. Remove it and your liability no longer has that limitation. So the question is: do you think you may do something to default on the agreement? If so, are you willing to accept the potential risk?From what you've written, it sounds like the homeowner isn't out to get you, he just wants to protect himself after someone planted the meth lab seed in his ear. Share this post Link to post Share on other sites
<Steve> 82 Report post Posted September 11, 2012 I'm not going to do something intentionally to default and I think the seller should be good to work with over time. With SLOs I take on the responsibility of any damage to the property anyway. I had to chuckle at the meth lab. It's the kind of house and area that potential tenant/buyers will foam at the mouth to get in. I will need to screen well and go for it. Just had to check myself, there is a bit of an emotional pull with this deal for me. Thanks for the feedback MC! Share this post Link to post Share on other sites
MichaelC 160 Report post Posted September 11, 2012 Steve, with your experience and know how, I have no doubts you're making the right decision and the deal will be a good one for all involved. Another good job by the Cam Newton of lease purchasing. Share this post Link to post Share on other sites
<Steve> 82 Report post Posted September 11, 2012 lol, we're going to the play-offs this year! Oh yea Panther Pride! Share this post Link to post Share on other sites
MikeT/NC 5 Report post Posted September 12, 2012 Steve or Michael, In the above post why would the seller want paragraphs 6 and 8 taken out of the contract. Don't they protect the seller? If anything it seems like the t/b would want them to be taken out. Share this post Link to post Share on other sites
<Steve> 82 Report post Posted September 12, 2012 Mike- This is a SLO so this agreement is between me and the seller. The t/b has a separate set of agreements that are different. The seller wanted to delete the part of paragraph 23., which greatly limits my over all liability. Share this post Link to post Share on other sites
<Steve> 82 Report post Posted September 25, 2012 This SLO deal is done with tenant/buyer found and signed up. A great tenant/buyer who will probably purchase early. Good for the seller. The tenant/buyer gets new carpet. I got a new washer & dryer and a trip to the bank tomorrow. I had to negotiate new carpet between the seller and the tenant/buyer and ended up with a new washer & dryer in the process. You don't want to know, but the wife likes it! Share this post Link to post Share on other sites
MichaelC 160 Report post Posted September 25, 2012 Congratulations, Steve! Another deal in the done column. . .and a new washer and dryer to boot. Next time negotiate some new pots and pans so when the wife is done with the laundry she can take care of her man in the kitchen. Share this post Link to post Share on other sites
DanielSun 7 Report post Posted September 25, 2012 just curious, what kind of spread are you looking for per month with a SLO, steve? Share this post Link to post Share on other sites
<Steve> 82 Report post Posted September 25, 2012 Congratulations, Steve! Another deal in the done column. . .and a new washer and dryer to boot. Next time negotiate some new pots and pans so when the wife is done with the laundry she can take care of her man in the kitchen. :lol: You're a real hoot MC! just curious, what kind of spread are you looking for per month with a SLO, steve?Daniel, I shoot for a 20% spread on the montly rent amount. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted September 25, 2012 Congratulations, Steve! Another deal in the done column. . .and a new washer and dryer to boot. Next time negotiate some new pots and pans so when the wife is done with the laundry she can take care of her man in the kitchen. :lol: You're a real hoot MC!My wife, kids, and in-laws don't think so, but thanks. 1 Share this post Link to post Share on other sites
DeeLight 8 Report post Posted September 26, 2012 btw Steve, how did you find the people that referred these peeps to you? Share this post Link to post Share on other sites
<Steve> 82 Report post Posted September 26, 2012 btw Steve, how did you find the people that referred these peeps to you? Dee, the referral came from an existing SLO I have had since 2007. This 2007 seller is good friends with the seller of this deal. With the 2007 deal, the seller was on my web site and submitted his property information and I contacted him. With this second deal the seller called me after trying to sell FSBO and he was deciding to just rent out the house and he did not want to manage the property. Share this post Link to post Share on other sites
DeeLight 8 Report post Posted September 27, 2012 Ssss wwwww eeeeeee T !! I am inspired. I never thought I would be this long in getting a deal done Share this post Link to post Share on other sites