Page 152 - Trump University Commercial Real Estate 101

TRUMP UNIVERSITY COMMERCIAL REAL ESTATE 101

He said “ Fine, ” with every intention of shopping that deal, hoping
for a higher price before I got my loan commitment the next week.
There was nothing I could do about the situation. I had to stay
protected.
One week later, the loan committee denied the loan! They said
they didn ’ t like the area in which two of the properties were located.
Oh, but they might reconsider if I put more money into the down pay-
ment. I knew my strike price and cash - on - cash target. The deal would
not work with more of my money, so I walked away.
I almost paid $ 65,000 for the lesson that you just got: Make sure

you have financing lined up before you commit to moving ahead to
the closing.

Getting to the Closing

You ’ ve signed off on the due diligence, and now it ’ s a march to the
closing. You must close on time or your deposit will be at the mercy of
the seller. You also should close on time because that ’ s part of your
reputation. They ’ ll know you to be a performer.
You might still be taking care of some of the loan commitment
items that the lender wants done before the closing. Keep your checklist
in front of you at this stage, to ensure that these items get done.
Once they ’ re completed, the lender signs off and prepares the
closing documents. You should ask to see a copy of these documents as
soon as they are done. Then send them to your attorney for review. If
anything is out of the ordinary, you must negotiate with the lender.

The Escrow Agent

A couple of days before the closing, the escrow agent will go into
high gear.
An escrow agent is a neutral third party who facilitates the closing.
This person creates the closing statements for both the buyer and

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