Episode 116 - NOT EVERY TRANSACTION CLOSES: Dustin Lapacka explains what happened on his first transaction

Here is a "real" REAL ESTATE NIGHTMARE SCENARIO. You find the perfect apartment building; and then after negotiating with the seller and the seller's broker…you are awarded the transaction. You put the property under contract and begin your physical due diligence. Everything is thumbs up and now you spend thousands of dollars on the lenders third parties. (appraisal, engineer, Phase 1 reports and legal) The loan is approved and you have raised all the equity from your investors. The loan documents are at the title company waiting for you to sign and close on the transaction. Everything is ready to go…BUT…on the day you are going to sign….you get a panicked call from the title company saying that the seller cannot sell property due to their LOAN LOCK OUT PERIOD. What? What is a loan lock out period and why is that preventing me from buying this property? Why was that not disclosed before you spent thousands in pursuit costs? Yikes!! Dustin Lapacka tells us that story and then reflects on his new apartment purchase in Arizona that did close. Dustin successfully purchased a 70 unit building that was built in 1985. We appreciate Dustin sharing his story, so we can all learn. To contact Dustin Lapacka: [email protected] To contact James Eng: [email protected] To receive our FREE 15 page WHITE PAPER REPORT on the 2017 FUNDAMENTALS OF MULTIFAMILY FINANCING 101 and to learn more about upcoming events at Old Capital Speaker Series please visit us at OldCapitalPodcast.com Are you interested in learning more about how Multifamily Syndications work? Please visit www.spiadvisory.com to learn about Michael's Real Estate Syndication business with SPI Advisory LLC.