Saturday, May 5, 2007
Hard Money When Buying a Shopping Center
Remove some, but not all contingencies and pass through money to the seller? Why would someone do this? The answer is when the seller is on the line for an extended period of time with their property off the market. Conduit financing takes 90 or more days. Should a seller take their property off the market for that long with no compensation? What if the market sours? What if the opportunity that they want goes away? Therefore, it is reasonable to compensate the seller for this opportunity loss. And 1 or 2% of the purchase price may be reasonable.