The Downtown Las Vegas Motels that were in escrow suddenly canceled last Monday -- the day before the escrow was supposed to close.
The Seller is very, very upset because the Buyer had run through all of his contingencies and at the last minute he claimed he couldn't get financing, thus he emailed a Termination Letter to escrow demanding his $275,000 Earnest Money Deposit (EMD) returned.
Per usual, he is claiming the Corona Virus and the US Travel Ban are to blame -- thus he can NOT close.
BULLSHIT!
First: his Due Diligence passed and he had no problem with all that was disclosed to him about the three motels. (Yes, he knew they are Value Add and the Buyer accepted that fact.)
Second: At the last minute, he claimed his bank refused to finance the transaction. Unfortunately, he claimed from the very beginning he was a Cash Buyer, thus he did NOT have a Financing Contingency in his contract.
My Attorney Friend (who I used to play golf with every week) said that just because there is a Pandemic and a Travel ban, those items are NOT in the contract, thus the EMD rightfully belongs to the Seller.
That is in the contract!
Besides, the Buyer's Up Buyer canceled on him leaving him high and dry. That's NOT the Seller's fault!
In the meantime, the Attorney is going to respond to the Termination Letter and said we'll see where that takes us.
So, are you looking for a (Non Gaming) Downtown Las Vegas Motel that can be acquired at about a 15% Cap Rate?
To Contact David Howes try: davidATdavidhowesDOTnet OR; 7 0 2 5 01 9 3 8 8 AND Please #Follow David on Twitter: @DavidAHowes Have a nice day!
The Seller is very, very upset because the Buyer had run through all of his contingencies and at the last minute he claimed he couldn't get financing, thus he emailed a Termination Letter to escrow demanding his $275,000 Earnest Money Deposit (EMD) returned.
Per usual, he is claiming the Corona Virus and the US Travel Ban are to blame -- thus he can NOT close.
First: his Due Diligence passed and he had no problem with all that was disclosed to him about the three motels. (Yes, he knew they are Value Add and the Buyer accepted that fact.)
Second: At the last minute, he claimed his bank refused to finance the transaction. Unfortunately, he claimed from the very beginning he was a Cash Buyer, thus he did NOT have a Financing Contingency in his contract.
My Attorney Friend (who I used to play golf with every week) said that just because there is a Pandemic and a Travel ban, those items are NOT in the contract, thus the EMD rightfully belongs to the Seller.
That is in the contract!
Besides, the Buyer's Up Buyer canceled on him leaving him high and dry. That's NOT the Seller's fault!
In the meantime, the Attorney is going to respond to the Termination Letter and said we'll see where that takes us.
So, are you looking for a (Non Gaming) Downtown Las Vegas Motel that can be acquired at about a 15% Cap Rate?
To Contact David Howes try: davidATdavidhowesDOTnet OR; 7 0 2 5 01 9 3 8 8 AND Please #Follow David on Twitter: @DavidAHowes Have a nice day!
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