Page 113 - Trump University Commercial Real Estate 101

Locking in Y our Profit

Title Policy

Include an item in your LOI that states: “ Seller shall convey good and
merchantable title to the property to Buyer. ” This is of course assumed,
but you still want it explicitly stipulated in your offer. Here ’ s another
tip: Make the title work a seller expense. Lately, I ’ ve seen sellers trying
to push this cost off onto buyers. Don ’ t let it become a deal breaker ,
but try to have the seller pay for it.

Closing

This paragraph spells out exactly when you plan on closing on the
property. It is usually a certain number of days after the effective date
or after the inspection period.
Typical closings happen between 60 and 90 days after the effective
date, or 30 to 45 days after the inspection period has ended.

Assignment

Add a paragraph that allows you to assign the contract to a third party.

This means you can flip a property quickly without first going through
a closing. You can also use this clause to move your property from one
entity to another.
In most cases, I ’ ll take a property under contract using my com-
pany name, The Lindahl Group, LLC. Then I transfer it to the entity
that will ultimately hold the property during the period I own it. I ’ ll
name that entity [property name], LLC . For instance, if it ’ s the Cherry
Creek Mall, I ’ ll name it Cherry Creek, LLC . I don ’ t want to spend the
money on setting up an LLC until I know that the deal will go
through.
There ’ s no need to get cute with the names. There is a mistaken
notion that different names will throw off attorneys who are trying to
find your properties. The name won ’ t slow down anyone but you, as

you continually try to remember whether Acme LLC is your Cherry
Creek property in Denver or the Pheasant Run property in Raleigh.

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